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In 2013, EVN had withdrawn some VND252 billion ($12 million) from An Binh Bank and VND26 billion ($1.22 million) from GIC.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

Woman steps up in fight to tackle drugs 2    Woman steps up in fight to tackle drugs

Since for Le Thi Nga "to live is to give," she thought nothing about joining the neighbourhood watch in her fourth quarter in District 1's Cau Kho Ward in 2009.

Tan Son Nhat Airport on verge of overloading 1    Tan Son Nhat Airport on verge of overloading

HCM City's Tan Son Nhat Airport will be stretched beyond capacity in the next two years, making construction of the new Long Thanh airport in Dong Nai Province more urgent than ever, experts warn.

BIDV teams up with Japanese banks to facilitate investment BIDV teams up with Japanese banks to facilitate investment

The Bank for Investment and Development of Viet Nam (BIDV) has signed a memorandum of understanding (MoU) with two Japanese banks, namely Minato Bank and the Bank of Yokohama (BOY).

My Lai survivor writes book 1    My Lai survivor writes book

Pham Thanh Cong, 57, was one of only a dozen survivors of 1968's infamous My Lai massacre. More than four decades later, he has written a book about the mass murder, in which American soldiers killed 504 unarmed civilians.

Imported brews, grub at Ha Noi's Oktoberfest 1    Imported brews, grub at Ha Noi's Oktoberfest

A celebration of Germany's Oktoberfest will be held in Ha Noi on Thursday and Friday.