VIETNAM ELECTRICITY INDUSTRY REPORT Q3/2018
Executive Summary 4
1. Business environment 7
1.1 Macroeconomic situation 7
1.2 Legal framework 11
1.3 Free Trade Agreements 20
2. Industry overview 23
2.1 Situation of global electricity industry 23
2.1.1 Demand and supply for electricity 24
2.1.2 Development trend of global electricity industry 33
2.1.3 Price movement 35
2.1.4Situation of electricity industry in some Southeast Asia
countries37
2.2 Situation of Vietnam electricity industry 42
2.2.1 History of Vietnam electricity industry 43
2.2.2 Value chain of the industry 47
Content
2.2.3 Input fuel 48
2.2.4 Electricity generation 56
2.2.5 Transmission and distribution 66
2.2.6 Electricity consumption 73
2.2.7 Electricity price 79
2.2.8 Structure of electricity industry 82
2.3 Issues in energy industries development 91
2.3.1 Existing 92
2.3.2 Challenges 93
2.3.3 Risks 96
2.3.4 The trend of foreign investment 97
2.4 Planning and forecasting 98
2.4.1 Planning 99
2.4.2 Forecasting 102
2
Content
3. Business analysis 104
3.1 Typical companies of electricity industry 105
3.2 Business performance indicators 116
3.3 Financial indicators 121
3.4 Payment indicators 126
4. Appendix 128
3
ERAV Electricity Regulatory Authority of Vietnam
EVFTA Vietnam-EU Free Trade Agreement
EVN Vietnam Electricity Corporation
FDI Foreign Direct Investment
FTA Free Trade Agreement
GSO General Statistics Office
MAIFI Momentary Average Interruption Frequency Index
MOIT Ministry of Industry and Trade
NLDC National Load Dispatch Center
PVN Vietnam Oil and Gas Group
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
TPP Trans-Pacific Partnership Agreement
VCGM Vietnam Competitive Generation Market
Vinacomin Vietnam National Coal - Mineral Industries Group
VIRAC VIRAC Joint Stock Company
VWEM Vietnam Wholesale Electricity Market
WTO World Trade Organization
Abbreviations
4
Summary
World’s electricity volume was constantly
increasing over a period of time from 2009 to
2017 with compounded annual growth rate
at x.xx%
Currently, EVN still has a monopoly on the
segments of regulation, electricity
wholesaling, transmission and distribution or
retailing..
Three main resourses of generation electricity
are hydroelectricity, thermoelectricity by coal
and thermoelectricity by gas which account
for xx.xx% of total capacity of national
installed electricity system
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Summary
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Vietnam power demand increased rapidly
from 2001 to 2017 with average growth rate
about xx.xx%/year and is forecasted to still
increase in the next 15 years.
Electricity price is quite low compared to
other countries in the Asia-Pacific region.
Generation electricity is exclusive sector
which has other investors beside EVN because
of a specific huge capital requirement.
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free Trade Agreements
Content
7
The Government's 2018 GDP growth target of
Consumer price index (CPI) in the 6 first years 2018 has a lot of
changes
8
GDP growth rate by quarter, 2015-quarter 2/2018
Sources: VIRAC, GSO
%
Monthly CPI fluctuations, 2015-6/2018
Sources: VIRAC, GSO
1. Business environment
1.1 Macroeconomic situation
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Many new projects in the field of electricity production and distribution are
licensed in 2018:
The stable exchange rate will help the electricity producers to be
more active in calculating input costs due to their dependence on
imported coal.
9
Sources: VIRAC, FIA
FDI attraction by industry, 2017
VND/USD exchange rates, 2013-6/2018
Sources: VIRAC, SBV
1. Business environment
1.1 Macroeconomic situation
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The electricity sector is estimated to have a relatively high and stable growth rate in industrial production.
The electricity industry plays an important role in supporting the
development of all sectors of the economy.
