Decision No. 1208/QD-TTg approving the national master plan for power development in the 2011-2020 period, with considerations to 2030

Article 1. To approve the natiClftfti master plan for power development in theE11-2020 period, with considerations to 2ma (Power Master Plan VII), with the following-principal contents: l . Development viewpoints: a/ To develop the electricity ~ctor in .... conformity with the national socio~onomic development strategy, ensuring adeq'!'n'c supply of electricity for the national ecomsmy and social life; bl To effectively utilize domestjc energy Part II. OTHER DOCUMENTS resources for electricity develo!'ment in combination with the rational iPtport of THE PRIME MINISTER electricity and fuel, diversification ~rimary energy sources for electricity ptWuction, conservation offuel and energy sec~ for the Decision No. 1208/QD-TTg of July 21, future; 2011, approving the national master cI To i ncr erueu tally irupruve lhc:qudlity of plan for power development in the electricity for provision of electricits-services 2011-2020 period, with considerations of increasing quality. To apply elect!i'tity sale to 2030 prices under the market mechanism, aiming to encourage investment in the development of the THt: PRIMt: MINlSTt:R electr icity sector: to encourage electricity conservation; Pursuant to the December 25,2001 Law on rlJ To develop electricity along with Organization of the Government; protecting natural resources and the eco- Pursuant to the December 14, 2004 environment, and ensuring national sustainable Electricity Law, development; e VIETNAM LAW & LEGAL FORUM 6 OFFICIAL GAZETTF.. Issue nos 11·121July 2011 (Gong Baa nos 435-4361August 4, 2011) el To step by step form and develop a in rural and mountainous areas, ensuring that competitive electricity market, diversifying by 2020 most of rural households will have mod." of electricity investment and tradinp; The. access to electricity. State shall only monopolize the electricity 3. The national master plan on electricity transmission grid in order to ensure security of development: the national energy system; <J/ Master plan for development of electricity fl To develop the electricity sector on the sources: basis of ~ional and efficient usc of primary - Development orientations: energy r:i0urces of each region; to further step To develop electricity sources in the up rural electrification, ensure adequate, following orientations: uninterrnpted and safe supply of electricity in all regioh1lnationwide. + To develop a balanced capacity of power , sources in each region: northern. central and 2. Ob~tives: southern, ensuring the reliability of electricity aJ G~al objectives: supply in each regional electricity system so as To eftieielilly use domestic energy I esources to reduce transmission losses, share reserve ..... in combination with the import of primary energy f~electricityproduction; to adequately capacity of sources and efficiently exploit hydropower plants in all seasons; supply e1\'itricily of increasing quality and at + To rationally develop regional power reason,~ prices for socia-economic ~ ... ut:Ve!UjJl"PIeIll; to ensure the national cIIergy centers nationwide, aiming to ensure reliable electricity supply on site and reduce technical security;C0 losses on the national electricity system as well -, hI Spmfic objectives: - To ~ply adequate electricity for the as to ensure the economics of projects, contributing to the socio-economic domest1~mand.with produced and imported development in each region and the whole electricj~~reaching 194- 210 billion kWh by country; 2015~ 330~ 362 billion kWh by 2020; and 695- + To develop new electricity sources in ,...., kWh by 2030; 834 billion couple with intensive investment technological - To ~itize the development of renewable renewal of operating power plants. meeting energy stM'Ces for electricity production, raising environmental standards; to use modern the rat~ electricity produced from these technologies for new power plants; energy sources from 3.5% of total electricity + To diversify forms of investment in the output in 2010 LU 4.5% by 2020 ami 6% by development of etecmcuy sources, aiming to 2030; boost competition and improve economic - To re d uc e the e lec tr ici t y elasticity efficiency. coefficient/GOP from the current average of 2.0 - The master plan for development of to 1.5 by 2015 and 1.0 by 2020; electricity sources: - To accelerate the program on electrification + To prioritize quick development of e VIETNAM LAW & LE ALF RUM Issuenos 11.121July 2011 OFFICIAL GAZEnt 7 (Gong Baa nos 435-4361Augusf 4, 2011) ------.........- .. .. ,-----~-~~--_ _--'-_ .. .._,.- .. ~._~_ _-~. __._-- ~-_._-- ~~. • • '< . , . " • . •" ....... __ ·_""""_ , ~.'