Vietnam proposes separating National Power Transmission Corporation from EVN

The Ministry of Industry and Trade has proposed separating the National Power Transmission Corporation (EVNNPT) from Vietnam Electricity (EVN). Under the proposal, EVNNPT would be transferred to the management of a ministry or sector to foster a competitive and transparent electricity market.

Two restructuring schemes have been submitted to the Government as of September 15. The Ministry of Industry and Trade is developing a scheme to restructure the electricity industry to serve a competitive market, while the Ministry of Finance is developing a scheme to restructure EVN.

According to Bui Quoc Hung, Deputy Director of the Electricity Authority, international experience suggests that successful competitive markets require separating electricity activities into generation, transmission, distribution, and wholesale/retail. Currently, EVN owns less than 40% of power generation projects. The proposal aims to distinguish between natural monopolies, such as transmission and distribution, and competitive segments like generation.

Additionally, the Ministry suggests promoting equitization and state divestment in EVN's power generation subsidiaries. There is also consideration for establishing a national strategic power generation corporation to manage key hydroelectric plants and future nuclear power projects.