10
Sources: VIRAC collected
Contribution to electricity production and distribution in GDP,
2012 – 6M/2018e
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1. Business environment
1.1 Macroeconomic situation
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free Trade Agreements
Content
11
1. Business environment
1.2 Legal framework
Source: VIRAC
12
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Electricity Law 2004
Amended Electricity Law 2012:
1. Business environment
1.2 Legal framework
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Decree No. 137/2013 / ND-CP guided the Electricity Law and the amended Electricity Law.
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1. Business environment
1.2 Legal framework
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1. Business environment
1.2 Legal framework
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The application of advanced technologies, digitization-based technology and the linkage to create high-tech
agricultural models, and smart agriculture are few.
1. Business environment
1.2 Legal framework
16
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Decree No. 24/2017 guided average electricity price regulation.
.
1. Business environment
1.2 Legal framework
17
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On 30 November 2017, the Ministry of Industry and Commerce issued Decision No . 4495 / QD-BCT regulating the electricity price.
1. Business environment
1.2 Legal framework
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There are also some circulars about the electricity sector:
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free Trade Agreements
Content
19
20
Vietnam trade integration process from 1995 to present
Until the end of Q2/2018 , Vietnam has signed, implemented, and is negotiating a total of 17 FTAs. Accession to international trade agreements brings
opportunities and challenges for domestic firms.
1. Business Environment
1.3 Free Trade Agreements
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One of Vietnam's biggest achievements in 2017 is the completion of negotiation of strategic agreements. These include AHKFTA, EVFTA, EFTA and CPTPP.
Positive signals from trade agreements
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1. Business Environment
1.3 Free Trade Agreements
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Content
2. Industry overview
2.1 Situation of global electricity industry
2.2 Situation of Vietnam electricity industry
2.3 Issues in energy industries development
2.4 Planning and forecasting
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
TWh World electricity production volume , 2009-2017
Sources: VIRAC, Statsreview.bp.com
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Structure of world electricity production, 2017e
Sources: VIRAC, REN21
Global electricity volume increases consistently over a period of time from 2009
to 2017 with compounded annual growth rate at x.xx%
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
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Structure of electricity supply according to resourse, 2016 - 2017
Sources: VIRAC, Statsreview.bp.com
According to Exxon Mobil enterprise, electricity consumption demand is going to increase in 2014 because of population development and the result is an
increase in power and vehicles demand.
TWh
World's top largest electricity producing countries, 2016 - 2017
Source: VIRAC, Statsreview.bp.com
Contribution structure of world electricity production, 2017
Source: VIRAC, Statsreview.bp.com
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
China is the leading country in electricity production.
Source: VIRAC, IEA
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Electricity production volume in some countries, 2006 - 2016
Unit: TWh
2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
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Global electricity consumption, 2008-2017
2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
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World's electricity consumption was constantly increasing in the period of 2008-2017e with a CAGR of x.xx%
Source: VIRAC, Statsreview.bp.com
Source: VIRAC, Enter Data
TWh
China and the United States continued to be the two largest electricity
consuming countries in the world in 2017
Top 10 most electricity consuming countries, 2017
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
Billion USDWorld electricity exports, 2010-2017e
Sources: VIRAC, Worldstopexports
Top largest electricity exporters, 2017
Sources: VIRAC, Worldstopexports
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity
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World electricity consumption prospects by region, 1980 – 2030f
Before 1990, the countries belong to Organization for Economic Co-operation and Development (OECD) and Europe were the two largest electricity
consumers in the world. However, after this period Asia rose to be the second-largest consumer of electricity in the world.
