SAIGON ELECTRICITY EXPO 2005

General Information

VIETNAM¡¯S EXPORT  TO U.S. SET TO TAKE OFF

Please be aware of the potential once the permanent MFN (NTR-normal trade relations) status is approved, Vietnam¡¯s exports to the US will rise exponentially. As a result of a bilateral trade agreement reached between the two countries, Vietnam has become eligible for NTR with the US. The agreement also stipulates that Vietnam will resolve certain outstanding trade issues such as quotas and tariff etc. Foreign and local investment, buying power will increase. Do not miss this once in a life-time opportunity to enter into the Vietnam market.

DEVELOPMENT PLAN UP TO 2010

29 billion US dollars are to be invested to achieve the investment targets for the generation and network expansion of Vietnam during 1999 ¨C 2010. With the expansion of the generating capacity, the power transmission (500 kV, 220 kV, 110 kV) and distribution (22 kV, 35 kV) networks will further develop as well. The existing facilities will be gradually upgraded and modernized, particularly in the congested urban areas for higher profitability and aesthetic purposes.

The Power Demand Forecast up to the year 2010 is prepared based on two cases: base case and high case. The numbers are in million kWh:

                     Year                     Base Case                     High Case

                     2000                     27,500                     30,000

                     2005                     47,737                     53,650

                     2010                     78,486                     87,323

 

To satisfy the above demand, Electricity of Vietnam (EVN) has worked out an impressive investment plan covering construction of large power plants throughout the country, development of BOT projects, and transmission and distribution projects. There are 21 plans of expansion of major generating power plants for the period from 2005 to 2010, including the Mekong Delta and Nhon Trach CCGT ( 1,200 ¨C 2,400 MW), the Purchase from Laos (1,500 ¨C 2,000 MW), and the Son La hydro (3,600 MW).

 

POWER NETWORK PROJECTS

Currently a number of important projects are being carried out, including the 500kV transmission line from Yaly to Pleiku and other 220 kV and 110 kV lines throughout the country. A new 1,810 km of transmission line and 1,908,620 kVA of new transformers¡¯ capacity has been put into operation in 1998. There are 408 km of lines and 1,100,000 kVA of transformers¡¯ capacity of 220 kV, 139 km of lines and 750,000 kVA of transformers¡¯ capacity of 110 kV, and 1,263 km of lines and 58,620 kVA of medium voltages.

 

To implement the rural electrification program, EVN currently focuses in constructing projects that bring electricity to key rural municipalities so that by the year 2000, 100% of communes, 80% of villages and 60% of rural families will be provided with electricity.

 

Preparation for the construction of other power network of 22-35 kV, 110-220 kV for expansion and overload reduction purposes, and 500 kV transmission lines and substations are all under way.

 

Besides transmission network expansion, EVN is accelerating rehabilitation of distribution systems in some of the key cities, particularly, Hochiminh City, Hanoi, Haiphong, and Da Nang using loan financing from World Bank and other sources.

 

The following projects have been planned, in order to meet the required modernization of the HCMC power network from now until 2010:

 A. On-Going Projects :

¡ì      World Bank financed Rehabilitation and Expansion of HCMC Distribution System (Phase 1)

¡ì      Government of Sweden funded SCADA project (Phase 2)

¡ì      Replacing overhead MV feeders of HCMC zone substations with underground cables (financed by

          EVN  depreciation fund)

¡ì      World Bank financed Tao Dan 220 kV GIS substation and its ancillary 220kV Nha Be-Tao Dan underground

          cabling.

 B. Projects with Available Funds:

¡ì      So Thu 110 kV GIS substation and its 110 kV Tao Dan-So Thu underground cabling

¡ì      Government Budget financed Rehabilitation of MV and LV networks.

 C. Planned Projects:

¡ì      Upgrading of the 66 kV network to 110 kV

¡ì      Construction of new transmission, and distribution substations, and related lines from now until 2010

¡ì      NIMS and GIS in association with DSM projects.

 

REFRIGERATION & AIR CONDITIONING SECTOR

Vietnam¡¯s refrigeration and air conditioning sector is in need of major development to accommodate for the increasing market demand. The government is encouraging local companies to cooperate with international companies for the modernization of this industry. Major companies all over the world have already begun to export and establish plants in Vietnam to strengthen their market position. Vietnam¡¯s growing construction, tourism, marine & food processing industry has increased the demand for refrigeration and air-conditioning sector.

LIGHTING AND ELECTRICAL APPLIANCES

Vietnam¡¯s consumer spending has grown rapidly in the past few years. Per capita income has increased by over 15% owing to the continuing influx of foreign investment and improved economy.

Government figures indicated that the value of construction projects in Vietnam would reach US$18 billion in the next five years.  With the increasing investment in the construction sector, industry observers believe that in the next two years, lighting demand will increase by more than 150% and lighting sector will become an important industry for Vietnam.

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