Prime Minister urges construction of 500kV line in six months

Prime Minister Pham Minh Chinh has directed Vietnam Electricity (EVN), the investor of the 500kV Lao Cai–Vinh Yen transmission line in northern Vietnam, to complete the project within six months. The goal is to have the power line operational in time for the country’s Independence Day on September 2.

The project must be inaugurated by August 31, Prime Minister Chinh said at the groundbreaking ceremony held in the northern province of Vinh Phuc on March 16.

“This is a government order approved by the prime minister,” he stated.

The 500kV Lao Cai-Vinh Yen power transmission project, costing VND7.4 trillion (US$290 million), which spans four northern provinces of Lao Cai, Yen Bai, Phu Tho, and Vinh Phuc, is invested by Vietnam Electricity (EVN).

The electric pole foundations occupy 63 hectares, impacting 2,189 households, including 248 requiring relocation.

In earlier meetings with the government, EVN Chairman Dang Hoang An identified site clearance as the biggest obstacle to the project’s progress, citing challenges related to compensation and land measurement caused by overlapping regulations. Meanwhile, local authorities attributed the slow site clearance to resettlement regulations and the aforementioned reasons.

At the groundbreaking ceremony, Chinh stressed the need for the power line in the economic expansion. He said that as Vietnam targets double-digit growth, the electricity sector must be one step ahead. For every 1% increase in GDP, electricity production must grow by 1.5%. This year, with a GDP growth target of 8%, the electricity sector needs to expand by 14%-15%.

He asked the investor and stakeholders involved to take action with five tasks to be clear in personnel, work, procedures, responsibilities, and results.

Units must streamline procedures to speed up the project while the entire political system, regardless of the government, organizations, military, and police, work together to solve challenges.

The 229-km-long 500kV Lao Cai – Vinh Yen transmission line is a key project supporting Northwest power generation and potential electricity imports from China, ensuring national energy security amid rapid economic growth.

Nguyen Anh Tuan, EVN’s General Director, stressed the project’s urgency in integrating hydropower plants in the Northwest and neighboring provinces into the national grid for safer and more stable system operation.

He urged contractors to maximize local resources for timely completion and called on local authorities to fast-track land clearance, aiming to complete the corridor handover by March.

Secretary of the Vinh Phuc Party Committee Dang Xuan Phong said the project is important in boosting power transmission in the north and backup imports. With Vinh Phuc hosting over 21% of the transmission line, it has completed 100 out of 101 pylons.

To meet the project deadline, stakeholders are aware that critical tasks such as land clearance and resettlement remain, and drastic actions need to be taken. Phong pledged to finalize the handover by April 15 and fully support the investor.

In response to the prime minister’s directive, the government has mobilized the political system to oversee implementation and fast-track land clearance. The Ministry of Industry and Trade has held four meetings with EVN and local authorities to address challenges, expedite land clearance, compensation, and resettlement, and address emerging issues.

The prime minister made the request based on the implementation of the 500kv Pho Noi-Quang Trach, circuit 3, which is twice as long and crosses rugged terrain, but was completed in six months instead of two years as planned. Therefore, the prime minister said there is no reason for this project to take longer.

“The August 31 deadline is a mandate. Report any challenges or proposals promptly to expedite progress,” the PM stressed.

He urged the Ministry of Agriculture and Environment to resolve forest land and environmental issues proactively to complete the procedures by March.

He called on residents in the affected areas to provide land for construction and ensure that the sites were cleared within a month. Additionally, it’s necessary to strengthen public awareness efforts to engage citizens and businesses while promoting innovative implementation.

The prime minister reaffirmed the government’s commitment to supporting citizens, businesses, and local authorities. He said that administrative reforms are designed to make agencies less bureaucratic and more service-oriented, minimizing red tape and inefficiency.

Once in operation, the 500kV transmission line will transmit around 3,000MW from Northwest hydropower plants and neighboring provinces to the national grid.

In 2024, Vietnam’s total power generation, including imports, reached 308.73 billion kWh, a 9.9% year-on-year increase. To meet the 2025 demand, EVN plans to supply 300.9 billion kWh – 305.6 billion kWh, up 9% from the last year, in line with GDP growth targets.

While the government aims for 8% GDP growth, the World Bank projects 6.8%, which requires a corresponding rise in energy. To support the 8% target, energy production needs to increase by about 10.4%, highlighting the need for strategic planning and investment in the energy sector.