Vietnam Electricity Corporation was established by decision No.

562/QD-TTg on
October 10, 1994, by the Prime Minister based on the reorganization of the units of the Ministry
of Energy; being organized and operated under the Charter attached to Decree No. 14/CP dated
Jan 27, 1995, of the Government. On June 22, 2006, the Prime Minister of the Government
issued the decision No. 147/QD-TTg approving the pilot scheme to establish the Vietnam
Electricity Group and the decision No 2006/148/QD-TTg on the establishment of the parent
company-Vietnam Electricity Group. On June 25, 2010, the Prime Minister issued Decision
No. 975/QD-TTg regarding the change of the mother company Electricity Group into the one-
member limited liability company owned by the State. On December 06, 2013, the Prime
Minister issued Decree No. 205/2013/ND-CP regarding the Charter of organization and
operation of the Vietnam Electricity. The full name is Vietnam Power Group and the Business
name is Vietnam Electricity abbreviated by EVN

Business type: One-member Limited liability company

Core business: Managing the entire electricity supply chain, from production and transmission to
distribution and trading; managing the national power system's production, transmission, and
distribution processes; handling the import and export of electric power; managing investments
and capital for power projects; and overseeing the operation, maintenance, and upgrading of
electrical and mechanical equipment, control systems, and automation in the electricity
production, transmission, and distribution infrastructure, as well as power-related works and
electrical testing.
Main subsidiaries
Power production: 3 Power Generation Corporations (GENCO 1, 2, 3);
Power Business: 5 Power Corporations, namely, Northern Power Corporation (EVNNPC),
Central Power Corporation (EVNCPC), Southern Power Corporation (EVNSPC), Hanoi Power
Corporation (EVNHANOI), the Ho Chi Minh City Power Corporation (EVNHCMC).
Power transmission: National Power Transmission Corporation (EVNNPT)

EVN aims to meet the electric energy demand of customers with better and better quality and
services Following the slogan of Enlightening Trust
EVN values the goal of building trust and credibility through the quality of products and services
with top priority provided with full honesty and responsibility.
Devotion - Wisdom
EVN desires its employees to be devoted and have a high sense of responsibility. Cooperation
desires to create a favorable environment for people to enhance creativity, technological
innovation, and management processes to deliver the highest performance, putting EVN in the
leading position in the power sector in the country and in the region.
Every action of EVN is human-oriented, for the sake of human beings.
EVN always honors a sense of responsibility and devotion dedicated to the work and customers
EVN commits itself to respect the laws, to act unbiasedly, honestly, impartially, and
transparently
.
Strength in every action of EVN is consensus and collective intelligence
EVN strives to deserve the trust of the country and the people's

500kV transmission line.

Relations with partners "Cooperation for mutual development
EVN considers partners as friends, always desire to build friendly and sustainable relationships
with partners based on equality, win-win situation, and mutual trust.
- When contacting domestic and foreign partners, EVN’s employees confirm their roles and
positions through courteous manners, proper etiquette, and punctuality.
- When dealing with business, EVN respects the laws and healthy competition based on
advanced technology and good quality products.
- When working with foreign partners or going on a business trip abroad, EVN’s employees
comply and respect the laws and culture of the foreign country where they visit, and the
agreements and treaties in which Vietnam has signed or participated. Securing benefits of the
community "For a developed community"
The commitment of environmental protection "To protect the common house"
- EVN strives to apply advanced, clean, and environmentally friendly technologies with the aim
of energy efficiency, conservation, and environmental impact mitigation. EVN also commits
itself to make adequate investments in pollution control, and environmental quality improvement
for all the projects owned and invested by EVN.

Vietnam Electricity (EVN), a state-owned enterprise that reports directly to the Prime Minister,
is the largest buyer of electricity and holds a monopoly on transmission and distribution. Electric
power is under the jurisdiction of the Ministry of Industry and Trade (MOIT). The Directorate
General of Energy, under the MOIT, is responsible for overall energy planning and policy.