·""'---"'o _ electricity sources from renewable energy (wind electricity, accounting for 10.5% of the energy, solar energy, biomass energy, etc.), and electricity output. incrementally raise the proportion of electricity Eastern South Vietnam: Tu ensure a stable produced from renewable energy sources: gas supply for power plants in Ba Ria, Phu My · To raise the total wind electricity output and Nhon Trach. from the current negligible levels to around Western South Vietnam; To expeditiously 1,000 MW by 2020 and 6,200 MW hy 2030; carry gas from Block B ashore in 2015 for am) i ncrease the proporti UII uf elecu i ca 1 ellergy supply to power plants in the 0 :Moo power produced from wind power from 0.7% in 2020 center with a total capacity of about 2,350 MW, to 2.4% in 2030; hringing th" tot;)] capacity of gas-fired power · To develop biomass electricity simultaneously plants in the region to 4,350 MW by 2016, with electricity generation in sugar mills, with which will annually consume about 6.5 billion a total output ofaround )00 MW by 2020, then cubic meters of gas to produce 31.5 bij,lion kWh 2,000 MW by 2030; to raise the output ratio of of electricity. this electricity source from 0.6% by 202n to Central region: It is expected that after 2020, 1.1 % by 2030; a 1,350-MW power plant will be developed, + To prioritize development of hydropower consuming around 1.3 billion cubic meters of sources, particularly projects of multiple gas! year. purposes: flood control, water supply and . Coal-fired thermo-electricity; Jtr:tap to the electricity production; raising the hydropower utmost domestic coal resources for dsselopment output from the current 9,200 MW to 17,400 of thermo-power plants, priori tizi ng.MJe use of MW by 2020. domestic coal for thermo-power prams in the + To study and put pumped-storage North. By 2020, the total coal-fires' thermo- hydropower plants into operation in conformity electricity capacity will approxiITC 36,000 with the development of the electricity system, MW, generating some 156 biwpn kWh aiming to raise the operational efficiency of the (accounting for 46.8% of electricity crDduction) system: By 2020, the total pumped-storage and consuming 67.3 million tons ~..coal. By hydropower output will reach 1,800 MW, which 2030, the total coal- fired thermo~ctricity will be raised to 5,700 MW by 2030; capacity will be about 75,000 MW, ~nerating + To develop a rational number of thermo- some 394 billion kWh (aCcountin~r 56.4% power plants suitable to the supply capacity and of electricity production) and consuming 171 distribution of fuel sources: million tons of coal. Due to limited domestic · Natural gas-fired thermo-electricity: By coal resources, thermo-power plants operated 2020, the natural gas-fired electricity output will by imported coal should be built and operated reach around 10,400 MW, generating 66 billion from 2015. kWh, accounting for 20% of electricity + To develop nuclear power plants to ensure production, which is oriente-d to rise to about stable electricity supply in the future when II ,300 MW, generating 73.1 billion kWh of domestic primary energy sources are exhausted: © VlETNAM LAW & LEGAL FORUM 8 OfTICIAL GAZETTF Issue nos 11·12/July 2011 (Gong BaD nos 435-4361August 4, 2011) To put Vietnam's first nuclear power generation 2.1 %. and imported electricity, J'1r; unit into operation in 2020; by 2030, the nuclear . Orientations to 2mO: The total capacity of pUWL:1 capacity will r e uc h 10,700 MW, povicr plants will approximate l4(J,X(J(J MW, generating about 70.5 billion kWh (accounting of which hydropower will account for 11.8q·; for 10.17r, of electricity production); pumped-storage hydropower, 3.9%: coal-fired + To develop power plants operated by thermo-power, 51.61'1<1; gas-fired thermo-power, liquefied natural gas (LNG), aiming to diversify 11.sr1r1 (i ncluding 4.1 % for LNG); renewable fuel soursss for electricity production, ensuring energy-using electricity, Y.4'7n; nuclear security inelectricity and gas supply. By 2020, electricity, (},(J'Yo and imported electricity, 4.9%. ..- the LNG-fired electricity capacity will Elcctricity output in 2030 will be 605 billion approximate 2,000 MW, which is expected to kWh, of which hydropower will represent 9.3%; rise to abQ~t 6,000 MW in 2030; coal-fired thermo-power, 56.4%; gas-fired + Ex.~rt and import of electricity: To thermo-power, 14.4(fc (including 1.9% for efficien~ exchange electrical energy with LNG): renewable energy-using electricity n::giunal>llulillie~, ensur iug the interests of sources. 6%; nuclear power, 10.1 <,'{', and parties involved, intensifying the exchange to imported electricity. 3.8%. maintairdk safety of the system, stepping up The list and schedule of operation of the impo1:Q)f electricity from potential regions electricity source projects is provided in of hydr6]'"0ver, primarily Laos, then Cambodia Appendices I, 1I and III to this Decision tnrn and Ch istt It is expected that the imported printed herein). electricitsnapacity will approximate 2,200 MW bl Master plan for development of the by 2020m,d 7,000 MW by 2030. electricity grid' _. - StruCture of electricity sources: - Criteria for formulation of a master plan . By ~): The total capacity of power plants for development of the electricity grid: will arJ"f"oximate 75,000 MW, of which + The electricity transmission grid to be hydropower will account for 23.1 %; pumped invested will