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VIET NAM

(updated on Oct. 2006¹)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

Viet Nam, a nation located along the eastern coast of the mainland of Southeast Asia, is shaped like a giant letter S, extending some 1,600 km from the Chinese border to Point Ca Mau (Bai Bung) on the Gulf of Thailand, see Figure 1. The total area of Viet Nam is 329,314 km². At its widest it reaches a width of about 560 km. In the narrow centre it is less than 50 km wide.

The altitude of the land is generally high in the north and low in the south. In the north, the coastal plain extends over a fertile delta plain called the Red River Delta, which covers an area of about 14,812 km2. Hanoi, the capital of the country, is located in the delta and the Red River pours into the Gulf of Bac Bo. In the south, the coastal plain widens into the Mekong River Delta, which has an area of about 39,738 km².

Viet Nam belongs to the Asian Monsoon Zone and gives tropical conditions in the south and sub-tropical conditions in the north. The country enjoys a variety of climatic conditions, including the cool weather in the northern mountain area, the wet tropical climate from northern to central low land, and the tropical monsoon climate in the southern low lands. The wet season lasts from May to October and the dry season from November to April.

In 2005, the population of the country was about 83.120 million of which about 73% lived in rural areas and 27% in urban areas (Table 1). Major urban centres are Ha Noi accounting 3.145 million people, Da Nang 0.78 million and Ho Chi Minh City around 5.891 million. The average population density is about 252 per km². It varies from one area to another. The population density in the northern Red River Delta is approximately 1,218 per km², which is near threefold as high as that in the southern Mekong Delta (435 per km²). Meanwhile the population density in the Central Highland area is only 100 per km². The past 5-year trend of population is given in the Table 2.

TABLE 1. POPULATION INFORMATION

TABLE 2. PAST 5 YEARS TREND OF POPULATION

The population growth rate was 2.3% for the period from 1980 to 1985 and 2.0% from 1985 to 1990. In the recent years, the population growth rate is about 1.35 %.

The recent projection of the population showed that total population was expected to increase from 77.9 millions in the year 2000 to 98.4 millions in the year 2020. The statistics of and projection on the population in the period 2000 - 2020 is given in the Table 3.

TABLE 3. PROJECTED POPULATION FOR THE PERIOD 2000-2020

If in 1995, 80% of the population was distributed in rural areas, now this figure was reduced to 73% in 2005 and downed to 60% by the year 2020. This trend is illustrated in the Table 4.

TABLE 4. THE DISTRUBUTION OF THE POPULATION

1.1.1.  Economic Indicators

The Vietnamese Government has determined the targets for the economic development for the period 2000-2010 with the main indicators for 2010 are as follows:

• A doubling of GDP by 2010 to be attained by average GDP growth rate more than 7% per annum;
• Investment will reach 30% of GDP;
• Export growth rate will be more twice as high as that of the GDP;
• The share of agriculture in GDP will decrease from 25% to 16-17%; industry will increase from 35% to 40-41%; and services will increase from 40% to 42-43%;
• The share of rural employment will be reduced from about two-thirds to half; and
• The share of urban population will increase from a one-quarter to one-third.

The period 2001-2005 witnessed significant innovations in Viet Nam in economic growth, economy structure transition, hunger elimination and poverty reduction, foreign investment attraction,... which created important driving forces contributing to the success of the socio-economic development cause of the Country.

The average GDP growth rate in the period 2001-2005 reached 7.5%. The GDP per capita increased from 399 USD in 2000 to more than 600 USD in 2005. However, the main contributions to the GDP growth are still from capital and labour sources.

During the past five years (2001-2005) there were considerable changes in density of economic sectors. Agriculture density decreased from 24.5% in 2000 to about 19% in 2005, meanwhile industry increase from 36.7% in 2000 to about 42% in 2005. Service has been maintained at 38-39%. The trend of the economic development over the past 5 years is given in the Table 5 and that of the export and import of goods is given in the Table 6. Exports include crude oil, rice, marine products, coal, coffee and rubber and imports petroleum products, steel products, tractors, cotton and textiles.