The Electricity Regulatory Authority of Vietnam (ERAV), is responsible for establishing and
supervising the power market, power planning, tariff regulation, and licensing. The Vietnamese
government relies on the national power development plans to advance the sector, which
forecasts growth in demand and maps out the overall development of the power industry to meet
demand ten years out. MOIT released the draft proposal for the national power development plan
for the period of 2021 - 2030 with a vision to 2045 (Draft PDP8) The country’s robust
industrialization process has fueled a surging demand for energy in general and electricity.
Vietnam is one of Asia’s fastest-growing energy markets due to its large population and sharp
economic growth coupled with fast declining reserves in its existing oil and gas fields.
According to the Institute of Energy of Vietnam (IEV), Vietnam is set to face a surge in power
demand and consumption over the coming decade, which will have an impact on its energy
security. The Government of Vietnam expects power consumption to grow 10-12 percent
annually through 2030, one of the fastest power consumption growth rates in Asia.
MOIT forecasted that localized power shortages in the manufacturing hub of Ho Chi Minh City
are expected to begin in 2021 and that by 2030 it will lack more than 10,000 megawatts (MW) or
7.5 percent of total capacity. The total investment capital for the 2021-2030 period will be about
USD 128.3 billion (average about USD 12.8 billion per year), of which USD 950 million will be
for power generation/source/plants and about USD 32.9 billion (USD 3.3 billion per year) will be
for power grids. According to IEV’s report in March 2021, the installed power generation
capacity in Vietnam is approximately 56,000 MW (56 GW). The Vietnamese electricity system
has a total installed power source capacity of about 69GW (including hydroelectric plants
imported from Laos and rooftop solar power).
In March 2020, Vietnam’s Politburo (the highest body of the Communist Party of Vietnam)
issued Resolution No. 55 on Strategic Energy Orientation until 2030 with Vision 2045. Which
underlined that installed capacity by 2030 is expected to be 125-130GW, doubling of its capacity
in 10 years Vietnam’s installed wind power capacity grew to 787 MW during 2021, up from 637
MW a year earlier. The Draft PDP8 proposes an addition of 5,000 MW of onshore wind power
and 3,000 MW of offshore wind power by 2030, but Vietnam seems to likely achieve this ahead
of time.
Vietnam’s installed solar capacity has doubled in recent years, rising to an estimated 17,600 MW
in 2021, owing mainly to a massive build of more than 11,000 MW in 2020. Given the swift
growth of the sector, the target for solar power could reach up to 22,000 MW by 2030 as
proposed in the Draft PDP8, but issues over connecting the new solar capacity to the grid will
need to be resolved.
Main issues with power sources:
● Hydropower source: Currently there are about 17GW of large hydroelectricity over
30MW and 3.4GW of small hydroelectricity. The remaining hydropower construction
potential is only about 2.7 GW of large hydropower over 30 MW expected to be
 operational in the period 2020-2025, and about 2.8 GW of small hydro. As of the end of
2019, major hydropower dams have seen record low water levels, due to changing
weather patterns in the country, which is likely to threaten hydropower generation output
for years to come.
● Coal thermal power: Vietnam is seeking to reduce coal-fired thermal power from 34
percent of its power source in 2020 to 27 percent in 2030. Despite increasing pressures on
its environmental impact, coal will remain the most practical option in the near term to
stimulate affordable electricity generation growth at the pace and scale needed by the
country. However, during this period, there will be no additional development of new
coal-fired thermal power. The Draft PDP8 suggested that only ongoing coal-fired thermal
projects currently under construction and under-investment promoted for operation
during the 2021-2025 period are included in the PDP8.
● Renewables: Significant plans have been implemented to integrate more renewable
energy into Vietnam’s energy mix. This requires grid capacity development, the
prevalence of baseload thermal sources, and battery storage.
● Nuclear Power: In November of 2016, the Vietnamese government postponed its nuclear
power program.
●
Leading Sub-Sectors
Transmission & Distribution
The national transmission infrastructure is struggling to keep pace with the rapid capacity
growth, which presents a risk of bottlenecks to growth. This is mainly because of the surge in
renewables, which typically take a much shorter time to build as compared to a transmission line.
The National Load Dispatch Center has been lowering output from hydropower plants to
prioritize solar integration and prevent a grid overload. EVN has been constructing and
upgrading 21 transmission lines since 2019 to ensure the smooth integration of more renewable
sources.

