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VietNamNews

Power firm shakeup ticked

Update: November, 26/2012 - 10:56

 

Workers of the Electricity of Viet Nam upgrade a power project in the northern province of Hung Yen. Under a restructuring plan approved by Prime Minister, the Electricity of Viet Nam will focus on its main business of manufacturing and trading power. — VNA/VNS Photo Ngoc Ha
HA NOI (VNS)— Prime Minister Nguyen Tan Dung has approved a scheme to restructure the Electricity of Viet Nam (EVN) company over the next three years.

The plan will see EVN focus more on manufacturing and trading electricity, in the hope that this will improve the corporation's competitiveness as well as ensuring there is a sufficient supply of electricity to the economy.

EVN currently operates in four main areas of business. They are: production, distribution and trading of electricity; import and export of electricity; investment and management of power projects; and operation, management, maintenance and upgrading of electrical equipment and power transmission systems.

The scheme will also see EVN rearrange the internal operation of the organisation, improve its governance mechanism and strengthen its authority and responsibility over other enterprises where it has invested capital, and which it thinks fit in with its central aims.

Dung has asked the company to ensure that its affiliate companies increase their specialisation and avoid internal competition.

It is expected that after implementing the new measures, the charter capital of EVN will be more than VND143.4 trillion (US$6.86 billion) following the re-valuation of assets.

EVN is also required to divest capital from six enterprises by the end of 2015, including An Binh Bank, An Binh Securities Co, Global Insurance Joint Stock Co, Sai Gon Vina Real Estate Joint Stock Co, EVN Land Central and the Vietnam Investment and Construction Electricity Company.

In July this year, EVN announced that they wanted to withdraw more than VND1.1 trillion ($52.6 million) from affiliates whose operations are not in line with their main business aim. However, they encountered difficulties in negotiating an acceptable selling price.

By the end of last year, EVN invested around VND757 billion ($36.2 million) in An Binh Bank, held shares worth VND125 billion in Global Insurance Co, invested VND103 billion ($5 million) in property projects and poured VND114.8 billion ($5.5 million) in An Binh Securities Co. — VNS

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