VN Express is carrying this analysis of Vietnam’s electricity sector focused on the development of a competitive electricity market. It has a quote from Bui Xuan Hoi, principal of the Northern Electricity College, who says a competitive electricity market is nothing more than a ‘dream’ in the context of government controls of retail prices.
In brief: Blackouts were common in Northern Vietnam earlier this year for which a lack of coal and water for thermal and hydro power plants were blamed among other things. The reality is, however, that there has been chronic underinvestment in grid infrastructure and power production. This can be largely attributed to the national power provider running at huge losses as the cost of producing electricity has grown to vastly outstrip the retail electricity price which is set by the government.