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1 Individual Assignment

ASSIGNMENT COVER PAGE


Your assessment will not be accepted unless all fields below are completed Subject Code: BUSM 3244 Subject Name: Business Economic Analysis

Location where you study: RMIT Vietnam City Campus Title of Assignment: Individual Assignment File(s) Submitted: EVN Monopoly Power and Its Inefficiency

(Soft and Hard copy) Student name: XX XX XX XX Student Number: s3160733 Learning Facilitator in charge: Dr. Hannarong Shamsub Assignment due date: 6th Jan 2010 Date of Submission: 6th Jan 2010 Late Submission Approval: N/A Number of pages including Page 1 of 16 this one: Word Count: 1993

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TABLE

OF

CONTENTS

Table of Contents....................................................................................................... 2 I/ Introduction.............................................................................................................3 II/ EVN Electricity Supplied Monopoly.......................................................................3 2.1 Literature Review..............................................................................................3 2.2 Identification of EVNs Monopoly Power............................................................3 III/ Price Elasticity of EVN Electricity ..........................................................................4 III/ Marginal Cost of EVN and Its Inefficiency...............................................................5 IV/ Policy Implications.................................................................................................8 V/ Conclusion.............................................................................................................. 9 VI/ References............................................................................................................9 VII/ Appendix ........................................................................................................... 13 Appendix 1: Electricity Prices................................................................................13 Appendix 2: Long Run Marginal Cost.....................................................................14 Appendix 3: Data Set for Regression Analysis ......................................................15 Appendix 4: Summary Output of Regression Analysis...........................................15 Appendix 5: Reasons for EVNs Inefficiency .........................................................16 Appendix 6: EVNs Value Chain.............................................................................17 Appendix 7: Price Steps of Electricity ...................................................................17 Appendix 8: Average Income from Different Economic Sectors ...........................19

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I/ INTRODUCTION
This report is written to analyze Electricity Vietnam EVN and its monopoly power. Price elasticity of electricity will be calculated to see whether EVN can increase its price or not. We also examine how the Government of Vietnam can regulate this market to enhance economic activities & protect domestic consumption. A normal monopoly firm will have marginal cost lower than its price. However, in the case of EVN, MC is exceeding the price which led to losses over the last few years. Reasons for such inefficiency will be discussed providing with some possible methods to reduce the company MC. Lastly, some implication drawn from those findings will be suggested to create a more competitive market in the future.

II/ EVN ELECTRICITY SUPPLIED MONOPOLY


2.1 LITERATURE REVIEW
A monopoly is the only supplier of a good for which there is no close substitute. A monopoly can set its price - it is not a price taker like a competitive firm. (Perloff 2007, p345) A monopolys output is the market output. The demand curve that a Monopoly faces is the Market Demand curve Because the market demand curve is downward sloping, the monopoly (unlike competitive firms) doesnt lose all its sales if it raises its price

2.2 IDENTIFICATION

OF

EVNS MONOPOLY POWER

Examining EVN, the company operates in a monopoly market because: (1) The company is the ONLY supplier of electricity in Vietnam (2) In term of substitute, people could argue that there are some other types of power such as fossil energy, wind power or solar energy. However, electricity is still a main power source in Vietnam thus, said to have NO close substitute. The market is monopolized for two key reasons: Firstly, firm has a distinct and sustainable cost advantage over other potential firms. Currently, EVN has many plants and a complex network of transmissions all over the country. New entrants, therefore, must make massive investment to enter this market. Such amount of money required for start-up is unbearable and will eliminate anyone who wants to compete against EVN. Investment to build up a hydro power-plant is estimated about USD10 million for the small capacity of 7MW and up to USD231 million for 185MW (VietnamNet Bridge 2007). Nuclear-power

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4 Individual Assignment plant is the most expensive with average set-up cost of USD11.3 billion (Barta & Vu 2009) Secondly, Government has created monopoly as an efficient means of supplying goods or services, e.g. public utilities. The Government actually prohibits new firms to transmit power supplied but allows them to invest in power plants called Independent Power Producer project IPP, to increase total production capacity (Prime Minister Decision 26/2006/QD-TTg). Recently, PetroVietnam, Vinacomin, Song Da Corporation actually invested in many hydro-plants projects. However, in reality, with tendency to control the market, EVN has bought back those new plants and remains 100% monopoly (VietnamNet Bridge 2008).