TABLE 5.1. ECONOMIC DEVELOPMENT AND STRUCTURE

Source: World Bank World Development Indicators

TABLE 5.2. GROSS DOMESTIC PRODUCT (GDP)

Source: World Bank World Development Indicators

TABLE 6. THE EXPORT AND IMPORT OF GOODS

1.1.2.  Energy Situation

The overall Viet Nam's energy reserves are given in Table 7.

TABLE 7. ESTIMATED ENERGY RESERVES

(*) Sources: 20th WEC Survey of Energy Resources, 2004 and Uranium 2005: Resources, Production and Demand ("Red Book")
(1) Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(3) Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(4) Reasonably Assured Resources (RAR) under < USD 130/kgU
(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology
Source: IAEA Energy and Economic Database.
 

1.1.2.1.  Coal

As of January 2005, the total coal amount of surveyed reserves (grades A+B+C+P) in Viet Nam is about 6,164 million tons, of which the reserves at the grades: A+B+C: 4,992 million tons (80.9%), A+B: 370 million tons (6.0%), C1: 2,157 million tons (34,9%), P: 1,172 million ton (19.0%).

Data of the past 5 years of coal production and coal use is given in Table 8 and the projected coal-production in Table 9.

TABLE 8. COAL PRODUCTION AND COAL USE

TABLE 9. PROJECTED COAL PRODUCTION AND CONSUMPTION

1.1.2.2.  Oil, Gas & Petroleum products

Exploration of oil and gas in Viet Nam has been carried out since 1959. The potential reserves of oil & gas are estimated from 4-4.5 billion m3 oil equivalent, of which 1.6-1.8 billion m³ Condensate and 2.4-2.7 billion m³ natural gas. According to the energy experts, the crud oil production reaches 10-18 million tons/year in 2020 and gas production reaches 14-19 billion m³ in 2025.

At the present time, almost all crude oil is exported, while the domestic demand in petroleum products is met by import. A refinery with a capacity of 6.5 million tons/year is now under construction and will be put into operation in 2009. The past 5 years of oil & gas production is given in Table 10. The projected oil & gas production is given in Table 11.

TABLE 10. OIL & GAS PRODUCTION

TABLE 11. PROJECTED OIL & GAS PRODUCTION

1.1.2.3.  Hydro power potential

With more than 2,200 rivers and streams of length of from 10 km, the total technical reserve for hydroelectric power of Viet Nam is estimated at 30,000 MW with an annual electricity output of 120 TWh. If taking environment protection into consideration, the total techno-economic potential of hydropower will be about 83 TWh. In addition to the big hydropower projects, Viet Nam has a rather high potential on small and extreme small hydropower sources. A preliminary estimation showed that Viet Nam could get 2,300 MW from small and extreme hydropower sources with electricity generation from 8-10 TWh.

1.1.2.4.  Uranium

Currently, there is no nuclear power in Viet Nam. Uranium ore has been found in the northern and central regions of Viet Nam. These uranium deposits have been estimated to hold about 218,167 tons of U₃O₈, with a low average uranium oxide content of 0.06%.

1.1.2.5.  New and Renewable Energy

Geothermal Energy

There is a potential for geothermal energy in Viet Nam since it has more than 300 hot-water areas, with a surface water temperatures ranging from 30°C to 105°C. Recently, an American company, ORMAT, carried out a study at 60 hot-water areas and has chosen 6 sites, mostly in the central and south regions of Viet Nam, for installations of geothermal plants with a total capacity of about 200 MW by 2020.

Solar Energy

Viet Nam is a tropical country with an average sunlight of 2000 to 2500 hours per year and a total average solar radiation of 150 kcal/cm² per year. The theoretical potential is estimated about 43.9 Bill TOE/year

Wind Energy

Biomass

Biomass resources in Viet Nam include wood and agriculture wastes and are estimated to be about 43 to 46 million TOE/year. The respective shares for wood and agriculture wastes are about 60% and 40%, respectively. The potential biomass energy is estimated to be about 0.4 million TOE/year. Although the resources are significant, there are environmental concerns with using wood products for electricity generating.

