Electricity shortage has struck northern Vietnam over the past few weeks. From a certain perspective, however, this is a good opportunity as it has exposed the limitations of the power sector and has prompted the Government to thoroughly assess relevant issues, such as the development of power sources, power projects and transmission networks, and improvement of the competitive power trading market.
Vietnam Electricity Group (EVN) currently accounts for 38.4% of the total power capacity, and other investors the rest. Over the past time, major power projects of EVN have faced delays due to many obstacles during the development process.
In addition, experts in Vietnam and from the World Bank have pointed out that the slow development of the power market, with the electricity price not fully reflecting the market costs, is the main reason for the lackluster participation of investors, leading to loopholes in energy security.