Fast Market Research

Vietnam Power Report Q1 2014 - New Market Research Report

Recently published research from Business Monitor International, "Vietnam Power Report Q1 2014", is now available at Fast Market Research

 
Repost This

Boston, MA -- (SBWIRE) -- 01/02/2014 -- Whilst revisions in historical data have prompted some numerical changes in our forecasts, our overall outlook for Vietnam's power sector remains unchanged. We also hold a relatively constructive view for the expansion of the country's power infrastructure, on the back of the official launch of Vietnam's competitive generation market. Nonetheless, we reiterate that low tariffs, rising dependence on imported fuel (namely coal) and lack of regulatory clarity remain key downside risks.

Our relatively bullish long-term outlook for Vietnam's power sector, predicated on our view that the country will see strong and prolonged economic growth, remains fully in place, and revisions in our historical data series and the availability of new information have actually prompted a further upwards revision of our short and long-term forecasts across the power sector.

View Full Report Details and Table of Contents

Hikes in power generating capacity and significant improvements in the transmission and distribution (T&D) segment are a recognised necessity, with Vietnam's Master Plan VII predicting that the country will need 75,000MW of installed capacity by 2020. In addition, the launch of Vietnam's competitive generation market (CGM) on July 1 2012 is certainly a step in the right direction, with an increasing number of international actors having showed interests in the market (as illustrated by the projects in the pipeline for development after 2015).

Additionally, we believe that the development of the Vinh Tan 1 plant underscores the growing attractiveness of Vietnam's thermal generation sector. We have already witnessed a flurry of activity in private-sector activity over the past year, which we attribute to the introduction of the competitive generation market and the successive increases in the electricity tariff.

That said, a number of pertinent risks remain prominent, leading us to believe that a discrepancy will certainly emerge between planned and realised capacity. Most notably:

- Regulatory uncertainty and delays remain significant. For instance, the cancellations of nine small- to medium-capacity hydropower plants in October 2012 highlighted an increasing lack of opportunities for small-scale hydropower generation, due to growing environmental concerns. However, we believe that the cancellations also displayed a disparity between provincial and federal level planning.
- Low tariffs and dependence on imported fuel (namely coal) as a key impediment to the power sector's growth potential, and news that theft of electricity is on the rise is worrying.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Energy research reports at Fast Market Research

You may also be interested in these related reports:

- Turkey Power Report Q1 2014
- Kenya Power Report Q1 2014
- China Power Report Q1 2014
- Poland Power Report Q1 2014
- Mexico Power Report Q1 2014
- United Kingdom Power Report Q1 2014
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Brazil Power Report Q1 2014
- Power Quarterly Deals Analysis: M&A and Investment Trends - Q1 2013
- Romania Power Report Q1 2014