Experts urge private investment in Vietnam's power grid

Ninh Thuan and Binh Thuan provinces are increasingly burdened by overloaded transmission lines and substations.

As more transmission lines and sub-stations get overloaded especially in Vietnam's Ninh Thuan and Binh Thuan provinces, state media reports that authorities have urged the government to allow investors to install transmission systems and transfer them to the Vietnam Electricity (EVN) for operation.

Phuong Hoang Kim, director of the Ministry of Industry and Trade’s Electricity and Renewable Energy Authority, told Nguoi Lao Dong  newspaper that with huge sums needed for electricity development and the Government no longer guaranteeing loans for power projects, the private sector should be allowed to invest in some stages.

Vietnam's Electricity Law stipulates a government monopoly in transmission, meaning the government installs, manages and operates transmission systems, he said.

Therefore, the private sector is not allowed to do so. Costs also aren't allowed to dip below $0.0043 (100 VND)/KWh and must be subsidised by the government to keep electricity prices under control.