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Vietnam power shortages stoke calls to dissolve monopoly

Updated On: Jun 28, 2010

The rolling blackouts in Vietnam this summer have fueled calls for major reform: to break up state energy company Electricity Vietnam (EVN).

EVN is at the center of criticism for discouraging foreign investment in new power plants through its monopoly over power distribution and government-regulated low energy prices.

Meanwhile, demand for electricity is growing at 15 per cent per year. In Thanh Hoa province, farmers staged protests in which they forced officials from the national power monopoly to sit outside in the 40-degree heat, while demanding compensation for companies.

While pressure is growing, the government's reform plans as yet remain unclear.

Sources:

Matt Steinglass; Vietnam blackouts have the temperature rising [FT.com/beyondbrics]

Matt Steinglass; Vietnam power shortages fuel calls to break up monopoly [Financial Times (print only)]







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