Attending the signing ceremony, on EVN's side were President and CEO  Nguyen Anh Tuan, Board Member Vo Hong Linh, Vice President Nguyen Xuan Nam, and leaders of functional departments.

On VDB's side was General Director Dao Quang Truong; members of the Board of Directors Nguyen Chinh Tuan and Pham Duong Linh; Standing Deputy Secretary of the Party Committee, Head of the Supervisory Board Nguyen Gia The, Deputy General Director Nguyen Long Van, and leaders of VDB's member units.

According to the Cooperation Agreement, EVN and VDB keep identifying themselves as comprehensive partners of each other and wish to cooperate in areas suitable to the capacity, business strategy, and strengths of the parties. The parties commit to maintaining comprehensive, long-term, effective, and mutually beneficial cooperation in related fields of operation towards the goals of EVN and VDB.

EVN and VDB jointly promote activities to support each other in expanding the development of each party's operations to optimally exploit the strengths of the parties.

EVN’s President and CEO Nguyen Anh Tuan speaking at signing ceremony

Regarding the scope, EVN and VDB cooperate in arranging State investment credit to finance investment projects implemented by EVN in the list of projects eligible for State investment credit issued together with the Government's Decree on State investment credit and in accordance with relevant legal provisions.

In the 2024 - 2030 period, the total amount of State investment credit that VDB plans to finance EVN's projects (on the list of important and priority investment projects in the National Power Development Plan for the 2021 - 2030 period, with a vision to 2050) is about VND 50,000 billion.

VDB’s General Director Dao Quang Truong delivering speech

To meet the country's electricity demand, in addition to the investment by other enterprises, in the period of 2025 - 2030, EVN must further promote investment in the construction of power generation and power grid projects with a total annual investment cost of up to hundreds of thousands of billion VND. With such a large investment demand, in addition to its own financial resources such as basic depreciation capital, development investment budget, capital obtained from equitization of enterprises, the Group must mobilize external financial resources in many forms: borrowing from domestic and foreign commercial banks, borrowing from the State's investment credit sources, etc.

According to EVN’s President and CEO, this cooperation will partly help EVN find new financial sources to finance investment projects in the following years, in the context that most domestic commercial banks have currently exceeded their credit limits for EVN and related parties, and borrowings from foreign credit institutions also faces many difficulties due to current legal regulations.

EVN and VDB leaders signing Cooperation Agreement

According to VDB’s General Director Dao Quang Truong, Vietnam Electricity is a large and prestigious customer of VDB. VDB highly appreciates EVN in the cooperation process. Up to now, the State investment credit sources that VDB has provided to EVN to invest in power projects have been effective, without generating bad debts. The projects have been put into operation and have made important contributions to the socio-economic development of the country.

The General Director of VDB affirmed that VDB is committed to preparing long-term financial sources to sufficiently meet the financing needs for EVN's projects within the scope of the credit cooperation; VDB will coordinate best to resolve difficulties and problems in the appraisal and disbursement process, ... in the spirit of support, ensuring harmony of interests between the two sides, etc.

The signing ceremony of the cooperation agreement on State investment credit financing between EVN and VDB is an important milestone in the cooperative relationship between the two sides, opening a new phase of cooperation, aiming to best exploit the potential of each side. This cooperation will help to unlock the State's investment credit sources according to the Government's new regulations, contributing to promoting the country's socio-economic development, improving people's lives, and creating a premise for life and production sectors.

Translator: Vân Ly