Electricity market development in Vietnam: Historical trends and future outlooks. (April 2023)

• Record Type: Journal Article
• Authors: Le, Thai-Ha; Han, Phoumin; Le, Ha-Chi; Bui, Manh-Tien
• Is Part Of: Utilities policy. Volume 81(2023)
• Publication Date: 2023-04
• Subjects: Electricity market reform -- Electricity security index -- Principal component analysis -- Normalization -- ASEAN+6; C38 -- P41 -- Q48; Public utilities -- United States -- Periodicals; Public utilities -- Government policy -- United States -- Periodicals; 363.6
• DOI: 10.1016/j.jup.2023.101510
• Languages: English
• ISSNs: 0957-1787

Abstract

Abstract: This study discusses electricity market development in Vietnam, focusing on key achievements and future possibilities. The empirical analysis involves the construction of ESSI, a composite indicator for the security of the electricity supply for Vietnam. Specifically, principal component analysis (PCA) is performed based on eight normalized variables representing four aspects of electricity security. ESSI trends for Vietnam and other ASEAN+6 countries are reviewed and compared during the 1996–2019 period. This research finds that, except for Brunei, the ESSIs of the ASEAN+6 have been on the rise. The findings are robust to different normalization techniques. Policy implications are then offered. Highlights: We discuss the process of electricity market development in Vietnam. We construct ESSI, a composite indicator for the security of electricity supply. Principal component analysis is performed based on eight normalized variables. ESSI trends for Vietnam and ASEAN+6 during 1996–2019 are mostly on the rise. The empirical findings are robust to different normalization techniques.