This report discusses the energy sectorin Vietnam. The central task for the energy sector is tomeet demands for electricity in sufficient quantity and ofan acceptable quality, in as commercially and financiallyefficient a way as possible. Several issues arise if thistask is to be accomplished in the short and medium term.They are: optimizing power investments; financing theinvestments that must be made; implementing the reforms inthe power industry and restructuring EVN; improving accessand service quality; and addressing shortcomings in pricingand tariffs. This study discusses the first of these issues,though inevitably there is some overlap. The study has fourspecific objectives: (1) to inform decisions abouttechnology choices; (2) to inform decisions on energy andenergy sector policy; (3) to inform the energy sectorplanning process; and (4) to inform the internal discussionwithin the Bank on how Vietnam's energy sectordevelopment can be assisted.