ACBS - Energy Industry and Hydropower Industry...

INDUSTRY OVERVIEWENERGY INDUSTRY AND HYDROPOWER LEGAL FRAMEWORK (The report has been made on behalf of R

Le Nguyet Anh & Tran Thi Hai YenACBS Research Center Le Hong Hai & Nguyen Thi NguyetACBS Legal Department May 10 2

VERVIEW YDROPOWER INDUSTRY

ort has been made on behalf of REPDC GREEN)

Le Nguyet Anh & Tran Thi Hai Yen ACBS Research Center Le Hong Hai & Nguyen Thi Nguyet ACBS Legal Department

2012

Bloomberg: ACBS <GO> of 44

COVERAGE OF VIETNAM HYDROPOWER INDUSTRY Updated as of May 10 2012

CONTENT

VIETNAMESE ENERGY INDUSTRY OVERVIEW .......................................................................... 3

ECONOMICS REVIEW ......................................................................................................................... 4

HIGH ELECTRICITY DEMAND ........................................................................................................... 5

SUPPLY SITUATION ............................................................................................................................ 5

INTERCONNECTION & GRID NETWORK ........................................................................................... 9

ELECTRICITY EXCHANGE/MARKET ................................................................................................ 13

ELECTRICITY STRATEGY ................................................................................................................. 17

ENERGY COMMUNITY TREATIES .................................................................................................... 20

HYDROPOWER OVERVIEW .............................................................................................................. 21

VIETNAM LEGAL ENVIRONMENT ................................................................................................. 29

INVESTMENT RELATED ISSUES ...................................................................................................... 30

CORPORATE GOVERNANCE ............................................................................................................. 30

TAX ISSUES ....................................................................................................................................... 31

FOREIGN INVESTMENT POLICY ...................................................................................................... 32

INTERNATIONAL INTEGRATIONS .................................................................................................... 33

INDUSTRY SPECIFIC LEGAL ISSUES ................................................................................................ 34

ENERGY POLICIES ............................................................................................................................ 37

APPENDIX ........................................................................................................................................... 40

Tran Thi Hai Yen, Financial Analyst | Tel: +84 8 5 404 3054 (694) | Email: [email protected] ACBS Research Center |Tel: +84 8 5 404 3257 | [email protected] Contact Center |Tel:+84 8 39 107 107 | [email protected] Website: research.acbs.com.vn Bloomberg:ACBS <GO>

Bloomberg: ACBS <GO>

SECTION 1

VIETNAMESE

COVERAGE OF VIETNAM

IETNAMESE ENERGY INDUSTRY

of 44

TNAM HYDROPOWER INDUSTRY Updated as of May 10 2012

NDUSTRY OVERVIEW



ECONOMICS REVIEW Vietnam has experienced a fast growth over the last ten years with the average growth of about 7.22% per year. Even though the global economy has experienced a slowdown recently, Vietnam still achieved a GDP growth of 6.18% in 2008, 5.46% in 2009, 6.78% in 2010 and 5.89% in 2011.

Figure 1: Real GDP by sectors in 2000-2011 period

Source: GSO, ACBS Analysis and Research Center (2012)

Particularly, the Industrials & Constructions sector was growing faster with the average growth of 8.89% during the same period. However, since 2008 it showed signs of slowdowns due to the negative impacts from the world economics and the tightening policy of the Government. Following the urbanization in Vietnam, the rate of population living in urban areas has been increasing rapidly from 21% in 2000 to 30% in 2010. As such, we also witnessed considerable changes in living standards.

Figure 2: Population structure

Source: GSO, ACBS Analysis and Research Center (2012)

0%

2%

4%

6%

8%

10%

-100,000 200,000 300,000 400,000 500,000 600,000 700,000

1995 1997 1999 2001 2003 2005 2007 2009 2011Agriculture, forestry & Fishing Industrials & ConstructionsServices GDP Growth

VND billion

-2%0%2%4%6%8%10%

0102030405060708090

100

1995 1997 1999 2001 2003 2005 2007 2009

Urban Rural Growth in Urban Growth in Rural

VND Million



HIGH ELECTRICITY DEMAND Vietnam’s demand for electricity has risen steadily due to the increasing living standards and the industrialization. The electricity consumption in Vietnam had increased by roughly 300% in the past ten years. Particularly, the growth of power consumption was nearly double that of GDP.

Figure 3: Electricity demand in period 2000-2011

Source: EVN, MoIT, ACBS Analysis and Research Center (2012) In terms of consumption structure, industrials and households usually make up about 85-90% of the total demand. Cement and steel industries are the biggest electricity consumers. Meanwhile, prices of electricity sold to cement and steel firms are lower than the prices sold to households and other industries and even lower than the production cost of Electricity Corporation of Vietnam (EVN). In addition, lower environmental standards have been another reason for the rapid growth of cement and steel industries in Vietnam and caused a larger demand for electricity. Being an emerging economy, Vietnam is likely to maintain high growth in the future and the living standard of the population will increase further as well. Given that, demand for electricity may increase significantly in the future. According to the Government’s estimation, the electricity demand is predicted to grow steadily by over 200% in the next 5 years and 300% in the next 10 years. Therefore, attractive investment opportunities are still available for both current industry players and new investors.

SUPPLY SITUATION The CAGR of installed capacity in Vietnam during 2000-2011 was about 14.33%, rather slower than that of power demand. At the end of 2011, total installed capacity of all power plants in Vietnam reached 23,803 MW.

0%2%4%6%8%10%12%14%16%18%

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Electricity demand Growth

Billion Kwh


In 2012, the launches of new power plants, such as turbine #5 and hydropower plant (400MW each turbine), Vung Ang th(600MW), may Vietnam. Out of thisThe structure of power sources also witnessed significant changes. In 2000 hydropower total installed capacity in Vietnam. However, contributed just 35%capacity of 10,182MW.

Figure

Meanwhile, thermal power increased its 12,298MW, up 382% projects such as Pha Lai 2, Phu My 1Currently, the structure of power source is quite various, comprising hydropower, coal thermal power, gas thermal power, wind power and solar power and about 3solve the country’s

Sources HydropowerCoal-Oil-firedGas turbineDieselImportOther

Sum

Oil fired, 2.20%

Gas fired,

2.00%

Gas turbine,29.80%

Import,4.20%

COVERAGE OF VIETNAM

In 2012, the launches of new power plants, such as turbine #5 and hydropower plant (400MW each turbine), Vung Ang th(600MW), may add about 2,790MW to the capacity of power sources in

Out of this, EVN will contribute 1,190MW or 42.6%.he structure of power sources also witnessed significant changes. In 2000

hydropower was the country’s largest power source, occupying 51% of the total installed capacity in Vietnam. However, currently contributed just 35%-45% to the country’s electricity supply with the installed capacity of 10,182MW.

Figure 4: Vietnamese power capacity by sources as of DecSource: NLDC, ACBS Analysis and Research Center (201

Meanwhile, thermal power increased its contribution12,298MW, up 382% in 10 years with the launches of a number of large projects such as Pha Lai 2, Phu My 1, 2&3, Ca Mau etcCurrently, the structure of power source is quite various, comprising hydropower, coal thermal power, gas thermal power, wind power and solar power and about 3-5% of power source is imported from China

the country’s power shortage. Table 1: Electricity Production by sources

2009 Hydropower 29,977 27,550

-fired 15,532 17,562fired 2,551

Gas turbine 37,117 44,203Diesel 249 Import 4,102 Other 491

87,019 100,071

Hydro, 42.80%Coal

fired, 18%

Oil fired, 2.20%

turbine,29.80%

Import,4.20%

Other, 1.40%

Capacity

Gas fired,0.50%

Gas turbine, 36.30%

Import, 4.60%

Electricity

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In 2012, the launches of new power plants, such as turbine #5 and #6 of Son La hydropower plant (400MW each turbine), Vung Ang thermal power plant

about 2,790MW to the capacity of power sources in or 42.6%.

he structure of power sources also witnessed significant changes. In 2000 power source, occupying 51% of the

currently this power source 45% to the country’s electricity supply with the installed

ources as of Dec 2011

Source: NLDC, ACBS Analysis and Research Center (2012) contribution considerably to

10 years with the launches of a number of large Ca Mau etc.

Currently, the structure of power source is quite various, comprising of hydropower, coal thermal power, gas thermal power, wind power and solar

5% of power source is imported from China in order to

Table 1: Electricity Production by sources (Unit: Million Kwh)

2010 2011 27,550 40,924 17,562 20,500

3,701 1,793 44,203 39,492

894 - 5,599 4,959

562 481 100,071 108,725

Source: NLDC (2012)

Hydro,37.60%

Coal fired,

18.90%

Oil fired, 1.60%

turbine, 36.30%

Import, 4.60%

Other, 0.50%

Electricity Production


In terms of ownership, currently sources, decreasing steeply from almost 100independent investors includelectricity generation market under formAt present, PetroVietnam and Vinacomin. EVN plants while the independent power producers (IPP) mainly invest inmedium and small one

Most of theregion of Vietnam or the Central Highland. Coal plants center in the East of Northern regionconstructed mainly in the Northern region. With such distribution, operation of the powelectricity to the shortage areas.Overall, the growth of power source is lower than that of therefore, Vietnam usually suffers from powerhydropower In 2011, the country not increase as fast as expected given the sluggish economy. However, EVN still had to import 4.9 billion KwhEven though a lot of power projects will be sources, according to the Government’s plan, Vietnam shortageshigher price (6producers.