Sources: VIRAC, IEA
2. Industry overview
2.1 Situation of global electricity industry – 2.1.2 Development trend of global electricity industry
TWh
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Cents/kWh
Sources: VIRAC,
IEA
2. Industry overview
2.1 Situation of global electricity industry – 2.1.3 Price movement
31
Electricity price of household, 2016
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Cents/kWh
Sources: VIRAC, IEA
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Average price of electricity in the world, 2011 – 2040f
2. Industry overview
2.1 Situation of global electricity industry – 2.1.3 Price movement
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MtoeDemand for energy of some countries in Southeast Asia, 1990 – 2035f
Sources: VIRAC, IEA
Among ASEAN countries, Indonesia has the largest demand for energy
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.4 Situation of electricity industry in some Southeast Asia countries
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Electricity generation in Southeast Asia by energy sources, 1990 - 2040f
Unit: TWh
Sources: VIRAC, IEA
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.4 Situation of electricity industry in some Southeast Asia countries
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Demand for primary energy in Southeast Asia, 1990 – 2040f
Unit: Mtoe
Sources: VIRAC, IEA
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2. Industry overview
2.1 Situation of global electricity industry – 2.1.4 Situation of electricity industry in some Southeast Asia countries
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Proportion of electricity consumption in ASEAN by sectors
Sources: VIRAC, IEA
The prospect of electricity consumption in ASEAN countries in the period 2010 - 2015 has changed a lot. The most obvious trend is to reduce the
proportion of electricity consumption in the industrial and service sectors, and increase in the usage structure of the people.
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Electricity consumption in ASEAN by sectors, 2010 – 2035f
2. Industry overview
2.1 Situation of global electricity industry – 2.1.4 Situation of electricity industry in some Southeast Asia countries
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Content
2. Industry overview
2.1 Situation of global electricity industry
2.2 Situation of Vietnam electricity industry
2.3 Issues in energy industries development
2.4 Planning and forecasting
37
Overview of Vietnam Electricity Industry
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.1 History of Vietnam electricity industry
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.1 History of Vietnam electricity industry
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.1 History of Vietnam electricity industry
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.1 History of Vietnam electricity industry
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Electricity is a special commodity,
Electricity industry of Vietnam also has a similar value chain with other countries in the world
Production
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.2 Value chain of the industry
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• Vietnam has many primary sources of energy domestically such as crude
oil, coal, natural gas and hydroelectricity,
•
The shift to fossil fuels has been and continues to be an
important cause for increasing greenhouse gas emissions.
Sources: VIRAC, EVN, MOIT
Situation of primary energy supply, 2010 - 2015 KTOE*
Sources: VIRAC, EVN, MOIT
KTOEDomestic energy exploitation from 2009 to 2015
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material
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Sources: VIRAC, Decision No. 403/QĐ-TTg Sources: VIRAC, Decision No. 403/QĐ-TTg
Market segment of coal consumption, 2016f
Coal reserves are mainly concentrated in coal basin of the Red River Delta and the coal used in electricity production accounts for xx.x% of the coal
consumption market.Coal reserves by region, 2016f
Increase in coal price for power generation, 2010 – 2017
Sources: VIRAC, KTV
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Coal
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From being a coal exporter many years ago, in 2014 Vietnam has to import
to serve domestic production needs. Million tons
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Forecast for supply and demand coal, 2015 - 2030
Sources: VIRAC, KTV
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Coal
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Sources: VIRAC, TKV
Most of the gas in Vietnam is used to produce electricity.
Rate of selling price of gas for electricity sector by market price, 2014 - 2015
Sources: VIRAC, Documentary No, 2175/VPCP-KTTH
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Market segment of natural gas consumption
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Gas
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Sources: VIRAC, PVN
Due to climate change, the 2016 dry season has only 38/81 reservoirs capable of regulating water for electricity generation, challenging the supply of
electricity.Hydroelectricity potential in Vietnam
• By 2016, the national electricity system has 85 hydro
power plants in operation
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Hydroelectricity
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Data on solar radiation in Vietnam
Sources: VIRAC, EVN
Sources: VIRAC, Decision No. 2068/QĐ-TTg
Schedule for solar energy development in Vietnam to 2030 with a
vision to 2050
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Vietnam is one of the countries with the most sunshine in the map of the
world's solar radiation.
