VIET NAM: Decision of the Prime Minister No. 176/2004/QD-TTg of 2004 Approving the Strategy on Development of Vietnam Electricity Industry in the 2004-2010 Period, with Orientations Towards 2020

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2004
Effective Start Year: 
2004
Effective End Year: 
2010
Scope: 
National
Document Type: 
Plan/Strategy, Other
Economic Sector: 
Power
Energy Types: 
Power, Renewable, Hydropower
Issued by: 
The Prime Minister of Government
Notes: 
Unofficial Source
Source: 
MK Law Firm
File: 
Decision No. 176/2004/QD-TTg of 2004
Overall Summary: 
A Decision to approve the strategy on development of Vietnam electricity industry in the 2004-2010 period, with orientations towards 2020.
Access
Energy access priorities: 
The development of electricity industry must be carried out in advance so as to meet the requirements of socio-economic development, [...], meet electricity demands for people's daily life and assure national energy security. To boost the electrification in rural, remote, deep-lying and mountainous areas and offshore islands.---To ensure electricity quality so as to provide electricity services of higher and higher quality at competitive prices [...].---To accelerate the research into, and development of, new and regenerated energy forms in order to meet the demands for electricity use, especially in off-shore islands and remote and deep-lying areas.--- To provide budget capital support for projects on electrification in rural, mountainous areas and off-shore islands in service of economic development as well as hunger eradication and poverty alleviation in these areas.
Energy access action plan: 
To work out appropriate policies on electricity use in rural and mountainous areas.--- To make full use of on-the-spot new energy sources to generate electricity for areas where electricity cannot be supplied from the national electric grid or is supplied with low efficiency, especially in offshore islands and remote and deep-lying areas.
Energy access targets: 
To step up the program on electricity supply for rural and mountainous areas, strive for the target that 90% and 100% of rural households will be supplied with electricity by 2010 and 2020, respectively.
Efficiency
EE priorities: 
To attach special importance to electricity saving from the stage of generation and transmission to the stage of use.
EE action plans: 
To implement the program on demand management (DSM) in order to reduce peak capacity, so as to economize investment capital and create favorable conditions for the operation of electric system and thriftily use electricity for daily-life activities.
Renewable Energy
RE targets: 
It is estimated that by 2020, the total capacity of hydroelectric power plants shall reach around 13,000-15,000 MW.
RE action plans: 
The development objectives of Vietnam electricity industry till 2010 are: To well use sources of hydraulic power (in combination with irrigation), gas and coal for the balanced development of electric sources.---To give priority to the development of hydroelectric power, especially works with combined benefits (water supply, flood and drought combat…). To encourage investment in small-sized hydroelectric power sources in various forms with a view to making full use of that clean and regenerated power source.
Environment
Energy environmental priorities: 
To economically and efficiently use the country's primary energy sources such as hydroelectric power (in combination with irrigation), gas, oil and coal for electricity production, use equipment of scientific and technological advances and reduce environmental pollution.--- To control and reduce environmental pollution in electricity activities.--- To research into and apply modern production technologies along the direction of efficiently and economically using energy and minimizing impacts on environment with rational steps.
Energy-water nexus: 
To give priority to the development of hydroelectric power, especially works with combined benefits (water supply, flood and drought combat…).
Pricing
Energy pricing: 
To ensure electricity quality so as to provide electricity services of higher and higher quality at competitive prices [...].---To set electricity prices for the objectives of promoting investment for development of the electricity industry and raising the competitiveness of electricity prices as compared with regional countries, especially the prices of electricity for production, separating electricity prices from social policies. ---To continue implementing the roadmap on electricity price reforms already approved along the direction of gradually reaching long-term marginal expenses and at the same time reforming electricity price table and reducing large cross-offset between customers' groups.
Energy Supply and Infrastructure
Infrastructure development priorities: 
The development objectives of Vietnam electricity industry till 2010 are: [...] To build gas-electricity-nitrogenous fertilizer complexes in Phu My and southwestern area. To step up the research into, and construction of, Son La hydroelectric power plant. To synchronize and modernize the national electricity-distributing network. --- To quickly, synchronously and modernly develop the electricity-transmitting and -distributing system in order to raise the reliability and safety in electricity supply and reduce electricity loss.---To quickly develop the 220 and 500 KV transmission system in order to raise the reliability of electricity supply and reduce electricity loss on transmission grids, ensuring the efficient exploitation of electric sources; to develop the 110 KV grids into the distribution networks for direct load supply.
Cross-border energy infrastructure: 
To take initiative in linking electric grids as well as in selling and purchasing electricity with regional countries.
Trade
Energy trade priorities: 
To diversify modes of the branch's development investment and prepare plans on electricity import from Laos, Cambodia and China.---To calculate and elaborate rational plans on electricity import from Laos, Cambodia and China.
Standard power production and purchasing agreements: 
To take initiative in linking electric grids as well as in selling and purchasing electricity with regional countries.
Investment
Energy sector investment priorities: 
The development objectives of Vietnam electricity industry till 2010 are: [...] To diversify modes of electricity investment and trading.---To encourage investment in small-sized hydroelectric power sources in various forms with a view to making full use of that clean and regenerated power source.---To continue implementing a number of investment projects in the forms of build-operate-transfer (BOT), joint venture or BOO in order to attract more investment capital and raise the debt-repayment capability of Vietnam Electricity Corporation.---To work out measures for mobilizing capital from the population for investment in electricity development.---To make intensive investment in, improve, upgrade and modernize the existing electric sources and grids[...].
Financial incentives for energy infrastructure: 
To work out proper financial mechanisms so that Vietnam Electricity Corporation can perform its leading role in the realization of development objectives of Vietnam electricity industry.---- To give priority to the allocation of preferential credit capital from the development assistance fund, ODA capital and bilateral foreign loans to Vietnam Electricity Corporation for investment in national key electricity projects.
Investment climate development: 
To continue implementing a number of investment projects in the forms of build-operate-transfer (BOT), joint venture or BOO in order to attract more investment capital and raise the debt-repayment capability of Vietnam Electricity Corporation.---To enhance relations with banks and international financial organizations in order to borrow investment capital, with priority given to the borrowing of ODA capital sources with low interest rates and long debt-repayment duration (ODA capital shall be allocated only to Vietnam Electricity Corporation); to borrow capital from commercial banks, first of all domestic banks, then foreign commercial banks.---To step by step form a domestic competitive electricity market, diversify modes of electricity investment and trading, encourage various economic sectors to participate therein and not change State monopoly into enterprise monopoly.
Governance
Energy management principles: 
To combine the uniform administration of the electric network throughout the country with the safe construction and administration of electric systems in each region with a view to synchronizing and modernizing the national electricity-transmitting and -distributing network so as to provide quality electricity services in a continuous, safe and efficient manner.
Technology
Clean energy technology priorities: 
To concentrate efforts on researching into scientific and technological advances to be applied to electricity production and transmission. To research into and apply modern production technologies along the direction of efficiently and economically using energy and minimizing impacts on environment with rational steps.
R&D renewable energy: 
To accelerate the research into, and development of, new and regenerated energy forms in order to meet the demands for electricity use, especially in off-shore islands and remote and deep-lying areas.