1.1.2.6.  Energy

The basic energy situation of Viet Nam is given in Table 12.

TABLE 12. ENERGY STATISTICS(*)

1.2.  Energy Policy

With the target of serving to industrialization and modernization cause of the country, increasing people's living standards, the Viet Nam's Energy Policy consists of the following basic issues:

1. To meet the sustainable development and environment protection;
2. Efficient use and preservation of energy;
3. Policy on energy prices;
4. Policy on investment for energy development;
5. Policy on development of new and renewable energies;
6. Policy on import, export and international cooperation in the energy field;
7. Policy on ensuring of energy supply;
8. Policy on science and technology development in the energy filed; and
9. Restructure of organization and management system in the energy field.

Strategy and Policy on Electricity Development

• Ensure electricity supply security to socio-economic development;
• Diversifying investment types for development of electricity generation sources and transmission,
• Step by step privatize and equitize power plants and distribution companies;
• Separate public benefit activities form business activities. While continues subsidize to the electricity activities in remote areas
• Enhance international cooperation and integration;
• Step by step establish and develop electricity market;
• Study on nuclear power development; and
• Ensure sustainable development. Minimize impact to environment

Some Implementation Measures

Electricity Price

• At present, the Government continues to directly manage electricity price to customers.
• The price has been being step by step adjusted to meet long-term margin cost of the system (7 US cent per kWh);
• Improve and complete current electricity tariff.

Mobilization of investment sources

• Issue domestic and foreign bonds;
• Joint-venture with foreign and domestics companies and business;
• Privatization and equitization of power companies;
• Call upon foreign investments: FDI, ODA, loan,... ;

Establish and develop electricity market

• Separate functions of State management from electricity businesses. Electricity businesses have only functions of management on production and carrying on business;
• Establish a Regulatory Body responsible for making decision on electricity price and legal issues related to electricity activities;
• Restructure electricity branch into generation, transmission, and distribution. Step by step commercialize each field.

Plan after 2010

• Power plants of EVN, BOT, IPP will participate in the electricity market in accordance with a competitive mechanism and electricity prices will be offered by every hour;
• Distribution companies are independent;
• The State still owns and control transmission company.

1.3.  The Electricity System

1.3.1.  Structure of the Electricity Sector

a. Government:

            - The owner of capitals, assets, property of the State at the electricity businesses;
            - Decide on price tariff for end-customers;
            - Enact decisions, decrees, regulations,... and
            - Approve planning and plans for electricity development.

b. Ministry of Industry (MOI)

            - Manage and regulate electricity activities and uses;
            - Instruction on implementation of decrees issued by the Government;
            - Enact specific regulatory documents; and
            - Organize formulation and appraisement planning and plans for electricity development.

c. Electricity Regulatory Authority of Viet Nam

            - Licensing for electricity activities;
            - Assist the MOI Minister in regulating competitive electricity market activities;
            - Advise the MOI Minister on making decision on cost frames of electricity generation, wholesale, transmission, distribution, and other service in the competitive electricity market.

d. Electricity of Viet Nam (EVN)

            Electricity of Viet Nam (EVN) is the unique state-owned electricity utility in Viet Nam operating under management of the MOI. Electricity supply regime is divided according to the regions: northern, central, and southern. Supply system operation and management responsibilities in each region are Northern Elect. Co., Central Elect. Co., Southern Elect. Co., Ha Noi Elect. Co., and Ho Chi Minh Elect. Co.
            Under EVN, there are A/Es, electrical power plans, transmission companies.

e. Non-EVN Electricity Generation Companies

            At present, there are BOT, IPP, joint-stock electricity power generation and distribution companies. As of June 2005, total installed capacity of non-EVN electricity generation companies is 2,439 MW accounting for 21.6% of total installed capacity of Viet Nam.

