Expected to issue price framework for purchasing electricity from Laos in the second quarter of 2024

This information was provided by Minister Nguyen Hong Dien during a meeting with the Lao Minister of Energy and Mines, Phosay Sayasone.

At the meeting, Minister Nguyen Hong Dien emphasized that accelerating the issuance of the framework for Vietnam's electricity purchase price from Laos after 2025 is essential. Recently, the Ministry of Industry and Trade has directed EVN to research and propose a framework for electricity purchase prices after 2025, which will then be reported to the Government for approval.

"It is expected that the framework for electricity purchase prices from Laos after 2025 will be officially issued in the early second quarter of this year," Minister Nguyen Hong Dien informed.

Minister Nguyen Hong Dien and the Lao Minister of Energy and Mines, Phosay Sayasone, signed a Memorandum of Understanding between the two sides on cooperation in the fields of energy and mineral exploitation.

The Minister of Industry and Trade also stated that Vietnam currently needs electricity and energy to support production development. Vietnam is currently ranked among the top 20 exporting economies and among the top 15 countries attracting the most foreign direct investment (FDI) in 2023, with a total FDI capital of up to 15 billion USD.

In the first quarter of 2024, GDP growth was nearly 6%, industrial production increased by 6%, and the manufacturing sector increased by 6.8%; the trade surplus exceeded 8 billion USD... According to forecasts, import and export turnover in 2024 could reach 790 billion USD in a high-growth scenario with favorable economic developments.

"With such a rapid pace and scale of development, Vietnam urgently needs energy to fuel production. It is projected that by 2030, the size of Vietnam's economy will continue to grow, therefore, the demand for electricity will double compared to the present, and there must be a shift towards green, clean, and sustainable energy," Minister Dien stated.

During the talks, Lao Minister of Energy and Mines Phosay Sayasone expressed his desire for both sides to further strengthen cooperation in energy and minerals, jointly develop more specific cooperation plans and programs, and create more exemplary and effective cooperation projects and works.

Minister Phosay Sayasone proposed several issues that both sides need to focus on resolving currently, such as: establishing a working group to accelerate the progress of issuing the framework for Vietnam's electricity purchase price from Laos after 2025; and establishing a working group to promote the connection of the 500 kV power line from Laos to Vietnam according to Vietnam's Power Development Plan VIII.

The Lao side also proposed working with Vietnam to resolve several issues related to the Xe-kaman 1 and 3 hydropower plants; supporting and exchanging experiences on establishing an electricity regulatory agency; promoting and facilitating the transportation of goods from Laos to border gates/ports in Quang Tri and Hue; supporting cooperation on inspection work; and planning and mapping of mineral resources.

Minister Nguyen Hong Dien agreed with the proposals of the Lao Minister of Energy and Mines, and also raised many important contents and solutions to promote cooperation in the energy and mineral sectors between the two countries.

"It was agreed to establish working groups of the two Ministries and two countries to resolve difficulties in cooperation on energy and minerals. These working groups must submit monthly and quarterly reports on difficulties and obstacles that need to be resolved to the leaders of the two Ministries and regularly discuss issues online, combined with direct meetings between the leaders of the two Ministries every 6 months to 1 year. Both sides also need to sign documents, memoranda, and concretize the contents of cooperation," Minister Dien emphasized.

Thanh Lam

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