Speaking at the launch ceremony, Deputy Minister of Industry and Trade Hoang Quoc Vuong said CEM is expected to create an equal playing field by removing the monopoly that EVN holds over the market, leading to lower costs and ensuring a better balance between demand and supply. 

Dang Huy Cuong, head of the ministry's Electricity Regulatory Authority of Vietnam, said the market is part of the sector's long-term development strategy. 

The market will be developed into a competitive market by 2014, a wholesale CEM from 2015-22, and a retail CEM after 2022, he added. 

Director of the National Load Dispatch Centre Ngo Son Hai said the market would operate with cost based pricing. 
Plants and suppliers will actively alter costs to remain competitive on the market based on various factors including water levels and input costs. 

CEM will not affect the management of existing power plants as the State will continue to manage electricity retail prices with the aim of ensuring economic targets and social security. EVN plants will be reorganised into independent generators to increase competitiveness. 

EVN plants currently account for 61 percent of the sector's capacity. 

Hydropower plants such as Son La, Hoa Binh and Yaly will not participate in CEM as they are designed for social tasks such as flood prevention and drainage.