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Electricity market development in Vietnam: Historical trends and future outlooks

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  • Le, Thai-Ha
  • Han, Phoumin
  • Le, Ha-Chi
  • Bui, Manh-Tien

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.

Suggested Citation

  • Le, Thai-Ha & Han, Phoumin & Le, Ha-Chi & Bui, Manh-Tien, 2023. "Electricity market development in Vietnam: Historical trends and future outlooks," Utilities Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:juipol:v:81:y:2023:i:c:s095717872300022x
    DOI: 10.1016/j.jup.2023.101510
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    More about this item

    Keywords

    Electricity market reform; Electricity security index; Principal component analysis; Normalization; ASEAN+6;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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