Vietnam : Maximizing Finance for Development in the Energy Sector

Vietnam has successfully developed the electricity and gas sectors that have contributed substantially to the economic development of Vietnam. To date, near universal electrification has been achieved, and the industrial, commercial, and residentia...

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Main Author:	World Bank Group
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	ELECTRICITY GAS ENERGY ENERGY FINANCE PUBLIC-PRIVATE PARTNERSHIPS CAPITAL MARKET DEBT MARKET STATE-OWNED ENTERPRISES
Online Access:	http://documents.worldbank.org/curated/en/290361547820276005/Vietnam-Maximizing-Finance-for-Development-in-the-Energy-Sector http://hdl.handle.net/10986/31246

id	okr-10986-31246
recordtype	oai_dc
spelling	okr-10986-312462021-05-25T09:21:25Z Vietnam : Maximizing Finance for Development in the Energy Sector World Bank Group ELECTRICITY GAS ENERGY ENERGY FINANCE PUBLIC-PRIVATE PARTNERSHIPS CAPITAL MARKET DEBT MARKET STATE-OWNED ENTERPRISES Vietnam has successfully developed the electricity and gas sectors that have contributed substantially to the economic development of Vietnam. To date, near universal electrification has been achieved, and the industrial, commercial, and residential sectors benefit from increasingly reliable electricity and gas supply. By early 2018, 99.9 percent of the country's communes and 99 percent of its rural households were connected to the grid. Both EVN and PVN, the state-owned electricity and gas utilities, are operationally and technically strong. Vietnam has a hydropower system, claiming 38 percent of installed capacity in 2017, followed by coal (34 percent) and natural gas (18 percent). Future investment requirements in generation are huge, and the country is expected to increase generation capacity from the current 42 GW to 100 GW by 2030. Because mostdomestic hydropower resources have already been developed, and to reduce the planned scale-up of coal-fired power generation, Vietnam has established renewables targets for solar and wind (18 GW by 2030). Starting in 1995, PVN, jointly with international oil and gas companies, developed large-scale gas fields in offshore central and southern Vietnam. In 2017, total offshore gas production was about 10 bcm, mostly destined for gas-to-power. PVN is one of the most significant enterprises operating in the Vietnamese economy, accounting for about 20 percent of national GDP and contributing to 20–30 percent of state budget revenues. To improve the efficiency of the gas and power sector, the government has embarked on introducing competition in those sectors. Electricity liberalization started in 2004 with the unbundling of EVN, the establishment of a regulator, and the introduction of a competitive generation market to ensure long-term sustainability of the power supply. The wholesale electricity market will be fully operational by 2021, allowing large eligible consumers to contract directly with power generators. The government is embarking on a similar liberalization process for gas, is currently preparing a relevant restructuring roadmap for PVN, and introducing a legal and regulatory framework for promoting LNG development, especially for gas-to-power. 2019-02-08T18:10:24Z 2019-02-08T18:10:24Z 2018-12 Report http://documents.worldbank.org/curated/en/290361547820276005/Vietnam-Maximizing-Finance-for-Development-in-the-Energy-Sector http://hdl.handle.net/10986/31246 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work East Asia and Pacific Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ELECTRICITY GAS ENERGY ENERGY FINANCE PUBLIC-PRIVATE PARTNERSHIPS CAPITAL MARKET DEBT MARKET STATE-OWNED ENTERPRISES
spellingShingle	ELECTRICITY GAS ENERGY ENERGY FINANCE PUBLIC-PRIVATE PARTNERSHIPS CAPITAL MARKET DEBT MARKET STATE-OWNED ENTERPRISES World Bank Group Vietnam : Maximizing Finance for Development in the Energy Sector
geographic_facet	East Asia and Pacific Vietnam
description	Vietnam has successfully developed the electricity and gas sectors that have contributed substantially to the economic development of Vietnam. To date, near universal electrification has been achieved, and the industrial, commercial, and residential sectors benefit from increasingly reliable electricity and gas supply. By early 2018, 99.9 percent of the country's communes and 99 percent of its rural households were connected to the grid. Both EVN and PVN, the state-owned electricity and gas utilities, are operationally and technically strong. Vietnam has a hydropower system, claiming 38 percent of installed capacity in 2017, followed by coal (34 percent) and natural gas (18 percent). Future investment requirements in generation are huge, and the country is expected to increase generation capacity from the current 42 GW to 100 GW by 2030. Because mostdomestic hydropower resources have already been developed, and to reduce the planned scale-up of coal-fired power generation, Vietnam has established renewables targets for solar and wind (18 GW by 2030). Starting in 1995, PVN, jointly with international oil and gas companies, developed large-scale gas fields in offshore central and southern Vietnam. In 2017, total offshore gas production was about 10 bcm, mostly destined for gas-to-power. PVN is one of the most significant enterprises operating in the Vietnamese economy, accounting for about 20 percent of national GDP and contributing to 20–30 percent of state budget revenues. To improve the efficiency of the gas and power sector, the government has embarked on introducing competition in those sectors. Electricity liberalization started in 2004 with the unbundling of EVN, the establishment of a regulator, and the introduction of a competitive generation market to ensure long-term sustainability of the power supply. The wholesale electricity market will be fully operational by 2021, allowing large eligible consumers to contract directly with power generators. The government is embarking on a similar liberalization process for gas, is currently preparing a relevant restructuring roadmap for PVN, and introducing a legal and regulatory framework for promoting LNG development, especially for gas-to-power.
format	Report
author	World Bank Group
author_facet	World Bank Group
author_sort	World Bank Group
title	Vietnam : Maximizing Finance for Development in the Energy Sector
title_short	Vietnam : Maximizing Finance for Development in the Energy Sector
title_full	Vietnam : Maximizing Finance for Development in the Energy Sector
title_fullStr	Vietnam : Maximizing Finance for Development in the Energy Sector
title_full_unstemmed	Vietnam : Maximizing Finance for Development in the Energy Sector
title_sort	vietnam : maximizing finance for development in the energy sector
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/290361547820276005/Vietnam-Maximizing-Finance-for-Development-in-the-Energy-Sector http://hdl.handle.net/10986/31246
_version_	1764473881074073600

Vietnam : Maximizing Finance for Development in the Energy Sector

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