Under the draft PDP8, the MOIT estimates the need for USD 32.9 billion to develop its power
grids between 2021-2030. The plan proposes to continue the expansion of a 500kV transmission
system to transmit power from power source centers in the central and southern regions to larger
load centers in Ho Chi Minh City and the Red River Delta. The ministry is also trialing the
application of smart grids and 4.0 technology into the transmission network.

The U.S. Trade and Development Agency (USTDA) has granted $935,000 the National Power
Transmission Corporation (EVNNPT) to modernize the firm’s information technology,
communications, and power transmission systems, and enable future smart grid investments.

EVNNPT’s Projected Expansion of the Power Transmission System to 2025: the firm completed
the upgrade of its power grid and reached the N-1 reliability standard for key equipment items in
2020. Vietnam’s government remains strongly committed to improving the grid infrastructure to
offer many opportunities for transmission and distribution sectors across the country.

With major investments, Vietnam is expected to have an increased demand for control and
protection equipment and devices such as power transformers, circuit breakers, disconnect
switches, capacitors, calculated software, and telecommunication and information technology
equipment.

Apart from that, on the investment front, the new PPP Law has been approved and effective with
new changes that allow private investments into transmission lines and substations. PPP Law for
the Transmission and distribution sector will encourage more growth and opportunities for
investors along with the government’s commitment to develop and improve grid infrastructure,
in order to support continued power expansion across the country and integrate the unstable
nature of renewables.
Indonesia
PT Perusahaan Listrik Negara (Persero) (lit. 'State Electricity Company', abbreviated as PLN) is
an Indonesian government-owned corporation that has a monopoly on electric power distribution
in Indonesia and generates the majority of the country's electrical power, producing 176.4 TWh
in 2015. It was included in the Fortune Global 500 lists of 2014 and 2015. It has large debts due
to expensive coal power contracts. Established on 1st January, 1965 with the following
subsidiaries Indonesia Power, Pembangkitan Jawa Bali, Indonesia Comnets Plus, Pelayanan
Listrik Nasional Batam, Prima Layanan Nasional Enjiniring. The Government of Indonesia is the
major shareholder. The whole-owned state’s integrated electric utility company in Indonesia.
PLN itself is a monopolist player in terms of power transmission and distribution representing
more than 69.3% of the country’s overall established generation capacity of 66.2 GW, with this
section amounting to 45.9 GW. It is a counterparty that purchases power from the independent
power producers. It provides electric power infrastructure in the energy value chain including
generating power generation and building power plants, as well as transmitting, distributing, and
selling electricity. It also buys electrical power from independent suppliers operating gas
turbines, hydropower, geothermal, steam turbines, and combined heat and power. PLN also
provides services like electricity consulting, construction, installation, and maintenance of
power-related items. In Indonesia, it supplies and markets electricity to its residents, businesses,
manufacturing factories, as well as government agencies such as Java – Bali, Sumatra, Sulawesi
and Nusa Tenggara, Kalimantan, and Maluku Papua. PLN has its own headquarters in
Kebayoran Baru, in the city of Jakarta in Indonesia. The revenue as of 2022 is $29.7 Billion.