reach reliability standard N-I for storage ~rupowl:r, 2.4%; coal-Fired thermo- major equipment and satisfy the quality power, ~~ gas-fired thermo-power, 16.5% standards set in the Regulation on electricity (inc1udii~; 2.6% for LNG); renewable energy- transmission grids; using el~icity, 5.6()jo; nuclear power, 1.3%, + The electricity grid will be developed and imported electricity, 3.1 (fr,. according to technical standards applied by Produced and imported electricity will regional countries, ensuring connectivity and approximate 330 billion k Wh , of which synchronism between electricity systems of hydropower will account for 19.6%; coal-fired Vietnam and regional countries: thermo-power, 46.8%; gas-fired thermo-power, + The electricity transmission grid must have 24% (including 4% for LNG); renewable reserves, be simple and flexible. and ensure energy-using electricity, 4.5%; nuclear power, electricity quality (voltage, frequency) supplied @ VIETH LAW & L AL FORUM Issue nos11·12fJuly 2011 OFFICIAL GAZETH 9 (Gong Bownos 43b-4JIiIAugusf 4, '2U11) --_. __._-----_._-- for power load; automation devices of electricity grids; to study + Appropriate transmission voltages will be the LIse of FACTS and SVC devices for raising selected on the basis of transmission capacity the transmission limits; to gradually modernize and distance. the control system: - Development orientations: + To study the application of "Smart Grid" techno] ogy, c rearing i nteruct i vi ty between + To develop electricity transmission grids electricity-using households, electrical III synchronism with operation schedules of appliances and electricity grids f~ most power p la nts to uc h ic vc investment ........ effective exploitation of the supply ability, effectiveness of the whole system; aim ing to reduce costs in grid development and + To develop electricity transmission grids raise the safety ofclecrriciry supply~- in conformity with the sector's development - Master plan for development of the strategy, power development master plan and electricity grid: other local master plans: + Master plan for development of..wtra~high + To dcve lop 220 k V and 500 k V voltage transmission grids: transmission grids in order to raise el cctricny supply reliability and reduce electricity losses, · The 500 kV voltage is the major.ultra-high and ensure easy mobilization of electricity voltage transmission level in Vietnam; sources in the rainy and dry seasons and under -To examine the possibility of "'eloping all modes of operation of the electricity market; voltages of 750 kV and 1,000 ~ or DC + To develop 220 kY and 110 kY grids and transmission in the post 2020 pericw;l.~ perfect regional electricity networks with a view · The 500 k V grid will be~sed for to raising reliability and stability of electricity transmitting electricity from power centers and supply, minimizing electricity losses and major power plants to major load ce~s in each facilitating the transformation of mediurn- region and for exchanging electri~ among voltage grids into 22 kV grids and rural i egion« ill order to ensure optimu~cration electrification; of the electricity system. It'.:-. + To develop electricity transmission lines + Ma ster plan far df'velaplll~nt of' 720 KV with reserves for long-term development in the transmission grids: future, using multi-circuit and multi-voltage · Transformer stations with 2 or 3 poles on a single line for saving land. For cities transformers; to consider development of 4- and major load centers, electricity grid maps transformer stations, GIS transformer stations must have greater reserves and flexibility; to and underground ones in major cities; modernize and incrementally lay underground · Newly built transmission lines must use at electricity grids in cities and towns, limiting least double circuits; lines from major electricity adverse impacts on landscape and environment: sources, 500/220 k V transformer stations must + To step by step modernize electricity grids, be designed with at least double circuits, using renovate and upgl aile switching, piotectiou and phase separation conductors. © VIETNAM LAW & LE 10 Issue nos 11·121July 2011 (Gong Bao nos 435-4361August 4,2011) Table l. Volume of transmission grid to be built in each period Item Unit 2011-15 2016-20 2021-25 2026-30 500 kV station MVA 17,100 26,750 24,400 20,400 220 kV station MVA 35,863 39,063 42,775 53,250 500 kV line Km 3,833 4,539 2,234 2,724 220 kv.hne Km 10,637 5,305 5,552 5,020 + Master plan for development of 110 k V grid cooperation and connections with ASEAN electricitygrids and distribution grids: countries and Great Mekong Sub -Region . To develop 110 kV electricity grids and (GMS) countries; .ti striburion grids in synchronism with ~ Connection to Laos grids: :Iectricity transmission grids in order to raise + Northern Lao region: By 220 kV and 500 electricirysnpply reliability and meet the quality kV voltages toward Thanh Hoa, Nho Quan standards ~t in the Regulations on electricity (Ninh Binh province) and Son La; distributmn grids: + Central and southern Lao regions: By 220 . To apply modern technologies in order to II. V ami 500 II. V voltages toward Thach My raise the qWl.lity of electricity distribution grids, (Quang Nam) and Pleiku (Gia Lai), incremeQ.Cl.1ly laying underground electricity - Connection to Cambodia's grids' grids in etties and towns to limit impacts on + Connection for electricity trading with landscaptr~nd environment. To apply modem Cambodia through 220 kV and 500 kV voltages, technological solutions in the investment and depending on capacity. operation management to reduce electricity losses aud eventually build smart grids and - Connection to China's grids: smart communities with a view to reducing + To maintain the import of electricity by electricity losses and increasing electricity 110 kV and 220 kV voltages; - conservation. The list and schedule of new investment projects on electricity transmission grids are + To study lhe import by 500 II. V voltage or DC voltage with a total imported volume of about 2,000 + 3,000 MW. provided in Appendices IV and V to this d/ Supply of electricity to rural mountainous Decision (not printed herein). areas and islands: cl Connection to electrici ty grids of regional - Objectives: ·:ountries: + To make new investments with the national - To implement the programs on electricity electricity grid or local electricity sources (small e VIETN LAW & LE LF UM Issue nos11·121July 2011 OFFICIAL GAZETTE 11 (Gong Beo nos 435-4361August 4, 2011) and micro hydropower plants; solar power and . To invest in new electricity supply from wind power in combination with diesel power the national electricity grid for 200,000 rural plants) to supply electricity to rural areas. By households: 2015, 100% communes and 98.6% of rural .To supply electricity from renewable energy households will have access to electricity. By sources for some 231,000 rural househol ds. 2020, most rural households WIll be supplied c/ Total investment capital: with electricity; The total investment capital for the whole I To renovate and upgrade rural electricity electricity sector through 2020 is cmTIated at grids to set technical standards, aiming to ensure VND 929.7 trillion (equivalent to~D 48.8 efficient supply of electricity with assured billion or lJSDLJ.88 billion per yea~\'erage)­ quality for needs of production development J n the 2021- 2030 period, the total ~eSbnent and daily life in rural areas. capital is estimated at VND 1,429.3 trillion - Viewpoints on development of electricity (equivalent to usn 75 billion). In..J,iJe 2011- in rural and mountainous areas: 2030 period, the investment c»,Nkl.1 will + To step up rural electrification in order to approximate VND 2,359 trillion (c(~alent to accelerate agricultural and rural usn 123.8 billion), of which: ..... ~. industrialization and modernization; - Investment in electricity s~es: The + To use new and renewable energy sources 2011-2020 period requires VND 61~ trillion, for supplying electricity to deep-lying, remote, accounting for 66.6(1(1 of the total "!!':estment border and island areas. To adopt favorable capital; while the 2021-2030 period ~ds VND management and investment mechanisms for 935.3 trillion, accounting for 65.50/,,*" the maintenance and development of electricity ""'. - Investment in electricity grids-The 2011- sources in these areas; 2020 period requires VND 21O.'f trillion, + To enhance control of rural electricity accounting for 33.4% of the total ~estment prices to ensure the implementation of capital; and the 2021- 2030 period needs VND electricity price policies issued by the 494 trillion, accounting for 34.5% Government. 4. Solutions for impiementajeen of the - Master plan for electricity supply in rural master plan areas: a/ Solutions for assuring electr~y supply + During 2011- 2015: security: . To invest for expansion of the national - TIle Electricity Vietnam (EVN), Vietnam electricity grid to supply electricity for 500,000 Oil and Gas Group (Petro Vietnam) and Vietnam rural households; National Coal- Mineral Industries Holding . To supply electricity from renewable energy Corporation (Vinacorni n) shall assume the sources for about 377,000 rural households. prime responsibility for developing electricity + During 2016-2020: sources, the National Electricuy Transmission e VIETNAM LAW & LEG FORUM 12 OFFICIAL GAZETTE Issue nos 11-12/July 2011 (Cong BilO nos 4354361August 4, 2011) Corporation shall assume the prime with high financial ratings in order to reduce responsibility for assuring the development of costs of raising capital for electricity projects, the nat i ona l Ira ns mi ssi on system; which will be able to mise capitul without the - To actively seek additional sources of gas Government's guarantee; to existing ones which will decrease and be - To raise further capital through issuing exhausted in the coming period. To speed up bonds at home and abroad for investment in negotiations with other countries for conclusion clectricity works, applying the measure of of stabIe~ long-term contracts on import of converting domestic savings into investment 1Il coal for th~';-rno-power plants; .... infrastructure. At the initial stage, the State shall - To speed up the development of the nuclear guarantee the issue of bonds for key and urgent energy i~j.lstry and the building of nuclear electricity projects: powerp];~.To coordinate with other countries - To enter into domestic and foreign joint and inter.