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11899796 01.Pdf 2 PREFACE In response to a request from the Government of Socialist Republic of Vietnam, the Government of Japan accepted to carry out the Study on National Energy Master Plan of Vietnam. The study was implemented by the Japan International Cooperation Agency (JICA). From December 2006 to September 2008, JICA dispatched to Vietnam six times a study team led by Mr. Kensuke Kanekiyo of the Institute of Energy Economics, Japan (IEEJ). During staying in Vietnam, the team consisting of member from IEEJ and the Tokyo Electric Power Company, conducted related field surveys and held discussions with the officials concerned of the Government of Socialist Republic of Vietnam. While in Japan, the team conducted further studies, the result of which they compiled in this final report. It is our wish that this report will contribute to devise the optimum strategy for the Development of Energy Industry in Socialist Republic of Vietnam and at the same time to enhance the relationship between both countries. I express my sincere appreciation to the officials concerned of the Government of Socialist Republic of Vietnam for their close cooperation in conducting the study. September 2008 Seiichi NAGATSUKA Vice President Japan International Cooperation Agency 3 4 September 2008 Mr. Seichi Nagatsuka Vice President Japan International Cooperation Agency Tokyo, Japan Letter of Transmittal We are pleased to submit to you the Final Report of the Study on National Energy Master Plan of Vietnam. Under the contract with your esteemed organization, the subject study was carried out during 22-month period from December 2006. With due consideration of the current situation of energy supply and demand, and also of related law, rules and regulations in Vietnam, the present study has been conducted to determine a comprehensive and long-term energy master plan that enables the Ministry of Trade and Industry (MOIT) to promote utilization of energy continuously after the completion of the study. In the process of conducting the study, technical transfer to MOIT’s officers by means of on-the-job training has been conducted constantly. The result of this technical transfer has been strengthened by occasional workshops attended by people from related government institutions and industry participants as well as MOIT. This report is compiled an action plan showing a twenty-year program for construction of energy supply facilities, investment and financing, development of human resources and policy measures to promote energy utilization. Those comments by officials from MOIT have been taken into consideration occasionally in making the master plan, and are reflected in the contents of the report. We wish to take this opportunity to express our sincere gratitude to the officials concerned of JICA, the Ministry of Foreign Affaires, and Ministry of Economy, Trade and Industry. We also wish to express our deepest gratitude to the Ministry of Trade and Industry (MOIT), the Embassy of Japan in Socialist Republic of Vietnam and the JICA Vietnam office for the close cooperation and assistance extended to us during the period. Very truly yours, Kensuke Kanekiyo Team Leader National Energy Master Plan of Vietnam 5 List of JICA Team Work Item Name Organization Leader/Energy Development Plan Kensuke KANEKIYO IEEJ Energy Policy and Institute Toshiaki YUASA IEEJ Energy Demand (Demand survey) Tomoyuki INOUE IEEJ Energy Demand (Energy conservation) Satoshi MINOYAMA TEPSCO Energy Supply (Oil and Natural gas) Takeo SUZUKI IEEJ Energy Supply (Coal) Kiminori MAEKAWA IEEJ Energy Supply (Electric power) Hideki YUKIMURA TEPCO Energy Supply (Rural electrification) Shinji AJISAWA TEPCO Energy Supply (Renewable energy) Hidehiro FUKUI TEPCO Demand and Supply Model/Energy Database 2 Tatsuyuki ASAKURA IEEJ Energy Database 1/Economic & Financial Analysis Shinji OMOTEYAMA IEEJ Environmental and Social Consideration Tsuyoshi SASAKA IC Net Coordinator Ryoko KAWAGUCHI IEEJ (Note) IEEJ: The Institute of Energy Economics, Japan TEPCO: Tokyo Electric Power Company TEPSCO: Tokyo Electric Power Service Company List of Steering Committee Name Organization Dr. Pham Khanh Toan Director - IE Dr. Tran Thanh Lien International Cooperation Dept. - IE Mr. Tran Manh Hung Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Nguyen Anh Tuan Power System Development Dept. - IE Ms. Le Nguyet Hang Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Ta Van Huong General Director of Energy and Petroleum Dept. – MOIT Mr. Vu Van Thai Deputy General Director of ICD - MOIT (Note) IE: Institute of Energy MOIT: Ministry of Industry and Trade 6 List of Working Group Collection and Developing Database (WG 1) Ms. Le Nguyet Hang* Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Ngo Dang