COVERAGE OF VIETNAM

of ownership, currently EVN owns about 65% of the country’s power sources, decreasing steeply from almost 100% in independent investors including foreigners and local players have joined the electricity generation market under forms of BOT and BOO contracts. At present, the two biggest local independent thermal power producers are PetroVietnam and Vinacomin. EVN still holds a number of large hyplants while the independent power producers (IPP) mainly invest inmedium and small ones.

Figure 5: Power capacity by investors as of Dec 2011

the large hydropower plants are located in the West of the Northern region of Vietnam or the Central Highland. Coal plants center in the East of Northern region, which is near the energy sources while gas turbine plants are constructed mainly in the Northern region. With such distribution, operation of the power grids throughout the country is required for allocating electricity to the shortage areas. Overall, the growth of power source is lower than that of therefore, Vietnam usually suffers from power-cuthydropower plants cannot operate at their full capacities.

the country did not carry any big power-not increase as fast as expected given the sluggish economy. However, EVN still had to import 4.9 billion KwhEven though a lot of power projects will be added

, according to the Government’s plan, Vietnam s and may have to continuously import electricity from China at a

higher price (6.08 cents per Kwh) than the one boughtproducers.

EVN, 55%Joint Stock

Companies, 12%

PVN, 11%Foreigners, 10%

Vinacomin, 5%Import, 5% Other, 3%

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owns about 65% of the country’s power in the last 10 years. Many

ing foreigners and local players have joined the of BOT and BOO contracts.

two biggest local independent thermal power producers are a number of large hydropower

plants while the independent power producers (IPP) mainly invest in the

capacity by investors as of Dec 2011

Source: NLDC (2011) in the West of the Northern

region of Vietnam or the Central Highland. Coal plants center in the East of near the energy sources while gas turbine plants are

constructed mainly in the Northern region. With such distribution, an efficient er grids throughout the country is required for allocating

Overall, the growth of power source is lower than that of the power demand; cuts in the dry season, when

operate at their full capacities. -cuts since the demand did

not increase as fast as expected given the sluggish situation of the local economy. However, EVN still had to import 4.9 billion Kwh of electricity.

added into the country’s power , according to the Government’s plan, Vietnam will still face power

and may have to continuously import electricity from China at a the one bought from local

EVN, 55%



Figure 6: Vietnam Power System Source: ERAV (2011)



INTERCONNECTION & GRID NETWORK Vietnamese national grid overview The Vietnamese power system showed great advances since the launch of the first extra high voltage 500kV North – South line in 1994 and interconnection with neighboring grids in 2004 and 2009. Currently, the power system in Vietnam comprises high voltage lines of 500kV, 220kV and 110kV as well as medium voltage lines of 35kV to 6kV.

Table 2: Electricity Transmission System as of Dec 2011

Lines No. Substation Capacity (MVA)

Length (km)

110kV 746 27,908 13,141 220kV 135 22,004 10,015 500kV 23 10,650 3,890

Source: NLDC (2012) Particularly, there was a new 152.8km of 500kV line launched in 2011, linking “O Mon” gas turbine centre (2,800MW) with the national grids. Given that, the amount of electricity loading through the national network reached 90.5 billion Kwh in 2011, up 9.4% y.o.y. The 500kV lines are considered as the backbone of the whole country’s power system, integrating regional sub-power systems in the North, Central and South region to become a single national network. Before the construction of the 500kV North – South line, the Vietnamese power system comprised separate regional systems with asynchronous and outdated equipment. Advanced technologies have been applied for 500kV lines such as SCADA/EMS system, loading shedding using F81 under frequency protection, automatic reclosing system and optical fiber composite overhead ground wire etc. The average loading growth rate reached 14% over the past ten years. However, the power system is still insufficient to meet the transmission demand, and usually is overloaded in terms of both capacity and transmitted volume. For example, the 500kV Dac Nong – Phu Lam suffered an overload of 128% compared to the loading capacity during the peak hours in 2011. EVN’s National Power Transmission Corporation (NPT) manages the 500KV and 220kV lines and plays as a transmission unit, while the 110kV, 35kV and 6kV lines are managed by regional power utilities who play as distribution units. Nevertheless, we notice that the National Load Dispatch Centre (NLDC) and its subsidiaries are responsible for the overall supervising the operation and dispatches of power sources and transmitting system.


Figure 7: Organization of Vietnam

Regarding interconnectionChina for importing electricity through both 220kV and 110kV lines maximum capacity of 900MW. The imported electricity mainly supply North Vietnam while Laos.

Interconnection

China CambodiaLaos

The 220kV Chau DocCambodia with Laos is transmitted through to Laos remains insignificant. The operations of these interconnection grids have problems due to and regulations. are separated from the Vietnamese national gridsometime causes reverse electricity flows back to China. However, the interconnections with neighboring power grids may benefit Vietnam in long term with more integratindustry.

Power Transmission

Company No.1 (PTC1)

COVERAGE OF VIETNAM

Figure 7: Organization of Vietnam Transmission Network

Regarding interconnection, Vietnamese power grids connected with thatChina for importing electricity through both 220kV and 110kV lines maximum capacity of 900MW. The imported electricity mainly supply North Vietnam while in the South, electricity is sold by

Table 3: Interconnection grids as of Dec 2010Interconnection Lines

- 110kV - 220kV

- -

Cambodia - 220kV - - 22kV -

The 220kV Chau Doc- Takeo line connects the power grids of Vietnam and Cambodia with a maximum capacity of 120MW. Meanwhile, electricity sLaos is transmitted through a 22kV line but the amount of electricity exported to Laos remains insignificant. The operations of these interconnection grids have problems due to the differences related to operating standarand regulations. For example, electricity grids of power imported from China are separated from the Vietnamese national gridsometime causes reverse electricity flows back to China.

ever, the interconnections with neighboring power grids may benefit Vietnam in long term with more integration into the international power

EVN

National Power Transmission Corporation (NPT)

- 500Kv-220kV

Transmission Power

Transmission Company

No.2 (PTC2)

Power Transmission

Company No.3 (PTC3)

Transmission Company

No.4 (PTC4)

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Transmission Network

Source: NPT (2011) , Vietnamese power grids connected with that of

China for importing electricity through both 220kV and 110kV lines with a maximum capacity of 900MW. The imported electricity mainly supply North

in the South, electricity is sold by Vietnam to Cambodia and

grids as of Dec 2010 Time Capacity

2004 2006 900MW 2009 120MW 2009 N.A

Source: NLDC (2011) power grids of Vietnam and

capacity of 120MW. Meanwhile, electricity sold to 22kV line but the amount of electricity exported

The operations of these interconnection grids have generated several operating standards, procedures

For example, electricity grids of power imported from China are separated from the Vietnamese national grid (500kV lines), which sometime causes reverse electricity flows back to China.

ever, the interconnections with neighboring power grids may benefit to the international power

National Power Transmission

Power Transmission

Company No.4 (PTC4)

03 Project Management

Boards


Process and terms of electricity transmissionThe electricitythat meet the connection conditions, technical standards and procedures as provided by the MoIT national electric system, which are detailApril 15 2010, promulgating by the MoIT. The connection conditions are regulated in Chapter II of the Circular; the technical standards are regulated in Section 2, Chapter V while Section 3, Chapter V is about the procedures. In Vietnam, (1) NPT system; (2) regional power corporations (EVNHCMPC and EVN(3) NLDC system, including generation, transmission, distribution. Given that, the above units must coordinate with eac

Figure 8: Organization of Vietnam Distribution Network

In details, NLDC transmission systemGiven that, electricity producers, NPT, distributing units and customerreceive electricity directly schedulesThe most important issue for electricity transmission system, which � Step 1: � Step 2: � Step 3: � Step 4:

Northern Power

Corporation (EVN-NPC)

COVERAGE OF VIETNAM

Process and terms of electricity transmissionThe electricity- generating, - transmitting, -distributingthat meet the connection conditions, technical standards and procedures as provided by the MoIT are entitled to connect their own electric system to national electric system, which are detailed in Circular 12/2010/TT

il 15 2010, promulgating by the MoIT. The connection conditions are regulated in Chapter II of the Circular; the technical standards are regulated in Section 2, Chapter V while Section 3, Chapter V is about the procedures. In Vietnam, (1) NPT is responsible for operating the system; (2) regional power corporations (EVN-NPC, EVNHCMPC and EVN-HNPC) are in charge of operating the distributi

is in charge of the overall management ofsystem, including generation, transmission, distribution. Given that, the above units must coordinate with each other for stable electricity transmission.


ails, NLDC arranges the schedules for the operation of transmission system on a yearly, monthly, weeklyGiven that, electricity producers, NPT, distributing units and customerreceive electricity directly from the transmission system

s. The most important issue for electricity producers transmission system, which must follow the followings steps:

Step 1: Sign connection Agreement with NPTStep 2: Check for the conditions of connection pointStep 3: Connect to the electricity grid for operationStep 4: Check and monitor equipment after official operation

EVN

Central Power

Corporation (EVN-CPC)

Southern Power

Corporation (EVN-SPC)

Hanoi Power

Corporation (EVN-

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Process and terms of electricity transmission distributing units and –consumers

that meet the connection conditions, technical standards and procedures as entitled to connect their own electric system to the

in Circular 12/2010/TT-BCT dated

The connection conditions are regulated in Chapter II of the Circular; the technical standards are regulated in Section 2, Chapter V while Section 3,

operating the electricity transmission NPC, EVN-SPC, EVN-CPC, EVN-

the distribution system, and of the Vietnamese electricity

system, including generation, transmission, distribution. Given that, the above electricity transmission.


Source: EVN (2011) operation of the electricity ly, daily, and hourly basis.

