Solar Power Plant Trung Nam – Thuan Nam. Photo: Trung Nam Group
The Security Investigation Agency of the Ministry of Public Security has just concluded an investigation into a case that occurred at the Vietnam Electricity Group (EVN), the Ministry of Industry and Trade, and some related provinces and cities. The agency has also proposed prosecuting Mr. Hoang Quoc Vuong (former Chairman of EVN and former Deputy Minister of Industry and Trade); Mr. Phuong Hoang Kim (former Director of the Electricity and Renewable Energy Department); Mr. Nguyen Danh Son (former Director of the Power Purchase Company) and nine other accomplices on two charges of “Abuse of Position and Power while performing official duties” and “Negligence causing serious consequences.”
The case originated in February 2023 when the Government Inspectorate sent a dispatch to the Security Investigation Agency of the Ministry of Public Security, requesting an investigation and handling of eight groups of acts with criminal indications detected through the inspection of the observance of policies and laws in the management, implementation of planning, and investment in the construction of power projects.
Through the investigation, the security agency determined that Mr. Hoang Quoc Vuong, Deputy Minister of Industry and Trade, was assigned to manage the Electricity and Renewable Energy Department and directly instructed the drafting of Decision No. 13/2020/QD-TTg.
During the process, Mr. Vuong was well aware of the Government’s policy and the Prime Minister’s direction to support Ninh Thuan province with “a 2,000 MW capacity for solar power projects and grid infrastructure to be approved for implementation.” However, Mr. Vuong instructed the Electricity and Renewable Energy Department to draft Decision No. 13/2020/QD-TTg in a way that “expanded the scope of beneficiaries of preferential electricity prices” to “projects approved for addition will enjoy preferential electricity prices.”
According to the investigation agency, Mr. Vuong’s instruction was contrary to Resolution No. 115/NQ-CP and the Prime Minister’s direction.
Notably, apart from the violation in drafting Decision No. 13/2020/QD-TTg, former Deputy Minister Hoang Quoc Vuong was also accused of having “ulterior motives” and creating a mechanism for the Trung Nam – Thuan Nam Solar Power Plant project.
Specifically, Mr. Vuong took advantage of his position and authority to agree on the proposal to approve the addition of the project to the planning; at the same time, he “intentionally” requested a price mechanism of 9.35 US cents/kWh for the project, exceeding the scope permitted by the Prime Minister. Mr. Vuong’s “intention” created conditions for the Trung Nam – Thuan Nam Solar Power Plant to be included in the list of projects eligible for preferential electricity prices.
Even though the Prime Minister later directed the Ministry of Industry and Trade to strictly implement the resolution, Mr. Vuong ignored the directive, resulting in a loss of VND 774 billion for EVN.
During the investigation, the former Deputy Minister of Industry and Trade admitted to receiving VND 1.5 billion from Trung Nam Construction Investment Joint Stock Company.
Initially, the investigating agency determined that the total loss as of January 2023 was VND 774 billion. However, in the recently issued supplementary investigation conclusion, the agency determined the loss to be more than VND 900 billion.
Former Deputy Minister Hoang Quoc Vuong used to be Chairman of EVN
On January 2, 2024, the Security Investigation Agency of the Ministry of Public Security issued a decision to prosecute, arrest, and search the residence of Mr. Hoang Quoc Vuong, former Deputy Minister of Industry and Trade, for “Abuse of Position and Power while performing official duties” under Article 356 of the Penal Code.
Mr. Hoang Quoc Vuong was born in 1963 and graduated from the MGRI Mining Institute in Russia. He used to be Vice Chairman of the People’s Committee of Thai Nguyen province.
In 2010, Mr. Vuong was appointed Deputy Minister of Industry and Trade, marking a period of continuous changes in his work positions, alternating between state management and enterprise management.
During his tenure as Deputy Minister of Industry and Trade, Mr. Vuong was assigned to manage various fields, including electricity, renewable energy, environment, and sustainable development.
In September 2012, the Prime Minister appointed Mr. Hoang Quoc Vuong as Chairman of the Members’ Council of the Vietnam Electricity Group (EVN).
In January 2015, Mr. Vuong stepped down as Chairman of EVN and returned to his position as Deputy Minister of Industry and Trade. During this period, he continued to be assigned to manage multiple fields, with energy as the main focus.
Various mechanisms and policies related to solar and wind power were advised and issued during his tenure as Deputy Minister of Industry and Trade. These include Decision No. 11/2017/QD-TTg dated April 11, 2017, in which the Prime Minister approved the feed-in tariff (FIT) for solar power at 9.35 cents/kWh; Decision No. 13/2020/QD-TTg of the Prime Minister; and Decision 39/2018/QD-TTg on the mechanism to support wind power projects.
The mechanisms with high prices have contributed to the “boom” of renewable energy in Vietnam.
The conclusion of the inspection of Power Planning VII and the adjusted Power Planning VII by the Government Inspectorate states: Power Planning VII Adjustment (for the period 2011-2020, with a vision to 2030) set a target of installing 850 MW of solar power capacity. However, the Ministry of Industry and Trade advised and submitted to the Prime Minister for approval of the addition of 54 projects with a total capacity of 10,521 MW based on the proposals of the Provincial People’s Committees, which were initiated by the investors (23 projects with a total capacity of 5,200 MW with a schedule of operation in the period of 2016-2020; 31 projects with a total capacity of 5,321 MW with a schedule of operation in the period of 2021-2025).
Meanwhile, the Ministry of Industry and Trade did not develop a national solar power development plan by 2020. Therefore, the Government Inspectorate concluded that the approval of these 54 projects (with a total capacity of 10,521 MW) lacked a legal basis in terms of planning.
The Government Inspectorate also pointed out violations in approving the addition of solar power projects below 50 MW to the provincial power planning and submitting them to the Prime Minister for approval to be included in the adjusted Power Planning VII without making any adjustments to the planning.
Apart from the violations in the addition of power sources, the inspection conclusion also revealed loopholes in guiding and advising on the issuance of preferential electricity purchase prices (FIT); and in the management and use of land for investing in wind and solar power projects.
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