Vietnam draws up roadmap to eliminate monopoly in power sector

A solution for the power industry has been put into discussion: selling entire power plants to investors after they are put into operation.

The Ministry of Planning and Investment (MPI) is consulting with relevant ministries and branches about a draft strategy on the development of EVN (Electricity of Vietnam_ by 2030, with a vision until 2045.

Vietnam draws up roadmap to eliminate monopoly in power sector



The document emphasises the principle of ensuring a healthy financial situation for EVN, preserving and developing the state’s capital in EVN, and EVN’s capital in other enterprises.

To reach that end, the compilers believe that it is necessary for the holding company to keep suitable ownership ratios in subsidiaries that generate and retail electricity. This will restructure financial investments and get capital for new power plants.

One of the solutions is to gradually divest capital from power generation companies in stable operations, where EVN doesn’t need to hold a controlling stake, in order to seek capital to pay debts or develop new investment projects.

One of the solutions is to gradually divest capital from power generation companies in stable operations, where EVN doesn’t need to hold a controlling stake, in order to seek capital to pay debts or develop new investment projects.

Vietnam could sell power plants after they become operational to outside investors to raise funds for new projects.

 


It is also necessary to equitize independent companies where the State doesn’t need to hold 100 percent of capital. This leaves more room to invest in power generation, transmission, distribution companies and supporting services.

The Party Politburo’s Resolution No 55 on the national energy development strategy by 2030 released earlier this year mentioned important solutions, including the encouragement and creating of favorable conditions for the private sector to contribute to the power development.

Ngo Tri Long, a respected economist, commented that it is reasonable to build an EVN development strategy on the basis of Resolution No 55, which comes in line with the policy on removing the monopoly and gradually privatizing the important energy sector.

The moves taken by the government in recent years have been following the strategy. It doesn’t act as a guarantor for EVN to borrow money on a large scale, but only to borrow money to develop power transmission projects. It has also been moving ahead with the privatization of the power sector through the deployment of stages in the competitive power generation market.

An analyst commented that though private investors have become involved in many power projects, this is the first time a proposal on selling some state-invested power projects to foreign investors has been made officially.

Long warned that project valuation will be a complicated issue if the government sells state-invested projects to investors.

“There must be a professional organization to assess the value of the projects to ensure that the projects can be sold at market prices,” Long said.

Mai Lan 

Electricity officials suspended for abnormally high electricity bill

Electricity officials suspended for abnormally high electricity bill

Two electricity officials in the central province of Quang Binh have been suspended following a case in which a local family was reported for an abnormally high electricity bill.

Suitable tiered pricing mechanism urged for Vietnam's electricity sector

Suitable tiered pricing mechanism urged for Vietnam's electricity sector

The Ministry of Industry and Trade (MoIT) is proposing reducing power price tiers from the current six to five levels.

 
 

Other News

.
Black Friday 2021: the saddest sales day ever
Black Friday 2021: the saddest sales day ever
BUSINESSicon  28/11/2021 

Advertising banners with discounts from 50-70% are hung in front of doors but the number of customers visiting fashion stores in Hanoi was very modest during the biggest sale campaign of the year.

Vietnamese interact regularly on e-commerce fanpages
Vietnamese interact regularly on e-commerce fanpages
BUSINESSicon  28/11/2021 

According to iPrice’s research on user participation in social media on the Top 3 multi-industry e-commerce Facebook pages, the percentage of Vietnamese users interacting on the pages accounted for 36%.

Registration fees for domestically manufactured and assembled cars to be cut by 50%
Registration fees for domestically manufactured and assembled cars to be cut by 50%
BUSINESSicon  28/11/2021 

According to Decree 103 issued by the Government on November 26, the first-paid registration fee for cars manufactured and assembled locally will be reduced by 50% from December 1, 2021 to May 31, 2022.

Vietnam boats advantages in foreign investment attraction
Vietnam boats advantages in foreign investment attraction
BUSINESSicon  28/11/2021 

Vietnam is assessed to have plenty of room to compete for foreign direct investment (FDI) against major competitors in the current global production shift, said Nguyen Bich Lam, former Director General of the General Statistics Office.

Woodwork enterprises racing for year-end orders
Woodwork enterprises racing for year-end orders
BUSINESSicon  28/11/2021 

Despite the adverse effects caused by the Covid-19 pandemic, export sales of Vietnam’s woodwork industry have climbed.