Despite the great potential, the exploitation of solar energy in Vietnam is still
limited.
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Photovoltaic
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Potential and characteristics of wind electricity in 3 regions and by
wind speed
Sources: VIRAC, EVN
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Sources: VIRAC, MOIT
Wind electricity potential in the provinces of Planning for development of
wind electricity, 2020
By the end of 2017, about xx wind electricity projects have been
registered in the whole territory of Vietnam, mainly in the Central
and southern provinces
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Wind electricity
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Sources: VIRAC, MOIT
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The characteristics of geothermal resources in Vietnam are distributed
scatteredly, so it is difficult to build large-scale plants.
Geothermal potential of the regions
Sources: VIRAC, MOIT
Theoretical potential and technical potential of the tidal electric power
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Geothermal and tidal
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Sources: VIRAC, EVN, GSO, MOIT
Total supply of electricity, 2010 – 6M/2018e
Million kWh
Sources: VIRAC, IEA
Million kWh
Structure of electricity, 2017
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Compounded annual growth rate (2010-2017e) reach xx.x%
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation
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Proportion of electricity generation by supplier, 2016
Sources: VIRAC, EVN
Electricity generation is the only segment with the participation of units
outside EVN due to the specific requirements of capital investment.
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation
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Sources: VIRAC, EVN
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation
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Power projects operation in 2018
Renewable energy has not been widely used for electric development,
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Structure of electricity production by source of materials, 2012 – 3M/2018
Sources: VIRAC, EVN, MOIT
The main sources of electricity are Hydroelectricity, Coal Thermoelectricity
and Gas Thermoelectricity, accounting for xx.x% of total electricity
generation capacity in the 3M/2018
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation
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Most of the machinery and equipment of Vietnam 's hydropower plants are imported from overseas.
Characteristics of power plants by source of fuel
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Compare the advantages and disadvantages of hydroelectricity and thermal electricity
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Electricity generating technology from coal (Thermal power)
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Wind power
Nuclear power
Electricity produced from renewable energy
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Distribution of main power plants
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At present, the installation location of power plants is heavily
dependent on the distribution of natural resources, so there is a clear
distinction between regions.
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Billion kWh
Source: VIRAC, EVN
Billion
kWh
Cent/kWh
Vietnam imports electricity mainly from China and Laos
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Import of electricity, 2010 – 2018f
Import of electricity from China, 2010 - 2017e
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Current situation of selling electricity to Laos:
Situation of electricity import from Laos:
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources
Sources: VIRAC, EVN
Length of transmission grid and total capacity of distribution, 2011 - 2017
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Electrical grid for transmission and distribution
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Sources: VIRAC, EVN
Rate of power losses of some countries, 2011-2014
Sources: VIRAC, Worldbank
Million kWh
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The power loss in the power transmission grid in Vietnam is still high
compared to many countries in the world.
Power loss, 2010 – 6M/2018e
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Power loss
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• Power losses on the transmission grid is influenced by
• Power losses on distribution grid tend to decrease over the years and
reach at x.xx% in 2017.Sources: VIRAC, EVN
Results of reduction of power losses in 2016 - Plan for 2018Unit: %
Sources: VIRAC, EVN
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Rate of power losses in the supply chain, 2010 - 2017
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Power loss
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Sources: VIRAC, MOIT
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MW
Maximum load and electricity system availability *, 7/2015 – 5/2018
• Although the installed capacity is always above the annual peak load, the system is always under very high supply pressures, especially during the dry
season. Alternative electricity outage happens in many places.
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Peak load
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Source: VIRAC, NLDC
MW
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Peak load by time between two main seasons, 2017
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Peak load
Advantages and disadvantages of capacitor types
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Peak load
Source: VIRAC, EVN, MOIT
Commercial electricity, 2012 – 6M/2018e
Million kWh
Commercial electricity according to the distribution companies (Million kWh), 2016 – 2018
Source: VIRAC, EVN
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
Vietnam is one of the most inefficiently electricity using countries in the world.