~~jonal organizations in developing ventures to attract domestic and foreign the use o~clear energy, incrementally master investors into the development of electricity the tech~ogy and develop nuclear power for projects; peaceful pucposes; - To cquitize enterprises in the electricity . - To ,*,pt policies on financial incentives sector in which the State does not need to hold and expttlld international cooperation to 100% capital; intensi~loration work for increasing coal, - To further attract foreign direct investment gas ilIlU~TIt:wablc energy deposits and (FDI) in developing electricity projects. To exploitatlOa capability, ensuring security in the prioritize FDI projects for which payments can supply o~el for electricity production. be made in VND or in barter without the - ... .•. Government's guarantee; bl Sol~tjons for creating investment capital fordev~l"T"TIent of the electricity sector: - To further attract funds from overseas, - To iTrcrementally raise the capability for including preferential official development mobilization of finance from enterprises in the assistance capital, non-preferential official electriCit):..;<;ector through such solutions as dcve lopmc ut assistance capital, commercial improviuitthe operational efficiency and overseas loans, etc. efficacy ~nterprises in the electricity sector. c/ Solutions r~~;lrcling electricity prices: ensuringGPital accumulation and ratio of own - To apply electricity sale prices under the capital for development investment as required State-regulated market mechanism, ensuring by dome st ic and international financial harmonious combination between the political- institutions. Eventually, the main source of economic-social objectives of the State and the funding electricity works will he c apira l producti on- bu si nc s s-Fi n a nc i a l autonomy accumulated by enterprises; objectives of enterprises in the electricity sector. - To develop economic groups and Electr ic i ty sale prices should stimulate corporations operating in the electricity sector electricity development, create a favorable @ VIETNAM LAW & LE AL FORUM Issue nos 11-121July 2011 OFFICIAL GAZETL. 13 (Cong Bee nos 435-436/Augus/4, 2011) en v ironment for attruc ti ng in vestment and development of the electricity sector and encouraging competition at the stages of meeting the demand for electricity system production, transmission, distribution and usc development; of electricity; - The pricing of electricity must aim to - Electricity sale prices must ensure recovery preserve energy and avoid waste of non- of costs and reasonable profits (investment for renewable energy sources, encourage the expanded production) to ensure that financial rational use of various types of energy and the autonomy of enterprises in the electricity sector; lise nf domestic energy, reducing ~I1ce on ~ To improve and perfect the current imported energy. electricity price tariff toward: d/ Solutions for renovating ma~1entand + Making adjustments to electricity sale raising effectiveness of electricity activities: prices according to changes in fuel prices, - To study and apply appropriate exchange rates and structure of electricity management models in the electricity' sector to production; raise productivity, speed up inveS'iment in + Gradually reducing and eventually elccu ici ty projects: to rai se reliabi1ay in the eliminating cross offsetting among customer operation of the electricity system; .~ ,. groups and among regions; studying the - To restructure the electricity se~ in order application of different seasonal and regional to step hy step form an healthy ~petitive electricity sale price tariffs; electricity market on the basis of~tricity + Supp lc me nr ing a two-component supply security, aiming to reduce coiflfindraise electricity price tariff: capacity price and efficiency in electricity production ana;husiness electricity price, first of all applying it to major activities, make price signals j1\Jblic and electricity users transparent to attract investment and develop a - Electricity sale prices should take into sustainable electricity sector. account the particularities of regions and e/ Environmental protection soltrtions: regional inhabitants: border, island, rural area, mountainous area, ctc., with necessary price - To implement the law on assessment of subsidies and tax subsidies in order to reduce environmental impacts of projects and the gap in electricity consumption, socio- assessment of strategic en vironrnent of master economic development and urbanization among plans; regions and segments of the population, - To consolidate environmental management between mountainous and delta regions and organizations of state management agencies in between rural and