III/ PRICE ELASTICITY

OF

EVN ELECTRICITY

Price elasticity of demand is the percentage change in the quantity demanded Qd, in response to a given percentage change in the price P (Perloff 2007, pg48).

Inelastic

Significant

Price Elasticity1 of EVN Electricity: | | = |Log (Household Price)| = |-0.7754| < 1. When the price of EVEN Electricity increases by 1 VND, Qd just drops by 0.7754. The reason for this situation is that electricity has NO close substitute. Machines could be run on solar energy but in the case of Vietnam, we do not have any. Fossil energy, on the other hand, is a more common one but largely used for transportation vehicles. To the contrary, production machinery is utilizing electricity for the purpose of efficiency & environmental protection. Household appliances are also electricity based. Not to mention, the whole light bulb system in every single house or building must use electricity, not any other type of energies. Therefore, perfect conditions for price inelasticity of electricity in Vietnam have been created. The question here is that: can EVN increase the price? As a monopoly, the company obviously could raise the price but such action will not be allowed by the Government (VietnamNet Bridge 2009). Even though there is no price ceiling imposed on this industry, the electricity price still, must be approved by the Government, said Deputy Minister of Industry & Trade Bui Xuan Khu (Ha 2009).
1

For the purpose of simplicity, Price Elasticity is calculated based on Applied Residential Price (refer to Appendix 1). Applied Industrial Price is more complicated due to the implementation of rush hour charge.

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5 Individual Assignment Government interference on EVNs price setting could be explained by many reasons. After joining WTO, domestic production activities have increased significantly with the remarkable GDP growth rate of 8.4% in quarter 4 of 2007. Even with the difficult time of crisis, Vietnam is still capable of maintaining positive GDP growth rate (see Figure 2). Electricity, therefore, as a part of the production cost must be kept stable to facilitate economic growth. High increase in price will just push up the production cost thus forcing firm to produce less which is undesirable for the society (BMI 2009, Perloff 2009). In term of household consumption of electricity, large majority of urban population and people living in rural area are having earnings below the average income of 2,651,300 VND per month, the Government, thus, must control the price to protect the consumers (GSO 2009). Not to mention, 30 million people accounts for more than 1/3 of the population, got lifted out of poverty during the past 10 years that cannot afford for high price electricity (Oxford Analytica 2008). Besides, due to the idea of industrialization inherited from Doi Moi policy, people are moving from rural are to modern cities create bigger demand for urban accommodation which drive the price of consumer products up and make it harder for low income people in those urban areas to live (Oxford Analytica 2008, VOV News 2006). Price adjustment for electricity not only helps to protect domestic consumption but also ensures that poor people have adequate access to such necessary utilities.

Figure 1: Vietnam GDP Growth Rate from Q1 2008 to Q3 2009 Source: Government Statistical Office (2009)

III/ MARGINAL COST


Year LRMC

OF

EVN

AND ITS INEFFICIENCY


Price Differences = P - Adjusted MC Page 5 of 22

Category2

Adjusted LRMC

6 Individual Assignment 2008 2009 VND 1102. 8 VND 891.1 Residential Industrial Residential Industrial 2139.7 2172.6 1835.6 1670.8 1481.3 1800 1291.3 1875 - 658.4 - 372.6 - 544.3 204.2

Figure 2: Marginal Cost of EVN in 2008 & 2009 Source: Business Monitor International (2009) & EUROCHAM (2009)

Interesting case of EVN with MC > P: It is true that a monopoly is a price maker and MC must be less than Price: MC < P (Perloff 2009). Marginal cost of EVN in term of power generation was VND1102.8 in 2008 which is below the selling price of VND2139.7 for residential use and VND2172.6 for industrial use. However, due to EVNs action in purchasing electricity from other countries such as Laos, Cambodia, China, etc. to copy with electricity shortage, actual MC (or adjusted MC) has been pushed up even higher than selling price. In 2008, electricity imported from China alone reached 3.5billion kWh (Clough 2008 & Hickey 2008). Since the price must be approved by the Government and the MC has been increased so dramatically, it is inevitable that EVN is making losses. 2009 was a better year since EVN has one new coal power plant running which brings MC down to VND891.1 and partly reduces the amount of electricity bought. However, reliance on imported electricity has not been lifted. Industrial MC of 2009 is VND1670.8 just slightly lower than the selling price of VND1875 while residential MC is VND1835.6 still extremely high compared to the selling price of VND1291.3. EVN has been recognized as one of the most inefficient power producer in the Asia Pacific region which, in fact, puts restrain on the national development & growth. Reasons for inefficiency are outlined below (refer to Appendix 5 for details): Depending on 2 modes of power production: Hydro (low output during dry season) Gas-based (stable output but high operating cost) Low-tech transmission line (91.53% of electricity is transmitted, 8.47% is lost during transmission) & insecure lines lead to electricity theft. Lagging technology with the absence of nuclear-based, wind-power or solarpower plants, even hydro plants do not have thermal base. Weak demand-side management required immediate electricity purchases from nearby countries to prevent black-outs which subsequently increased the MC.

