Over the last few decades Vietnam hasmade remarkable progress in reducing poverty and positioningits economy on a sustainable growth path. As a consequenceof robust economic growth, electricity demand in Vietnamgrew at an average of 14 percent annually over the lastdecade. With electricity consumption nearly matchinggeneration in recent years and insufficient investment innew power plants, the electricity grid is under constantstrain by the growing economy. Realizing the largetechnical, institutional, and financial challenges posed bythis level of expansion will be a key priority for Vietnam’sgrid system operators in the short term. In 2012, theGovernment of Vietnam (GoV) approved the smart griddevelopment project in Vietnam which outlines a smart gridroadmap for Vietnam. The project is aimed at the integrationof new monitoring, protection and control systems to improvegrid reliability and make efficient use of infrastructurewhile facilitating future integration of scaled-up renewableenergy options. The national power transmission corporation(NPT) has already started progressing some of the smart gridinitiatives for transmission identified in the roadmap, suchas, the deployment of substation automation system (SAS) andwide area monitoring systems (WAMS) as well as aninformation system for operation and supervision. To supportGoV’s efforts, the World Bank has closely engaged with NPT,the electricity regulator authority of Vietnam (ERAV) andthe national load dispatch center (NLDC) to refine theexisting smart grid roadmap on the basis of the lessonslearned from the international experience with smart griddevelopment. This report presents the results of thistechnical assistance engagement funded by the energy sectormanagement assistance program (ESMAP) and the Asiasustainable and alternative energy program (ASTAE) andconsists of: (i) a technical analysis of Vietnam’s existingsmart grid roadmap, and alternative and future options involume one; (ii) cost-benefit and risk analyses of the smartgrid options identified in the technical analysis in volumetwo; and (iii) considerations of regulatory and performancemonitoring in volume three.