Vietnam Power Report Q3 2013 - New Market Report

From: Fast Market Research, Inc.
Published: Tue Jul 02 2013


Whilst revisions in historical data have prompted some numerical changes in our forecasts, our overall outlook for Vietnam's power sector remains unchanged. Acceleration in real GDP growth in the second half of 2012 reinforces our belief that electricity consumption is poised for a stronger performance in 2013. Similarly, we 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.

Full Report Details at
- http://www.fastmr.com/prod/617137_vietnam_power_report_q3_2013.aspx?afid=303

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 new 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 recently (as illustrated by the projects in the pipeline for development after 2015).

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 are certainly worrying.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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.

You may also be interested in these related reports:

- Pakistan Power Report Q3 2013
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Poland Power Report Q3 2013
- Global Power Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Power Industry
- Kenya Power Report Q3 2013

Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

Visit website »