Viet Nam - A Guide for Business and Investment - asean-korea centre

PART I. VIET NAM: COUNTRY AND PEOPLE7. EnergyAs of November 2004, the electricity output supplied for Vietnam’s economy was 44 billion kWh. Electricityoutput in 2005 reached nearly 53 billion kWh. The Electricity of Vietnam Corporation (“EVN”) aims to generateabout 70-78 billion KWh in 2010 and as high as 167-201 billion kWh in 2020. Achieving this goal requiresthe development of approximately 32 to 37 new power generation projects, totaling 12,400 MW in capacity,including up to 20 hydroelectric plants with 4,000 MW capacity; eight gas or oil power plants (5,200 MW),and seven coal-fired plants (3,200 MW). Implementation of these projects also requires the construction ofabout 15,000 km of 110 – 500kV transmission lines, together with 300,000 km of low medium and low voltagedistribution lines. In order to achieve the above targets, the annual power growth during 2000-2020 shouldachieve 8.8% to 10% to keep pace with the annual GDP growth of 6.6% to 8%. The annual investment requiredto achieve the set target is estimated to be US$1.5 to US$2 billion per year.A view from the Phu My Thermo - Power CenterOver the last few years, an array of large capacity power plants were built and put into operation, such as PhaLai Thermo Power Plant with capacity of 440MW, Tri An Hydroelectric with a capacity of 400MW and Hoa BinhHydroelectric Power Plant with a capacity of 1,920 MW. Further large power plants are under construction orto be constructed, such as the Phu My Thermo Power Center with a total capacity of 3,000 MW, Yaly Hydroelectricwith capacity of 720 MW. In addition, a 3,600 MW hydropower complex at Son La in the North is alsounder construction. Recently, the Phu My 3 Plant has commenced operations and is expected to provide 10%of Viet Nam’s energy requirements. Furthermore, Vietnam plans to complete its first nuclear power plant by2020 as an alternative means on meeting electricity demand.More foreign companies are beginning to enter Vietnamese power market in the form of Build-Operate-Transfer(BOT) projects such as the Mekong Delta’s 715-MW Phu My 2-2 in January 2003. The plant is fuelled by gas fromthe Nam Con Son Basin.14 Viet Nam - A Guide for Business and Investment