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Electricity Market Development in Viet Nam: Historical Trends and Future Perspectives

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Revisiting Electricity Market Reforms

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Abstract

This study discusses the process of electricity market development in Viet Nam with a focus on key achievements and future perspectives. The empirical analysis attempts to construct a composite indicator for the security of electricity supply. Specifically, principal component analysis (PCA) is performed based on eight normalised variables representing four aspects of electricity security. The Electricity Supply Security Index (ESSI) trends of Viet Nam and other ASEAN + 6 countries in 1996–2019 are reviewed and compared. This research finds that except for Brunei, the ESSI of ASEAN + 6 (including Viet Nam) has been rising. The findings are robust to different normalisation techniques. Some policy implications are then proposed.

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Notes

  1. 1.

    https://www.ceicdata.com/en/about-us.

  2. 2.

    Source: https://www.evn.com.vn/d6/news/Nganh-Dien-Viet-Nam-Hanh-trinh-dong-gop-cho-dat-nuoc-phat-trien-6-12-18031.aspx (in Vietnamese).

  3. 3.

    CEIC, https://www.ceicdata.com/.

  4. 4.

    https://zingnews.vn/10-thanh-tuu-noi-bat-cua-nganh-dien-giai-doan-2010-2020-post1165218.html (in Vietnamese).

  5. 5.

    https://zingnews.vn/10-thanh-tuu-noi-bat-cua-nganh-dien-giai-doan-2010-2020-post1165218.html (in Vietnamese).

  6. 6.

    In 2011, the Vietnam Competitive Generation Market (VCGM) was established as a pilot, ahead of the planned privatisation of EVN generation companies, followed by full operation in 2012.

  7. 7.

    See https://www.quanlynhanuoc.vn/2019/06/06/vai-tro-quan-ly-nha-nuoc-ve-thi-truong-dien-o-viet-nam-hien-nay/ (in Vietnamese).

  8. 8.

    https://vietnamnet.vn/vn/kinh-doanh/dau-tu/dien-mat-troi-dien-gio-cang-ve-cuoi-nam-noi-lo-cang-lon-740591.html (in Vietnamese).

  9. 9.

    Sovacool and Mukherjee (2011); Winzer (2012); Yao and Chang (2014); Ang et al. (2015); Li et al. (2016); Wang and Zhou (2017); Azzuni and Breyer (2018); Le et al. (2019a, b); Le and Nguyen (2019); Le and Park (2021).

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Authors and Affiliations

  1. VinFuture Prize, VinFuture Foundation, Hanoi, Vietnam

    Thai-Ha Le

  2. IPAG Business School, Paris, France

    Thai-Ha Le

  3. Economic Research Institute for ASEAN and East Asia, Jakarta, Indonesia

    Phoumin Han

  4. Monash University, Melbourne, Victoria, Australia

    Ha-Chi Le

Authors
  1. Thai-Ha Le
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Correspondence to Thai-Ha Le .

Editor information

Editors and Affiliations

  1. Economic Research Institute for ASEAN and East-Asia (ERIA), Jakarta Pusat, Indonesia

    Han Phoumin

  2. School of Business, Faculty of Business and Law, University of Wollongong, Wollongong, NSW, Australia

    Rabindra Nepal

  3. ERIA, Jakarta Pusat, Indonesia

    Fukunari Kimura

  4. Linköping University, Linköping, Sweden

    Gazi Salah Uddin

  5. Tokai University, Shonan Campus, Hiratsuka, Japan

    Farhad Taghizadeh-Hesary

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Le, TH., Han, P., Le, HC. (2022). Electricity Market Development in Viet Nam: Historical Trends and Future Perspectives. In: Phoumin, H., Nepal, R., Kimura, F., Uddin, G.S., Taghizadeh-Hesary, F. (eds) Revisiting Electricity Market Reforms. Springer, Singapore. https://doi.org/10.1007/978-981-19-4266-2_3

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  • DOI: https://doi.org/10.1007/978-981-19-4266-2_3

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