Industrial is applied for companies and Residential is applied for households. Calculation of adjusted MC has been divided in two due to the complex pricing system of EVN.

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7 Individual Assignment Slow in decision making due to bureaucratic culture of a State-owned company.

In order to reduce MC, EVN has started many projects on coal-based plants to increase current capacity, expecting to have total 17 plants completed by the end of 2020. Those plants can generate more stable outputs and require less cost to administrate. However, coal-fired plants are criticized to be environmental unfriendly because of high level of CO2 emission. Such pollution is recognized as negative externality (Perloff 2009). In the near future, EVN aim to lower the adjusted MC to $0.75, equivalent to VND13910.3 (EUROCHAM 2009). In early 2009, EVN also requested the Government to gradually increase the price by minimum of 20% and maximum of 30% by the end of 2010 (VietnamNet Bridge 2009).

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IV/ POLICY IMPLICATIONS


Since marginal cost is high and EVN is not making any profit, the price, therefore, as being proposed by the company, must be allowed to increase gradually by the Government. However, if the price is higher than the current regulated price, it will hurt the economy. There are 2 options to resolve this problem: (1) Allow EVN remain monopoly but must help them to reduce inefficiency in order to lower down the MC. Since EVN has invested substantial amount of money to build up coal-fired plants, as mention in the previous section, it will increase the total output and reduce the amount of electricity purchased. MC, therefore, will go down gradually. However, there are still number of things must be considered such as investment in transmission line to increase the transmission rate and secure the line from electricity theft, installation of thermal base in hydro plants to ensure stable output during dry season, restructure EVN so that the decision making process can be fostered. (2) As set out in Prime Ministerial Decision 26/2006/QD-TTg, the competitive market can be created with the Government control over transmission network3 to regulate the market and provide market stability. The changing period to create competitive market will be divided into 3 phases: 1st Phase: Allow new firms to enter the market of power generation. EVN will no longer bear the risk resulted from controlling the market production of electricity. This will also provide more opportunity for great market outputs. 2nd Phase: allow auto-pilot4 to create competitive wholesale market 3rd Phase: allow electricity retailing5

Both of those options can solve the current problem faced by EVN. However, option 2 is more preferable because as predicted by the Government, Vietnam will continue to grow at a faster pace after this crisis. Even with EVNs attempt in building more plants to increase the supply capacity, there is still be a foreseeable electricity shortage. Government, on the other hand, cannot maintain the currently level of subsidy for EVN in the long-run. Creation of the competitive market will help

Upgrade of transmission network to increase transmission rate is an urgent issue. This will also provide a base for electricity retail market at the later stage of transforming from monopoly to competitive market. Recently, Asia Development Bank ADB, has provided finance worth VND342million to support this upgrade (EVN 2009). 4 Refer to Prime Ministerial Decision 26/2006/QD-TTg to minimize Government interference on the price of electricity set by power producers. 5 The Government still maintains control over transmission lines.

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9 Individual Assignment to provide sufficient level of electricity for market Governmental burden in looking after this industry. consumption and lift

V/ CONCLUSION
It is obvious that EVN staying as a monopoly is not a desirable because the market is not producing at the level where it should be. Not to mention, its inefficiency could hurt the economy as a whole. Reducing MC has become the prioritized task for the Government. It is suggested that a competitive market should be promoted so that consumers & producers will be better off and there will be no longer a need for Government interference or subsidy to stabilize this market.

VI/ REFERENCES
Barta, P & Vu, KT 2009, Vietnam Assembly approves Nuclear Plants, The Wall Street Journal, viewed on 27th December 2009, <http://online.wsj.com/article/SB125913876138763683.html>.

