VIETNAM ELECTRICITY MARKET

Vietnam electricity market is still exclusive when Vietnam Electricity (EVN) is the unit holding monopoly on regulating, buying electricity, transmitting and distributing electricity. Generating power is the only segment that other units apart from EVN take part in due to the high-investment characteristics. Over the last 10 years, Vietnam electricity industry added new supply sources continuously in order to keep pace with the dramatic demand growth rate. Accumulated in the first 3 months of 2019, the total supply was estimated to increase 9.58% over the same period in 2018.

In Q1/2019, the volume of imported electricity accounted for 1.46% of the total electricity supply, increasing by 12,9% compared to the same period of 2018. The demand for electricity in Vietnam is very enormous in short term, mid-term and long term. According to EVN’s calculation, in order to meet the economic development demand with the growth rate from 7.5% to 8% and reach the goal to 2020 that Vietnam basically becomes an industrial country, over the next 20 years, the electricity demand will increase by 15% – 17% /year.

The 500kV North – South ultrahigh-voltage grid system must continuously transmit high capacity from the North and the Central to the South, causing power loss. In Q1/2019, EVN’s powder loss was 6.57%, 0.13 % better than 2019’s plan (6,7%).

Electricity price in Vietnam is quite low compared to other countries in the Asia – Pacific region. However, compared to per capita GDP, the electricity price in Vietnam is still high. This is considered as one of the reasons that makes the Government issue cross subsidies. On 20/03/2019, The Ministry of Industry and Trade officially adjusted the electricity price up to 8.63%, which was equivalent to 1,864.44 VND.

 

Abbreviations
Executive Summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
2. Industry overview
2.1 Situation of global electricity industry
2.1.1 Demand and supply for electricity
2.2 Situation of Vietnam electricity industry
2.2.1 History of Vietnam electricity industry
2.2.2 Value chain of the industry
2.2.3 Electricity generation
2.2.4 Electricity consumption
2.2.5 Electricity price
2.3 Issues in energy industries development
2.3.1 Existing
2.3.2 Challenges
2.4 Planning and forecasting
2.4.1 Planning
3. Business analysis
3.1 Typical companies of electricity industry
3.2 Business performance indicators
3.3 Financial indicators
3.4 Payment indicators
Southern Power Corporation – EVNSPC
Northern Power Corporation – EVNNPC
HCM city Power Corporation – EVNHCMC
Hanoi city Power Corporation – HNPC
Central VN Power Corporation – EVNCPC
Power Generation Corporation 3 – EVNGENCO3
Power Generation Corporation 1 – EVNGENCO1
Hai Phong Thermal Power Joint Stock Company
Quang Ninh Thermal Power Joint Stock Company
Pha Lai Thermal Power Joint Stock Company

 

 

List of figures
Figure 1: Monthly CPI fluctuations, 1/2015 – 3/2019
Figure 2: GDP growth rate by quarter, 2016-2019
Figure 3: VND/USD exchange rates, 1/2013-3/2019
Figure 4: FDI attraction by industry, Q1/2019
Figure 5: Contribution to electricity production and distribution in GDP, 2012 – 3T/2019
Figure 6: World electricity production volume 2009-2017
Figure 7: Structure of world electricity volume, 2017e
Figure 8: Structure of electricity supply according to recourse, 2016 – 2017
Figure 9: World’s top largest electricity producing countries, 2016 – 2017
Figure 10: Electricity production volume in some countries, 2006 – 2017
Figure 11: Global electricity consumption, 2008 – 2017
Figure 12: Top 10 most electricity consuming countries, 2017
Figure 13: Top largest electricity exporters, 2017
Figure 14: Total supply of electricity, 2010 – 3T/2019
Figure 15: Proportion of electricity generation by supplier, 2017
Figure 16: Structure of electricity production by sources of materials, 2012 – 2018
Figure 17: Distribution of main power plants
Figure 18: Electricity import from China, 2010 – 3T/2019
Figure 19: Electricity consumption per capita of Vietnam, 2000-2018e
Figure 20: Electricity consumption structure, 3M/2019
Figure 21: Elestic electricity factor/GDP, 2010 – 3T/2019
Figure 22: Electricity outage, 2012 – 2018
Figure 23: Average electricity purchase price of EVN, 1/2017 – 1/2019
Figure 24: Average electricity price, 7/2007 –3/2019
Figure 25: Price of input material, 1/2014 – 3/2019
Figure 26: VGCM situation, 2012 – 2018e
Figure 27: Structure of electricity production by primary energy source
Figure 28: Average per capita consumption of coal and CO₂
Figure 29: Leveled Cost of Electricity of techs per 1kWh, 2017-2050
Figure 30: Import of electrical wires and cables, 2011 – 3T/2019
Figure 31: Structure of import value of electrical wires and cables by nations, 3T/2019
Figure 32: Growth of renewable electricity capacity, 2016 – 2030f
Figure 33: Net revenue, 2017 – 2018
Figure 34: Profit indicator, 2017 – 2018
Figure 35: Self-financing rate, 2016 – 2017
Figure 36: Financial cost, 2017 – 2018
Figure 37: Total asset, 2017 – 2018
Figure 38: Days of sales outstanding, 2018
Figure 39: Profit indicators, 2017
Figure 40: Day’s sales in inventory, 2018
Figure 41: Solvency, 2017 – 2018

List of tables 

Table 1: Power projects operation in 2019
Table 2: Advantages and disadvantages of hydroelectricity and thermal electricity comparison
Table 3: Electricity generating technology from coal (Thermal power)
Table 4: Commercial electricity according to the distribution companies (Million kWh), 2016 – 2018
Table 5: Electricity supply reliability criteria, 2017-2018
Table 6: Vietnam’s getting electricity indicator, 2015 – 2019
Table 7: Getting electricity indicator of countries participating in CPTPP, 2018*
Table 8: Avoided cost tariff applied to small and medium-sized hydroelectric plants in 2018
Table 9: Average electricity wholesale price of EVN for other electricity corporations in 2018
Table 10: Electricity price in 6 degree