Given that, electricity producers, NPT, distributing units and customers who the transmission system have to follow the

is how to connect with the must follow the followings steps:

with NPT conditions of connection point

tricity grid for operation testing after official operation

Hanoi Power

Corporation -HNPC)

Ho Chi Minh City Power

Corporation (EVN-HCMCPC)



Network connections losses High connection loss is also a big problem of the Vietnamese electricity system. In recent years, the rate of overall connection loss is around 9-10% while that on 500kV lines just about 2.8%. Particularly, distributing-grids usually have extremely high connection loss rate, around 20-25% for the past 10 years. According to Circular 32/2010/TT-BCT, NPT is responsible for summarizing and calculating the connection loss rate for the following year and submits it to the Electricity Regulatory Authority of Vietnam (ERAV). Given that, ERAV will approve a suitable connection loss rate for calculating the price of transmission services and then transmits that loss to retail electricity prices. As such, the consumers will the cover cost for electricity connection loss. However, if the real connection loss rate exceeded the regulated rate, NPT has to sustain the losses. In short, even though the power grids in Vietnam receive significant investment, almost all projects have been behind schedule, because of serious capital shortage and slow land clearance. The growth of developing transmission systems has been even slower than that of power sources; as such, some lines and substations usually operate in seriously overloaded and unsafe conditions. To fix the inadequate points, the authorities announced that 2012 would be a year for developing transmission systems. As such, NPT will be supported strongly to invest into power grids. Capital shortage & interest rate issues In 2011, Vietnam experienced macro-economic instability with the surge of inflation and interest rates. At the same time, the Government decided to cut down public investment and carried out a tightening monetary policy. Lending interest rates stood at highs level of about 18-23% last year while approaching loans from bank was not easy. Therefore, many investors faced financial tensions, and some of them must delay their projects such as EVN, Vinh Son – Song Hinh.

Figure 9: Vietnamese Government Bond Yield Curve

Source: ACBS Research and Analysis Center (2012)

9%

10%

11%

12%

13%

14%

1Y 2Y 3Y 5Y 7Y 10Y

Dec-11 Jan-12 Feb-12Mar-12 Apr-12 May-12



Currently, interest rates have showed decreasing sign as the lending rates have dropped to 15-19%, the interest rates for long-term Government Bonds are around 10-11.5%. In the case of EVN, the Group is always in an investment capital shortage situation since it is carrying too many projects. Meanwhile, most of EVN projects are assessed as good and attractive projects. With EVN’s current financial issues, the group may sell some projects for independent power producers. As such, this can be an opportunity for new market entrants. ELECTRICITY EXCHANGE/MARKET EVN - a sole buyer Currently, there is no free market for electricity on both generation market and retail market. The Vietnamese electricity market is still a state monopoly market since EVN plays as a major electricity producer, a sole buyer and an exclusive distributor. Electric Power Trading Company (EPTC), a subsidiary of EVN, is the only one who is in charge of buying electricity from most of the electricity plants in Vietnam and then selling electricity to the electricity wholesalers. All trade between EPTC and electricity plants are done via bilateral contracts with heavy bargaining power belonging to EVN. Given that, the PPA negotiations with EPTC are difficult and time consuming. In total, EPTC has eight customers, including three members of EVN (Northern Power Corporation – EVN NPC, Southern Power Corporation – EVN SPC, Central Power Corporation – EVN CPC) and some local power companies who are related to EVN as well. Electricity consumers then buy electricity directly or indirectly through subsidiaries of these firms without any other choices. The current market scheme may narrow capital flow into the Vietnamese energy industry. With the new energy strategy, electricity market may witness significant changes in the long-term. Electricity retail prices In terms of retail prices, the Government has gradually floated electricity prices toward the market regime. Following Decision 24/2011/QĐ-TTg dated April 15, 2011 and Circular 31/2011/TT-BCT dated August 19, 2011, EVN can adjust the prices by 5% or lower after noticing to and being accepted by the MoIT. For an adjusted rate of more than 5%, EVN has to submit dossiers to the MoIT and the Ministry of Finance (MoF) to get approval.




Source: EVN, ACBS Analysis and Research Center (2012) The prices of electricity have increased gradually but still are at low levels, which lower than EVN’s cost of electricity. However, the pace of electricity price increases in 2010 and 2011 seem stronger than in the previous years. This may show the Government’s desire to bring the electricity market closer to the market regime. At present, the average electricity price sold to the economy is about VND 1,304 per Kwh (6.2 cent/Kwh) and likely to increase further in the future. Power Purchase Agreement EPTC is responsible for buying electricity from all power plants in Vietnam that have a capacity exceeding 5MW. Given the monopoly electricity market in Vietnam, it is very difficult for investors to negotiate a PPA with EPTC, especially in terms of prices. In some cases, the negotiation may lengthen to about 3-6 years since the prices offered by investors are far higher than what EPTC bids. Due to the cost based pricing principle, EPTC has offered different prices for each plant according to capacity, total capital investment, etc. Meanwhile; other terms in the PPA have to follow EVN’s standard format. For hydropower plants, the cheapest source, EPTC pays about VND 400-600 per Kwh of electricity from the old plants and about VND 700-900 per Kwh for the new one, which are fixed until the PPA’s maturity.

-1.00 2.00 3.00 4.00 5.00 6.00 7.00

-200 400 600 800

1,000 1,200 1,400

2005 2006 2007 2008 2009 2010 2011Price USD equivalent

VND/Kwh Cent/Kwh



Table 4: Prices of electricity from some listed HPPs (Unit: VND/ Kwh)

Name 2008 2009 2010 2011 Vinh Son – Song Hinh

- Dry season - Rainy season

118 738

163 764

161* 681*

161* 681*

Thac Ba 530 530 530 653 Thac Mo 452 452 452 552

Source: VSH, TBC, TMP, ACBS Analysis and Research Center (2012) *Interim prices

Regarding thermal plants, prices are able to change in accordance with the fluctuations of input costs such as prices of coal, oil and gas. Regarding BOT plants, they usually signed only one PPA for the whole life of the project (25 years) with fixed price, without any revision for inflation. For instance, Phu My II #2 and Phu My III Gas Turbine Power Plants spent about 6 years to get the prices of 4.09 cent/Kwh and 4.04/Kwh respectively. Regarding new small renewable power plants, the price is determined following the Avoided Cost Tariff that announced by the MoIT. The table below is the Avoided Cost Tariff that the MoIT announced in 2012.

Table 5: Avoided Cost Tariff in 2012 (Unit: VND/ Kwh)

Dry season Rainy season Peak hour

Normal hour

Low hour

Peak hour

Normal hour

Low hour

Price for surplus electricity

North 619 596 554 596 557 538 269 Central 589 583 551 549 538 533 267 South 638 629 596 583 574 559 279

Source: Decision No.06/QĐ-ĐTĐL dated Jan 19 2012 (ERAV)

However, given the implementation of the Competitive Electricity Generation Market (VCGM), which is expected in 2012, except from strategic multipurpose hydropower plants (SMPH) such as Hoa Binh, Son La etc, and BOT plants, the remaining medium and large power plants (≥ 30MW capacity) will competitively offer their prices to EPTC. As a result, the Vietnamese electricity market may witness significant changes in the future. There are no regulations regarding restrictions to the potential buyer who can issue bankable PPA in Vietnam.


Dispute over Since EVN exclusively domimany disputes over tariff calculations, especially in recent time. For example:EVN vs Vinh Son and Vinh Son public interest. After 3 reached the final decisionsThe main reason for electricity from VSH since the companythe old plantscompany wishes to retain more earnings to fund the construction of TKontum projects, In 2010, EVN and VSH agreed to retain the old prices for electricity producin 2009. However, electricity determined yet. As sucquarter of 2012 Given that, VSH must hold the Annual General Meetings later than required and the business earnings during 2010, 2011 and the funcertain.The ownership structure of VSH is presented below:

With such shareholder structure, together with the role of EVN Vietnamese electrelectricity prices with EVN.

EVNVIAC (No.1) Limited PartnershipSSISwiftcurrent Partners, L.P

COVERAGE OF VIETNAM

Dispute over tariff calculation Since EVN exclusively dominated the electricity-generationmany disputes over tariff calculations, especially in recent time. For example:EVN vs Vinh Son - Song Hinh Hydropower JSC: The negotiation between EVN and Vinh Son – Song Hinh (VSH) for renewing the PPA has attracted loads of public interest. After 3 years of negotiation, currently thereached the final decisions yet. The main reason for the delay is that EVN wants to reduce

city from VSH since the company fully depreciated most of its assets of the old plants since 2011. However, VSH did not accept this offer as the company wishes to retain more earnings to fund the construction of TKontum projects, whose total investment capital reached VND 5,744 billion.In 2010, EVN and VSH agreed to retain the old prices for electricity producin 2009. However, electricity prices in 2010 and later years hadetermined yet. As such, the business results of VSH in 2010, 2011 and the first quarter of 2012 are calculated by 90% of the old prices. Given that, VSH must hold the Annual General Meetings later than required and the business earnings during 2010, 2011 and the funcertain. The ownership structure of VSH is presented below:

Figure 11: VSH’s Shareholder StructureSource: VSH, ACBS Analysis and Research Center

With such shareholder structure, together with the role of EVN Vietnamese electricity market, it is very challenging for VSH to electricity prices with EVN.

