The competitive power generating market was officially launched on July 1, coinciding with a five percent increase in electricity prices.

This new market is the first step in developing Vietnam ’s electricity market and will ensure the transparency of operations and pricing, as well as attract more investment to develop new sources of power.

According to the Ministry of Industry and Trade, 29 power generating companies, with the total capacity to produce 9,000MW, have joined the competitive market by directly submitting their proposed prices to the Electric Power Trading Company (EPTC).

Of the power suppliers, 13 are hydro-electric, 11 are coal fired and five are powered by gas turbines.

There are currently 26 other power stations that take an indirect part in the market. Supplies from these plants are either controlled by the country’s Electricity Regulating Centre or their prices are set by the EPTC. Eighteen other plants will indirectly join the market for a set period of time.

In addition, 20 power plants (19 hydro-electric and one thermal) with a designed capacity of 4,567MW are scheduled to join the market as soon as they are on a commercial footing.

Currently, the Electricity of Vietnam (EVN) supplies 55 percent of the country’s electricity, the Vietnam Oil and Gas Group (PVN) contributes 11 percent and the Vietnam Coal and Mineral Industries Group (Vinacomin) provides 5 percent.

Vietnam's electricity market is expected to develop in three stages – a competitive power generating market by 2014, a competitive wholesale market between 2015-22 and a competitive retail market after 2022.-VNA