Clough, LD 2008, Energy profile of Vietnam, Energy Information Administration 2008, viewed on 19th December 2009, <http://www.eoearth.org/article/Energy_profile_of_Vietnam>.

Community Party of Vietnam Central Committee (CPV) 2009, Many new challenges for EVN, VOV News 2009, viewed on 19th December 2009, < <http://www.cpv.org.vn/cpv/Modules/News/NewsDetail.aspx? co_id=30113&cn_id=86014>.

Community Party of Vietnam Central Committee (CPV) 2009, Vietnam efforts to overcome electricity shortage, Nhan Dan Newspaper 2009, viewed on 19th December 2009, <http://www.cpv.org.vn/cpv/Modules/News/NewsDetail.aspx? co_id=30107&cn_id=174681>.

Daft, RL 2001, Organization Theory and Design, 7th edn, South-Western College Publishing, Thomson Learning, USA.

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10 Individual Assignment Dapice, D 2008, Case Study: Vietnam Electricity, Fulbright Economics Teaching Program (FEPT) 2008, viewed on 19th December 2009, <http://www.fetp.edu.vn/exed/2008/HaNoi/Docs/Readings/Day%202-1-Vietnam %20Electricity%20Case-E.pdf>.

EVN Homepage 2009, viewed on 20th Dec 2009, <http://www.evn.com.vn/>.

Electricity Vietnam EVN 2009, ADB bo lnh cho EVN khon vay 342 triu USD nng cp h thng in, EVN Investment & development, <http://www.evn.com.vn/Default.aspx?tabid=60&TopicId=11&language=viVN>.

EUROCHAM 2009, 2010: Trade issues & recommendations, European Chamber of Commerce in Vietnam 2009, viewed on 19th December 2009, pp 55-62, <http://www.eurochamvn.org/Downloads/EuroCham-2010-Trade%20Issues %20and%20Recommendations.pdf>.

General Statistics Office GSO 2009, Monthly average income per employee in state sector at current prices by kind of economic activity, General Statistics Office, viewed on 26th December 2009, <http://www.gso.gov.vn/default.aspx? tabid=503&ItemID=9171>.

General Statistics Office 2007, Socio-economic statistical data, 2007, GSOMonthly Statistical Information 2007, viewed on 25th October 2009, <http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=6929>.

General Statistics Office 2008, Socio-economic situation in 10 months of 2008, GSO-Monthly Statistical Information 2009, viewed on 25th October 2009, <http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=8068>.

General Statistics Office 2009, Socio-economic situation in 9 months of 2009, GSO-Monthly Statistical Information 2009, viewed on 25th October 2009, <http://www.gso.gov.vn/default.aspx?tabid=622&idmid=&ItemID=9309>.

Giang, H 2008, Thi nhau n cp... in, CAND Online, viewed on 27th December 2009, <http://www.cand.com.vn/vi-VN/kinhte/2008/11/104624.cand>. Page 10 of 22

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Ha, P 2009, Electricity price increase plan submitted to Government, VietnamNet Bridge, viewed on 26th December 2009, <http://english.vietnamnet.vn/biz/2009/01/822435/>.

Hickey, N 2008, Vietnams Ongoing Power Shortage, Energy Tribune 2009, viewed on 19th December 2009, <http://www.energytribune.com/articles.cfm? aid=923>.

Infos Connector 2009, Electricity tariff Vietnam, Electricity Vietnam (EVN) 2009, viewed on 19th December 2009, <http://www.icon.evn.com.vn/Home/News/tabid/55/TopicId/91/language/viVN/Default.aspx>

Institutes of Energy Economics Japan 2008, Peer review on energy efficiency in Vietnam, APEC Coordination, IEEJ 2009, viewed on 19th December 2009, <http://www.ieej.or.jp/aperc/PREE/PREE_Vietnam.pdf>

Nguyen, KQ 2008, Impacts of a rise in electricity tariff on prices of other products in Vietnam, Energy Policy, vol. 36, pp 3135-3139, Elsevier, Factiva.

Omoteyama, S 2009, Energy sector situation in Vietnam (summary), IEEJ 2009, viewed on 19th December 2009, < http://eneken.ieej.or.jp/data/2588.pdf>.

Oxford Analytica 2008, Vietnam: income gap is growing, Oxford Analytica 2008, viewed on 26th December 2009, <http://www.vietstudies.info/kinhte/vietnam_OxfordAnalytica.pdf>.

