Description
With a large population, strong economic growth, and rapidly declining reserves in existing oil and gas fields, Vietnam is one of the fastest growing energy import markets in Asia. Vietnam’s annual electricity demand is expected to grow by 10% to 12% per year over the next decade, making it one of the fastest growing countries in Asia in terms of electricity consumption.
Vietnam has average strength on the power generation side, but is growing rapidly. According to IEV’s March 2021 report, the total installed capacity of Vietnam’s power system will be about 56 GW by 2020. Vietnam’s power mix has the largest share of coal-fired power and hydropower at 34% and 30% respectively, gas turbine and oil-fired thermoelectric power at 15%, solar (including rooftop solar) at 24%, wind power at 1%, biomass power at about 1%, and hydropower imported from Laos at 1%. The total number of operating power plants in Vietnam is about 162 (excluding small hydropower plants and renewable energy). the maximum load capacity of the power system in 2020 is about 38.7 GW, and the crude reserve ratio of the power system (excluding wind and solar) is 34.3%. According to the Vietnamese government, the installed capacity is expected to reach 125-130 GW by 2030, doubling the installed capacity within 10 years. Vietnam’s power generation CAGR is expected to reach 5.7% from 2021 to 2030.
Retail electricity tariffs in Vietnam are approved by the government’s Prime Minister and have a uniform tariff policy throughout the country, with tariff levels that are low compared to other countries in the region. The higher electricity tariffs for industrial, commercial and foreign consumers subsidize the electricity bills of urban and rural residents.
To attract more private sector investment in IPP projects, the Ministry of Industry and Trade and EVN (Vietnam Electricity) are pushing the government to gradually deregulate electricity prices, according to CRI analysis. Under current regulations, EVN can raise or lower electricity prices every six months without government approval, within a 10 percent range whenever the cost of power generation (fuel prices, foreign exchange rates, changes in generation mix, etc.) rises by 3 percent, and government approval is required for price changes above 10 percent. The current average price of electricity in Vietnam is VND1,533-2,580 (6.3 to 10.75 cents) per kWh, depending on usage.
According to CRI’s analysis, Vietnam has experienced rapid economic development in recent years, with high potential for future economic growth. Since early 2022, Vietnam has gradually gotten rid of the adverse effects of COVID-19, which is conducive to further inflow of foreign capital and will drive electricity demand to maintain high growth. It is expected that in the next few years, Vietnam will gradually reduce the proportion of thermal power generation while Vietnam will work to accelerate the development of renewable energy (hydropower, wind, solar, biomass, etc.).
CRI recommends that investors actively explore the possibility of investing in wind and solar power as well as developing pumped storage hydropower plants. On the other hand, they can continue to install clean and efficient thermal power plants in some regions, and prioritize the development of pithead coal power using clean coal power technology in the power shortage and coal-producing areas of northwest Vietnam.
Topics covered:
- Overview of Vietnam’s power sector
- The economic and policy environment of Vietnam’s power sector
- What is the impact of COVID-19 on the power sector in Vietnam?
- Vietnam Electricity Industry Market Size 2017-2021
- Vietnam Electricity Industry Market Forecast 2022-2031
- Vietnam Electricity Import and Export Analysis
- Analysis of major power companies in Vietnam
- Key Drivers and Market Opportunities in Vietnam’s Power Sector
- What are the key drivers, challenges and opportunities for Vietnam’s power sector during the forecast period 2022-2031?
- What is the expected revenue of Vietnam’s power sector over the forecast period 2022-2031?
- Which segment of the Vietnam power industry market is expected to dominate the market in 2031?
- What are the main negative factors facing the power sector in Vietnam?