Electricity intensity by region in the world (kwh / USD)
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
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Source: VIRAC
Source: VIRAC, MOIT
Source: VIRAC
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Commercial electricity, 2012-6M/2018e
Electricity consumption per capita of Vietnam, 2000-2017e
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
Source: VIRAC, GSO, EVN
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Elastic electricity factor/GDP, 2010 – 6M/2018
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Electrical efficiency in Vietnam from the perspective of coefficient of
electricity elasticity/GDP.
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
Source: VIRAC, NLDCElectricity supply reliability criteria, 2017-2018
Source: VIRAC, EVN
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Electricity outage, 2012 – 6M/2018Electricity outage
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
Vietnam’s getting electricity indicator, 2013 - 2017
Source: VIRAC, World Bank, EVN
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption
Source: VIRAC, Decision No 5106/QĐ-BCT
Avoided cost tariff applied to small and medium-sized hydroelectric plants in 2018
Source: VIRAC, EVN, MOIT
VND/kWh
Electricity generating price
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price
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Average electricity purchase price of EVN, 1/2015 – 5/2018
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Source: VIRAC, Decision No 2712/QĐ-BCT
Average electricity wholesale price of EVN for other electricity corporations in 2018Wholesale price of electricity
Retail price of electricity
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price
Source: VIRAC, Decision No 2712/QĐ-BCT
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price
Electricity price in 6 degree
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Electricity price in Vietnam is quite low compared to other countries in
the Asia-Pacific region.
Price of input material, 1/2014 – 4/2018
Sources: VIRAC, MOIT
Sources: VIRAC, MOIT
Average electricity price, 7/2007 – 6/2018
VND/ kWh
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price
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1. Price frame for coal thermoelectricity factories
2. Price frame for hydroelectricity factories
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price
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Structure of electricity industryComparison of electricity industry structure
before and after 2008
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Developing a competitive electricity market in Vietnam is essential
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Vietnam Competitive Generation Market (VCGM)
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Progress of marketization of electricity industry
Progress of marketization of electricity industry
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Vietnam Competitive Generation Market in Vietnam
Sources: VIRAC, EVN
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Market structure
MW
VGCM situation, 2012 - 2017
2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Operating map of VCGMGeneral operating principles
Existing problems
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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To operate the competitive electricity generation market
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Based on the production, the electricity supply situation of the whole system in October and the demand for electricity in November, December/2017,
the Ministry of Industry and Trade has decided to operate again in the competitive electricity generation market from November/1st/2017 after one
month of halt to prioritize the mobilization of gas power. Some of the reasons for the resumption of the competitive electricity generation market in
November:
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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• Vietnam Wholesale Electricity Market (VWEM)
Operational mechanism of the competitive wholesale electricity market in 2018 includes:
The Pilot Experiment in 2018 is divided into three phases:
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2. Industry overview
2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry
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Content
2. Industry overview
2.1 Situation of global electricity industry
2.2 Situation of Vietnam electricity industry
2.3 Issues in energy industries development
2.4 Planning and forecasting
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Existing problems affecting the development of Vietnam's energy industry
2. Industry overview
2.3 Issues in energy industries development – 2.3.1 Existing
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Sources: VIRAC, ERAV
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Structure of electricity production by primary energy source
2. Industry overview
2.3 Issues in energy industries development – 2.3.2 Challenges
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Vietnam currently ranks 20th in the world among the countries with the
most coal thermal power plants in the world.
The development of coal electricity in Vietnam is against the world
trend.
Sources: VIRAC, GreenID
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Average per capita consumption of coal and CO₂
2. Industry overview
2.3 Issues in energy industries development – 2.3.2 Challenges
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Huge investment capital.