Perloff, JM 2007, Microeconomics, 4th edn, Pearson, Boston, pg 345.

Perloff, JM 2009, Microeconomics, 5th edn, Pearson, Boston, pp 349-386, 606635.

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12 Individual Assignment Prime Miniter Decision 26/2006/QD-TTg, EVN Legislation, viewed on 27th December 2009, <http://www.evn.com.vn/Portals/0/CMSFiles/hanhpb/Thi %20truong%20dien.pdf>.

Thai, V 2008, Meeting rapid electricity demand growth, presented in Consultation on MRCs Hydropower Program, Vientiane, Laos Sept 2008.

The Economist 2009, Vietnam: Energy and electricity background, Executive Briefing, The Economist Intelligence Unit 2009, viewed on 19th December 2009, <http://www.eiu.com/index.asp? layout=ib3PrintArticle&article_id=25996802&printer=printer&rf=0>.

Viet Dragon Securities Corporation VDSC, 2009, Report on electricity, VDSC 2009, viewed on 19th December 2009, <http://media.vdsc.com.vn/vdsc_news/BaocaonganhdienThang032009.pdf>.

VietnamNet Bridge 2009, Ministry proposes government to delay electricity price increase, VietnamNet Bridge, viewed on 26th December 2009, <http://english.vietnamnet.vn/biz/2009/01/822097/>.

VietnamNet Bridge 2009, Work on hydro-power plant begins, VietnamNet Bridge, viewed on 27th December 2009, <http://english.vietnamnet.vn/biz/2007/01/653962/>.

VOV News 2006, Challenges posed for Vietnams WTO admission, viewed on 15th August 2009, <http://english.vovnews.vn/Home/Challenges-posed-forVietnams-WTO-admission/20065/34990.vov>.

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VII/ APPENDIX
APPENDIX 1: ELECTRICITY PRICES
Price charged by EVN has 7 different price steps (EVN 2009). The higher the level of consumption, the higher price will be charged. This is for the purpose of power saving because Vietnam is currently in the shortage of electricity supplied. The prices collected below are average price of each period. (Note: Applied Price used to calculate the bill is different from quoted price provided by EVN is because the exchange rate has been taken into account since EVN have to purchase electricity from nearby countries to supply for high domestic consumption).

Rush hours: From March 2009, new laws imposed on From August 2009, businesses will Mon Sat: 9h30 to 11h30 electricity consumption during rush hour, be charged 10% more on applied 17h00 to 20h00 businesses will be charged 10% more on applied industrial rate in rush hours Sunday: No rush hours industrial rate in rush hours (meaning totally (totally applied rate = 1980 * applied rate = 1800 * (1+0.1) =1980) (1+0.1) =2170) Table 1: Total Electricity Consumption, Applied Rates, Quoted Prices and Exchange Rate used by EVN Source: Clough 2008; Community Party of Vietnam Central Committee 2009; Dapice 2008; EUROCHAM 2009; Infos Connection 2009; Institutes of Energy Economics Japan 2008; Nguyen 2008; Omoteyama 2009; Thai 2008; The Economist 2009; Viet Dragon Securities Corporation 2009 .

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APPENDIX 2: LONG RUN MARGINAL COST


Based on BMI projection, if EVN does not alter its current operation, MC will continue to rise in the future due to larger purchase of electricity from other countries.

Table 2: EVNs Long-run Marginal Cost Source: Business Monitor International BMI 2009.

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APPENDIX 3: DATA SET

FOR

REGRESSION ANALYSIS

APPENDIX 4: SUMMARY OUTPUT

OF

REGRESSION ANALYSIS

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APPENDIX 5: REASONS

FOR

EVNS INEFFICIENCY

EVN has been recognized as one of the most inefficient power producer in the Asia Pacific region which, in fact, puts restrain on the national development & growth (Institutes of Energy Economics Japan 2008; Nguyen 2008; Hickey 2008; Thai 2008). Reasons for inefficiency are outlined below: Power source Hydro Coal Gas Oil Others Total Number of Plants 14 6 4 3 N/A 27 MW Capacity 4487 1630 4746 575 832 12270 % of Total 36.6 % 13.3 % 38.7 % 4.7 % 6.8 % 100%

Table 3: Total Production Capacity of EVN Source: Business Monitor International (2009) & EUROCHAM (2009)

Reliance on two mode of electricity production only. Hydro power plant which is currently accounted for almost 40% of the total production capacity but only can produce about 25% of total output. During dry seasons, water level goes through reservoir is low, sometimes even low than the turbine required input which, in fact, produce zero unit of output. Rainfall is a significant factor that affects hydro-electricity output. Another mode is gas based power plants accounts for another 40% of the total production capacity that can produce more stable output but they are more expensive to run due to cost of pipeline maintenance and gas price itself (Dapice 2008).

