The Vietnam Chamber of Commerce and Industry (VCCI) has officially proposed the separation of functions between electricity distribution grid management and retail business operations in the draft national electricity market design. This step is considered crucial to prevent monopoly practices, given that the majority of the current power grid infrastructure is still managed by state-owned entities, which could potentially hold excessive dominance if allowed to act simultaneously as electricity retailers.
In its report, VCCI emphasized the importance of transparency in infrastructure access for all business players. Without a clear boundary between grid operators and sellers, private companies will face difficulties competing in a fair market. Therefore, VCCI urges the government to establish a roadmap for the full independence of these departments to create a healthy business climate and more competitive service quality for end consumers.
In addition to structural aspects, VCCI also highlighted the importance of digitalizing electricity provider switching procedures. According to them, the current process is still too complicated, hindering efficiency for the manufacturing sector which requires high flexibility. VCCI proposes the establishment of an integrated digital-based system to simplify contract transfers, while loosening financial guarantee requirements for small and medium enterprises so they are not burdened by cash flow.
Regarding consumer protection, VCCI proposed a price grace period regulation for customers forced to switch to backup suppliers due to operational failures of their previous retailer. This aims to protect businesses from sudden spikes in input prices. Furthermore, the organization urged full transparency in the electricity pricing structure, including independent audits of transmission and distribution costs.
In closing, VCCI encourages the government to accommodate the transition towards green energy through the integration of the Direct Power Purchase Agreement (DPPA) mechanism. They also suggested establishing a legal framework for aggregator models and Virtual Power Plants (VPP) combining rooftop solar with energy storage systems, to improve overall market efficiency and meet international sustainability standards.
