Vietnam 2021 Economy at a glance

  • GDP: US$220.5 billion
  • GDP per capita: US$3,743
  • GDP Growth: 2.58% (despite national  lockdown due to Covid-19)
  • Inflation: 1.84% (lowest since 2015)
  • Population: About 97.4 million 
  • Total export and import turnover :  US$  288.14 billion (increase by 22.6% compared with 2020)
  • Regional Minimum wage (Region I): VND 4,729,400 (US$ 203.9) per month (Jan 2021)
  • Vietnam's average age: 30.9 years old

Energy Sector Background

  • The Institute of Energy has calculated that commercial electricity will reach 491 billion kWh by 2030, and 877 billion kWh by 2045
  • By 2030, the total installed capacity of Vietnam's electricity sources is predicted to be at 137.2 GW (of which coal-fired power: 27%, gas thermal power: 21%, hydroelectricity: 18%, renewable energy: 29%, imported energy about 4%, pumped hydroelectricity and other energy storage devices about 1%).
  • Electricity of Vietnam (EVN) holds a monopoly on electricity transmission and distribution.
  • Total investment capital for electricity development in the period 2021-2030 is roughly USD 128.3 billion USD, of which: USD 95.4 billion for the power sources, USD 32.9 billion for the grids. The average structure of capital investment shall be 74% / 26%.

CURRENT GOVERNMENT'S POLICIES ON WIND ENERGY

Wind-to-electricity projects overview

  • On-shore projects: any wind power project which (i) has been grid-connected; (ii) wind turbine(s) constructed and operated in mainland and coastal areas of which the outer boundary is the average lowest sea edge for 18.6 years.
  • Off-shore projects: any wind power project which (i) has been grid-connected; (ii) wind turbine(s) constructed and operated offshore - outside the average lowest sea edge for 18.6 years.
  • FIT: 8.5 UScents/kWh (on-shore) and 9.8 UScents/kWh (off-shore)
  • FIT only applies to part(s) of or entire wind project COD before 01/11/2021. The period for the enjoyment of FIT is 20 years from COD
  • For projects COD after 01/11/2021: Direct Power Purchase mechanism is currently under MOIT's contemplation and will be presented to Prime Minister.
  • It is expected that the mechanism will be approved by the Prime Minister in 2023.
  • The total capacity of wind power put into operation by the end of 2021 is about 3,343 MW, much less than the total wind power capacity approved to be included in the revised PDP 7 -12 GW. Most projects are in the Southwest and South Central regions.

CURRENT GOVERNMENT'S POLICIES ON SOLAR ENERGY

Solar energy projects overview

  • By the end of 2021, the total solar power capacity (including floating) put into operation was about 27 GW, concentrated in the southern provinces and the Central Highlands.
  • Transmission grids are not enough in quantity, especially in Ninh Thuan and Binh Thuan provinces, to accommodate the increasing number of solar power projects and reduction in construction time of them due to advanced technology. As a result, most projects that have come into operation in such localities are being subjected to daily decrease in generating capacity to avoid overloading the regional grid.
  • Binh Thuan and Ninh Thuan are top 2 provinces where projects are being applied for inclusion in the power master plan. This is due to the provinces' geographical advantage of having the most sunlight rate during the year in Vietnam

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