Sources: VIRAC, GDVC
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Levelized Cost of Electricity of techs per 1kWh, 2017-2025
Million USD/MW
2. Industry overview
2.3 Issues in energy industries development – 2.3.2 Challenges
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Source: VIRAC
Energy using efficiency and awareness are low.
Sources: VIRAC, GDVC
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Import of electrical wires and cables, 2011 - 2017e
2. Industry overview
2.3 Issues in energy industries development – 2.3.2 Challenges
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Weather risks
Risk of input costs of thermal power
Risks of interest rates
Risks of exchange rates
Risk of mechanisms
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2. Industry overview
2.3 Issues in energy industries development – 2.3.3 Risks
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The electricity market in Vietnam is gradually developing in three levels (competitive electricity generation, competitive electricity wholesale and
competitive electricity retailing), which will attract foreign investors thanks to the increase of the competitiveness and transparency, gradually reducing
the monopoly of EVN in the electricity market.
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2. Industry overview
2.3 Issues in energy industries development – 2.3.4 The trend of foreign investment
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2. Industry overview
2.1 Situation of global electricity industry
2.2 Situation of Vietnam electricity industry
2.3 Issues in energy industries development
2.4 Planning and forecasting
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2. Industry overview
2.4 Planning and forecasting -2.4.1 Planning
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Decision No. 428 / QD-Nog approving the adjustment of zoning for national electricity development in 2011-2020, with a vision to 2030
1. National electric power development planning:
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2. Electricity grid development planning:
Volume of transmission grids shall be elaborated in stages, as follows:
3. Solutions to industry zoning
2. Industry overview
2.4 Planning and forecasting -2.4.1 Planning
Solution to electricity price
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2. Industry overview
2.4 Planning and forecasting -2.4.1 Planning
Billion kWh
Sources: VIRAC, EVN
100
Demand – supply of electricity, 2010 – 2030f
2. Industry overview
2.4 Planning and forecasting -2.4.2 Forecasting
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GW
Sources: VIRAC, MOIT
101
Growth of renewable electricity capacity, 2016 - 2030f
2. Industry overview
2.4 Planning and forecasting -2.4.2 Forecasting
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3. Business analysis
3.1 Typical companies of electricity industry
3.2 Business performance indicators
3.3 Financial indicators
3.4 Payment indicators
Content
102
Source: VIRAC
3. Enterprise analysis
3.1 Typical companies of electricity industry
Electricity distribution and retail companies.
103
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Enterprises in electricity industry are divided into three groups:
Source: VIRAC
Electricity regulation and transmission companies.
Electricity generating enterprises
Source: VIRAC
* By the end of August 2017 EVNNPC has not yet published its financial statements
104
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3. Enterprise analysis
3.1 Typical companies of electricity industry
3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.1. Electricity distribution and retail companies.
Southern Power Corporation - EVNNPC
105
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.1. Electricity distribution and retail companies.
Northern Power Corporation - EVNNPC
106
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.1. Electricity distribution and retail companies.
HCM city Power Corporation - EVNHCMC
107
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.1. Electricity distribution and retail companies.
Hanoi city Power Corporation - HNPC
108
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.1. Electricity distribution and retail companies.
Central VN Power Corporation - EVNCPC
109
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.2. Electricity regulation and transmission companies.
Electricity regulation and transmission corporations:
110
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.3. Electricity generating enterprises.
Power Generation Corporation 3 – EVNGENCO3
111
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.3. Electricity generating enterprises.
112
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Power Generation Corporation 1 – EVNGENCO1
Hai Phong Thermal Power Joint Stock Company
3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.3. Electricity generating enterprises.
113
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Quang Ninh Thermal Power Joint Stock Company
3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.3. Electricity generating enterprises.
