return icon

Will Samsung find its opportunities in power sector in Vietnam?

 VietNamNet Bridge – Samsung moves ahead with its plan to develop power projects in Vietnam. However, it’s still unclear if it can succeed in the energy sector, once the Electricity of Vietnam (EVN) remains the only wholesale buyer.

VietNamNet Bridge – Samsung moves ahead with its plan to develop power projects in Vietnam. However, it’s still unclear if it can succeed in the energy sector, once the Electricity of Vietnam (EVN) remains the only wholesale buyer.

Samsung eyeing Vietnamese power sector

According to Nguyen Khac Tho, Deputy General Director of the Energy General Directorate, Samsung is considering developing a thermopower plant project in Vietnam, either in Nghe An, Ha Tinh, Quang Binh, Hau Giang or Kien Giang.



In early August 2013, Deputy Prime Minister Hoang Trung Hai requested the Ministry of Industry and Trade to consider developing a project in the cooperation with Samsung.

In 2012, Samsung poured $7 billion to the first phase of the green energy city project in South Korea, which is expected to get completed by 2040. Meanwhile, Samsung Heavy Industries has invested $50 million in a wind power plant in Scotland.

An official of the Foreign Investment Agency, an arm of the Ministry of Planning and Investment, thinks that Samsung plans to pour money into the power sector in anticipation of the establishment of a competitive power generation market.

Under the Ministry of Industry and Trade’s Circular No. 03, the competitive power generation market would take shape by 2014, while the competitive wholesale market would form up in 2015-2022, and from 2022, Vietnam would have the competitive retail market.

Will Samsung’s electricity be salable?

The Q4/2013 report of BMI (Business Monitor International, the UK) about the Vietnamese power sector showed that the electricity demand in the country has witnessed the double digit growth rate since 2000.

The Vietnamese Ministry of Industry and Trade said the power sector would need 80 billion from now until 2025. Of this amount, $52 billion would be spent on power generation projects, while the remaining would be funneled into transmission and distribution projects.

The figures show the great potentials for the investors in the power sector. However, they would face great challenges as well. Though the competitive power generation market has kicked off, the Electricity of Vietnam (EVN) still holds the big power which allows it to set electricity prices.

According to BMI, the ceiling price at which EVN can buy from wind power projects is $0.078 per kwh, which is much lower than the regional average level of $0.15. However, EVN only accepts to buy electricity from REVN Company’s wind power plant in Binh Thuan province at $0.06 per kwh. As a result, the project still has been incurring loss over the last three years.

REVN is the first private enterprise which carries out a wind power project in Vietnam.

Commenting about the competitive power generation market, an official of the Vietnam Energy, who asked to be anonymous, said the market at this moment must not be a “competitive” market with hundreds of sellers and only one buyer.

The official went on to say that EVN’s power plants still provide 60 percent of the total supply. The other powerful conglomerates, including PetroVietnam, Vinacomin, Song Da Corporation and 200 small and medium hydropower plants can hold 40 percent of the market share only.

Pham Chi Lan, a well-known economist, in an interview given to the local press, said even the big guys such as PetroVietnam and VInacomin still have been bullied by EVN. Therefore, other enterprises have every reason to worry when joining the market.



Vietnam among top 10 best places to go for budget honeymoon

The nation has been listed among the top 10 best places to go for a budget honeymoon in 2023 by prestigious global travel website Lonely Planet.

Vietnam’s industrial production to rise 6.6% in 2023: S&P Global

Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence.

Vietnamese athletes to receive 1 mln USD for Paris Olympic gold

Vietnamese athletes competing in the Paris 2024 Summer Olympics, scheduled for July 26 to August 11, 2024, will receive 1 million USD in bonus for each gold medal; 500,000 USD for silver and 200,000 for bronze.


Party chief’s book on corruption fight to make debut

Google Doodle honours first female Vietnamese newspaper editor Suong Nguyet Anh

The world’s most popular search engine Google has paid tribute to Suong Nguyet Anh, the first female editor of the nation’s first women’s newspaper by posting a drawing of her on its homepage on February 1.

Banh Cuon among world top 10 dishes visitors should try in 2023

Australian travel magazine Traveller has listed Banh Cuon, Vietnamese steamed rice rolls, among the top 10 best meals from around the world that visitors should try in 2023.

Party chief directs key tasks for new year

Party Secretary Nguyen Phu Trong on Tuesday chaired a meeting of the Secretariat of the Communist Party of Vietnam (CPV) Central Committee, mapping out key tasks for the new year.


Domestic market to drive tourism recovery in 2023: insider

Some big companies made profits in 2022, but others incurred losses

While Duc Giang Chemicals and Binh Son Refining and Petrochemical have reported big profits for Q4 and the year 2022, Vietnam Airlines and leading steel manufacturer Hoa Phat saw big losses for the year.

Vietnamese couple help German bicyclist in distress

Trung and Nhung, a Vietnamese couple, on the way to travel across Vietnam on Tet holiday, saw a foreigner who was facing troubles because of strong winds in Ninh Thuan.

Vietnam develops green agriculture to increase exports to EU

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Vietnamese team comes first at Southeast Asian Fencing Championship

Vietnam secured the first position at the 2023 Southeast Asian Fencing Championship which has taken place recently in Malaysia.

2023 - Time for Edtech to thrive in Vietnam

Experts are positive about the development of Vietnam’s education technology (Edtech) market in 2023 if local Edtech companies can overcome post-pandemic challenges.

UK imports from Vietnam in 2022 put at over US$6 billion

United Kingdom (UK) imports from Vietnam amounted to US$6.06 billion last year, rising by 5.2% over 2021, according to the General Department of Vietnam Customs.

Five more registration officials in Hanoi prosecuted for soliciting bribes

Police of Hanoi’s Thuong Tin District has started legal proceedings against five officials at 2915D Registration Centre for taking bribes.