31.16%

24.47%

6.14%

5.09%

4.56%

2.99%2.01% 23.58%

EVN SCICVIAC (No.1) Limited Partnership Bao Viet LifeSSI Swiftcurrent Offshore, LtdSwiftcurrent Partners, L.P Other

of 44


generation market, there are many disputes over tariff calculations, especially in recent time. For example:

: The negotiation between EVN the PPA has attracted loads of

years of negotiation, currently the two parties have not

at EVN wants to reduce the price of fully depreciated most of its assets of

. However, VSH did not accept this offer as the company wishes to retain more earnings to fund the construction of Thuong

total investment capital reached VND 5,744 billion. In 2010, EVN and VSH agreed to retain the old prices for electricity produced

in 2010 and later years have not been business results of VSH in 2010, 2011 and the first

calculated by 90% of the old prices. Given that, VSH must hold the Annual General Meetings later than required and the business earnings during 2010, 2011 and the following years remain

The ownership structure of VSH is presented below:

Structure ACBS Analysis and Research Center (2012)

With such shareholder structure, together with the role of EVN in the icity market, it is very challenging for VSH to renegotiate the

31.16%

Bao Viet LifeSwiftcurrent Offshore, Ltd



ELECTRICITY STRATEGY In 2011, the Government issued the Power Development Plan for the 2011-2020 periods and looking ahead to 2030 (Power Master Plan VII), overviewing the energy strategy in Vietnam, which were summarized as follow: General objectives � Efficient use of energy resource in the country in combination with

import of primary energy for power production. � Supplying adequate power with increasing quality, reasonable prices

for socio-economic development. � Ensuring the national energy security. Specific objectives � Satisfy the domestic demand, electricity production and import with

range from 194-210 billion Kwh in 2015; 330-362 billion Kwh in 2020 and 695-834 billion Kwh in 2030.

� Prioritize the development of renewable energy sources for electricity production, increasing the percentage of electricity produced from these energy sources from 3.5% in 2010 up to 4.5% in 2020 and 6% in 2030.

� Reduce electricity elasticity coefficient/GDP from the current average of 2.0 to 1.5 in 2015 and 1 in 2020.

� Accelerate the program of electrification in rural and mountainous areas to ensure that in 2020 most of the rural households have access to electricity.

Master plan for power sources development � Prioritize the development of power sources from renewable energy

(wind, solar, biomass energies, etc) at a rapid growth rate, gradually increasing the portion of electricity produced from renewable energy sources.

Table 6: Projected Capacity of Renewable sources

Power source Capacity by 2020 Capacity by 2030 Wind 1,000 MW 6,200 MW Biomass 500 MW 2,000 MW

Source: Power Master Plan VII (2011)

� Prioritize the development of hydropower sources, especially projects with multi-purpose such as flood control, water supply and electricity production; bring the total capacity of hydroelectric power to 17,400 MW in 2020.

� Implement research and bring storage hydropower plants into operation in accordance with the development of electrical



development in order to improve operational efficiency of the system with capacity of 1,800 MW in 2020 and 5,700 MW in 2030.

� Develop the nuclear power plant: Put the first plant into operation in 2020 and raise the capacity to 10,700 MW by 2030.

� Develop power plants using liquefied natural gas (LNG) with capacity of 2,000 MW in 2020 and 6,000 MW in 2030.

� Develop thermal plants with appropriate rate, consistent with supply and distribution of fuel.

Table 7: Projected Capacity of Thermal Power Sources

Power source Capacity by 2020 Capacity by 2030 Gas thermal 10,400 MW 11,300 MW Coal thermal 36,000 MW 75,000 MW


� Import and export energy: implement efficient power exchange with the countries in the region, ensure interest of each party, increase the exchange safety of the system, and enhance electricity import from China, Laos and Cambodia. The imported capacity in 2020 will be about 2,200 MW and 7,000 MW in 2030.

Figure 12: Projected Vietnamese power sources structure Source: Power Master Plan VII (2011)

Master plan for development of power grids � Invested power transmission grids must satisfy reliability standard N-1

for major equipment and meet the quality standards prescribed in the Regulation of power transmission grids.

� Development of power grids in accordance with technical standards of the regional countries and ensure the connectivity, integrations with power system in Vietnam and regional countries.

050,000

100,000150,000200,000250,000300,000

2020 2030Hydropower Storage hydropower Coal thermal Gas thermalRenewable energy Nuclear power Hydropower Storage hydropowerCoal thermal Gas thermal Renewable energy Nuclear power

MW



� Transmission grids must provide reservation, simplicity, flexibility and ensure power quality for power load.

� Elect appropriate transmission voltage on the basic transmission capacity and transmission distance. Table 8: Projected expansion of Power Transmission System

Items Unit 2011-

2015 2016-2020

2021-2025

2026-2030

500kV substations MVA 17,100 26,750 24,400 20,400 220kV substations MVA 35,863 36,063 42,775 53,250 500kV lines Km 3,833 4,539 2,234 2,724 220kV lines Km 10,637 5,305 5,552 5,020


� The Government also plans to connect the Vietnamese national grids with other grids in ASEAN and the Greater Mekong Sub-region (GMS).

The biggest problem in carrying out this master plan is that EVN is confronted with huge financial shortage. EVN does not have enough money to invest in all of its energy projects as well as to pay bills for electricity producers. Meanwhile, electricity prices remain unfavorable to attract investments into the power industry. Therefore, the Government has announced some solutions to help resolve these problems. Solution for electricity prices � Applying electricity prices under the market mechanism regulated by

the state, ensuring the harmonious combination between the political, economic, and social objectives. Selling prices must stimulate the development of electricity and create an environment for investment attraction and competition encouragement in production, transmission, distribution and use of electricity.

� Electricity price must recover costs and reasonable profit to ensure the financial autonomy of enterprises in the power sector.

� Electricity prices are adjusted gradually to achieve a long-term marginal cost of electricity in 2020 equivalent to 8-9 cent per kWh to ensure that the electricity industry has a sustainable development.

� The prices of electricity aim to conserve the energy sources and avoid wasting of non-renewable energy sources; encourage the rational use of energy sources and use of domestic energy, reduce reliance on imported electricity.

To reduce EVN’s power and guide the electricity market towards a free market regime, the Government promulgated Decision No.26/2006/QĐ-TTg outlining plans for the development of the Vietnam electricity market in the future. In detail, the market will experience three phases as follows: � The first phase: Competitive Electricity Generation Market – VCGM

(2005-2014): plants could offer to sell electricity to the single buyer.



� The second phase: Competitive Electricity Wholesale Market (2015-2022): wholesale companies could compete in buying electricity before selling to distributors;

� The third phase: Competitive Electricity Retail Market (after 2022): consumers could choose their own power suppliers.

However, the execution of these solutions has been quite slow; the authorities only launched the pilot period of VCGM in July 2011 and is expected to start operation in 2012. At present, the authorities limit the prices offered by power plants in small ranges according to the cost of production of plants. Therefore, EVN may continue to dominate Vietnam’s electricity market in the next several years.

ENERGY COMMUNITY TREATIES Kyoto Treaty The Kyoto Protocol has set a constraint on the amount of greenhouse gases released in developed countries. As an Annex I country, the developed countries have binding commitments to cut down their greenhouse gas emission. However, the Kyoto Protocol also offered flexible mechanisms for developed countries to reduce greenhouse gas emissions that are the Clean Development Mechanism; Joint Implementation; and International Emissions Trading. Vietnam signed the Tokyo Protocol in 1998 and was approved in 2002 as a Non-Annex I country. Therefore, Vietnam can carry the Clean Development Mechanism to receive additional capital from selling CER to the Annex I countries. Until now, there are many projects in Vietnam that applied for CDM. Of which, hydropower projects winning CDM comprise Nam Pia, So Lo, Suoi Tan, Dasiat, Nam Gion, Dong Nai 2 etc. Mekong River Agreement In 1995, Vietnam, Laos, Cambodia and Thailand signed the “Agreement on the cooperation for the sustainable development of the Mekong River Basin”. This Agreement set the framework for cooperation in the sustainable development, utilization, conservation and management of the Mekong River Basin water and related sources. Mekong River Commission (MRC) has carried several programs such as Initiative on sustainable hydropower, Environment program, Fisher program etc. Vietnam has obligation to implement the Agreement, following the Procedure for Notification, Prior Consultation and Agreement (PNPCA), which was promulgated by MRC. To constructing any dam or hydropower plant on the Mekong River, investor must notify the project to the MRC to call for prior consultant from MRC and agreement from all members. In addition, Vietnam also most of MRC’s programs such as “Initiative on Sustainable Hydropower”, “ Flood Management & Mitigation Program” and “Mekong Integrated Water Resources Management Project”, etc.



HYDROPOWER OVERVIEW High potential of hydropower Vietnam has good potential for the development of hydropower with theoretical capacity of about 300 billion Kwh, technical capacity of about 123 billion Kwh and technical-economic capacity of about 18,000-20,000 MW or 75-80 billion Kwh. Of which, total technical capacity for small hydropower plants may be about 1,600-2,000 MW. Da River, Lo River, Thu Bon River, A Vuong River, Se San River, Dong Nai River and Tranh River are among top high potential rivers for hydropower energy in Vietnam. As of the end of 2011, Vietnam just exploited about 10,182 MW of designed capacity, equaling around 50-60% of the potential technical-economic capacity. Therefore, the room for developing the hydropower industry in Viet Nam is still available for investors.

