The Hanoi government is attempting to increase the speed of privatisation of power plants currently owned by three state groups that control the energy sector.

Reuters reports that Vietnam wants to cut government ownership by 2020 signalling its commitment to raise funds and improve efficiency.

The new government headed by Prime Minister Nguyen Xuan Phuc has invigorated the process since taking over in April. Progress has been slow due to the small stakes on offer, sizable state control and concerns about vested interests.
Phuc has now listed measures to quicken the privatisation of the electricity generation firms owned by state utility Vietnam Electricity (EVN) group, PetroVietnam and mining group Vinacomin.

While the state energy groups will still own the majority of shares in the power plants by 2018, they will need to review and cut their ownership to below 50 per cent within two years since the privatisation date, the statement said without elaborating.

The government will retain full control of power transmission, regulating the national grid as well as building and operating major power plants, a statement added.