1.3.2.  Decision Making Process

From 1996, studies on sustainable energy development, including consideration of the role of nuclear power in the national energy system, have been being carried out in Vietnam. Many ministries, organization, universities, and research institutes have been involved in the studies, such as:

• Institute for Strategy and Development (ISD) belonged to Ministry of Planning and Investment (MPI);
• Institute of Energy (IE) belonged to Ministry of Industry (MOI);
• Vietnam Atomic Energy Commission (VAEC) belonged to Ministry of Science and Technology (MOST);
• Hanoi University of Technology (HUT) belonged to Ministry of Education and Training (MET);
• Vietnam Academy ofScience and Technology (VAST);
• Vietnam Union of Science and Technology Associations (VUSTA);
• Vietnam Hydro and Meteorology; etc.

During the period 1996-2006, the Government of Vietnam has approved and provided financial budgets to the following programme and projects:

• National Programme on Sustainable Energy Development (1996-2000);
• Project on General Study on the Introduction of Nuclear Power into Viet Nam (1996-1999);
• Project on Pre-Feasibility Study for Construction of the First Nuclear Power Plant in Viet Nam (2002-2004);
• Project on Study and Elucidation of the Aspects of Nuclear Power Development in Viet Nam (2002-2004);
• Project on Formulation of the Strategy for Atomic Energy Utilization for Peaceful Purposes up to 2020 (approved on 23 January 2006 by the Prime Minister); and
• Master Plans for National Energy Development No. 3, 4, 5 and, at present, Master Plan No. 6.

The studies cover a rather wide range of aspects related to energy:

• Projections on the socio-economic development, energy demand, and progress in science and technologies;
• Evaluation of energy supply capabilities from the indigenous energy resources and import; role of energy saving; and assessment of environment impacts caused by activities of energy sector; and
• Design, analysis of energy system; optimization of energy expansion planning serving to policy makers for energy development.

1.3.3.  Main Indicators

Presently, the hydro power plants are still predominant in the electricity system of Viet Nam, not only in installed capacity, but also in the generation terms. By the end of 2005, the total installed capacity of the electricity generating system was 11,994 MW, of which 34.5% was hydropower, and the total electric generation was 53,438 GW·h, of which 36.7% was hydropower. The structure of the generating mix is given in Table 13 and Figure 2.

TABLE 13. THE STRUCTURE OF THE GENERATING MIX (year 2005)

The structure of the electricity generation and consumption over the past 5 years is given in Tables 14 and 15 and the EDB statistics and energy related ratios in Tables 16 and 17.

TABLE 14. THE STRUCTURE OF ELECTRICITY GENERATION

TABLE 15. THE STRUCTURE OF ELECTRICITY CONSUMPTION

TABLE 16. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

TABLE 17. ENERGY RELATED RATIOS

1.3.4.  Transmission

Viet Nam’s electricity system is operating with voltages 500 kV, 220 kV, 110 kV and 35 kV to 6 kV. Table 18 shows development of transmission grid and transformers during last 15 years.

TABLE 18. AMOUNT OF LINES AND TRANSFORMERS

2.  NUCLEAR POWER SITUATION¹

2.1.  Historical Development and current nuclear power organizational structure¹

Not applicable.

2.2.  Nuclear Power Plants: Status and Operations¹

Not applicable.

2.3.  Supply of NPPs¹

Not applicable.

2.4.  Operation of NPPs¹

Not applicable.

2.5.  Fuel Cycle and Waste Management¹

Management of radioactive waste in Viet Nam:

1. All disused sources, most Ra-226 from branchy therapy have been recorded by Regulatory Authority. They are kept in the hospitals;
2. Radioactive waste discharged from nuclear research reactor are conditioned and stored at temporary storage at Da Lat Nuclear Research Institute;
3. The other disused sources in industry are kept at the interim storages of the facilities; and
4. All disused sources and radioactive waste are under control of Regulatory Authority throughout licensing and inspection system.