Table 9: List of Major Hydropower Plant in Vietnam

No. Name Investor Capacity (MW)

Time of operation

01 Son La EVN 2,400 2010 02 Hoa Binh EVN 1,920 1988 03 Ialy EVN 720 2000 04 Tri An EVN 440 1988 05 Se San 4 EVN 360 2009 06 Se San 4A EVN 360 2011 07 Tuyen Quang EVN 342 2008 08 Ban Ve EVN 320 2010 09 Dai Ninh EVN 300 2008 10 Ham Thuan EVN 300 2001 11 Buon Kuop EVN 280 2009 12 Se San 3 EVN 260 2006 13 Ba Ha EVN 220 2009 14 Nam Chien Song Da 9 JSC 220 2009 15 Srepok 3 EVN 220 2010 16 A Vuong EVN 210 2008 17 Pleikrong EVN 200 2009



18 Song Tranh 2 EVN 190 2010 19 Da Mi EVN 175 2001 20 An Khe EVN 160 2011 21 Da Nhim EVN 160 1964 22 Thac Mo EVN 150 1995 23 Dak R'Tih Construction Corp. No.1 144 2011 24 Thac Ba EVN 120 1971 25 Se San 3A Se San 3A Power Investment and

Development JSC 108 2006

26 Cua Dat BOT/ Vinaconex - Song Sa Copr - Agrimeco - ICON4 97 2010

27 Dong Nai 3 EVN 90 2011 28 Buon Tua Srah EVN 86 2009 29 Thai An Thai An HydropowerJSC 82 2011 30 Huong Dien Huong Dien Hydropower JSC 81 2010 31 Srepok 4 Dai Hai Company 80 2010 32 Can Don BOT - Song Da Corp- Bitexco 77.6 2003 33 Song Hinh EVN 70 1999 34 Vinh Son EVN 66 1994 35 Krong Ho Nang Song Ba JSC 64 2010 36 Quang Tri EVN 64 2007 37 Song Con Gruco Song Con Hydropower JSC 60 2009 38 IDICO Srok Phu Mieng IDICO 51 2006

39 Binh Dien Song Da Corp. - Bac Ha Investment JSC - Bitexco - Agrimeco

44 2009

40 Da Dang 2 Southern Hydropower JSC 34 2010 41 Ban Coc Que Phong Hydropower JSC 18 2009 42 Song Pha EVN 7.5 1994

Source: Power Mater Plan VII (2011)



Active investors EVN and its members are the most active units participating in the hydropower industry and own many hydropower projects. Currently, EVN is facing financial difficulties and capital shortage to finance all of its electricity projects. Given that, EVN planned to sell part of its ownership in some of the subsidiaries and affiliates. Besides, EVN may dispose some of its projects to focus on the major projects. It may be a good opportunity to enter the hydropower industry in Vietnam without carrying serious complex starting procedures. Apart from EVN, there are many local investors participating in Vietnamese hydropower industry, including:

Table 10: List of active local investors in Vietnam HPPs

No Name Company profile Typical Projects

01

Song Da Corporation (Song Da Holding, its members, subsidiaries and affiliates: Can Don Hydropower JSC, Se San 3 Hydropower JSC, Ryninh 2 Hydropower JSC, Cao Bang power JSC etc….)

- A State-owned enterprise, under the Ministry of Construction’s (MOC) management. - Specializing in construction; machinery and equipment erection and installation; mechanical production; industrial production; real estate development and trading; and finance investment

EaKrong Rou (28MW, 2007); Binh Dien (44 MW, 2009); Se San 3A (108 MW, 2007); Thac Trang (6MW, 2006); Nam Mu (12MW, 2009); Nam Ngan (13.5MW; 2009); Nam Chien(200MW); Tien Thanh (19.5 MW); Nam Khanh (12MW); Nam He (15MW); Yan Tann Sien (19.5MW) etc. …

02 LICOGI (Bac Ha Hydropower JSC)

- A State-owned enterprise, directly under the MOC. - Specializing in construction work and infrastructure projects.

Nam Chien (200MW); Bac Ha (90MW)

03 Construction Corporation No.1

- A State-owned enterprise, belonging to the MOC - Supplying constructions services in Southern areas in particular and overall country as well

Dak R'Tih (144MW, 2011);

04 IDICO

- A State Corporation under the MOC. - Investing in industrial zones; urban & residential areas; hydropower; BOT

IDICO Srok Phu Mieng (44MW, 2006); Dak Mi 4 (190MW); Dak Mi 4c (18MW); Dak Mi 3 (54MW);



transport; ports; tourism; hotels; prodution of construction materials and execution of civil and industrial projects.

05 Bitexco

- Beginning as a textile firm, Bitexco now is a multi-industry corporation. - Covering real estate investment and development, hydro-power plants, infrastructure, mining and mineral water production

Se San 3 (108MW, 2006); Binh Dien (44MW, 2009); EaKrong Rou (28MW, 2007); Nam Muc (44MW); Nho Que 3 (110MW, 2012); Can Don (77.6MW, 2003); Dak Mi 4 (190MW) etc. ….

06 Southern Hydropower JSC

- Founded by Southern Power Company (a subsidiary of EVN) in 2004. - Specializing in investment, construction and operation of hydropower plants.

Da Siat (13.5MW, 2010); Da Dang 2 (34MW, 2010); Da'Mbri (75MW)

07 Hoang Anh Gia Lai Group

- A listed firm, founded by Mr. Doan Nguyen Duc in 1993. - Operating mainly in real estate, rubber, mineral, hydropower and furniture fields.

Small & medium projects located in the Central Highland of Vietnam: Daksrong 2 (24 MW, 2010); Ba Thuoc 1 (60MW); Ba Thuoc 2 (80MW); Daksrong 2A (18MW); Daksrong 3A (10MW); Daksrong 3B (19.5MW); Buon Don (20MW); Bun Bra (11MW);

08 Duc Long – Gia Lai Group

- A private listed firm. - Investing in multi-sectors such as wood & granite processing, manufacturing, transmission and distribution of hydropower, mining and minerals processing, bus stations – parking lots, real estate, infrastructure & civil construction, security services and bodyguards, growing rubber trees and processing of rubber products etc.

Đăk Pokor1 (3MW); Đăk Sepay (3MW); Ta Nung (2MW); Kroong (10 MW); Dong Nai 6 (135MW); Dong Nai 6A (106MW)

09 Dai Hai Company Supplying investment and construction services,

Srepok 4 (80MW, 2010);



project management, constructing power plants, power transmission and distribution network etc.

10 Song Ba JSC

Specializing in investment and construction of hydropower plants, producing and trading electricity, and supplying other construction services.

Ke Dien (9MW, 2007); Krong H'nang (64MW, 2011); Song Tranh 1 (110MW); Krong H'nang 2 (22MW)

The electricity industry in Vietnam also has attracted lost of international investors such as:

Table 11: List of major foreign investors in the Vietnamese electricity industry

No Investors Country Typical projects Capacity (MW)

01 BP Holdings BV UK Phu My 3 733 02 SembCorp Utilities Singapore Dung Quat 1,200 04 Kyushu Electric Poew Co., Inc Japan Phu My 3 733 05 Nissho Iwai Japan Phu My 3 733 06 Électricité de France – EDF France O Mon

Phu My 2.2 750 733

07 Sumitomo Corporation Japan Van Phong 1 Phu My 2.2

1,320 733

08 The Tokyo Electric Power Co., Inc - TEPCO Japan Nghi Son 2;

Phu My 2.2 1,200

733 09 Jak Resource Malaysia Hai Duong 1,200 10 Tai kwang Korea Nam Dinh 2,400 11 International Power - IP UK Vinh Tan 2 1,244 12 Sojit Japan Son My 2,400 13 Janacuasa Group Malaysia Duyen Hai 2 1,200

The above investors have mostly invested in thermal and gas turbine projects in Vietnam under BOT contracts. Currently we have not seen any direct investment from foreign investors into hydropower projects in Vietnam.



Major firms in the industry There are ten hydropower companies listed on the Vietnam stock exchange, which are the following:

Table 12: Listed hydropower companies in Vietnam

No Name Plant Implementing Project

Total* Assets

Charted* Capital

01 Can Don Hydropower JSC Can Don: 77.6MW -

1,006

552

02 Mien Trung Power Investment and Development JSC

Ea Krong Rou: 28MW - 345

169

03 Na Loi Hydropower JSC Na Loi: 9.3MW - 111 105 04 Nam Mu Hydropower

JSC Nam Mu: 12MW Nam Ngan: 13.5MW (BOO)

Le Bau 4, Nam Khau Hu: 3MW

623

167

05 Ry Ninh II Hydropower JSC Ry Ninh II: 8.1MW Ha Tay: 9MW 139 76

06 Song Ba Hydropower JSC

Khe Dien: 9MW, Krong H'Nang : 64MW

Song Tranh 1 (110MW); Krong H'nang 2 (22MW)

1,518

545

07 Tay Nguyen Electricity Investment JSC

IaĐrăng1: 0.6MW, Ia Đrăng3: 1.6MW, IaMeur3: 1.8MW, H’Chan: 12MW, ĐăkPiHao2: 9MW,IaPuch3: 6.6MW, H’Mun: 16.2MW, Ayun Thuong: 12MW

- 246

235

08 Thac Ba Hydropower JSC Thac Ba: 120MW -

849

808 09 Thac Mo Hydropower

JSC Thac Mo : 150MW Thac Mo extension project : 75MW 1194 718

10 Vinh Son – Song Hinh Hydropower JSC

Vinh Son: 66MW Song Hinh 70MW

Thuong Kontum : 220MW 3,346 2,345

*As of Dec 31 2011, VND billion Among these firms, Vinh Son – Song Hinh has been carrying out a potential project, Thuong Kontum, with designed capacity of 220MW, located on the Se San River, one of the rivers with great hydropower potential in Vietnam. The total capital investment of the Thuong Kontum projects is relatively high, about VND 5.744 billion.