The five largest upcoming projects transmission companies globally in 2021 include PT PLN
(Persero), Comision Federal de Electricidad, Federal Grid Company of Unified Energy System
PJSC, Turkiye Elektrik Iletim AS, and National Grid Corporation of the Philippines As a group,
the top 10 transmission & distribution worldwide have a total of 11,259 forthcoming projects.
The number one project issuer is PT PLN (Persero) which has 3,952 projects, followed by CFE
with 1, Eight out of the ten firms made sales worth 595 billion UAE dirham with Elia Group SA
registering the greatest sales growth of 19.8%, followed by Terna Spa with 10.6%, Red Electrica
Corporacion SA with 2.

With regards to geographical split, four out of the ten largest transmission & distribution
enterprises in the world for coming projects are European-based with three Asian-based and two
enterprises from other African regions. Five of the top ten firms had a combined employee
population of 86, 653 persons that year. The top-ranked transmission & distribution
company in the world is Indonesian PT PLN (Persero). of upcoming projects). In FY2021, the
company had revenue of $24,438 million. This was due to the operational efficiency efforts
taken by the company. It is a state-owned electric company. It is also involved in the entire
energy value chain, from power generation and construction of power plants to transmission,
distribution, and sales of electricity for domestic and commercial use. The company possesses
hydro, geothermal, steam-turbine, combined-cycle, gas-turbine, diesel, etc. power stations and
buys electricity provided by IPPs. It has offices in Kebayoran Baru, Jakarta, Indonesia. In
FY2021, it employed 54,129 individuals. This enterprise owns 22 subsidiaries in different
countries.

Two recent fast-track 10,000MW investment programs in Indonesia have shaped the entire
investment program in the public electricity sector. The programs are behind schedule.
- First 10,000 MW “fast track” program.
The first 10,000 MW program which started in 2006 ended in 2010. By mid-2012, only
one powerplant( PLTU Labuan ) was on schedule while others were running late. Mid-2012: In
mid-2012, slightly more than forty percent of the expected supply was already on its way,
according to the government. Some technical challenges causing such delays were the lack of
available equipment, land acquisition difficulties, and the scarcity of financial resources.
End 2012: As per the PLN, this translated to approximately forty-eight percent or about four
thousand seven hundred fifty megawatts (MW) actualized out of the total planned capacity of
nine points eighty-seven kilowatts (Kw). Approximately 5,127 MW of this remaining capacity
was anticipated to be put into operation by the end of 2014. It consists of 35 power plants with
most being coal-fired. Nine additional out of ten plants are located in the Java-Bali area. Others
are mainly smaller in the Outer islands with 35 of them.
 - The second 10,000 MW program also had a slow take-off after the delay of the first fast-
track program. The first track deadline was the end of 2016. End 2012: By end-2016, it
was reported that about 46% of the second stage plan which amounted to around 4,650
MW would be in operation. In addition, during the second 10,000 MW fast track
program, it is intended that about half (or 49%) of the geothermal plants are low-carbon
ones. But as of the end of 2012, thirty-six out of fifty-two geothermal plants were delayed
due to site inaccessibility due to conservation area (6 plants), and technical challenges (16
plants). Another fourteen plants were yet to be tendered.

● In late 2011, the new president director of the PLN, Nur Pamudji listed three milestones
for PLN as targets for 2012
1. Use, for the first time, of liquefied national gas (LNG) as a fuel for some of PLN's
generation plants
2. Near-finalisation of the first 10,000 MW fast-track generation program announced some
years earlier
3. Registration of 5 million pre-paid customers into the PLN distribution system.