urban areas; charge of environment and enterprises in the - Electricity prices will be incrementally electricity sector; adjusted to achieve the long-term marginal cost - To fully perform environmental monitoring of the electricity system by 2020, equivalent to and observation, measurement and management 8- 9 US ceuts/k Wh , ensuring sustainable of environmenral criteria; to inspect and e VIETNA.M LA.W & LEG LF UM 14 OFFICIAL GAZETTE Issue nos11·12JJuly 2011 (Gong Baa nos 435-4361August 4, 2011) examine the implementation of regulations on f/ Solutions and policies for scientific and environmental protection by electricity technological development: enterprises: - To complete, modernize and innovate - To effectively implement the electricity electricity equipment and technologies to conservation program and raise efficacy in the develop energy for the immediate and long-term areas of production, transmission, distribution future; and use ofelcctricity; - To determine appropriate models and - To omflbine electricity sector development roadmaps for electricity source technologies and with en~nmental protection: grids, ensuring stable and suitable development + T~ State shall adopt policies on under Vietnam's conditions of natural resource investmem and tax supports for development potential and investment capability, affordable offonnssafenergy with minimal environmental price and environmental protection; impact~ontributing to environmental - New energy facilities must be built with improves=nt: new and renewable energies; use modern technologies suitable to Vietnam's of agric~ural waste and forestry and urban er-onomic conditions; to incrementally upgrade wastes t~enerate electricity, ... ; and renovate existing facilities to ensure .- + To~rictly manage electricity generation teehnol0l.~s in environmental aspects. Selected technical, economic and environmental standards; technol~es must be advanced and highly - To combine new modern technologies with - pertormarrce and low environmental impacts; - To al!.Qpt mechanisms to attract investment improving existing ones to raise efficiency and energy saving; capital € environmental protection from all - To encourage the use of new technologies econo~ sectors, particularly financial at thermo-power plants: Spraying combustion assisranee from overseas for environmental chamber, boiling bed, above-limit steam protecti~ parameters, cycle of mixed-gas turbine; waste -. " treatment, etc. in order to raise environmental - Toforrnulate financial regulations on the electric~ sector's cnv ironn.cnt, fully and protection efficiency; correct~7countingenvironmental expenses in - To renovate and upgrade electricity investU*tt and production costs; transmission and distribution grids in order to reduce losses and ensure safety and reliability; - T<'J"'encourage cooperation between large electricity production and consumption - To modernize moderation, operation, enter-vnses and Iorerg n countr res III the communication, control and automation implementation of clean development systems to serve the moderation of domestic mechanism (COM) in the form of developing electricity grids and regional connection; new and renewable energies; raising the - To step by step apply recommended and efficiency of energy use and energy compulsory measures to renew technologies conservation projects. and equipment of power-intensive industries e VIETNAM LAW &lE ALF RUM Issue nos11·12/July 2011 OFFICIAL GAZETTE 15 (Cong Beo nos 435-4361Augus/4, 2011) (steel, cement ami chemicals); LU limit and - To increase investment in, and diversify eventually ban the import of used and low- sources of capital, attract foreign countries' efficient equipment in electricity production and participation in the research, design and lise. manufacture of eq uipment and parts for the gl Human resource development solutions: electricity sector. Electrical eq uipment- and accessory productions establishments strrve to - Human resource training: To develop turn out products of international standards. specialized electricity schools, striving to build a JJUJlI1JCJ uf theru UjJ to iutcrnuuoual standa: us; - To form a number of elcctrica~ipment to develop uniform standard curricula on research, designing and manufacturing specialized disciplines; complexes with the core being""domestic mechanical manufacturing enterpi".: - To concentrate on training human resources for key activities in the areas of electricity - To build modern centers for electrical production, transmission and distribution, To equipment repair and maintenance to be able attach importance to vocational training for to repair and verify electrical equipment; skilled technicians and operators fully capable - To renew and modernize existiJt'&.electrical of mastering and expertly handling modern engineering plants, to expand joint vepures and technical equipment and technologies. To build new factories, crcating relectrical organize retraining for technical and managcrial equipment manufacturing zones, str(Ylng for the staff, gradually raising the training quality to