Low tech transmission line only able to transmit 91.53% of the electricity (BMI 2009). In addition, due to insecure transmission line, some Vietnamese people are stealing electricity and even sell it in the black market for a much lower price. One household with average consumption would have to pay VND 500,000 per month for electricity, now only needs to pay around VND 60,000 to VND 70,000. In 2008, Ca Mau Province alone have discovered more than 450 cases involving in electricity stealing with the lost amount of 985.756 kWh equivalent to 3 billion VND (Giang 2009). This even worsens the case of EVN since they did not produce enough electricity.

Picture 1: People being arrested with their electricity stealing equipments Source: CAND Online (2009)

Weak demand-side management has lead to wrong forecast of future consumption which force EVN to make a huge purchase of electricity supply to avoid blackouts. Immediate purchases have increased the cost of electricity thus drove the MC up. Recently Vietnam has to sign agreements with Laos for regular

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17 Individual Assignment supply of electricity at a more stable price and with China in order to prevent shortfall of power in Northern areas (Clough 2008; Hickey 2008).

Lagging technology is another factor that contributes to EVN inefficiency. Hydro plants normally have thermal base to guarantee production output in dry seasons (Dapice 2008). Nuclear power has been become very popular in western country that can produce green electricity but in case of Vietnam we have to wait until 2020 (Clough 2007). Not to mention, wind power or solar energy are some abundant resources which have not been utilized. Government should consider those means of producing electricity to remove dependency on hydro and thermal plants.

Lastly, internal problem results from the management of EVN. State-owned enterprises are said to have bureaucratic culture which make them not very adaptive to environmental changes and slow in decision making process (Daft 2001). This had been proven by their reaction strategy when the level of electricity felt short and delay in expansion strategy to increase their production capacity.

APPENDIX 6: EVNS VALUE CHAIN


Hydr Gas Coal o base Base Plant d d Plant Oil s Production Plant base s s d Othe Plant rs s

High Voltage Line Medium Voltage Transmission Line Low Voltage Line

Residenti al Retailing Industrial

Source: Viet Dragon Securities Corporation (2009)

APPENDIX 7: PRICE STEPS


Price Steps 1 2 3 4 5

OF

ELECTRICITY
Price (VND) 600 865 1135 1495 1620 Page 17 of 22

Consumption Level For the first 50 kWh From 51 to 100 kWh From 101 to 150 kWh From 151 to 200 kWh From 201 to 300

18 Individual Assignment 6 7 kWh From 301 to 400 kWh 401 and after 1740 1790

Table 4: Price Steps applied for household usage in Dec 2009 Source: Electricity Vietnam EVN 2009.

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APPENDIX 8: AVERAGE INCOME

FROM

DIFFERENT ECONOMIC SECTORS

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Table 5: EVNs Long-run Marginal Cost Source: Government Statistical Office GSO 2009.

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Assessment Overall Presentation Heading on the first page Structure-Intro, sections, conclusion Presentation Attention to detail/proff reading Spelling and grammar Referencing

Possible marks

Marks allocated

-10

Innovative application of theory to a real world business strategy Analysis & Synthesis Description of business being analyzed Cateorization of this conduct into one of the relevant strategy Synthesis of concepts from across a range other topic

20

XX

60

XX The paper is well written. The analysis is well executed. It uses a regression analysis to identify price elasticity of demand for electricity. It covers majors topics under monopoly; such as, inefficiency, policy implication to solve the problem.

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areas Description of real-word conditions that support the identified business strategies Development of a conclusion to your report identifying the key insights on the topic investigated

Presentation Introduction outlining the business being analyzed Body of the report Categorization into relevant strategies Description of a realworld conditions that support theories Conclusion: provide key insights

20

XX The conclusion is relatively limited. See comment in the conclusion section.

XX Total 100 HD-

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