The Ministry of Industry and Trade in Vietnam has outlined a significant restructuring plan for the electricity sector, which includes the separation of the National Power Transmission Corporation from the Electricity of Vietnam (EVN). This announcement was made by Bui Quoc Hung, Deputy Director of the Electricity Regulatory Authority, during a quarterly press briefing on October 7, 2026.

The restructuring initiative is part of a broader strategy to develop a competitive electricity market in Vietnam. The government has tasked the Ministry of Finance and the Ministry of Industry and Trade to present this restructuring proposal to the government. Currently, EVN holds nearly 40% of the country's electricity generation capacity, but the market has seen an influx of private and foreign companies participating in electricity generation.

Hung emphasized that international experience indicates that fostering a competitive electricity market requires a clear separation of functions within the sector, including generation, transmission, distribution, and retail. He pointed out that the transmission segment, due to the high capital investment required for infrastructure, should not have parallel systems built by multiple investors, as this could lead to inefficiencies and resource wastage.

The restructuring plan aims to enhance the operational efficiency of the electricity market, allowing for a more competitive environment. The ministry plans to gradually divest state ownership in various power generation companies and explore the establishment of a national strategic power generation corporation to manage key projects, including hydroelectric and nuclear power initiatives.

Furthermore, the restructuring will involve separating the distribution and retail functions within EVN's subsidiaries to ensure transparency and accountability in management. This initiative is expected to align with the government's goal of developing a competitive electricity market at various levels.