Financial institutions and funds Vietnamese electricity industry has attracted a lot of capital flow from international financial institutions. Particularly, the country receives large supporting loans from WB, ADB and Japan’s Government to develop its electricity system. The table below presents some typical financial institutions giving loans to projects related to the electricity industry:

Table 13: Financial Institutions and Funds for the electricity industry

No Institution Typical project

01 World Bank (WB) Trung Son (USD 330 million), Phu My 3 thermal plant, renewable projects

02 Asian Development Bank (ADB) Song Bung 4 hydropower plant (USD 196 million), Phu My 3 thermal plant (USD 40 million), Mong Duong 1 thermal plant (USD 931 million), Developing transmission network projects (USD 730 million)

03 Japan Bank for International Cooperation

Supplying ODA loan to Phu My thermal plant (JPY 61,932 million)*, Pha Lai thermal plant(JPY 72,826 million), O Mon thermal plant and Me Kong Delta transmission project(JPY 43,819 million), Ninh Binh 2 thermal plant(JPY 33,864million), Nghi Son thermal plant(JPY 20,943 million),Ham Thuan – Da Mi hydropower plant (JPY 53,074 million), Dai Ninh hydropower plant(JPY 33,172 million), Thac Mo hydropower extension project(JPY 5,972 million), Da Nhim system rehabilitation project (JPY 7,000 million),

04 Credit Agricole Corporate and Investment Bank Dakdrinh hydropower plant (USD 178 million),

05 Bank for Investment and Development of Vietnam Xekaman (VND 654 billion)

06 Vietnam Development Bank (VDB) Lai Chau hydropower plant (VND 4,600 billion)

07 Mekong Renewable Resources Fund - Indochina Capital

Invest in 4 major fields including renewable projects, environmental services, and sustainable development of forest projects and saving energy projects in the Mekong area. The fund has attracted investments from ADB, FMO, Finnfund and Bio Financial

08 Vietnam Infrastructure Limited (VNI) – Vina Capital

Specializing in making investment into infrastructure projects such as industrial zone, transportation, telecommunication and energy.

*Committed amount of loan Apart from the above institutions, some major local banks such as BIDV, Vietcombank, Agribank also finance hydropower projects in particular and electricity projects in general, such as Huoi Quang hydropower plant, Nam He hydropower plant etc.



BOT/BOO or ROT/ROO projects Until now, there has not been any ROO/ROT project or regulation regarding those kinds of investments in Vietnam. Meanwhile, the Government has showed its desire to attract investments into the power sector through BOT, BT and PPP contracts. Currently, there is a clear legal framework for BOT, BTO, BT investments by promulgating Decree No.108/2009/NĐ-CP dated November 27, 2009 and Decree No.24/2011/NĐ-CP dated April 05, 2011, amending and supplementing some points in Decree No.108/2009/NĐ-CP. However, for electricity projects, the authorities’ policy is to encourage BOT and PPP projects. List of BOT projects in the power sector is as below:

Table 14: List of typical BOT Power Projects

No Projects Investor Capacity (MW)

01 Mong Duong II thermal power plant AES 1,200 02 Hai Duong thermal power plant Jak Resource

(Malaysia) 1,200 03 Vinh Tan I thermal power plant CSG 1,200 04 O Mon II gas turbine power plant N/A 750 05 Van Phong I thermal power plant Sumitomo - Hanainco 06 Vinh Tan III thermal power plant Vinh Tan 3 Energy JSC 1,980 07 Vung Ang II thermal power plant VAPCO 1,200 08 Nam Dinh I thermal power plant Tai kwang (Korea) 1,200 09 Son My I gas turbine power plant IP – Sojit - Pacific 1,170 10 Duyen Hai thermal power plant Janacuasa 1,200 11 Nam Dinh II thermal power plant N/A 1,200 12 Vung Ang III thermal power plant N/A 2,400

The Government guarantees to buy all electricity from these BOT projects at fixed prices even though electricity from most of the domestic power producers have to be traded on the Competitive Electricity Generation Market (VCGM) in the future. However, the Government just promulgated Decision No.71/2010/QĐ-TTg about pilot constructing projects under PPP contracts. About 30 PPP projects were proposed to the authorities, including three projects in the power sector: � Song Hau 1 coal thermal power plant � Quang Tri thermal power plant � Quynh Lap thermal power plant



SECTION 2

VIETNAM’S LEGAL ENVIRONMENT



INVESTMENT RELATED ISSUES According to the Investment Law 59/2005/QH11 approved by Vietnam’s National Parliament, individuals and organizations can do businesses in Vietnam in the following forms: � Establishing an enterprise according to the Corporate Law � BCC, BOT, BTO and BT contracts � Business development of current enterprises � Active minority investment in other enterprises � Merging and Acquiring a current enterprise The legal procedures, time and costs of the investment process are varied on the industries and scopes of businesses that the investors want to invest. According to the Corporate Law 60/2005/QH11, companies can setup a form of Multi-member Limited Liability Company, One-member Limited Liability Company, Joint Stock Company, Partnership or Sole Trader. Generally, investors, regardless the form of investment they choose, are allowed to invest in most industries. However, there are few exceptions including commercial banks, which must be in form of joint stock companies, and oil and gas exploiting projects, which have to be carried out under a cooperation contract with PetroVietnam. According to our understanding, the form of investments does not affect the investor’s rights to invest in the power industry.

CORPORATE GOVERNANCE The Management Structure The Corporate Law 60/2005/QH11 requires companies operating in Vietnam to have specific corporate structure according to the company types and ownership structures. Details are as followings: Joint stock companies (JSC) must have Board of Directors, including the chairperson, appointed by their Shareholder Meetings to represent the shareholders’ right. Board of Management is also appointed by the Shareholder Meeting or Board of Directors to manage the company’s operation. For the JSC that have 11 or more individual shareholders and/or 01 shareholder that is an organization and holds 50% stake or more, it is required to have a Supervisory Board appointed by the Shareholder Meetings. The Board of Directors’ meetings have to be organized at least once a quarter at the company’s head office or other places. Shareholder Meetings have to be organized at least once a year within Vietnam boundary. Legally, there is no discrimination between appointing a Vietnamese and a foreigner in the director and management positions. However, the foreign directors must have working license granted by the authority. If a foreign director or manager is appointed as legal representative of a business entity, it



is required that he has to be a permanent resident and have to authorize other person in the case of going abroad for 30 days or more. Limited liability companies (LLC) are required to have a similar structure with except the Board of Directors is replaced by the Chairperson in the case that the single member LLC appointed only one representative or Board of Members in other cases. If the company has less than 11 members, it is not required to have the Supervisory Board but an individual supervisor. Partnerships must have a Board of Members, which includes all partners, capital contributing members and other members, as the highest authority. The partners are unlimitedly responsible for the partnership’s liabilities according to their stakes in the partnerships. All partners are legal representatives of the partnerships while capital-contributing members are not. Sole-traders are not required to the have any specific management structure. The owner is unlimitedly responsible for all liabilities of the business entity. Minority Shareholder Protection Currently, Vietnam does not have a specific law or regulation to protect minority shareholder rights. However, some parts of other laws and regulations can be applied to protect minority shareholder rights. Specifically, the code of cumulative voting allows minority shareholders to concentrate their votes to appoint their representatives in the Board of Directors. This makes it easier for minority shareholders to have representatives in the boards. In the cases that minority opposes to any decision of the Board of Directors/majority group of shareholders relating to company restructuring and changes of shareholder rights and obligations, the minority shareholders can require the company to buy back their shares. In the case that one entity has publicly bid shares and increased its stake to 80% or more, the minority shareholders have the right to ask the entity to buy their shares at the price equal to or higher than the public bid price within 30 days after the public bid. TAX ISSUES Generally, taxes applied to permanent residents and entities include: � Corporate Income Tax is usually 25% for most businesses. Some tax

holiday of 10%, 20% or 50% can be applied to investment projects in a specific period to attract investment in some business fields and/or locations. For some mining projects, the corporate income tax is ranging from 32% to 50% depending on the nature of the project. The corporate income taxes are generally not applied to earning after tax distributed by other entities.

� Value Added Tax (VAT), which is ranging from 0% to 10% is applied on domestic consumption. The most popular tax rate of 10% is also



applied to sales of electricity. Businesses have to collect this tax for the government by adding the VAT to their selling price.

� Natural Resource Tax is applied to mining, fishing and some other industries. For the hydropower industry, the natural resource tax is calculated as 2% of the product of average retail price of electricity and sales volume during a period. Generally, this is about 4-6% of the hydropower company’s revenue.

� Import Tax is applied to import products and varies based on Government policies, WTO commitments and other agreements. Generally, the import tax is exempt for machineries that Vietnam cannot produce domestically.

� Personal Income Tax is applied to wage income at progressive rates ranging from 0-35%. For other income, the tax rate is from 5-25% depending on the income nature. Personal income tax on dividend income is 5%. For personal income from capital gain, the individual investors can register in advance to pay 0.1% of the selling amount or 20% of the gain. Interest incomes from bank deposits are not taxed.

� Other taxes, including special consumption tax and exporting tax, are not applied to the hydropower industry.

For non-permanent workers, the individual income tax rate of 20% is applied to wage income earned within Vietnam’s boundary. Other income is taxed 1-10% depending on the income nature. Double taxation avoidance is applied for citizens of countries that have such agreement with Vietnam. For non-permanent entities, if some revenue is recorded within Vietnam’s boundary, the corporate income tax rate and VAT is applied on the entity’s revenue. The tax rate is differing depending on the nature of the revenue.

FOREIGN INVESTMENT POLICY Constraints Generally, the same set of investment constraints is applied for both domestic and foreign investors. Businesses that negatively affect Vietnam’s national defense and public benefit, are harmful for Vietnam‘s tradition and culture, affect public health, destroy natural environment and/or produce prohibited products are banned by Vietnamese law. Related to direct investments, some business fields require special business licenses. These include telecommunication, publication, mining, airport and seaport operation, transportation, logistics, cigarette production, real estates, education, etc. According to our understanding, legally, there is no such investment constraint in the power industry. However, in the field of electricity transmission, currently, the government still holds monopoly power by owning 100% of the only company operating in this field. This might not be changed in the near future as the government considers these fields as extremely important to national defense and social security.



