Positive result
Power access index (PAI) is evaluated by the World Bank based on 4 factors, including: Time, power supply reliability and transparency in power prices, procedures, costs. Each factor presents 25% out of the total index.
Accordingly, to be supplied with power for the first time, in Vietnam, it is required to perform 5 procedures, in 46 days, cost by 1,261.3% of per capita income, power supply reliability and transparency in power prices gained 3/8 points.
Thus, the factors of procedures, power access time and implementation cost have improved compared with the results announced in the Doing Business 2016. The number of procedures reduced from 6 to 5; costs kept unchanged and per capita income in Vietnam increased. All the factors have contributed to the improvement in the evaluation.
In particular, the number of implementation days reduced by 13 days, from 59 days down to 46 days. Of which, the time of the implementation of the Power Branches is only 11 days (reduced by 4 days). According to the Doing Business, this rate of time has come very close to the ASEAN 4 and is better than Indonesia, East Timor, Cambodia, Myanmar, Laos.
According to the World Bank, the power access index is in the group 5/10 indexes with best changes, helping raise the overall evaluation index of the business environment in Vietnam by 9 places compared with the last year.
Period of implementation of power access procedures by Power sector is only 11 days. Photo: N.Ha
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Compared the result of the power access index of Vietnam with average level of the Asian-Pacific countries and OECD countries:
- Power Access Index of Vietnam is nearly ½ time less than the average of both groups;
- Number of procedures are same as average level of the countries;
- Power supply reliability and transparency in power prices are almost at average level of the Asian-Pacific countries;
Power Access Index of Vietnam is high due to impact of low per capita income.
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