Vietnam will need 50,000 megawatts more power through 2020

Vietnam will need to build power plants with a total capacity of more than 50,000 megawatts through 2020, said Pham Hung, deputy director of the energy department of the Ministry of Industry and Trade.

Vietnam will put forward policies to encourage investors to help build more power plants, Hung said today in prepared remarks at a meeting of the Asian Development Bank in Hanoi.

“The government has decided to move toward the trend of gradually allowing power prices to follow the market,” Hung said when asked whether prices may rise. “Starting June 1, we will introduce a procedure that every three months, Vietnam Electricity will consider adjusting” the price.

Vietnam’s government said in April that it would allow power prices to be adjusted as often as once every three months, depending on market conditions.

The policy is based on a government decision dated April 15 and signed by Prime Minister Nguyen Tan Dung, according to a posting on the government’s website. Changes in fuel costs or exchange rates are among the reasons for adjusting power prices.

The government increased electricity prices by about 15 percent on March 1, contributing to a 13.89 percent year-on-year inflation rate in March. Inflation accelerated in April to 17.51 percent, the fastest pace since 2008.-Bloomberg

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage