VIETNAM ELECTRICITY INDUSTRY REPORT...

VIETNAM ELECTRICITY INDUSTRY REPORT Q2/2018

Executive Summary 4

1. Business environment 7

1.1 Macroeconomic situation 7

1.2 Legal framework 11

1.3 Free Trade Agreements 20

2. Industry overview 23

2.1 Situation of global electricity industry 23

2.1.1 Demand and supply for electricity 24

2.1.2 Development trend of global electricity industry 33

2.1.3 Price movement 35

2.1.4Situation of electricity industry in some Southeast Asia

countries37

2.2 Situation of Vietnam electricity industry 42

2.2.1 History of Vietnam electricity industry 43

2.2.2 Value chain of the industry 47

Nội dung

2.2.3 Input fuel 48

2.2.4 Electricity generation 56

2.2.5 Transmission and distribution 66

2.2.6 Electricity consumption 73

2.2.7 Electricity price 79

2.2.8 Structure of electricity industry 82

2.3 Issues in energy industries development 91

2.3.1 Existing 92

2.3.2 Challenges 93

2.3.3 Risks 96

2.3.4 The trend of foreign investment 97

2.4 Planning and forecasting 98

2.4.1 Planning 99

2.4.2 Forecasting 102

2

Nội dung

3. Business analysis 104

3.1 Typical companies of electricity industry 105

3.2 Business performance indicators 116

3.3 Financial indicators 121

3.4 Payment indicators 126

4. Appendix 128

4.1 Financial statements 129

4.2 Total capacity of national installed electricity system 138

3

Summary

Currently, China and the United States are the

two countries with the highest electricity

consumption in the world in 2016.

Currently, EVN still has a monopoly on the

segments of regulation, electricity

wholesaling, transmission and distribution or

retailing..

Import proportion of electricity is gradually

stabilizing over the years.

4

Content is intentionally removed for demo purpose

Summary

Vietnam is approaching the top four ASEAN

in SAIDI and SAIFI index. Viet Nam's access to

electricity index has increased by 5 folds

compared to that in 2015 - WB.

Electricity price in Vietnam is quite low

compared to other countries in the Asia-

Pacific region.

Net revenue of electricity distribution and

retail businesses is much higher than that of

the electricity generation enterprises.

5


ERAV Electricity Regulatory Authority of Vietnam

EVFTA Vietnam-EU Free Trade Agreement

EVN Vietnam Electricity Corporation

FDI Foreign Direct Investment

FTA Free Trade Agreement

GSO General Statistics Office

MAIFI Momentary Average Interruption Frequency Index

MOIT Ministry of Industry and Trade

NLDC National Load Dispatch Center

PVN Vietnam Oil and Gas Group

SAIDI System Average Interruption Duration Index

SAIFI System Average Interruption Frequency Index

TPP Trans-Pacific Partnership Agreement

VCGM Vietnam Competitive Generation Market

Vinacomin Vietnam National Coal - Mineral Industries Group

VIRAC VIRAC Joint Stock Company

VWEM Vietnam Wholesale Electricity Market

WTO World Trade Organization

Abbreviations

6

1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

1.3 Free Trade Agreements

Content

7

The Government's 2018 GDP growth target of

Consumer price index (CPI) in 2017 has a lot of changes.

CPI increases due to:

8

GDP growth rate by quarter, 2015-2017

Sources: VIRAC, GSO

%

Monthly CPI fluctuations, 2014 - 2017

Sources: VIRAC, GSO




Many new projects in the field of electricity production and distribution are

licensed in 2017.

The stable exchange rate will help the electricity producers to be

more active in calculating input costs due to their dependence on

imported coal.

9

Sources: VIRAC, FIA

FDI attraction by industry, 2017

VND/USD exchange rates, 2013-2017

Sources: VIRAC, SBV




The electricity sector is estimated to have a relatively high and stable growth rate in industrial production.

The electricity industry plays an important role in supporting the

development of all sectors of the economy.

10

Sources: VIRAC collected

Contribution to electricity production and distribution in GDP,

2012 – 2017e






1.2 Legal framework


Content

11


1.2 Legal framework

Source: VIRAC

12


Electricity Law 2004

Amended Electricity Law 2012:


1.2 Legal framework

13


Decree No. 137/2013 / ND-CP guided the Electricity Law and the amended Electricity Law.

• Together with raising the business production efficiency of enterprises, the electricity sector has also restructured to ensure cost transparency and

increase competitiveness in the electricity market..

14


1.2 Legal framework



1.2 Legal framework

Source: VIRAC

Source: VIRAC

15



1.2 Legal framework

16


On 12 March 2015, the Ministry of Industry and Commerce issued Decision No . 2256 / QD-BCT regulating the electricity price.


1.2 Legal framework

17


Decision No . 24/2017 / QD-Nog dated 6/30/2017 of the Prime Minister regulating the mechanism for adjusting the average retail price of electricity

(replacing Decision 69/2013 / QD-Nog) and took effect on 8/15/2017.

The application of advanced technologies, digitization-based technology and the linkage to create high-tech agricultural

models, and smart agriculture are few.

18


1.2 Legal framework



1.2 Legal framework

19


There are also some circulars about the electricity sector:



1.2 Legal framework


Content

20

21

Vietnam trade integration process from 1995 to present

Until the end of 2017, Vietnam has signed, implemented, and is negotiating a total of 16 FTAs. Accession to international trade agreements brings

opportunities and challenges for domestic firms.

1. Business Environment



One of Vietnam's biggest achievements in 2017 is the completion of negotiation of strategic agreements. These include AHKFTA, EVFTA, EFTA and CPTPP.

Positive signals from trade agreements

22

1. Business Environment



Content

2. Industry overview

2.1 Situation of global electricity industry

2.2 Situation of Vietnam electricity industry

2.3 Issues in energy industries development

2.4 Planning and forecasting

23


2.1 Situation of global electricity industry – 2.1.1 Demand and supply for electricity

TWh World electricity volume, 1985-2016

Sources: VIRAC, Statsreview.bp.com

24

Structure of world electricity volume, 2016

Sources: VIRAC, REN21

Significant change in the contribution of electricity production between Europe

and Asia-Pacific.

In recent years, many countries

have shifted dramatically from fossil fuel energy to renewable energy sources.


25

Source: VIRAC, IEA

Trong khoảng 40 năm từ năm 1973 đến năm 2015, nguồn cung năng lượng không tái tại của thế giới cho sản xuất điện có nhiều thay đổi. Tổng sản lượng điện từ

nguồn năng lượng không tái tạo năm 2015 đạt 24,255 TWh, tăng 295.6% so với năm 1973. Than, khí gas tự nhiên và khí hydro vẫn là những nhiên liệu quan trọng

nhất, chiếm khoảng 80% trong tổng năng lượng không tái tạo dùng cho sản xuất điện. Trong những năm gần đây, sản xuất điện từ than, khí gas tự nhiên và năng

lượng nguyên tử có xu hướng tăng cao. Tuy nhiên, phong trào từ bỏ sử dụng nhiệt điện than đang diễn ra trên 37 quốc gia và tổ chức do những vấn đề

môi trường nghiêm trọng do điện than gây ra. Theo báo cáo phát triển điện than của tổng hội Greenpeace, Sierra Club và CoalSwarm, năm 2017 là năm thứ

hai liên tiếp số lượng các nhà máy điện than toàn cầu giảm mạnh, chủ yếu tại Trung Quốc và Ấn Độ. Cụ thể, Cụ thể, tại Trung Quốc, từ năm 2015 tới 2017, công

suất xây dựng mới nhà máy điện than giảm 73% do chính phủ Trung Quốc ban hành các chính sách hạn chế phát triển điện than. Tại Ấn Độ, do chính phủ thắt

chặt tài chính tư nhân nên đã có 17 dự án đã và đang thi công dừng lại vô thời hạn. Xu hướng của thế giới trong tương lai sẽ đẩy mạnh sử dụng các nguồn năng

lượng không tái tạo.

Theo Tập đoàn Dầu khí Exxon Mobil, nhu cầu tiêu thụ năng lượng toàn cầu sẽ tăng 32% trong năm 2040 do dân số toàn cầu tăng trưởng dẫn đến nhu

cầu năng lượng cho các nhà máy điện và phương tiện vận tải tăng lên. Từ khí đốt, năng lượng hạt nhân và năng lượng tái tạo sẽ phát triển nhất trong khoảng

20 năm tới. Trong các dạng năng lượng, khí đốt tự nhiên dự kiến sẽ tăng mạnh nhất, chiếm 1/4 tất cả nhu cầu năng lượng vào năm 2040. Than đá cũng sẽ vẫn

quan trọng, nhưng sẽ mất đi thị phần đáng kể do xu hướng của thế giới đang cố gắng chuyển đổi sang sử dụng các loại năng lượng sạch hơn. Nhu cầu cho năng

lượng tái tạo sẽ tăng gấp 4 lần trong năm 2040. Trong đó, dự báo dầu, khí đốt và than sẽ chiếm 78% nguồn cung nhiên liệu toàn cầu năm 2040. Điện sinh

khối, thủy điện và năng lượng tái tạo như gió và mặt trời sẽ đóng góp 15% trong tổng cung. Năng lượng hạt nhân sẽ đáp ứng 8% nhu cầu.

6,131 TWh 24,255 TWh



Non-renewable electricity supply shares of the world, 1973 Non-renewable electricity supply shares of the world, 2015

26

The structure of renewable electricity production worldwide, 2016



Renewable electricity capacity * in the world by country, 2016

GW

•

China is the leading country in renewable

energy development,


Global renewable electricity capacity, 2015-2016




27

Market development and renewable energy industry in 2016

Hydroelectricity

Wind electricity

Photovoltaic

(PV)

Concentrated

solar

power(CSP)

Bioelectricity

Geothermal




KWh

Average per capita electricity in the world, 1985 - 2016

Source: VIRAC, Statsreview.bp.com

28


Change in the contribution structure of the world electricity generation sector in the period 2000-2005 had a direct impact on the per capita electricity

consumption of the regions.



TWh

World's top largest electricity producing countries, 2015 - 2016


Contribution structure of world electricity production, 2016


29




Source: VIRAC, IEA

30


Electricity production volume in some countries, 2006 - 2016

Unit: TWh



TWhElectricity consumption by region, 2006 -

2016

Source: VIRAC, Ener Data

31


World's electricity consumption was constantly increasing in the period of 2006-2016e with a CAGR of



Source: VIRAC, Ener Data

TWh

China and the United States continued to be the two largest electricity

consuming countries in the world in 2016

Top 10 most electricity consuming countries in 2016

32




BIllion USDWorld electricity exports, 1985-2016e

Sources: VIRAC, Worldstopexports

Top 11 countries contributed of total world electricity exports in 2016

with the leading countries being Germany, Canada and France.

Top largest electricity exporters, 2016

Sources: VIRAC, worldstopexports

33




World electricity consumption prospects by region, 1980 – 2030f

Before 1990, the countries belong to Organization for Economic Co-operation and Development (OECD) and Europe were the two largest electricity

consumers in the world. However, after this period Asia rose to be the second-largest consumer of electricity in the world.

Sources: VIRAC, IEA


2.1 Situation of global electricity industry – 2.1.2 Development trend of global electricity industry

TWh

34


Proportion of primary energy supply in the world, 1973 Total of primary energy supply in the world, 2015

The proportion of primary energy supply in the world over the past 40 years (1973 - 2015) has not changed significantly,

Sources: VIRAC, IEA

35


2.1 Situation of global electricity industry – 2.1.2 Development trend of global electricity industry


Cents/kWh

Sources: VIRAC,

IEA


2.1 Situation of global electricity industry – 2.1.3 Price movement

36

Electricity price of household, 2016


Cents/kWh

Sources: VIRAC, IEA

Average price of electricity in the world rose in the period 2011-2015

37

Average price of electricity in the world, 2016


2.1 Situation of global electricity industry – 2.1.3 Price movement



2.1 Situation of global electricity industry – 2.1.4 Situation of electricity industry in some Southeast Asia countries

Sources: VIRAC, Worldbank

• In all countries in the world, Iceland is the largest electricity per capita consuming country.

38

Top 10 largest countries consuming electricity per capita in the world, 2014


MtoeDemand for energy of some countries in Southeast Asia, 1990 – 2035f

Sources: VIRAC, IEA

Among ASEAN countries, Indonesia has the largest demand for energy

39




Electricity generation in Southeast Asia by energy sources, 1990 - 2040f

Unit: TWh

Sources: VIRAC, IEA

40




Demand for primary energy in Southeast Asia, 1990 – 2040f

Unir: Mtoe

Sources: VIRAC, IEA

41




Proportion of electricity consumption in ASEAN by sectors

Sources: VIRAC, IEA

The prospect of electricity consumption in ASEAN countries in the period 2010 - 2015 has changed a lot. The most obvious trend is to reduce the

proportion of electricity consumption in the industrial and service sectors, and increase in the usage structure of the people.

42

Electricity consumption in ASEAN by sectors

2010 – 2035f




Content






43

Overview of Vietnam Electricity Industry


2.2 Situation of Vietnam electricity industry - 2.2.1 History of Vietnam electricity industry

44


45




46




47




Electricity is a special commodity,

Electricity industry of Vietnam also has a similar value chain with other countries in the world

Fuel Production Distribution and consumption


2.2 Situation of Vietnam electricity industry - 2.2.2 Value chain of the industry

48


49

• Vietnam has many primary sources of energy domesticcally such as

crude oil, coal, natural gas and hydroelectricity,

•

The shift to fossil fuels has been and continues to be an

important cause for increasing greenhouse gas emissions.

Sources: VIRAC, EVN, MOIT

Situation of primary energy supply, 2010 - 2015 KTOE*


KTOEDomestic energy explotation from 2009 to 2015


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material


Sources: VIRAC, Decision No. 403/QĐ-TTg Sources: VIRAC, Decision No. 403/QĐ-TTg

Market segment of coal consumption, 2016f

Coal reserves are mainly concentrated in coal basin of the Red River Delta and the coal used in electricity production accounts for 69.9% of the coal

consumption market.Coal reserves by region, 2016

Increase in coal price for power generation, 2010 – 2017

Sources: VIRAC, KTV

50


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Coal


From being a coal exporter many years ago, in 2014 Vietnam has to import

to serve domestic production needs. Million tons

51

Forecast for supply and demand coal from 2015 to 2030

Sources: VIRAC, KTV


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Coal


Sources: VIRAC, TKV

Most of the gas in Vietnam is used to produce electricity.

Rate of selling price of gas for electricity sector by market price, 2014 - 2015

Sources: VIRAC, Documentary No, 2175/VPCP-KTTH

52

Market segment of natural gas consumption


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material - Gas


Sources: VIRAC, PVN

Due to climate change, the 2016 dry season has only 38/81 reservoirs capable of regulating water for electricity generation, challenging the supply of

electricity.Hydroelectricity potential in Vietnam

• By 2016, the national electricity system has 85 hydro

power plants in operation

53


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Hydroelectricity


Data on solar radiation in Vietnam

Sources: VIRAC, EVN

Sources: VIRAC, Decision No. 2068/QĐ-TTg

Schedule for solar energy development in Vietnam to 2030 with a

vision to 2050

54

Vietnam is one of the countries with the most sunshine in the map of the

world's solar radiation.

Despite the great potential, the exploitation of solar energy in Vietnam is still

limited.


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Photovoltaic


Potential and characteristics of wind electricity in 3 regions and by

wind speed

Sources: VIRAC, EVN

55

Sources: VIRAC, MOIT

Wind electricity potential in the provinces of Planning for development of

wind electricity, 2020

By the end of 2017, about 48 wind electricity projects have been

registered in the whole territory of Vietnam, mainly in the Central

and southern provinces.


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Wind electricity



56

The characteristics of geothermal resources in Vietnam are distributed

scatteredly, so it is difficult to build large-scale plants.

Geothermal potential of the regions


Theoretical potential and technical potential of the tidal electric power


2.2 Situation of Vietnam electricity industry - 2.2.3 Input material – Geothermal and tidal


Sources: VIRAC, EVN, GSO, MOIT

Total supply of electricity, 2010 – 2017e

Million kWh

Sources: VIRAC, IEA

Million kWh

Electricity production of Vietnam and some other

countries, 2016

57

In 2017, the supply of electricity also increased, as over 196 works were started in

the year, which 180 electrical grid works from 110 kV to 500 kV are completed and

put into operation


2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation


Proportion of electricity generation by supplier, 2016

Sources: VIRAC, EVN

Electricity generation is the only segment with the participation of units

outside EVN due to the specific requirements of capital investment.

58




Renewable energy has not been widely used for electric development,

59

Structure of electricity production by source of materials, 2012 – Q3/2017


The main sources of electricity are Hydroelectricity, Coal Thermoelectricity

and Gas Thermoelectricity, accounting for 98.7% of total electricity

generation capacity in 2017

Hydroelectricity accounts for a large proportion of total electricity

production




Most of the machinery and equipment of Vietnam 's hydropower plants are imported from overseas.

Characteristics of power plants by source of fuel

Hydropower

Thermal power

60



2.2 Situation of Vietnam electricity industry - 2.2.4 Electricity generation – Characteristics of electricity generation sources

Compare the advantages and disadvantages of hydroelectricity and thermal electricity

61




Electricity generating technology from coal (Thermal power)

62




Wind power

Nuclear power

Electricity produced from renewable energy

63




Distribution of main power plants

64


At present, the installation location of power plants is heavily

dependent on the distribution of natural resources, so there is a clear

distinction between regions.



Billion kWh

Source: VIRAC, EVN

Billion

kWh

Cent/kWh

Vietnam imports electricity mainly from China:

65

Import of electricity, 2010 - 2017

Import of electricity from China, 2010 - 2016e




Current situation of selling electricity to Laos:

Situation of electricity import from Laos:

66




Sources: VIRAC, EVN

Length of transmission grid and total capacity of distribution, 2011 - 2016

67


2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Electrical grid for transmission and distribution


Sources: VIRAC, EVN

Rate of power losses of some countries, 2011-2014

Sources: VIRAC, WoldBank

Million kWh

68

The power loss in the power transmission grid in Vietnam is still high

compared to many countries in the world.

Power loss, 2010 – 2017e


2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Power loss


• In 2016, power losses on the transmission grid tend to increase slightly

compared to 2015

• Power losses on distribution grid tend to decrease over the years

Sources: VIRAC, EVN

Results of reduction of power losses in 2016 - Plan for 2017Unit: %

Sources: VIRAC, EVN

69

Rate of power losses in the supply chain, 2010 - 2016


2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Power loss



70

MW

Maximum load and electricity system availability *, 4/2015 - 10/2017

• Although the installed capacity is always above the annual peak load, the system is always under very high supply pressures, especially during the dry

season. Alternative electricity outage happens in many places.


2.2 Situation of Vietnam electricity industry - 2.2.5 Transmission and distribution – Peak load


Source: VIRAC, NLDC

MW

71

Peak load by time between two main seasons, 2016




Advantages and disadvantages of capacitor types

72




Source: VIRAC, EVN

Capacitor installation in 2016 - Plan in 2017

73


In Vietnam, static capacitors are commonly used because: Unit: MVAr



Source: VIRAC, EVN, MOIT

Commercial electricity, 2012 – 9M/2017e

Million kWh

Commercial electricity according to the distribution companies (Million kWh), 2015 – 2017

Source: VIRAC, EVN

74



2.2 Situation of Vietnam electricity industry - 2.2.6 Electricity consumption

Vietnam is one of the most inefficiently electricity using countries in the world.

Electricity intensity by region in the world (kwh / USD)



75


Source: VIRAC

KWh

Source: VIRAC, MOIT

Source: VIRAC

76

Electricity consumption structure, 2017

Electricity consumption per capita of Vietnam, 2000-2016




Source: VIRAC, GSO, EVN

77

Elastic electricity factor/GDP, 2010 - 2017e


Electrical efficiency in Vietnam from the perspective of coefficient of

electricity elasticity/GDP.

Coefficient of electricity elasticity/GDP depends on each stage of

development of each country.



Source: VIRAC, NLDC

Electricity supply reliability criteria for 2017

Source: VIRAC, EVN

78

Electricity outage, 2012 – 2017eElectricity outage




Vietnam’s getting electricity indicator, 2012 - 2016

Source: VIRAC, World Bank, EVN

79




Source: VIRAC, Decision No 5106/QĐ-BCT

Avoided cost tariff applied to small and medium-sized hydroelectric plants in 2017

Source: VIRAC, EVN, MOIT

VND/kWh

Electricity generating price


2.2 Situation of Vietnam electricity industry - 2.2.7 Electricity price

80

Average electricity purchase price of EVN, 1/2015 - 10/2017


Source: VIRAC, Decision No 1797/QĐ-BCT

Average electricity wholesale price of EVN for other electricity corporations in 2016Wholesale price of electricity

Retail price of electricity

81




82

Electricity price in Vietnam is quite low compared to other countries in

the Asia-Pacific region.

Price of input material, January/2014 – October/2017



Average electricity price, July/2007 – December /2017

VND/ kWh




Structure of electricity industryComparison of electricity industry structure

before and after 2008

83


2.2 Situation of Vietnam electricity industry - 2.2.8 Structure of electricity industry


Developing a competitive electricity market in Vietnam is essential

84




Vietnam Competitive Generation Market (VCGM)

85




Progress of marketization of electricity industry

Progress of marketization of electricity industry

86




Vietnam Competitive Generation Market in Vietnam

Sources: VIRAC, EVN

87

Market structure

MW

VGCM situation, 2012 - 2017




Operating map of VCGMGeneral operating principles

Existing problems

88




To operate the competitive electricity generation market

89




Based on the production, the electricity supply situation of the whole system in October and the demand for electricity in November, December/2017,

the Ministry of Industry and Trade has decided to operate again in the competitive electricity generation market from November/1st/2017 after one

month of halt to prioritize the mobilization of gas power. Some of the reasons for the resumption of the competitive electricity generation market in

November:

90




• Vietnam Wholesale Electricity Market (VWEM)

Operational mechanism of the competitive wholesale electricity market in 2018 includes:

The Pilot Experiment in 2018 is divided into three phases:

91




Content






92

Existing problems affecting the development of Vietnam's energy industry


2.3 Issues in energy industries development – 2.3.1 Existing

93


In addition, Vietnam is facing many challenges such as:

Sources: VIRAC, ERAV

94

Structure of electricity production by primary energy source


2.3 Issues in energy industries development – 2.3.2 Challenges


Vietnam currently ranks 20th in the world among the countries with the

most coal thermal power plants in the world.

The development of coal electricity in Vietnam is against the world

trend.

Sources: VIRAC, GreenID

95

Average per capita consumption of coal and and CO₂




Huge investment capital.

Source: VIRAC

Energy using efficiency and awareness are low.

Sources: VIRAC, GDVC

96

Investment capital of power plants

Million USD/MW

Million USD

Import of electrical wires and cables, 2011 - 2017e




Weather risks

Risk of input costs of thermal power

Risks of interest rates

Risks of exchange rates

Risk of mechanisms

97


2.3 Issues in energy industries development – 2.3.3 Risks


The electricity market in Vietnam is gradually developing in three levels (competitive electricity generation, competitive electricity wholesale and

competitive electricity retailing), which will attract foreign investors thanks to the increase of the competitiveness and transparency, gradually reducing

the monopoly of EVN in the electricity market.

98


2.3 Issues in energy industries development – 2.3.4 The trend of foreign investment


Content






99


2.4 Planning and forecasting -2.4.1 Planning

100


Decision No. 428 / QD-Nog approving the adjustment of zoning for national electricity development in 2011-2020, with a vision to 2030

1. National electric power development planning:

101


2. Electricity grid development planning:

Volume of transmission grids shall be elaborated in stages, as follows:

3. Solutions to industry zoning



Solution to electricity price

102




Billion kWh

Sources: VIRAC, EVN

103

Demand – supply of electricity, 2010 – 2030f


2.4 Planning and forecasting -2.4.2 Forecasting


GW


104

Growth of renewable electricity capacity, 2016 - 2030f


2.4 Planning and forecasting -2.4.2 Forecasting


3. Business analysis

3.1 Typical companies of electricity industry

3.2 Business performance indicators

3.3 Financial indicators

3.4 Payment indicators

Content

105

Source: VIRAC

3. Enterprise analysis


Electricity generating enterprises.

106


Enterprises in electricity industry are divided into three groups:

Source: VIRAC

Electricity regulation and transmission companies.

Electricity distribution and retail companies.

Source: VIRAC

* By the end of August 2017 EVNNPC has not yet published its financial statements

107




Hai Phong Thermal Power Joint Stock Company


3.1 Typical companies of electricity industry– 3.1.1. Electricity generation companies– Thermal Coal

108


Quang Ninh Thermal Power Joint Stock Company


3.1 Typical companies of electricity industry– 3.1.1. Electricity generation companies– Thermal Coal

109



3.1 Typical companies of electricity industry– 3.1.1. Electricity generation companies- Hydropower

Pha Lai Thermal Power Joint Stock Company

110



3.1 Typical companies of electricity industry– 3.1.1. Electricity generation companies– Petroleum power

BOT Phy My 3 Power Company Limited

111


Mekong Energy Company


3.1 Typical companies of electricity industry– 3.1.1. Electricity generation companies– Hydropower

112



3.1 Typical companies of electricity industry– 3.1.2. Electricity regulation and transmission companies.

113



3.1 Typical companies of electricity industry– 3.1.3. Electricity distribution and retail companies.

Northern Power Corporation - EVNNPC

114




Hanoi Power Company - HNPC

115


Central Power Corporation - EVNCPC

116









Content

117

Source: VIRAC

VND

Billion



Net revenue, 2015 - 2016

118


Net revenue of electricity distribution and retail businesses is much higher than that of electricity generation enterprises.

Source: VIRAC

VND Billion



119

Profit indicator, 2015 - 2016


While the net revenue of the 5 electricity distribution and retail businesses is much higher than that of some companies in the electricity generation

business group, the gross profit is not clear.

In the group of electricity generation enterprises, gross profit of the gas power businesses is lower than that of the thermal enterprises.

Source: VIRAC

VND Billion



120

Financial cost, 2015 - 2016


Financial cost of thermal coal businesses is usually larger than that of electricity generation enterprises,

Source: VIRAC



121

Self-financing rate, 2015 - 2016







Content

122

VND

Billion



Total asset, 2015 - 2016

Source: VIRAC

123


• Gas power enterprises have higher total asset turnover than coal power companies. Because in 2016, world oil price continued to decrease, which

made gas power enterprises' price lower, thereby increasing the price advantage.

Sources: VIRAC

Days

Average days of receivables, 2016

124




Source: VIRAC



Profit indicators, 2016

125


Profitability of electricity generation enterprises is relatively high compared to other companies in the electricity distribution and distribution group.