In terms of indirect investments, there is a constraint that foreign investors, in total, are not allowed to hold more than 49% of a public company and 30% of a local commercial bank. A single investor or group of investors, regardless the nationality, is not allowed to hold a stake of more than 15% of a commercial bank unless there is a special approval of the Prime Minister which can extend the limit to 20%. In terms of land ownership, according to Vietnam’s law, land is considered as national asset and managed by the Government. All individual, authority and business entities have right to use land but do not own land. Foreign entities are granted permanent land using right but have to rent land from the government to make investment projects. The rental fee can be paid as a whole at the beginning of the lease contract or paid annually depending on the nature of the investment projects. Some foreign entities can own residential property in Vietnam within a maximum period of 50 years. After that period, the foreign entity has to sell or give the property away. Investment Incentives Investors will receive investment incentives when they have projects belonging to encouraged investment sectors or encouraged investment areas that were regulated in Decree No.108/2006/NĐ-CP by the Prime Minister dated Sep 22, 2006. The incentives consist of incentives on income tax; import tax; land use tax, land use fee, land and water surface rental fee. In addition, foreigners investing into energy, waste treatment and transportation infrastructure sectors are able to receive the Government’s commitment to sell foreign currencies in the case they cannot buy foreign currencies from commercial banks, according to the Law of Investment. The hydropower plants are usually constructed in difficult areas, so that investors may benefit from the above investment incentives. Besides, investors may also earn other revenue from wood when clearing land for construction.

INTERNATIONAL INTEGRATIONS Since 1986, the Vietnamese economy has gained considerable achievements and has been more integrated with the global economy. Vietnam now is a member of various international multilateral organizations. In details: � In 1995, Vietnam joined the Association of Southeast Asian Nations

(ASEAN) and then participated in the ASEAN Free Trade Area (AFTA). � In 1998, it joined the Asia Pacific Economic Cooperation (APEC) � In 2007, Vietnam became a full member of the World Trade

Organization (WTO) � Vietnam is also among the founders of Asia - Euro Meeting (ASEM) In terms of multilateral financial organizations, Vietnam has relations with World Bank (WB), International Monetary Fund (IMF) and Asian Development Bank (ADB).



INDUSTRY SPECIFIC LEGAL ISSUES Applicable Laws The major applicable laws and regulation governing the hydropower industry include:

No Code Institution Date of issuance Content

01 28/2004/QH11 National Assembly 12/03/2004 Electricity Law 02 105/2005/NĐ-CP Government 08/17/2005 Electricity Law Instruction 03 60/2005/QH10 National Assembly 11/29/2005 Law on Enterprises 04 08/1998/QH10 National Assembly 05/20/1998 Law on Water Resources 05 13/2003/QH11 National Assembly 11/26/2003 Land Law 06 52/2005/QH10 National Assembly 11/29/2005 Law on Environmental Protection 07 16/2003/QH11 National Assembly 09/22/2011 Law on Construction 08 59/2005/QH11 National Assembly 11/29/2005 Investment Law

09 21/2008/NĐ-CP Government 02/28/2008

Amending and supplementing a number of articles of the Government’s Decree No. 80/2006/ND-CP of 9 August 2006, detailing and guiding the implementation of a number of articles of the Law on Environmental Protection

10 05/2008/ TT – BTNMT

Ministry of Natural Resources and Environment

08/12/2008

Detailed guidance on strategy environment impacts assessment report and environment impacts assessment report and environment protection commitment

11 34/2010/TT-BCT Ministry of Industry and Trade 01/07/2010 Regulation on safety management

for dam of hydropower plant

12 112/2008/NĐ-CP Government 10/20/2008 Managing, protecting and exploiting natural resources and environment at hydropower and irrigational reservoirs.

13 24/2011/QĐ-TTg Government 04/15/2011 Applying market mechanism in electricity price adjustment.

14 153/2008/QD-TTg Government 11/28/2008 Defining the functions, tasks, powers and organizational structure of the Electricity Regulatory Agency, MoIT.



15 32/2006/QĐ-BCN Ministry of Industry and Trade 09/06/2006

Requirements and procedures of applying and modifying licenses in electricity production and transmission.

16 15/2008/QĐ-BCT Ministry of Industry and Trade 07/01/2008 Amendment of 32/2006/QD-BCN

17 40/2010/TT-BCT Ministry of Industry and Trade 12/13/2010 Procedures of solving economic

dispute in electricity markets.

18 18/2008/QĐ-BCT Ministry of Industry and Trade 07/18/2008

The lists of incremental costs and sample electricity contract applied to small renewable electricity generating companies.

19 42/2011/TT-BCT Ministry of Industry and Trade 12/18/2011 Regulations on retail electricity

price and instructions.

20 41/2010/TT-BCT Ministry of Industry and Trade 12/14/2010

Guidance to determine electricity selling price, procedures of constructing electricity price scheme and approvals of PPAs.

21 124/2008/TT-BTC Ministry of Finance 12/19/2008

Guiding the regime of collection money, payment, management and utilization of fees for appraisal of and issuing electricity operation license.

In Vietnam, the Ministry of Industry and Trade performs as a State – agency that is directly managing the electricity industry in particular and has responsibilities including: � Preparing and submitting the draft Electricity law and other related

legal documents to the Government. � Submitting to the Prime Minister for approval and implementing of the

power master plans or energy strategy, � Playing as the prime responsibility for evaluating, approving, inspecting

and supervising execution of investment projects, and � Providing for the grant, modification, revocation and extension of

permits related to electricity. Regarding new energy and renewable energy, the MoIT’s in charge of: � Approving provincial/municipal electricity development planning; � Publicizing a list of electricity works under the electricity development

planning in order to attract investment in and manage the execution of those works;

� Approving cascade planning of hydropower plants on a river, new energy and renewable energy planning;



� Direct and perform tasks related to atomic electricity, new energy and renewable energy;

� Promulgating regulations on the formulation, evaluation, consultation and approval of electricity retail prices.

Authorized department: Electricity Regulatory Agency Persons in charge: � Mr. Pham Manh Thang –General Director � Mr. Nguyen Vu Quang – Deputy General Director � Mr. Bui Quoc Hung- Head of Public relationship and license granting

division Specific licenses/ registration/permits The major licenses/registration/permits to construct a hydropower project comprise:

No Licenses/registration/permits Issuer 01 Investment license Ministry of Industry and Trade 02 Certificate of land use right Provincial People’s Committee 03 Interim Power Purchase Agreement EVN 04 Electricity operation license Electricity Regulatory Authority of Vietnam 05 Approval on environmental impact assessments

report Ministry of Natural Resources and Environment

06 Construction license Ministry of Construction 07 Permit for surface water exploitation and use - Capacity ≥2MW: Ministry of Natural

Resources and Environment - Capacity <2MW: Provincial People’s Committee.

Although the time line for the authorities to consider and respond for these licenses or permits are detailed by related regulations, investors may not obtaining these licenses/permits as quick as what regulated in the Law or regulations due to the overlap managements and the common delay of administrative procedures. As such, it is quite complex to estimate how long investors may take to obtain all documents for hydropower projects. After finishing construction, investors should send to the electricity buyer all certificates showing that the plant, other constructions and equipments are operated with good performances during the experimental period and ready for the official operation date.



ENERGY POLICIES Sustainable Development Strategy for the period 2011-2020 The Prime Minister just signed the Sustainable Development Strategy for the period of 2011-2020 on April 12 2012. The Strategy aims to ensure macro-economic stability, food-energy-financial security, renovate the growth model, effectively use resources, and move toward to green growth and low-carbon economy. Step by step, prices of energy are expected to move toward the market regime, bringing the weight of clean and renewable energy in total energy consumed to increase. Vietnam energy development strategy until 2020 and vision 2050 The Prime Minister promulgated this strategy in 2007, showing the following objectives: � Ensuring sufficient energy supply to meet socio-economic development

demand; � Enhancing accuracy in fundamental energy sources’ assessment; � Ensuring sufficient power for socio-economic development; � Developing oil refineries to increase the capacity to 25-30 tons of crude

oil in 2020; � Ensuring that the national strategic reserves of petrol and oil will be

equal to 45 average days of consumption in 2010, 60 days in 2020 and 90 days in 2025;

� Finalizing the energy program in rural and mountainous areas; � Transforming operation of the sectors of electricity, coal, oil and gas

into State-oriented market economy operation, creating competitive power retailing market after 2022, coal, oil and gas market by 2015;

� Making good preparation for operation of the first nuclear power plant in 2020, by 2050 nuclear power may make up 15-20% of total national energy consumption;

� Connect regional electricity network by 500km electricity line between 2010 and 2015, connecting regional natural gas system between 2015 and 2020.

Policy for Energy Efficiency The National Assembly even promulgated a Law on Energy Saving and Efficiency in 2010 to guide the use of energy in Vietnam. The Law points out some solutions to save and use energy efficiently for each industry and each sector. Given the fact that Vietnam is likely to be a net energy imported country, it is necessary to use energy efficiently. Incentives policy for renewable power sources For developing renewable power sources, the Government has provided various incentives to investors, comprising incentives for investment, electricity tariffs and taxes. In details:



Regulation Incentives Electricity Law No. 28/2004/QH11 dated December 2004

- Supports of the government + Support on investment capital + Support on interest rates of loans for investment. + Tax incentives - The details supports are promulgated by MoIT and MoF

Decision No. 1855/QD-TTg dated 27 December 2007

- Providing financial support for program on investigation, research, trial manufacturing and establishment of pilot locations using new and renewable energy,

- Exempt equipment and technology of new and renewable energy from import tax, production and circulation tax.

