Large coal-fired power plants 'still need to be built'

In the immediate future, large coal-fired power plants still need to be built, because if this source is crossed out right now, there will not be enough power for daily use, wrote economist Ngo Thai Binh.

Part of the 500kV transmission line that runs through Quang Nam province, south-central Vietnam. Photo courtesy of Vietnam News Agency.
In 1995, Vietnam installed its first 500 kV power transmission line to carry excess electricity from the North to the South.
Few people remember that in 2000 Vietnam had the lowest electricity output among the top six ASEAN members, with 26.6 TWh (1 TWh = 1 billion kWh).
Indonesia, Thailand, Malaysia, the Philippines, and Singapore posted output of 98, 89.5, 70.5, 43.7 and 29 TWh that year, respectively.
Regarding per capita electricity output, Vietnam ranked eighth out of the 10 ASEAN members with 336 kWh, just above Myanmar and Cambodia.
Since 2000, Vietnam has shown the fastest power source development rate in ASEAN.
The country surpassed Singapore in 2001, the Philippines in 2006, and Malaysia in 2015. In 2017, Vietnam outstripped Thailand and was only behind Indonesia.
In 2021, Vietnam continued to rank second in the region with 244.8 TWh, just after Indonesia with 309.1 TWh. They were followed by Thailand with 186.9 TWh, Malaysia with 175.7 TWh, and the Philippines with 108.2 TWh.
Vietnam's per capita electricity consumption approximated that of Thailand, doubled that of Indonesia, and was over 2.5 times higher than the Philippines.
Vietnam has caught up with Thailand and outstripped the Philippines and Indonesia in electricity production in just a short time. It can be said that electricity growth in Vietnam is hotter than GDP growth.
Vietnam is about to catch up with Indonesia - a country with GDP three times higher and a population 2.7 times larger - in terms of power output.
Energy-consuming industries have put constant pressure on the power industry. At the moment, power demand in Vietnam is not higher than supply, as the global economy is struggling, just when demand for electricity is high and supply is at its lowest.
Looking at Vietnam's power generation sources, annual gas-fired power output in 2022 plunged to less than 28 TWh from its peak of more than 47 TWh in 2010.
Coal power also dropped sharply from more than 114 TWh in 2021 to 99.5 TWh in 2022. High coal and gas prices may affect the actual output in 2023.
The government should allow power corporations (all one-member limited companies owned by the state) to sell electricity at a price based on their buying price, thus forming a market mechanism. When that happens customers will hold a stronger position, but will have to accept price fluctuations under the supply-demand relationship. Other ASEAN countries have already done that.
Over the next few years, power shortages will continue during peak times, and it could be easy for the public to castigate EVN as the culprit. Laying the blame with the group would be easy, but would not take into account the many risks faced by the business. Heavy punishments would not bring more power generation if we do not solve the root of the problem. In short, the story of the power sector cannot be viewed from an emotional perspective.
In the immediate future, large coal-fired power plants still need to be built, because if this source is crossed out right now, there will not be enough power for daily use.
Simultaneously, gas-fuelled power requires additional investment, although it is expensive. Nuclear power must also be reconsidered, and hydropower will continue to be developed, but no longer on a large scale.
The development of wind and solar power is not just about installing wind turbines and solar panels, it also depends on the transmission network.
- Read More
Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense
Viettel High Tech, the core military and civilian R&D arm of Vietnam’s military-run telecom giant Viettel, has signed a cooperation agreement with John Cockerill Defense, a leading weapon designer and manufacturer in France.
Companies - Thu, May 29, 2025 | 9:14 pm GMT+7
MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event
Vietnam's leading bank MB on Thursday introduced its latest digital technology solutions, notably the Biz MBBank digital financial platform, at the "Smart Digital Ecosystem in the New Era" event organized by the central bank.
Companies - Thu, May 29, 2025 | 8:02 pm GMT+7
Vietnam's auto distributor TMT to launch $3.8 mln charging station firm
Vietnamese auto distributor TMT Motors has announced the establishment of a charging station company with a charter capital of VND100 billion ($3.84 million).
Companies - Thu, May 29, 2025 | 4:45 pm GMT+7
US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN
Excelerate Energy wants to make Vietnam a center for LNG distribution to the ASEAN region, president and CEO Steven Kobos told Prime Minister Pham Minh Chinh at a meeting in Hanoi on Thursday.
