Lack of government support and poor policy framework hamper Vietnam's power sector

摘要

As with many rapidly developing emerging markets, demand for power in Vietnam continues to grow, but structural changes to policy and market dynamics are needed to ramp up supply. The emergence of Vietnam's economy has been one of the fastest in Asia, with GDP growing by almost 7% per annum over the last 20 years. With this increase in economic activity comes a commensurately large increase in the demand for power to support it, with demand for electricity estimated to have been increasing annually by about 13-15%. However, lack of government support and a poor policy framework have impeded the development of generation capacity in the country.