2.6.  Research and Development¹

One of the agencies under MOST is the Viet Nam Atomic Energy Commission (VAEC). The VAEC was established in April 1976 and up to April 1994 it was controlled under the Prime Minister’s office. In April 1994, VAEC was reorganized and put under MOST. The VAEC comprises the following institutions:

1. Da Lat Nuclear Research Institute (DNRI);
2. Institute for Nuclear Science and Technology (INST);
3. Institute for Technology of Radioactive and Rare Elements (ITRRE);
4. Center for Nuclear Technique in Ho Chi Minh City (CNT);
5. Research and Development Center for Radiation Technology (VINAGAMMA); and
6. Technology Application and Development Company (NEAD).

The functions and duties of the VAEC are as follows:

1. Conduct fundamental and applied research on nuclear science and engineering, nuclear reactor technology, nuclear fuel and material, radiation protection and nuclear safety, and radioactive waste management technology in service of economic development of the country;
2. Develop technology, production and technical services in atomic energy and related fields in service of social and economic development;
3. Study and formulate directions, strategies, planning and plans for atomic energy development in Viet Nam, participate in the formulation of law projects and regulatory documents in relation to atomic energy, and in the implementation of nuclear policies approved by the Government;
4. Perform international cooperation in the filed of atomic energy, and participate in the implementation of international treaties pledged by Viet Nam;
5. Provide technical support to the State management body on radiation protection and nuclear safety in the appraisal of radiation protection and nuclear safety, carry out radioactive environment monitoring, calibrate radiation facilities and dosimeters, develop technical infrastructures in the preparedness and response to radiological and nuclear incidents and accidents; and
6. Participate in the planning and training of scientific and technical professionals in the field of atomic energy.

2.7.  International Co-operation and Initiatives

Brief description of research and development activities carried out jointly with other countries and/or within the framework of international projects, technical and industrial co-operation, transfer of know-how and technology.

3.  NATIONAL LAWS AND REGULATIONS¹

3.1.  Safety Authority and the Licensing Process

On the basis of the Viet Nam Radiation Protection and Nuclear Safety (VRPA), the Viet Nam Agency for Radiation and Nuclear Safety & Control (VARANSAC) was established in 2004. VARANSAC is under the MOST and is to assist the MOST's Minister in exercising the state management of radiation protection and nuclear safety.

Licensing and inspection: VARANSAC issues licenses for all activities related to radiation including import and export of radiation sources, radiation works, radiation facilities. Every year inspection is carried out for some radiation organizations.

The functions and duties of VARANSAC are as follows:

1. To organize and participate in the building of legislative documents, code of practice, procedures and regulations for radiation and nuclear safety & control; to participate in the building of standards on radiation and nuclear safety, specific regulations and policies for those who work directly with the radiation;
2. To make and then submit to the Minister policies, development orientations, priorities, programs, annual and 5-year plans on radiation and nuclear safety & control; to organize and implement approved plans;
3. To organize and implement the notification, registration, license, renewal, amendment and withdrawal of licenses for radiation and nuclear establishments, radioactive sources, radiation personnel and works related to radiation and nuclear; to organize the assessment of sites, designs, construction, and justifications for ensuring the radiation and nuclear safety and the security of radiation and nuclear establishments;
4. To guide and direct the Local Departments of Science & Technology on radiation and nuclear safety & control; to co-ordinate with Ministries, Branches to perform the State management on the radiation and nuclear safety & control under the MOST’s direction;
5. To conduct regulatory inspections on radiation and nuclear safety according to law; to resolve complaints, denunciations; to deal with violations of regulations on radiation safety and control according to law;
6. To perform the State management of radioactive wastes; to organize radiation environment monitoring, to develop emergency response and handling for radiation and nuclear incidents; to control radiation doses and assess the safety of occupational, public and medical exposure;
7. To organize activities of safeguard;
8. To establish an record system of data, information on radiation and nuclear safety;
9. To organize research for applying scientific and technological advances in the field of radiation safety & control;
10. To co-organize training courses, propaganda and dissemination programs on legislation, radiation & nuclear safety and safety culture;
11. To organize and develop international cooperation activities in radiation and nuclear safety as assigned by the Ministry; to participate in the implementation of the international treaties and other international agreements on radiation and nuclear safety;
12. To perform other duties assigned by the Minister of Science and Technology; to manage cadres, assets, files and documents of the Agency according to the ministry arrangement and regulation.

