Lawyer in Vietnam VIETNAM – THE DRAFT NATIONAL ELECTRICITY DEVELOPMENT PLANNING FOR 2021-2030, WITH A VISION TO 2045 IS PUBLISHED

1. VIETNAM – THE DRAFT NATIONAL ELECTRICITY DEVELOPMENT
PLANNING FOR 2021-2030, WITH A VISION TO 2045 IS PUBLISHED
Vietnam’s GDP growth for 2021-2030 is forecasted to reach an average of 6.6%/year and an average of
5.7% for 2031-2045. Correspondingly, the Institute of Energy has calculated that commerical 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%).
The Draft Power Development Planning VIII (“PDP 8”) reinforces the Vietnam Government’s current view
on prioritizing renewable energy sources to minimize negative impacts caused by electricity production on
the environment. Importation of fuels (coal, LNG) are encouraged as a way to diversify the country’s
primary energy sources, and the same goes for the establishment of transmission and distribution grid links
with China, Laos and Cambodia in order to maximize each country’s energy potential. Imported electricity
sources from neighboring countries are to be considered as prioritized projects because imported electricity
will reduce environmental impact compared to domestic production.The Draft PDP 8 is oriented to focus
on the development of transmission grid of at least 220KV to solve overcapacity issues that has been
occurring in recent years.
As to grid development, in the period of 2021-2030, MOIT sees the need to build 86 GVA with a capacity
of 500kV per station and nearly 13,000 km of DLZ. From 2031-2045, an additional construction of 103
GVA with capacity of 500kV and nearly 6000 stations is required. The 220kV power grid needs
construction of 95 GVA, nearly 21,000 km DMZ and 108 GVA, more than 4000 km NE.
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%.
One of the most notable differences between the Draft PDP 8 and Revised PDP 7 (the latest official national
power development planning) is in the level of power demand between the North and the South. According
to PDP 8, the proportion of commercial electricity in the North will gradually increase from 42.4% in 2020
to 45.8% in 2045, while the South will decrease its proportion from 47.4% in 2020 to 43.6% by 2045. By
2040, the North's commercial electricity demand will start to exceed that of the South.
Important information investors should know
Coal usage:
Coal inventory at power plants was at a record low level in 2018 - many plants did not have enough coal to
operate that led to reduced capacity or even suspension of working units. For instance, Quang Ninh factory
sometimes had to stop 2/4 of its units due to coal shortage. The ability to produce domestic anthracite coal
for supply to the Northeastern region is only approximately 35 million tons or 88% of the total demand, so
coal must be imported and mixed to meet consumption request. In the coming years, the demand for

2. anthracite coal will continue to increase when a number of new plants come into operation such as: Na
Duong II, Hai Duong, Thai Binh 2, An Khanh-Bac Giang.
Gas usage:
In the period 2010-2019, the annual natural gas output extracted was 9-10 billion m3 / year on average. Gas
is currently being exploited at 26 gas fields and combined oil and gas fields such as Lan Tay, Lan Do, Bach
Ho, Rang Dong, etc. There are around 30 fields that have not yet any development plan because most of
them are small or located in deep water, far from shore, with difficult geographical and geological
conditions.
Renewable Energy usage:
By the end of 2020, the total solar power capacity (including floating solar energy systems) put into
operation was about 17 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 with faster-than-ever construction time as a
result to advanced technology. Consequently, 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.
The total capacity of wind power put into operation by the end of 2020 is about 600 MW, much less than
the total wind power capacity approved to be included in the the revised PDP 7 which has reached 12 GW.
By 2021, the remaining projects are expected to come into operation mainly in the Southwest and South
Central regions.
The Vietnam Government is examining, implementing in small scale and encouraging the development of
energy from flammable ice gas, shale gas, coal gas, liquefied hydrogen gas, biomass, and waste.
Hydropower usage:
Vietnam's total capacity of medium and large hydropower plants that were built up to 2019 is about 17,930
MW. The total small hydropower potential (less than 30 MW) of the country is about 10 000 MW. Due to
the impact of small hydroelectricity on the environment and forest conservation, MOIT has conducted a
review of sites and rejected around 4000MW.
Others:
Thermal power projects included into the revised PDP7 and with operation commencement date set for
2021-2025 are considered as projects that will definitely be built and prioritized for development.
Power source projects with capacity of 500 MW or more and acting as base plant will also be considered
priority investment projects.
At the date of writing, there isn’t available a list of projects included or to be included in the Power
Development Planning VIII. We provide hereunder lists of potential offshore wind power projects and
thermal power sources to be considered for investment. Please do note that:
(i) Not all the projects listed herein will be included in the PDP 8;
(ii) A number of projects included in the lists are already included in the Revised PDP 7.

