Is Vietnam a good place to buy electricity?

Electric power represents one of the most promising areas for U.S. commercial prospects in Vietnam, but also the most challenging. Vietnam Electricity (EVN), a state-owned enterprise that reports directly to the Prime Minister, is the largest buyer of electricity, and holds a monopoly on transmission and distribution.

Why does Vietnam maintain a monopoly of electricity transmission grids?

The Vietnamese Government maintains its monopoly of electricity transmission grids to ensure the national energy security. Vietnam’s existing energy infrastructure is inadequate with weak grid capacity, which obstructs the integration of new capacity, particularly from renewable energy projects.

Who is responsible for drafting DPPA regulations in Vietnam?

In addition, MOIT is required to draft the amended Electricity Law and the Renewable Energy Law to submit to the Government of Vietnam for submission to the National Assembly in 2024. MOIT is responsible for submitting Direct Power Purchase Agreement (DPPA) regulations to the Government of Vietnam for approval.

What will Vietnam's future look like with major investments?

With major investments, Vietnam is expected to have an increased demand for control and protection equipment and devices such as power transformers, circuit breakers, disconnect switches, capacitors, calculated software, and telecommunication and information technology equipment.

How much wind power does Vietnam have?

A study by the World Bank estimated that 8.6% of Vietnam’s land mass could be used for wind power. The country has an estimated total wind power potential between 24.0 GW and 26.7 GW.