Energy - Thu, May 29, 2025 | 4:33 pm GMT+7
Bourse shifts to heat up Vietnam's banking stocks
Several Vietnamese banks are planning to move their shares from the Unlisted Public Companies Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) this year, creating new momentum for banking stocks, long dubbed the “king” group.
Finance - Thu, May 29, 2025 | 2:48 pm GMT+7
Dairy giant TH Group proposes 5 projects in southern Vietnam
TH Group, one of Vietnam’s leading dairy producers, has proposed five major projects in the southern province of Binh Phuoc, in the fields of industrial production and urban area, golf course and high-tech agricultural production zone developments.
Industries - Thu, May 29, 2025 | 12:02 pm GMT+7
2024 cyberattack 'a blessing in disguise' for Vietnam's leading broker VNDirect: chairwoman
The cybersecurity breach that major Vietnamese brokerage VNDirect Securities encountered in 2024 was "an unfortunate incident, but also a lucky chance", chairwoman Pham Minh Huong said on Wednesday.
Finance - Thu, May 29, 2025 | 9:48 am GMT+7
Vietnam prioritizes smart, green seaport projects: Deputy PM
Vietnam encourages smart and green seaport investments, as technical barriers related to CO2 emissions and CO2 taxes begin to be tightened up globally.
Infrastructure - Wed, May 28, 2025 | 10:07 pm GMT+7
New Zealand, Vietnam expand timber trade partnership
New Zealand Forestry and Trade Minister Todd McClay on Tuesday unveiled a new bilateral agreement with Vietnam designed to boost timber exports and remove potential trade barriers in the two countries' forestry sectors.
Companies - Wed, May 28, 2025 | 8:53 pm GMT+7
Norway vows to support Vietnam's energy transition
Norway is committed to supporting Vietnam’s energy transition, Norwegian Ambassador to Vietnam Hilde Solbakken said at a technical seminar held in Hanoi on Wednesday.
Companies - Wed, May 28, 2025 | 8:49 pm GMT+7
Thailand expected to become regional luxury retail hub
Thailand's luxury retail market is valued at $4.4 billion and projected to grow by approximately 5% annually through 2028, placing the country at the forefront of luxury retail in Southeast Asia and seventh in Asia-Pacific, according to property consultant CBRE Thailand.
Southeast Asia - Wed, May 28, 2025 | 8:44 pm GMT+7
Indonesia affirms role as leading global maritime hub
The Indonesia Maritime Expo, held as part of Indonesia Maritime Week 2025 on May 26-28, is the first large-scale maritime event in the country, aiming to affirm its role as a global maritime hub and promote the sustainable development of the region’s maritime industry.
Southeast Asia - Wed, May 28, 2025 | 8:41 pm GMT+7
Vietnam benchmark VN-Index hits 3-year high
The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), recorded a four-day gaining streak on Wednesday, rising 2.06 points, or 0.15%, to 1,341.87 points - the highest since May 2022.
Finance - Wed, May 28, 2025 | 6:37 pm GMT+7
HSBC launches sustainability improvement loan in Vietnam
HSBC has introduced its Sustainability Improvement Loan, a new financing solution tailored for businesses with annual turnover less than $550 million, in Vietnam, after launching it in 12 markets including the UK, Middle East, Hong Kong and Singapore last year.
Banking - Wed, May 28, 2025 | 6:15 pm GMT+7
CMA CGM, Saigon Newport to jointly develop deep-sea terminal in northern Vietnam
France's CMA CGM Group, a global player in sea, land, air, and logistics solutions, has signed a partnership agreement with Vietnam's Saigon Newport Corporation (SNP) to develop a deep-water terminal in Hai Phong city, northern Vietnam.
Infrastructure - Wed, May 28, 2025 | 5:01 pm GMT+7
Japan’s chipmaker Rapidus pledges semiconductor workforce training for Vietnam
Rapidus Corporation, a semiconductor manufacturer of Japan, has affirmed its readiness to train semiconductor workforce for Vietnam.
Economy - Wed, May 28, 2025 | 3:21 pm GMT+7
- Infographics
-
Vietnam PM urges world's food industry leader JBS S.A to invest in livestock farming, meat processing
-
Pakistani, Indian sugar bans won't affect Vietnam market: association
-
Wood pellet exports down but Japan buys more
-
Additional capital of FDI companies up 93% on-year
-
FDI capital expansion surges 66% in first half
-
Vietnam GDP grows 6.42% in six months