Chien Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Ngo Huy Toan International Cooperation Dept. - MOIT Mr. Nguyen Ngoc Tan Planning Dept. - EVN Dr. Nguyen Binh Institute of Mine Science and Technology (IMSAT) Ms. Hoang Thi Phuong Petroleum Economics Dept. - Institute of Petroleum Ms. Nguyen Thi Thu Huyen Nuclear, Thermal Power Resource and Environment Dept. - IE Energy Demand (WG 2) Mr.Tran Manh Hung* Energy Economics, Demand Forecast and DSM Dept. - IE Ms. Nguyen Thi Minh Energy Economics, Demand Forecast and DSM Dept. - IE Ms. Tran Ngoc Chau Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Nguyen Duc Cuong Rural Energy Development and New Technology and DMC Dept. - IE Mr. Nguyen Van Vinh Institute of Strategy - MPI Energy Supply (WG 3) Mr.Nguyen Anh Tuan* Power System Development Dept. - IE Mr. Tran Duc Power System Development Dept. - IE Dr. Tran Hong Nguyen Energy and Petroleum Dept. - MOIT Dr. Nguyen Canh Nam Development Strategy Dept. - VINACOMIN Ms. Nguyen Thu Ha PETROVN - Gas - Power Dept. Ms. Le Thu Ha Nuclear, Thermal Power Resource and Environment Dept. - IE Energy Policy (WG 4) Dr. Tran Thanh Lien* International Cooperation Dept. - IE Ms. Tiet Minh Tuyet Energy Economics, Demand Forecast and DSM Dept. - IE Mr. Phuong Hoang Kim Science & Technology Dept. - MOIT Mr. Nguyen Van Vinh Institute of Strategy - MPI Dr. Nguyen Canh Nam Development Strategy Dept. - VINACOMIN Mr. Nguyen Huy Tien Petroleum Economics Dept. - Institute of Petroleum Mr. Le Tuan Phong Science & Technology Dept. - MOIT Mr. Pham Ngoc Gian Petroleum Economics Dept. - Institute of Petroleum (Note) IE: Institute of Energy MOIT: Ministry of Industry and Trade EVN: Electricity of Vietnam MPI: Ministry of Planning and Investmant 7 Contents Introduction: National Energy Master Plan – Its Issues and Objectives ................................................ 3 1. General Overview ............................................................................................................................. 3 2. Composition of the Report................................................................................................................ 4 3. Analytical Tools................................................................................................................................. 5 4. Objectives of the National Energy Master Plan .............................................................................. 6 Part 1 Current Energy Trend and Energy Policy ..................................................................................... 9 Chapter1 Economic Trend and Socio-Economic Development Plan .................................................. 11 1.1 Vietnamese Economic Developments and Energy Demand...................................................... 11 1.2 Role of Socio-Economic Development Plan and Energy........................................................... 12 1.2.1 Target of Socio-economic Development Strategy (2001-2010) ......................................... 13 1.2.2 Five-Year Socio-Economic Development Plan (2006-2010) ............................................. 13 1.2.3 Socio-Economic Development Plan and Energy Policy..................................................... 13 1.3 Energy Resource Development and Role of Foreign Investment.............................................. 14 1.3.1 Trend of FDI Inflow............................................................................................................... 14 1.3.2 Important Sectors of Investment........................................................................................... 14 Chapter2 Energy Trend and Issues of Energy Sector............................................................................ 17 2.1 Recent energy trend in Vietnam ................................................................................................... 17 2.1.1 Primary energy supply and final energy consumption ........................................................ 17 2.1.2 Current situation and issues of energy sector ....................................................................... 18 2.2 Power Sector.................................................................................................................................. 19 2.2.1 Current Status of Power Supply and Demand Balance....................................................... 19 2.2.2 Mid and Long Term Strategies at Government Level ......................................................... 20 2.2.3 Issues of Power Sector........................................................................................................... 25 2.3 Coal Sector ...................................................................................................................................
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