Source: VIRAC



Days

126

Days in inventory, 2016


In general, the average days in inventory in the industry is very low compared to other manufacturing sectors, the average number of days in inventory is

only 36 days.






Content

127



Source: VIRAC

128

Solvency, 2015 - 2016


Current ratio of most enterprises is much higher than quick ratio.

Content

4. Appendix

4.1 Financial statements

4.2 Total capacity of national installed electricity system in 2016

129

4. Appendix


Southern Power Corporation - EVNSPC

130

BALANCE SHEET

Unit: Billion VND 2015 2016

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term investments

III. Short-term receivables

1. Accounts receivable of customers

IV. Inventories

B. NON-CURRENT ASSETS

I. Long-term receivables

Accounts receivable of customers

II. Fixed assets

1. Tangible fixed assets

2. Intangible fixed assets

III. Commercial advantage

TOTAL ASSETS

A. LIABILITES

I. Short-term liabilities

1. Tax and accounts payable to the State

2. Accounts payable to the suppliers

3. Short-term borrowings

II. Long-term liabilities

1. Long-term borrowings

2. Funds for development of science and

technology

B. OWNER’S EQUITY

TOTAL EQUITY

STATEMENTS OF BUSINESS RESULTS


Net revenue

Cost of goods sold

Gross profit

Revenue from financial activities

Financial costs

Interest expenses

Cost of sales

Enterprise cost management

Total costs

Revenue from business activities

Profit before tax

Current income tax

Deferred income tax

Profit after tax

STATEMENTS OF CASH FLOWS


I. Cash flows from operation

Depreciations of fixed assets

(Profit)/Loss from difference of unrealized foreign exchange rate

(Profit)/Loss from investment activities

Interest expenses

Net cash flows from operation

II. Cash flows from investment

Shopping, building fixed assets and other non-current assets

Cash spent for lending, purchasing debt instruments of other units

Withdrawal of cash spent for lending, selling debt instruments of other units

Interest on loans, dividends and profit divided

Net cash flows from investment

III. Cash flows from finance

Money from issued shares, capital contribution of the owner

Net cash flows from finance

Net cash flows during the year

Cash and cash equivalents at the beginning of the year

Impact of exchange rate changes in foreign currency

Cash and cash equivalents at the end of the year

THE CONTENT IS INTENTIONALLY REMOVED FOR DEMO

PURPOSE

4. Appendix


Ho Chi Minh Power Company - EVNHCMC

131

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Hanoi Power Company - EVNHANOI

132

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Central Power Corporation - EVNCPC

133

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Hai Phong Thermal Power Joint Stock Company

134

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Quang Ninh Thermal Power Joint Stock Company

135

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Pha Lai Thermal Power Joint Stock Company

136

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


BOT Phy My 3 Power Company Limited

137

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

4. Appendix


Mekong Energy Company

138

BALANCE SHEET


A. CURRENT ASSETS





IV. Inventories




II. Fixed assets




TOTAL ASSETS

A. LIABILITES








technology

B. OWNER’S EQUITY

TOTAL EQUITY



Net revenue

Cost of goods sold

Gross profit


Financial costs

Interest expenses

Cost of sales


Total costs


Profit before tax

Current income tax

Deferred income tax

Profit after tax







Interest expenses
















PURPOSE

Content

4. Appendix



139

Total capacity of national installed electricity system, 2016

No. Projects Capacity (MW)

Total capacity

A EVN & projects of JSC

No. Projects Capacity (MW) No. Projects Capacity (MW)

140

4. Appendix



PURPOSE

No. Projects Capacity (MW)

B BOT & IPPs

No. Projects Capacity (MW) No. Projects Capacity (MW)

141

Total capacity of national installed electricity system, 2016


PURPOSE

4. Appendix


REPORT DISCLAIMER

142

Report Disclaimer:

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has

produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to

be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organisation, or place it on a website for

public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANT (VIRAC JSC.,)

6 th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

Thank you !

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