3.2.  Main National Laws and Regulations in Nuclear Power

1. The Draft Atomic Energy Law is has been formulating from 2002. The Draft Law is to be submitted to the National Assembly by the year 2007.
2. Ordinance on Radiation Safety & Control (ORSC) was passed on June 25th, 1996 by the Standing Committee of the National Assembly of the Socialist Republic of Viet Nam and went into effect on January the first, 1997.
3. Decree on the Detailed Directions for implementing of ORSC was enacted on July 16th, 1998 by the Prime Minister of the Socialist Republics of Viet Nam and went into effect on August 1st, 1998.
4. Circular between MOSTE and MOH on Guidelines in implementation of radiation safety in medical exposure was enacted on 28 December 1999.
5. Decree on the penalty for violations of regulations on radiation safety and control was enacted on May, 2001 by the Prime Minister of the Socialist Republics of Viet Nam.
6. The final draft of Circular on Waste safety management was completed and now waiting for enacting.
7. Safety Regulations for Ionizing Radiation TCVN 4397-87 were enacted on March 3rd, 1987 by the Minister of the Ministry of Science Technology and Environment (MOSTE) and went into effect on January the first, 1988. They were amended in a way suited to the IAEA Basic Safety Standards, but not officially adopted yet. Now we have a plan to revise them.
8. Regulation for the Safe Transport of Radioactive Materials was enacted on December 25th, 1989 by the Minister of the Ministry of Science Technology and Environment (MOSTE) and went into effect on July the first, 1990. This regulation was planed to be revised in accordance with the new IAEA’s approaches
9. The draft of Regulation on inspection in the field of radiation safety and control was completed.
10. Some national standards in the field of radiation protection has been formulated and waiting for enacting.

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

In 1996, the Government assigned the MOI and MOST in collaboration with the related ministries and organizations to begin conducting studies on the introduction of the nuclear power into Viet Nam. The studies cover all topics related to NPP’s introduction into the country, including electricity demands and supply, economy, finance, technology, safety, radioactive waste management, nuclear law and regulation, site selection, manpower, public acceptance, international relations, etc. The obtained results showed that by 2015 Viet Nam would be changed from an energy export country to an energy import country; and Viet Nam should consider NPPs’ construction.

May 2001, Prime Minister decided to establish a National Steering Committee on Study on Nuclear Power Development in Viet Nam with three major tasks:

• To formulate The National Strategy for Peaceful Utilizations of Atomic Energy;
• To conduct the Feasibility - Study on the First Construction of Nuclear Power Plant in Viet Nam;
• To study for elucidation of seven important aspects related to introduction of nuclear power into Viet Nam.

In addition, in 2003, The National Assembly assigned the MOST to formulate Atomic Energy Law. In October 2005, the MOI's Minister submitted to the Government the Final Report on Pre-FS. After that in January 2006, the Prime Minister has approved the National Strategy for Peaceful Utilizations of Atomic Energy.

The Strategy and Pre-FS concluded that In order to meet electricity demand by 2020, Viet Nam should:

• Use all conventional indigenous energy sources: coal, gas, hydropower, as well as renewable energy;
• Import electricity from neighbouring countries;
• Import coal, natural gas, and LNG for electricity production;
• Implement Demand Side Management (DSM) for electricity saving and use advanced technology; and
• Develop nuclear power.

According to the recent study results, nuclear power should be introduced into Viet Nam. The first NPP would be occurred in the period 2020 - 2025 with installed capacities from 2000 MW to 4000 MW representing from 3.3% to 4.7% of total installed capacity.

Appendix

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES

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1. The statistical tables in this profile have been updated with data as of the end of 2007 from IAEA databases, namely the Power Reactor Information System (PRIS) and Energy and Economic Data Bank (EEDB), and the World Bank's World Development Indicators (WDI).