EVN restructuring project until the end of 2025

Kinhtedothi - Decision No. 1271/QD-TTg dated October 25, 2024 approving the Project on restructuring Vietnam Electricity Group for the period up to the end of 2025.

Striving for EVN's total revenue to grow by an average of 7-10% by the end of 2025

The objective of the Project is to develop Vietnam Electricity Group (EVN) into a strong economic group, with sustainable, efficient and profitable business; preserve and develop state capital invested in EVN and EVN capital invested in other enterprises; take primary responsibility for ensuring electricity for the economy and people's lives, ensuring national energy security, providing public products and services in the field of electricity supply according to regulations; play a central role in developing Vietnam Electricity Group; have modern technology, management and high specialization; electricity production, trading and electricity consulting are the main business lines; closely link production and trading with science, technology, research and development, and training; maximize the operational efficiency of Vietnam Electricity Group.

To be the core for the Vietnamese Electricity industry to develop rapidly and sustainably, compete and integrate effectively into the international economy; to continue to participate in perfecting and developing the electricity market according to the roadmap prescribed by the Government .

The project also aims to strive for the Group's total revenue to grow by an average of 7-10% by the end of 2025, contributing over VND 23,000 billion to the state budget of the Group per year and completing the targets according to the 5-year production, business and investment development plan for the period 2021-2025 approved by the Prime Minister in Decision No. 345/QD-TTg dated April 26, 2024.

Successfully build a corporate image that is responsible to the community and society, serving customers with increasingly better service quality.

Promoting corporate governance restructuring

The project clearly defines the orientation and solutions for restructuring enterprises until the end of 2025.

Accordingly, business lines and occupations shall comply with Decree No. 26/2018/ND-CP dated February 28, 2018 of the Government on the Charter of organization and operation of EVN, Decree No. 105/2024/ND-CP dated August 1, 2024 of the Government amending and supplementing a number of articles of Decree No. 96/2022/ND-CP and Decree No. 26/2018/ND-CP and documents adjusting, supplementing or replacing related to the organization and operation of EVN issued by competent authorities in accordance with the provisions of law.

Promote the restructuring of corporate governance, focusing on areas such as perfecting management institutions; strengthening investment project management, ensuring investment progress and efficiency; strengthening forecasting and risk management; improving the capacity of auditing, supervision and inspection; strengthening the fight against corruption and waste; reviewing, developing plans, solutions and organizing the implementation of handling weak and loss-making projects and enterprises under EVN according to regulations.

Continue to coordinate with ministries and branches to perfect management institutions, mechanisms and policies towards increasing EVN's initiative in production and business activities, in accordance with market mechanisms and international practices. Apply corporate governance according to international standards at EVN and its member units.

Regarding the plan to restructure the management apparatus, EVN will improve the management and operation apparatus; innovate the organizational model towards reducing indirect management labor at the intermediate management level and subordinate units to ensure a streamlined apparatus, effective operation and limit overlapping functions and tasks at the parent company; study the organization of a central control room (OCC) to centrally control hydropower and renewable energy plants.

Financial restructuring and strengthening financial management

According to the Project, EVN will develop a production, business and investment development plan, a financial plan to ensure optimal, effective and flexible use of mobilized capital with the goal of preserving and developing capital, ensuring financial safety indicators and indicators as required by domestic and foreign credit institutions;

Develop financial plans, capital and cash flow balance plans to analyze and evaluate the impact of solutions on EVN's financial situation and the ability to balance capital sources for investment in developing important power projects by the end of 2025;

Researching the financial mechanism of EVN in the competitive retail electricity market period. Developing a plan to separate the organization and cost accounting of the electricity distribution and retail departments of the Power Corporations according to the roadmap of the competitive retail electricity market; developing a wholesale electricity price mechanism between the parent company - EVN and electricity distribution business units in accordance with the mechanism for adjusting retail electricity prices according to the market mechanism...

Plan to restructure the parent company and its member units

According to the Plan, the Parent Company - EVN continues to be a single-member limited liability company with 100% of charter capital held by the State in accordance with Decision No. 1479/QD-TTg dated November 29, 2022 of the Prime Minister; maintaining the affiliated units (except for Thai Binh Thermal Power Company and Vinh Tan 4 Thermal Power Plant).

Thai Binh Thermal Power Company will carry out the merger according to a separate Project on establishing a single-member limited liability company after the competent authority approves the establishment policy.

Vinh Tan 4 Thermal Power Plant will be reorganized according to a separate Project on establishing a single-member limited liability company after the competent authority approves the establishment policy.

Enterprises in which EVN continues to hold 100% of charter capital include: National Power Transmission Corporation; Northern Power Corporation; Central Power Corporation; Southern Power Corporation; Hanoi Power Corporation; Ho Chi Minh City Power Corporation; Power Generation Corporation 1; Thu Duc Thermal Power Company Limited.

Enterprises in which EVN maintains a holding ratio of over 50% of charter capital include: Power Construction Consulting Joint Stock Company 1; Power Construction Consulting Joint Stock Company 2; Power Construction Consulting Joint Stock Company 4; Power Generation Corporation 2 - JSC; Power Generation Corporation 3 - JSC.

Enterprises in which EVN maintains a holding ratio of less than 50% of charter capital include: Power Construction Consulting Joint Stock Company 3; Dong Anh Electrical Equipment Corporation - JSC; Vinh Tan 3 Energy Joint Stock Company.

Roadmap to complete EVN restructuring plan by the end of 2025

Regarding the implementation roadmap, EVN focuses on restructuring the organization and ownership, striving to complete the plan to arrange and restructure EVN and EVN member units according to the plan approved by competent authorities by the end of 2025.

EVN continues to hold 100% of capital or controlling shares in subsidiaries in EVN's main business fields, sectors and lines (electricity generation, electricity transmission, electricity distribution and trading, electricity construction consulting) until 2025 in accordance with the criteria for classifying state-owned enterprises.

By the end of 2025, the organizational model and apparatus will be streamlined; operate effectively, balance finances; average annual labor productivity will increase by over 8%/year; corporate governance will meet international standards; have modern technology, become an enterprise operating under the digital enterprise model by 2025; complete research and implementation of energy transition; develop sustainably and be competitive regionally and internationally.

Source: https://kinhtedothi.vn/de-an-co-cau-lai-evn-giai-doan-den-het-nam-2025.html