Measuring the Economic Effects and Benefits of Developing a Natural Gas Power Plant in Vietnam

A stable electricity supply is a key factor for sustainable development in Vietnam, a rapidly growing developing country with increasing energy consumption. This article delves quantitatively into the economic effects and benefits arising from the construction of a 1.5 GW capacity natural gas-fired power plant (NGPP). Input–output analysis was applied to identifying the economic effects. Specifically, production-inducing effects and value-added creation effects were analyzed separately for the construction and operation of the NGPP. Based on the economic theory, the economic benefits were computed as the sum of the electricity price and consumer surplus resulting from electricity consumption. During the construction period of the NGPP, it is expected to induce USD 2315.60 million of production and USD 414.75 million of value-added for the Vietnamese economy. The production-inducing effects, value-added creation effects, and economic benefits ensuing from the operation of the NGPP in 2030 were estimated to be USD 833.36 million, USD 235.75 million, and USD 1164.33 million, respectively. The cost–benefit analysis revealed a benefit-to-cost ratio of 1.45, which is higher than 1, indicating the economic feasibility of the construction. Therefore, the construction of the NGPP can be implemented with social net benefits.