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Getting Electricity in

Vietnam

Below is a detailed summary of the procedures, time and cost required for a business to obtain an electricity connection for a newly constructed building in Vietnam.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Vietnam to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to EVN HCMC and await clearance

    Agency: Ho Chi Minh City Power Corporation (EVN HCMC)

    The request for a new electrical connection can be made in the following manners: (1) directly at the utility, (2) online, through the utility's website, (3) through its Customer Care Center, (4) via other legal manners. Once received, the request is transferred to the utility's Exchange Team, according to the "one door" mechanism, to process and approve applications.

    List of documents/information sent to Distribution Department (information of customer is filed in the supplied forms):
    + Information of customer: name, power supply location, power use schedule, registered capacity, estimated load profile.
    + Arrangement layout.
    + Characteristics of technology chain, load components of customer directly recognized from power distribution grid.

    Document copies are not requested to be notarized, accordingly, the utility compares copies and originals and returns the originals to the customer immediately.

    4 calendar days VND 0
    * 2

    Obtain external inspection by EVN HCMC

    Agency: Ho Chi Minh City Power Corporation (EVN HCMC)

    After the utility has received the application, it inspects the site to determine the specifics of the connection. No estimate of connection fees is prepared. However, the client needs to await approval (clearance) of Ho Chi Minh City Power Corporation (EVNHCMC) on the requested power.

    1 calendar day VND 0
    3

    Obtain design approval and excavation permit from Traffic and Transport Department

    Agency: Traffic and Transport Department

    The customer has to obtain an excavation permit for the underground connection at the Traffic and Transport Department. Also, based on Decree No. 15/2013/NĐ-CP dated February 06, 2013 of the Government on work quality management, the customer must also receive approval of their design as well as comments on the suitability of the local power grid development plan.

    15 calendar days VND 0
    4

    Hire private firm to design and carry out external works

    Agency: Electrical Contractor

    The customer can either ask the Distribution Department of EVN HCMC to do the works for them or hire a private firm. The more common approach is to hire an outside firm.

    If more than 100 kVA is needed, a substation must be built. In the case where the customer chooses to hire an outside agency to carry out the works, the electricity company must first approve the designs.

    A contract is signed after both parties have agreed on the capacity, construction schedule, construction border, etc. There is no inspection of the entire internal wiring, and any electrician can carry out the internal installation. To ensure liability, the customer usually hires a licensed electrical construction company.

    20 calendar days VND 544,000,000
    5

    Obtain meter installation and final connection from EVN HCMC

    Agency: Ho Chi Minh City Power Corporation (EVN HCMC)

    When the external works have been completed, the customer requests the meter installation from the Distribution Department of the utility.

    7 calendar days VND 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8)
    Total duration and frequency of outages per customer a year (0-3)
    System average interruption duration index (SAIDI) 12
    System average interruption frequency index (SAIFI) 6.72
    Mechanisms for monitoring outages (0-1)
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1)
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1)
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
    Financial deterrents aimed at limiting outages (0-1)
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1)
    Are effective tariffs available online? Yes
    Link to the website, if available online http://cskh.hcmpc.com.vn
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 11.6

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.