Vietnam moves to overhaul electricity market and eliminate single‑buyer model

Vietnam’s electricity market has progressed since reforms began over two decades ago, with the competitive wholesale market operating since July 2012. However, participation by key generation sources—such as domestic natural gas, renewable energy, strategic and pumped‑storage hydropower—remains low, limiting competition and hindering optimal system operation.

The Ministry of Industry and Trade says the market still centres on a single buyer, the state‑owned Vietnam Electricity (EVN), and calls for abolishing this model. It proposes transferring EVN’s power‑purchase contracts to other state‑owned power firms, expanding direct purchase mechanisms, and introducing clearer risk‑management tools and transparent pricing. These reforms are presented as essential to attract the massive investment needed for Power Development Plan VIII, which targets hundreds of billions of dollars in new generation, transmission and storage projects through 2030.

Officials note that without a transparent, competitive market, investors face uncertainties in long‑term cash‑flow forecasting, raising financing costs and slowing progress toward the nation’s energy transition goals.