The state-run Vietnamese electricity giant Vietnam Electricity (EVN) said Sunday that it is operating one of the largest power grids in Southeast Asia.

The Vietnamese national grid has an installed capacity of more than 34,000MW, standing third among the ASEAN countries and 31st on the global scale, Pham Le Thanh, general director of EVN, said during a ceremony in Ha Noi.

Thanh said Viet Nam’s power system allows electricity to be generated at reasonable costs.

Workers fix power lines on a power pole in Khanh Hoa Province

The general director also asserted that EVN will begin piloting a competitive market for power purchase, in which eligible electricity corporations, power firms and businesses with huge demand for electricity will be allowed to buy power directly from the generators.

The firm is selling electricity at an average price of VND1,508.85 a kWh, a rate it set in August 2013.

It is considering applying a 9.5 % increase on power prices next year, sending them to VND1,652.19 a kWh.

If approved, the price increase will strongly affect the manufacturing sector.

Prime Minister Nguyen Tan Dung has capped power prices at VND1,835 a kWh between 2013 and 2015, so the proposed new price is still under the ceiling.