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Transformation of the electricity industry since the equitization of EVNGENCO2

Update: July, 14/2021 - 10:48

Electricity is an industry with huge implications for national energy security making it challenging for companies in this field to privatize. However, the recent determination to equities power enterprises like Power Generation Corporation 2 (EVNGENCO2) attests to the efforts to reform this industry.

EVNGENCO2 and Sembcorp sign a strategic agreement at a ceremony held both online and offline on July 11.

Assoc Prof Dr. Vu Minh Khuong of the National University of Singapore said Vietnam aspires to become a developed country by 2045, and its electricity industry would play a special role in it. 

It is a pioneer and spearhead in reforming and exploiting the strengths of the times, especially the digital revolution, globalization, and sustainable development, Khuong said.

To ensure the national energy security as the foundation and important premise for socio-economic development and social progress. The equitization of power generation companies under Electricity of Vietnam (EVN) is an urgent and strategic requirement for modernizing its management and enhancing the competitiveness and ensure rapid, efficient and sustainable development of the electricity sector, he added.

Implementing the equitization strategy in Politburo Resolution No. 55/NQ-TW on Orientations of the Viet Nam’s National Energy Development Strategy to 2030 and outlook to 2045, EVNGENCO2 has gradually restructured and transformed its operational model in line with domestic situation and international economic development trends.

EVNGENCO2 had put great effort in restructuring its company and since the July first 2021, EVNGENCO2 officially and successfully converted into a joint-stock company

To achieve this, the EVNGENCO2 management said, the equitization was considered as the first priority and main focused as well as a major political mandate of EVNGENCO2 since 2018.

EVNGENCo2 has worked with several companies and found that Sembcorp Industries of Singapore shares many similarities like EVNGENCO2 joint-stock company such as: both are public listed companies; governments own a large stake; electricity generation is main business.

Currently EVN owns 99.9 percent of EVNGENCO2 while Temasek Holding, Singapore’s sovereign fund, has a 49.5 percent stake in Sembcorp.

2021 is the 25th anniversary of Sembcorp’s presence in Vietnam with the mark of the development of 10 Vietnam - Singapore Industrial Parks (VSIPs) spanning 3 regions: North - Central - South and Phu My 3 BOT Power Plant.

Mr. Roy Kho Ngee Seng, Consulate General of Singapore in Ho Chi Minh City, speaks at the signing ceremony between EVNGENCO2 and Sembcorp.

Sembcorp has achieved many achievements and awards in Singapore and internationally, notably in 2020 it ranking 8th in the Singapore Governance and Transparency Index, Sembcorp is also a pioneer in digital transformation.

Thus EVNGENCO2 believes Sembcorp is the right partner and any cooperation between them would achieve fruitful results.

Thus, at a ceremony held to launch the Power Generation Corporation 2 – Joint Stock Company on July 11, EVNGENCO2 and Sembcorp Industries signed a strategic cooperation agreement.

As a leading renewable energy player, Sembcorp has over 3,300 megawatts of renewable energy assets around the world. Sembcorp will share experiences in corporate governance, digital transformation, and the development of renewable energy in Vietnam.

Mr. Koh Chiap Khiong, CEO – Singapore and Southeast Asia at Sembcorp Industries, said his “Vietnam is a core market and Sembcorp would join hands with EVNGENCO2 to explore mutual collaboration to support the Vietnam market in the energy transition and its decarbonization goals to be more sustainable future”.

The ceremony was witnessed by Mr. Mai Phuoc Dung - Vietnam’s Ambassador in Singapore and Mr. Roy Kho Ngee Seng - Consulate General of Singapore in Ho Chi Minh City, signifying the importance of this bilateral cooperation and demonstrated the friendship and great support from two countries.

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