The U.S. Department of State Bureau of Energy Resources (ENR) and the Electricity Regulatory Authority of Vietnam (ERAV) today signed a Memorandum of Understanding (MoU) for technical support from ENR for the development of Vietnam’s competitive power market.
ENR’s Principal Deputy Assistant Secretary Ambassador Warlick traveled to Hanoi to sign the MoU, along with ERAV’s Director General Nguyen Anh Tuan. The U.S. Embassy Deputy Chief of Mission Claire Pierangelo and Vice Minister of Industry and Trade Nguyen Cam Tu witnessed the signing.
Underscoring the importance of ENR technical support, Ambassador Warlick said the establishment of a competitive power market can “incentivize investment in new power generation and transmission, lower electricity costs, drive innovation in cleaner technology, and encourage conservation.”
Deputy Chief of Mission Pierangelo expressed her amazement at economic growth and development Vietnam had achieved over the last decade but added that a country can only expand as far as its power supply would allow. She said Vietnam needed reforms, like the establishment of a competitive power market, to ensure the country’s electrical supply could meet future demand. She praised the MoU as yet another example of how the United States is committed to helping Vietnam become a strong, prosperous and independent country.
Director General Tuan said the establishment of a competitive power market would ensure fair competition, transparent prices and efficient performance by Vietnam’s power companies.
The MoU signing is the latest in a series of agreements for U.S. assistance to develop and strengthen Vietnam’s energy sector. It also provides another success story in the bilateral relationship during the 20 year anniversary of normalization of relations between the United States and Vietnam.