Decision No. 130/2007/QD-TTg dated 02 August 2007 on financial mechanisms, policies for investment projects under clean development mechanism (CDM projects)

- Tax: exemption from import tax on goods imported for the formation of the projects’ fixed assets, materials, supplies or semi-finished products which cannot yet be domestically produced and imported in service of the projects’ production activities; preferential enterprise income tax rates

- Land use fee: entitled to land use levy or land rent exemption or reduction under current legal provisions

- Price subsidy: CDM project’s products might be given price subsidy from Vietnam Environmental Protection Fund

- Investment capital support: subject to Decree No. 151/2006/ND-CP

Decree No. 151/2006/ND-CP dated 20 December 2006 by Government on State investment development credit and export credit; And Decree No. 106/2008/ND-CP dated 19 September 2008 by the Government on amendments, supplements of some articles of Decree No. 151/2006/ND-CP

- Investors of wind power plant projects, renewable energy power plants, small hydropower plants with capacity equal to or less than 50MW in areas with extremely difficult socio-economic conditions can obtain a loan up to 70% investment cost of each project from Vietnam Development Bank (VDB) with the maximal term of 12 years at interest rate equivalent to government bond interest rate with term of 5 years plus 1% for loan in VND.

- The government can provide loan guarantee in case investors have to obtain loan from other financial institutions.

Investment Law No. 59/2005/QH11 dated 29 November 2005 Governmental Decree No. 108/2006/ND-CP dated 22 September 2006, on detailed stipulations for implementation of some articles of Investment Law.

- Stipulation on term of land use, land rent exemption. - Stipulation on loss transfer - Stipulation on fast depreciation

Decree No. 87/2010/ND-CP dated 13 August 2010 by the

Import tax exemption is applied for imported goods for forming fixed assets of renewable energy projects.



Government on detailed stipulations for implementation of some Articles of Law on export, import taxes.

Decree No. 124/2008/ND-CP dated 11 December 2008 by the Government on detailed stipulations for and guideline on implementation of some Articles of Law on Corporation Income Tax

- Income tax rate: 10% for duration of 15 years; may be extended up to 30 years in case project of large scale, new or high technology which needs to attract investment.

- Income tax exemption, reduction: Tax exemption for the first 4 years, reduction of 50% of payable tax for the next 9 years.

Decision No. 18/2008/QD-BCT by MoIT on avoided cost tariff and standardized PPA for small renewable energy power projects.

Power company has to buy electricity from small renewable energy power plants at avoided cost tariff with standard power purchase agreement

Circular No. 97/2008/TT-BTC dated 29 October 2008 by Ministry of Finance guiding on implementation of State support policies for investment, development of electricity in rural, mountainous, island areas.

Investor can borrow a portion of investment capital at amount level, conditions, terms, loan interest rates, payback period and risk treatment under conditions more preferential than those of commercial loan.

Decree No. 04/2009/ND-CP dated 14 January 2009 by the Government on incentives, support for environmental protection activities

- Preferential corporate income tax - Exemption from import tax for machines, equipments, facilities, materials that are imported for serving production activities. - Exemption from environmental protection fees - Allowed to make depreciation for fixed assets 1.5 times faster than normal depreciation level in current regulation

Source: New and Renewable Energy Department (MoIT) However, the existing incentives are still insufficient to create appropriate conditions to attract investors. These incentives are mainly beneficial to just small hydropower projects only and not to other forms of renewable energy.



APPENDIX Appendix 1: Acronyms and Abbreviations

Agribank Vietnam Bank for Agriculture and Rural Development Agrimeco Agriculture & Irrigation Mechanization and Electrification

Corporation BIDV Bank for Investment and Development of Vietnam Bitexco Binh Minh Import - Export and Trade Production Company BOO Build, Own, Operate BOT Build, Operate, Transfer Cent US cent COMA Construction Machinery Corporation EPTC Electricity Power Trading Company EVN Vietnam Electricity EVN-CPC Central Power Corporation EVN-HCMPC Ho Chi Minh City Power Corporation EVN-HNPC Ha Noi Power Corporation EVN-NPC Northern Power Corporation EVN-SPC Southern Power Corporation EVRA Electricity Regulatory Authority of Vietnam GDP Gross Domestic Product HP Hydropower HPP Hydropower Plant ICON4 Investment &Construction JSC No.4 IDICO Vietnam Urban and Industrial Zone Development Investment

Corporation IPP Independent Power Producer JSC Joint Stock Company kWh Kilo watt hour LICOGI Infrastructure Development and Construction Corporation LNG Liquefied Natural Gas MITRACO Ha Tinh Mineral and Trading Corporation MOC Ministry of Construction MoIT Minister of Industry and Trade MW Mega Watt NLDC National Load Dispatch Centre NPT National Power Transmission Corporation PPA Power Purchase Agreement ROO Rehabilitate, Operate, Own ROT Rehabilitate, Operate, And Transfer SHPP Small Hydropower Plant SMPH Strategic Multipurpose Hydropower plant VCGM Competitive Electricity Generation Market Vietcombank Bank for Foreign Trade of Vietnam VND Vietnam dong VSH Vinh Son - Song Hinh JSC



Appendix 2: List of approved & started for construction HPPs

(Large projects)

No Name of plant Capacity (MW) Investor Located

01 Nam Chien 100 Song Da Corporation Son La 02 Ban Chat 220 EVN Lai Chau 03 Hua Na 180 Hua Na Hydropower JSC Nghe An 04 Nho Que 110 Bitexco Ha Giang 05 Khe Bo 100 EVN Development JSC Nghe An 06 Ba Thuoc 80 Hoang Anh Gia Lai Group Thanh Hoa 07 Dong Nai 2 70 Trung Nam Group Lam Dong 08 Dambri 75 Sourthern Hydropower JSC Lam Dong 09 Nam Na 2 66 IPP Lai Chau 10 Dak Rinh 125 PVD-BIDV-Licogi-Song Da

Corporation Quang Ngai 11 Sre Pok 4a 64 Buon Don Hydropower JSC Đak Lak 12 Nam Na 3 84 Hung Hai Corporation JSC Lai Chau 13 Yen Son 70 Song Da 6 JSC Tuyen Quang 14 Thuong

Kontum 220 VSH Kontum - Quang Ngai 15 Dak Re 60 Thien Tan Hydropower JSC Kontum - Quang Ngai 16 Huoi Quang 520 EVN Lai Chau 17 Dong Nai 5 145 Vinacomin Lam Dong 18 Dong Nai 6 135 Duc Long Gia Lai JSC Dong Nai 19 Lai Chau 440 EVN Lai Chau 20 Trung Son 260 EVN Thanh Hoa 21 Song Bung 2 100 EVN Quang Nam 22 Song Bung 4 156 EVN Quang Nam 23 Dong Nai 6A 106 Duc Long Gia Lai JSC Dong Nai 24 Dak My 2 98 Agrimeco Quang Nam



Appendix 3: List of approved & started for construction HPPs (Medium projects)

No Name of plant Capacity (MW) Investor Located

01 Ta Thang 60 Vietnam Trading Engineering Construction Joint Stock Corporation

Lao Cai

02 Nam Phang 36 IPA Investment Lao Cai 03 Nam Toong 34 Sa Pa - Northern Electrical

Development JSC No 3 Lao Cai

04 Ngoi Hut 48 Truong Thanh Development and Construction Investment JSC Yen Bai

05 Nam Muc 44 Nam Muc Hydropower JSC Dien Bien

06 Van Chan 57 Van Chan Hydropower JSC (65% ownership of Viet Nam Mechanization Electrification And Construction JSC)

Yen Bai

07 Song Bung 4A 49 Phu Thanh My JSC Quang Nam 08 Song Tranh 3 62 Song Tranh 3 Hydropower JSC Quang Nam 09 Nho Que 1 32 Northern Electrical

Development JSC No 1 Ha Giang

10 Chiem Hoa 48 International Investment Construction Copperation Company

Tuyen Quang

11 Song Bung 5 49 EVN Quang Nam 12 Ba Thuoc 1 60 Hoang Anh Gia Lai Group Thanh Hoa 13 Nam Pan 5 34.5 N.A Son La

14 Nam Cun 40 Song Da - Hoang Lien Hydropower JSC (Afiliated of Song Da Copr.)

Lao Cai

15 Song Bac 42 Song Bac Hydropower JSC Ha Giang 16 Nhan Hac 45 Que Phong Hydropower JSC Nghe An 17 Nho Que 2 48 N.A Ha Giang 18 Long Tao 42 N.A Dien Bien 19 Bac Me 45 N.A Ha Giang 20 Chi Khe 41 Agrita - Nghe An Energy JSC Nghe An 21 Song Nam -

Song Bac 49 Geruco Song Con Hydropower JSC Da Nang

22 Tra Khuc 1 36 Central Hydropower JSC (EVN) Quang Ngai



23 Song Tranh 4 48 Song Tranh 4 Hydropower JSC Quang Nam 24 La Ngau 46 La Ngau Hydropower JSC Binh Thuan 25 Song Lo 6 44 Song Lo 6 Hydropower JSC Ha Giang 26 Song Tranh 5 40 N.A Quang Nam 27 Thanh Son 40 N.A Thanh Hoa 28 Phu Tan 2 60 N.A Dong Nai 29 Ban Mong 60 N.A Nghe An 30 A Lin 63 Truong Phu Hydropower JSC Hue 31 Dak My 3 45 IDICO Quang Nam 32 Dak My 1 54 N.A Kon Tum



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