Updated  
February, 19 2014 08:51:00

EVN tightens investment rules

The draft also has clear regulations on the mobilisation and use of capital, selling of debts, salaries for labourers and the retail prices of electricity.— Photo cafef

HA NOI (VNS) — Electricity of Viet Nam (EVN) will not partner with, invest in or buy shares in the real estate sector, banks, and other financial sectors, except under the prime minister's authorisation.

As part of this policy, EVN, a State-owned electricity provider, will not consider investment in securities companies, hedge funds and securities investment companies, according to a financial regulation draft issued by the Ministry of Finance.

The ministry has issued the draft to collect suggestions for regulations before they are formally recognised, the Ministry of Finance stated.

Under the regulations, EVN will use its capital to invest in non-core businesses underlined within the company's organisation and operation regulations. The investments in non-core businesses must ensure efficiency, conservation and development of the invested capital, must increase revenue and must remain unchanged operationally.

EVN must get the prime minister's approval to add businesses to its operation regulations or to invest its capital into non-core businesses that are at variance with its operation regulations for the next few years.

Meanwhile, EVN will not receive investments or joining capital from its subsidiaries, and the subsidiaries with EVN's wholly invested capital will not be used to buy shares at other subsidiaries of EVN when being equitised.

The draft also has clear regulations on the mobilisation and use of capital, selling of debts, salaries for labourers and the retail prices of electricity.

EVN plans to withdraw capital worth VND2.07 trillion (US$97.64 million) from seven non-core companies by 2015.

The withdrawal, as part of its master restructuring plan, will ensure that EVN focuses on its core business of power production and trading to better serve society and the economy.

In 2013, EVN had withdrawn some VND252 billion ($12 million) from An Binh Bank and VND26 billion ($1.22 million) from GIC.

Last October, the Government Inspectorate announced that by the end of 2011, EVN's non-core investments reached VND121 trillion ($5.76 billion) and surpassed its charter capital of almost VND77 trillion ($3.7 billion). Despite the large non-core investments, EVN reported losses of VND2.2 trillion ($104.7 million). — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Mekong summit calls for greater riparian co-operation Mekong summit calls for greater riparian co-operation

Mekong River riparian countries have improved co-operation since the first Mekong River Commission (MRC) summit held in Thailand four years ago, a senior Vietnamese official has said.

Viet Nam attempts to hold back deadly measles strain Viet Nam attempts to hold back deadly measles strain

The head of Viet Nam's General Department of Preventive Medicine, Tran Dac Phu, announced on Tuesday that the department would work to contain the outbreak of measles over the coming months.

Da Nang plans a greener future Da Nang plans a greener future

The central city of Da Nang will have a face-lift as it becomes a green city following the Prime Minister's decision on the city's adjusted master urban plan for 2030 and 2050.

Delta households face water shortage Delta households face water shortage

More than 377,000 people in the Cuu Long (Mekong) Delta face a fresh water shortage because of saline water intrusion in the area, according to the National Centre for Rural Clean Water Supply and Environmental Sanitation.

Ha Noi to host National Shooting Cup 1    Ha Noi to host National Shooting Cup

The National Shooting Cup is scheduled to take place in the Ha Noi-based National Sports Training Centre from April 16 to 24.