C.bank expands credit quota for banks to meet growing credit demands
C.bank expands credit quota for banks to meet growing credit demands
BUSINESSicon  28/11/2021 

Many banks have reached their respective credit limits in the first nine months of 2021.

New foreign investment approvals seen hitting US$30 billion this year
New foreign investment approvals seen hitting US$30 billion this year
BUSINESSicon  27/11/2021 

Vietnam attracted US$2.72 billion in new foreign investment approvals in November, raising the total in the January-November period to US$26.46 billion. 

COVID severely impacts stock markets in Southeast Asia including VN: conference
COVID severely impacts stock markets in Southeast Asia including VN: conference
BUSINESSicon  27/11/2021 

Stock markets in Southeast Asia including Viet Nam have been severely impacted by the COVID-19 pandemic outbreak, according to studies presented at the annual Conference on Business, Economics & Resources held from November 25 to 26.

ASEAN market boasts opportunities for Vietnamese firms: official
ASEAN market boasts opportunities for Vietnamese firms: official
BUSINESSicon  27/11/2021 

Amid the COVID-19 pandemic’s severe impacts on global supply chains, the ASEAN market in close proximity with Vietnam is holding opportunities for the country’s enterprises, an official has said.

Vietjet signs 150-million-USD deal with Swiss MRO service provider
Vietjet signs 150-million-USD deal with Swiss MRO service provider
BUSINESSicon  27/11/2021 

Vietjet and SR Technics on November 26 inked a Memorandum of Understanding (MoU) worth 150 million USD involving the provision of MRO services on Vietjet’s CFM56-5B engine fleet, installed on their Airbus A320 and A321 aircraft.

President co-chairs Vietnam - Switzerland Business Forum
President co-chairs Vietnam - Switzerland Business Forum
BUSINESSicon  27/11/2021 

Vietnamese President Nguyen Xuan Phuc and his Swiss counterpart Guy Parmelin co-chaired a Vietnam - Switzerland Business Forum in Bern on November 26.

Concerns on money investment during high inflation
Concerns on money investment during high inflation
BUSINESSicon  27/11/2021 

According to the Economist Intelligence Unit (EIU), the world economy could lose trillions of dollars due to the prolonged pandemic, with developing economies suffering the most damage. 

Only 1% of American businesses plan to withdraw from Vietnam
Only 1% of American businesses plan to withdraw from Vietnam
BUSINESSicon  27/11/2021 

Only 1% of American businesses plan to withdraw from Vietnam, according to the latest survey of the American Chamber of Commerce in Vietnam (AmCham Vietnam).

Stock trading booms, money flows to bankers’ pockets
Stock trading booms, money flows to bankers’ pockets
BUSINESSicon  26/11/2021 

Bank shares continue to attract cash flow. The VN Index has climbed to new highs, exceeding the 1,500 point benchmark.

Vietnam’s global commitments force ministry to reconsider electricity projects
Vietnam’s global commitments force ministry to reconsider electricity projects
BUSINESSicon  27/11/2021 

The latest draft of the eighth national power development plan in 2021-2030 shows considerable reductions in coal-fired power and increases in wind power, following Vietnam’s strong commitments at COP26.

International, domestic gold price gap widens to VND11 million
International, domestic gold price gap widens to VND11 million
BUSINESSicon  26/11/2021 

While the gold price in the world market is falling sharply, the domestic price keeps rising, with the gap between prices hitting VND11 million per tael.

Cold storage is more attractive  during the pandemic
Cold storage is more attractive during the pandemic
BUSINESSicon  26/11/2021 

There has been a sharp rise in demand for cold storage in the Asia-Pacific region which has pushed foreign investment into Vietnam, strengthening the value of the local supply chain.

13th EuroCham White Book released at Meet Europe 2021
13th EuroCham White Book released at Meet Europe 2021
BUSINESSicon  25/11/2021 

Despite the COVID-19 pandemic, two-way trade between Vietnam and the EU still expanded by nearly 20 percent annually, reaching more than 56 billion USD last year.

Ministry takes action as market sets up new price levels
Ministry takes action as market sets up new price levels
BUSINESSicon  25/11/2021 

It was recorded on November 23 in Ho Chi Minh City that some products and many services set new price levels.

2021 Black Friday is truly ‘black’ for shop owners
2021 Black Friday is truly ‘black’ for shop owners
FEATUREicon  26/11/2021 

Many retailers say that consumers ate indifferent to sale promotion programs for Black Friday 2021, the biggest sale campaign of the year.

 
 
 
Leave your comment on an article

OR QUICK LOGIN