domestic manufacturing of most eleax:kity grid, regional and world levels; transmission and distribution equip~instead - To renovate the curriculum on training of of import and 50-60% of equipment for coal- .." human resources in the electricity sector, operated thermo-power plants by 2~; and 60- diversify f orms of training and training I inked 70% of equipment for coal-operated thermo- with actual production; to attach importance to power plants and 40- 50% of eq~nent for the recrui uneru of scientific and managerial statf nuclear power plants by 2030. for overseas training in spearhead fields. To il Solutions for electricity cons~tion: organize additional training and in-advance - To enhance the c orn rntrn i ca tio n , training in missing or weak sectors, particu lady dissemination and implcrnentation'Bf the Law nuclear power and new energies. To work out on Energy Conservation, aiming to r4t~e energy satis factor y rreaunent mechan isms to attract use efficiency in general and mctricity quality human resources; consumption in particular in production, - To organize. restructure and reorganize business and household consumption; production models in a scientific and rational - To widely implement, and increase the manner to ensure effective labor use and high effectiveness of, the national tarset program on productivity. electricity conservation for saving 5- 8% and hi To build and develop the electrical by 2020 and 8~ [0% of total electricity engineering industry and localization, consumption. @ VIETNAM LAW & LEGAL FORUM 16 OFFICIAL GAl.ETTE Issue nos 11-12/July 2011 (Gong Beonos 435-4361August 4, 2011)

Article 2. Tasks of concerned ministries, investors for developing new electricity sources sectors, localities and units and mechanisms for implementation management to ensure the project investment. 1. The Ministry ofIndustry and Trade shall: construction and operation in accordance with a/Periodically inspect and urge investors and the approved schedule; contractors assigned to implement projects on el Organize open international biddings to the master plan's lists and concerned units to select investors for electricity source projects promptl~direct and solve problems in the to be implemented in ROT form. In case of course oT'''Tnvestment and construction with a necessity to appoint contractors, the Ministry view to'·\trictly keeping to the approved of Industry and Trade shall assume the prime schedules-of projects and achieving their responsibi lity for, and coordinate with investmeee effectiveness. To report on delayed concerned ministries in, considering and projects ~he Prime Minister for consideration submitting them to the Prime Minister for andhan~g; decision; bl Stnc-tly monitor the electricity supply f! Formulate plans for raising capital tor demancr.progress of implementation of electricity development and report them to the electrici~source and grid projects in order to Pri me Minister in October 2011; decide ~ adjust the schedules of projects in the ap~d master pi an or consider and report g/ Study and submit to the Prime Minister a to the Prme Minister for permission to add new plan on development of smart grids in project~o the master plan or remove December 2011; unnecese projects from the master plan in hI Assume the prime responsibility for, and accordaeee with the practical requirements of coordinate with concerned ministries, sectors socio-ecesomic development in each period; and localities in, formulating mechanisms and .- cl Djsect the formulation, appraisal and policies to encourage development investment approvalof plans on locations, detailed plans in projects on new and renewable energies, and of thenil1~~powcr centers, and plans on the national target program on development of renewable energy; hydropcQ:on rivers. Direct the development or impd'l'T"bf gas and new coal resources for il Assume the prime responsibility for, and ...... f' electric~ production, industry and other coordinate with ministries and sectors in, essenti aTdeman ds; negotiating on and concluding electricity cooperation and exchange agreements with d1Publicize lists of projects in the approved neighboring countries and Vietnam's plans and select investors for projects for participation in the connected electricity submission to the Prime Minister for approval; systems among the countries in the Mekong to assume the prime responsibility for sub-region; formulation and submission to the Prime Minister for approval of mechanisms to select JI Direct and urge localities and in vestors to e VIETNAM LAW & LE AL F RUM Issue nos 11-12/July 2011 OFHCIAL GAZETT t: 17 (Gong Bfw nos 435-436/August 4,2011) properly implement rural electricity Trade in, registering, arranging and additionally development projects according to approved allocating adequate budget funds for the plans and schedules; formulation and publicity of the master pi an. kl Complete the necessary conditions 3, The Ministry of Finance shall assume (legal, technical infrastructure) for the the prime responsibility for, and coordinate formation and operation