Restructuring of EVN: Proposing to retain full ownership of the capital

The Commission for the Management of State Capital at Enterprises (CMSC) has recently presented the 2021-2025 Restructuring Programme for Electricity of Vietnam (EVN) to the prime minister for approval. According to this, EVN will be built into a powerful economic group with lucrative, sustainable, and efficient operations.

This also includes a strategy to restructure and reorganise the parent business, as well as the rate of holding and divestment in member units, to maintain and grow state equity invested in EVN and capital invested in other companies by EVN.

The CMSC has requested to the prime minister that EVN remain a one-member limited liability company with 100 per cent charter capital owned by the state to accommodate the energy sector's reorganisation and serve the dynamic electricity retail market.

Electricity of Vietnam has proposed increasing electricity prices after losing more than $1.35 billion this year due to soaring input costs.

Already tormented by a multitude of woes, many enterprises in industrial production could encounter greater pressure if Electricity of Vietnam’s proposal to raise the selling prices of power becomes true.

The plan to raise transmission tariffs for energy indicates that Vietnam must take further steps to alleviate system stress and entice private sector investment in transmission.