3. To have your project considered for inclusion in the National Power Development Planning, investors must
carry out an assortment of procedures and obtain several permits, including Feasibility Study and roadshows
or conference with relevant authorities. For example, wind energy developers may have to obtain temporary
construction permit for erection of wind measurement towers or approval for vertical clearance if your
project site is near to aviation boundaries.
When a project is included in the National Power Development Planning, it means that the Government has
officially approved the implementation of that project. This is one of the most critical steps in energy project
development in Vietnam, because without the Government’s approval for project inclusion in the PDP,
there is no way investors can execute a project. After this step, investors will need to acquire Decision on
Investment Policy, followed by Investment Registration Certificate.
List of potential offshore wind power projects to be considered for investment
No. Project Total Capacity (MW) Location
I Central, South Central and Southeast
regions
44 612
1 Offshore of Con Co Island 1000 Quang Tri
2 Offshore of Nhon Ly province 1000 Binh Dinh
3 Offshore of My Cat 1000 Binh Dinh
4 Offshore on PNE sea 2000 Binh Dinh
5 Binh Dinh 3 offshore 2000 Binh Dinh
6 Phu Yen 2 offshore 4500 Binh Dinh
7 An Thuan offshore 250 Phu Yen
8 Phuoc Dinh offshore 502 Ninh Thuan
9 Ninh Thuan Zone 2 Seaside 1600 Ninh Thuan
10 Vinh hai offshore 500 Ninh Thuan
11 Offshore on Ninh Thuan beach 1800 Ninh Thuan
12 Ninh Thuan floating offshore 2000 Ninh Thuan
13 La Gan offshore 3500 Binh Thuan
14 Thang Long offshore 3400 Binh Thuan
15 Maqueri offshore 3000 Binh Thuan
16 Ke Ga (Ham Thuan Nam) offshore 900 Binh Thuan
17 Co Thach offshore 2000 Binh Thuan
18 Binh Thuan offshore 5000 Binh Thuan
19 Vinh Phong offshore 1000 Binh Thuan
20 AMI AC offshore 1800 Binh Thuan
21 Tuy Phong offshore 4600 Binh Thuan
22 Xuyen Moc offshore 760 Ba Ria, Vung Tau

4. 23 FECON Vung Tau offshore 500 Ba Ria, Vung Tau
II SouthWestern region 15108
1 Tra Vinh offshore 1000 Tra Vinh
2 V4 Tra Vinh offshore 2000 Tra Vinh
3 Gulf Tra Vinh offshore 1000 Tra Vinh
4 Ree offshore 1000 Tra Vinh
5 Soc Trang offshore 2000 Soc Trang
6 Ben Tre Main Stream AIT offshore 500 Ben Tre
7 Gulf Ben Tre 3 offshore 2300 Ben Tre
8 Ba Tri Ben Tre offshore 800 Ben Tre
9 Dong Hai 5 offshore 350 Bac Lieu
10 Dong Hai 1 – GD 3 offshore 550 Bac Lieu
11 USA Bac Lieu offshore 608 Ca Mau
12 Ngoc Hien offshore 3000 Ca Mau
List of potential thermal power sources to be considered for investment
No. Project
A LNG Power
1 Northern region
Quang Ninh
Quang Ninh 2
Hai Phong I
Hai Phong II
Thai Binh
LNG Hai Phong 3
LNG Hai Phong 4
LNG Quang Ninh 3
2 North Central region
Nghi Son
Vung Ang
3 Central Central region
Hai Lang
Chan May
Central I region (CVX gas)
Central II region (CVX gas)
Dung Quat I
Dung Quat II
Dung Quat III

5. Quang Tri (Bao Vang gas)
4 South Central region
Ca Na
Khanh Hoa
5 Southeastern region
Nhon Trach 3 & 4
Phu My 3.1
Hiep Phuoc
Son My II
Son My I
Ke Ga
Long Son
6 Southwestern region
Long An I
Long An II
Bac Lieu
Ca Mau
Tan Phuoc
O Mon I (Lo B gas)
O Mon III (Lo B gas)
O Mon IV (Lo B gas)
O Mon II (Lo B gas)
B Imported Coal Thermal Power
1 Northern region
Nam Dinh I
Hai Ha co-generation thermal power
Hai Phong 3
Mien Bac 1
Mien Bac 2
Mien bac 3
2 North Central region
Nghi Son II
Vung Ang II
Quang Trach I
Quang Trach II
Quynh Lap I
Quynh Lap II
Vung Ang III
Formusa HT#2
Cong Thanh
3 Central region

6. Quang Tri I
4 South Central region
Vinh Tan III
Van Phong
5 Southern region
Duyen Hai II
Long Phu I
Long Phu II
Long Phu III
Song Hau I
Song Hau II
Tan Phuoc
C Floating Coal Thermal Power
An Khanh – Bac Giang
Na Duong II
Pha Lai 3
Thai Binh II
Bao Dai
***
Please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com.
Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC, Member to the Supervisory
Board of PetroVietnam Insurance JSC and the only foreign lawyer presenting in Vietnamese language to
members of the NATIONAL ASSEMBLY OF VIETNAM.