of a competitive with concerned ministries and sectors in, electricity marke t: formulating financial mechanisms and capital II Assume the prime responsibility for mechanisms for investment in the d~lopment formulation and submission to the Prime of the electricity sector under the.. ~pproved Minister for approval of progr3ms on re search, master plan: and coordinate with ~Ministry manufacture and localization of, equipment for of Industry and Trade in formulating policies coal- operated thermo-power plants, on electricity prices under the market hydropower and nuclear power plants; mechanism. m/ Develop mcc hanisms for development of 4. The State Bank of Vietnam sl~ assume the energy market, balance the use of primary the prime responsibility for, and coordsaate with energy sources for electricity production, concerned ministries and sectors in, ftttinulating prioritize domestic coal and gas resources for appropriate mechanisms and policiesto enhance electricity projects; the capacity of banks to ensure adeqttne supply of funds for electricity projects under the nl Assume the prime responsibility for, and approved master plan, coordinate with ministries, sectors and localities in, implementing the 2011-2015 program on 5. Vietnam Electricity (EVN) sh;ft: electricity saving; al Invest in, and put into operation the 01 Draft a decision on establishment of the assigned electricity SOurce pr~cts and State Steering Committee for the national electricity transmission projects uccCGSing to the master plan for power development and submit approved schedules. Take responsibWly for the it to the Prime Minister for approval. purchase of electricity from electricity sources, import of electricity, and management and 2. The Ministry of Planning and Investment operation of electricity transmission.grids and shall: distribution grids in order to propeUz,perform a/ Formulate mechanisms and policies to its key role in ensuring the national electricity attract foreign investment, aDA capital and supply; private investment capital for synchronous, bl Draw up plans on locations and detailed balanced and sustainable development of the plans for coal-fired thermo-electricity centers electricity sector , as assigned to it in the master plan, and submit bl Assume the prime responsibility for, and them to the Ministry of Industry and Trade for coordinate with the Ministry of Industry and approval; © VIETNAM LAW & LE AL I" UM 18 OFFICIAL GAZETTE Issue nos 11·121July 2011 (Gong Baa nos 435·4361Augus! 4, 2011) cl A SSUlIlC the pri IIlC re sponsi bi lily fOi approved schedule; .investrnent and construction of infrastructure b/ Invest in the exploitation of new coal facilities of thermo-electricity centers of which mines, acting as a coordinator for in the import the Electricity Vietnam will partially invest in of coal to properly perform its key role in electricity source projects; ensuring the supply of coal for electricity dl Apply solutions for further reducing production and other demands of the national electricity losses, implement the programs on economy. electric= conservation in production, transmisssen and distribution for sustainable 8. Provincial-level People's Committees develop~t; shall : el A~gn the National Electricity aJ Arrange land areas in their local land use Transmi~n Corporation to invest in 500 kV planning for electricity source and electricity and 22o:1fV electricity transmission grid transmission grid works approved in this projects Qlectricity Master Plan VII. master plan and electricity distribution grid works approved In local electricity 6. The- Vietnam Oi I and Gas Group development plans; (PetroVie%iiarn) shall: bl Assume the prime responsibility for, and aI In~t in and operate the assigned closely coordinate with investors in, ground e1ectric~source projects according to the clearance, compensation, population approve~hcdules; relocation and resettlement tor electricity - b/De~p and operate new oil and gas fields in synchmrrism with the schedule of putting into source and grid projects according to the approved schedule- - operatioUllJe power plants and ensure adequate supply ~s for these plants approved 1TI the master pHon. Assume the prime responsibility

Article 3. This Decision takes effect on the date of its signing. for formiilating a plan on import of liquefied natural -gas for electricity generation in Ministers, heads of ministerial-level confonn~ the schedule of development of agencies, chairmen of provincial-level People's _... in the master plan, and submit it power p1mrts to the ~istry of Industry and Trade for Committees, the Members' Councils, chairmen of the Members' Councils, directors-general of approv;C' Vietnam Electricity, Vietnam Oi I and Gas Group, Vietnam National Coal- Mineral 7. The Vietnam National Coal Mineral Industries Holding Corporation and concerned Industries Holding Corporation (Vinacomin) agencies shall implement this Decision.- shall: aJ Invest in and operate the assigned Prime Minister electricity source projects according to the NGUYEN TAN DUNG @ VlfTNAM LAW & LEGAL FORUM