Power sector in Vietnam is booming due to strong economic growth of the country and major investment made in the power industry. Also, the country is building more power plants.
Vietnam is going to build 95 power plants with 49,044 MW capacity. Out of these, 44 power plants of 24,045 MW capacity are going to be built by EVN (Electricity of Vietnam), according to the Vietnamnet.
The EVN will also change its model meant for the power project management. It is also planning to establish joint stock companies that will be responsible for running the power projects.
Both ADB (Asian Development Bank) and AFD (Agence Française de Development) are helping the power plant industry of Vietnam to improve its capacity for environmental management regarding the thermal power plants. The Capacity Building on Environmental Management in the Power Sector program will focus on strengthening EVN’s capacity to manage the plants running on oil, gas and coal environmentally.
Because of the increase in the demand for electricity in the country, Vietnam is looking forward to enlarge its power industry. The growth in telecommunications, mining, population, the increased agricultural-industrial activities, as well as residential and commercial constructions are some of the factors that have increased the demand for power.
The constant growth of the country’s economy has raised the annual power demand of the country by 16%. Last decade’s fast annual economic growth (at around 7.5%) of the country has also contributed in decreasing the population proportion below the poverty line - from 58% (1993) to around 19% (2006), according to Thanhniennews.
Vietnam has also brought up its 6th Power Development Master Plan recognizing the requirement for fresh power generation, distribution and transmission projects to meet its increasing demand for electricity.
A research analyst at RNCOS said, “Vietnam’s power sector is booming at a fast pace, mainly due to investments made into the industry. The investors are helping the industry with their money, and are also getting big shares from the profits being generated by the power industry of the country. But since coal is the chief source for Vietnam’s power production, the biggest drawback of the country’s power industry is the air pollution. Both AFD and ADB have taken important measure to solve this problem”.
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