Table of Contents
1 Overview of Vietnam
1.1 Geographical situation
1.2 Demographic structure of Vietnam
1.3 Vietnam’s economy
1.4 Minimum Wage in Vietnam 2011-2022
1.5 Impact of COVID-19 on Vietnam’s power sector
1.6 About CRI
2 Vietnam power industry development environment
2.1 Brief History of Electricity Development in Vietnam
2.2 Types of electricity in Vietnam
2.3 Policy environment of Vietnam’s electricity sector
3 Vietnam electricity industry supply and demand situation
3.1 Vietnam electricity industry supply situation
3.2 Vietnam electricity industry demand situation
4 Vietnam’s electricity industry import and export status
4.1 Vietnam’s electricity industry import status
4.1.1 Vietnam’s electricity import volume and import value
4.1.2 Vietnam’s main sources of electricity imports
4.2 Export status of Vietnam’s electricity industry
4.2.1 Vietnam’s electricity export volume and export value
4.2.2 Vietnam’s main export destinations for electricity
5 Vietnam Electricity Industry Market Competition
5.1 Barriers to entry in Vietnam’s electricity industry
5.1.1 Brand Barrier
5.1.2 Quality Barriers
5.1.3 Capital Barriers
5.2 Competitive Structure of Vietnam’s Electricity Industry
5.2.1 Bargaining power of electricity suppliers
5.2.2 Consumer bargaining power
5.2.3 Competition in Vietnam’s electricity sector
5.2.4 Potential Entrants in the Electricity Industry
5.2.5 Alternatives to Electricity
6 Analysis of major power companies in Vietnam
6.1 Quang Ninh Thermal Power JSC (QTP)
6.1.1 History of Quang Ninh Thermal Power JSC (QTP)
6.1.2 Major Products of Quang Ninh Thermal Power JSC (QTP)
6.1.3 Operating Model of Quang Ninh Thermal Power JSC (QTP)
6.2 Pha Lai Thermal Power JSC
6.2.1 History of Pha Lai Thermal Power JSC
6.2.2 Pha Lai Thermal Power JSC’s Main Products
6.2.3 Pha Lai Thermal Power JSC’s Operating Model
6.3 Tkv Campha Thermal (NCP)
6.3.1 History of Tkv Campha Thermal (NCP)
6.3.2 Tkv Campha Thermal’s (NCP) Main Products
6.3.3 Tkv Campha Thermal’s (NCP) Operating Model
6.4 Ninh Binh Thermal Power JSC
6.4.1 History of Ninh Binh Thermal Power JSC
6.4.2 Ninh Binh Thermal Power JSC’s Main Products
6.4.3 Ninh Binh Thermal Power JSC’s Operating Model
6.5 Hai Phong Thermal Power SJC
6.5.1 History of Hai Phong Thermal Power SJC
6.5.2 Main Products of Hai Phong Thermal Power SJC
6.5.3 Hai Phong Thermal Power SJC’s Operating Model
6.6 Central Hydropower Joint Stock Company
6.6.1 History of Central Hydropower Joint Stock Company
6.6.2 Central Hydropower Joint Stock Company’s Major Products
6.6.3 Operating Model of Central Hydropower Joint Stock Company
6.7 An Giang Power And Water Supply Joint Stock Company
6.7.1 History of An Giang Power And Water Supply Joint Stock Company
6.7.2 An Giang Power And Water Supply Joint Stock Company’s Major Products
6.7.3 Operating Model of An Giang Power And Water Supply Joint Stock Company
6.8 Dai Truong Thanh Holdings Energy Investment Joint Stock Company
6.8.1 History of Dai Truong Thanh Holdings Energy Investment Joint Stock Company
6.8.2 Dai Truong Thanh Holdings Energy Investment Joint Stock Company’s Major Products
6.8.3 Operating Model of Dai Truong Thanh Holdings Energy Investment Joint Stock Company
6.9 Tra Vinh Rural Electric Development Joint Stock Corporation
6.9.1 History of Tra Vinh Rural Electric Development Joint Stock Corporation
6.9.2 Tra Vinh Rural Electric Development Joint Stock Corporation’s Major Products
6.9.3 Operating Model of Tra Vinh Rural Electric Development Joint Stock Corporation
6.10 EVN International Joint Stock Company
6.10.1 History of EVN International Joint Stock Company
6.10.2 EVN International Joint Stock Company’s Major Products
6.10.3 Operating Model of EVN International Joint Stock Company
7 Vietnam Electricity Sector Outlook 2022-2031
7.1 Analysis of development factors of Vietnam’s electricity sector
7.1.1 Drivers and Development Opportunities in Vietnam’s Electricity Sector
7.1.2 Threats and challenges to Vietnam’s electricity sector
7.2 Vietnam Electricity Industry Supply Forecast
7.3 Vietnam Electricity Market Demand Forecast
7.4 Vietnam Electricity Import and Export Forecast
List of selected charts
Chart Total population of Vietnam 2006-2021
Chart GDP per capita in Vietnam 2011-2021
Chart 2008-2021 Vietnam government issued policies related to the power industry
Chart Electricity Production in Vietnam 2016-2021
Chart Domestic consumption of electricity in Vietnam 2005-2021
Chart 2005-2021 Vietnam’s electricity imports
Chart 2010-2021 Vietnam electricity import amount
Chart 2018-2021 Vietnam’s electricity importers and import value
Chart 2005-2021 Vietnam electricity export volume
Chart 2010-2021 Vietnam electricity export value
Chart Electricity Exporting Countries and Export Value of Vietnam 2018-2021
Chart 2022-2031 Vietnam Electricity Production Forecast
Chart 2022-2031 Vietnam Domestic Electricity Market Size Forecast
Chart 2022-2031 Vietnam’s electricity import forecast
Chart 2022-2031 Vietnam’s electricity export forecast
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