114
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3. Enterprise analysis
3.1 Typical companies of electricity industry– 3.1.3. Electricity generating enterprises.
Pha Lai Thermal Power Joint Stock Company
115
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3. Business analysis
3.1 Typical companies of electricity industry
3.2 Business performance indicators
3.3 Financial indicators
3.4 Payment indicators
Content
116
Source: VIRAC
Billion VND
3. Enterprise analysis
3.2 Business performance indicators
Net revenue, 2016-2017
117
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Net revenue of electricity distribution and retail businesses is much higher than that of electricity generation enterprises.
Source: VIRAC
Billion VND
3. Enterprise analysis
3.2 Business performance indicators
118
Profit indicator, 2016-2017
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While the net revenue of the 5 electricity distribution and retail businesses is much higher than that of some companies in the electricity generation
business group, the gross profit is not clear.
Source: VIRAC
3. Enterprise analysis
3.2 Business performance indicators
119
Self-financing rate, 2016 - 2017
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Source: VIRAC
3. Enterprise analysis
3.2 Business performance indicators
120
Financial cost, 2016 - 2017
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3. Business analysis
3.1 Typical companies of electricity industry
3.2 Business performance indicators
3.3 Financial indicators
3.4 Payment indicators
Content
121
Billion VND
3. Enterprise analysis
3.3 Financial indicators
Total asset, 2016-2017
Source: VIRAC
122
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Sources: VIRAC
Days
Average days of receivables, 2017
123
3. Enterprise analysis
3.3 Financial indicators
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Source: VIRAC
3. Enterprise analysis
3.3 Financial indicators
Profit indicators, 2017
124
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Source: VIRAC
3. Enterprise analysis
3.3 Financial indicators
Days
125
Days in inventory, 2017
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3. Business analysis
3.1 Typical companies of electricity industry
3.2 Business performance indicators
3.3 Financial indicators
3.4 Payment indicators
Content
126
3. Enterprise analysis
3.4 Payment indicators
Source: VIRAC
127
Solvency, 2016-2017
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Content
4. Appendix
4.1 Financial statements
4.2 Total capacity of national installed electricity system in 2016
128
4. Appendix
4.1 Financial statements
Southern Power Corporation - EVNSPC
129
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Northern Power Corporation - EVNNPC
130
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
HCM Power Corporation - EVNHCMC
131
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Hanoi Power Corporation - EVNHPC
132
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Central Power Corporation - EVNCPC
133
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Power Generation Corporation 3 – EVNGENCO3
134
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Power Generation Corporation 1 – EVNGENCO1
135
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Hai Phong Thermal Power Joint Stock Company
136
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Quang Ninh Thermal Power Joint Stock Company
137
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
4. Appendix
4.1 Financial statements
Pha Lai Thermal Power Joint Stock Company
138
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PURPOS
BALANCE SHEET
Unit: VND 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short term investments
III. Short term receivables
1. Accounts receivable of customers
IV. Inventories
B. NON CURRENT ASSETS
TTOTAL ASSET
A. LLIABILITIES
I. Short term liabilities
1. Borrowings and Short term liabilities
2. Tax and accounts payable to the State
II. Long term liabilities
1. Borrowings and long term liabilities
B. OWNER’S EQUITY
TOTAL EQUITY
STATEMENTS OF BUSINESS RESULTS
Unit: VND 2016 2017
Net revenue
Cost of goods sold
Gross profit
Revenue from financial activities
Financial costs
Interest expenses
Cost of sales
Enterprise cost management
Revenue from business activities
Profit before tax
Current income tax
Deferred income tax
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND 2016 2017
I. Cash flows from operation
(Profit)/Loss from investment activities
Interest expenses
Net cash flows from operation
II. Cash flows from investment
Cash spent for lending, purchasing debt instruments of other
units
L Net Cash flows from investment
III. Cash flows from finance
Net cash flows from finance
Impact of exchange rate changes in foreign currency
Cash and cash equivalents at the end of the year
REPORT DISCLAIMER
139
Report Disclaimer:
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produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to
be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently
verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and
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