In Indonesia, for instance, reliability and quality of electricity supply have been improving over
the past few decades. Reliability of supply in Java is higher because the island’s grid network is
better developed as compared to some regions in the outer islands such as Sumatra, Sulawesi,
and Kalimantan which are served by localized systems usually driven by diesel plants. But
frequent power cuts are present to date, even in Java. For instance, there was an incident of a
very bad power outage in January 2005 that lasted for about five hours and involved almost one
hundred million people from Java and Bali. The PLN is a problem that has always existed and
exists at present, concerning revenue flow internally. First, most government-enforced tariffs do
not adequately reflect the operational expenses incurred by companies and have failed to
appropriately contribute towards repaying the capital of business entities for several years.
Besides, many consumers refuse to pay electricity bills. Often, the cash flows of the company get
burdened with unpaid consumer debts. For instance, in the recent past late 2011 in the Banyumas
district of Central Java, about 60% (80,000 or more customers) failed to pay their electric bills
amounting to the company’s losses of 140 million monthly Out of the customers being behind on
their payments, 13,000 were referred to as “very bad” customers who ought to be disconnected.
However, the PLN’s attempt to enhance debt recovery – not only in Banyumas but also in
numerous places in Indonesia, is usually hindered by stubborn customers. PLN’s endeavor to
enhance recovery in Banyumas generated strong opposition among customers citing the issue of
social responsibilities expected from a state-owned enterprise. Similarly, since the Indonesian
economy started improving after the 1997-98 Asian financial crisis, PLN has also been able to
take huge loans through the issuance of bonds. For instance, in November 2011, PLN debt was
sold at a reasonable price ($1 billion with a maturity of ten years and a five-point-five percent
coupon). The demand for the debt ($5.5 billion) surpassed supply by wide margins.[19] In
October 2012, the PLN announced plans to sell USD-denominated 30-year bonds rated as ‘BB’
by Standard and Poor’s. It also tapped other government-backed sources of funding. The firm
was granted an affordable credit of about USD 800 million by the Indonesian state-owned
investment body, PIP in December 2011. The soft loan encompassed a fifteen-year duration,
with a five-year grace period, and a comparatively small rate of 5.25 percent annually.

Source of Power
To generate power, various plants utilize coal as their primary fuel in Java while many small
plants use oil across the Outer Islands. Progress on diversifying the sources of power in the
electricity sector has been very slow despite earlier announcements.
Geothermal power
There is abundant source of geothermal energy in Indonesia but in reality, it has been a slow
progress for many years now. According to PLN officials in mid-2012, 13 geothermal plants
across Indonesia were ‘in the exploration stage’ and unlikely to meet development deadlines. In
many instances initial drilling did not lead to productive wells; problems with the site’s
infrastructure (poor road accessibility and permission from the forest officials) have also delayed
the drilling process.

Hydropower
Indonesia has considerable hydropower potential. Moreover, a lot of possible capacity is located
at difficult-to-access places that are far from big sales markets. There are up to 22,000 MW of
suspected hydropower potential in Papua alone and likely a further 16,000 MW of potential
power sources in South Kalimantan and Central Kalimantan. More than 75,000 MW have been
estimated to be the total Indonesian hydropower potential, but only 5705 MW has been
employed. The government had planned to develop 96 sites in the country with a cumulative
capacity of 12,800 MW. Of this, 60% would have been done by PLN, and the rest given out to
IBRD. However, a small hydro plant faces one major issue, particularly in outer islands away
from Java Island; this involves low flow rates. For instance, in Lampung in September 2012 at
the close of the dry season, two small hydropower stations run by PLN (approximately 120 MW)
shut down, causing power breakdowns in the area as lot of such.

References
● http://www.evn.com.vn/
● https://www.marketscreener.com/quote/stock/EVN-AG-6491096/company/
● https://www.trade.gov/country-commercial-guides/vietnam-power-generation-
transmission-and-distribution#:~:text=Electric%20power%20is%20under%20the,overall
%20energy%20planning%20and%20policy.
● https://www.globaldata.com/company-profile/pt-pln-persero/premium-data/transmission-
and-distribution/
● https://www.indonesia-investments.com/business/indonesian-companies/perusahaan-
listrik-negara-pln-soe/item409#:~:text=Total%20capacity%20of%20PLN's
%20power,100%20percent%20of%20PLN's%20shares.