Oliver Massmann opines on the liberalization of distribution in the power sector in Vietnam. He asks the question .... 1. What positive impacts will the absence of the current monopoly in distribution and production of power, petrol and coal have on the economy? Answer ...In the Vietnam energy market, the group, EVN, has long been known as the state monopoly in transmission and distribution of electricity. Vietnam still features the Single Buyer Model with EVN purchase of all electricity generated from on-grid independent power projects. Investors find it extremely hard to negotiate the Power Purchase Agreement with EVN. Meanwhile, EVN keeps operating at loss with huge debts to PetroVietnam and Vinacomin. The adoption of the list of goods and services subject to state monopoly will then limit the power of EVN.
The State only maintains its monopoly over the operation of multi-purposes hydropower and nuclear power plants, transmission, moderation as well as operation of the national electricity system of big power plants and those having special importance in terms of socio-economic and national defense and security. Trading in petroleum and oil is also no longer subject to state monopoly. This is a positive movement of the Government in accordance with its international commitments on market access and its plan on privatization of certain state-owned enterprises.
The Government has taken a step closer to Vietnam Wholesale Electricity Market, which is aimed to be launched at the beginning of 2016. More players will participate in the power market. The consumers would have more choices from whom they will buy electricity. A competitive and fair power market will be gradually formed, resulting in greater attraction to investment.
Original URL: https://www.linkedin.com/pulse/vietnam-liberalization-distribution-power-sector-your-massmann?trk=mp-reader-card
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