The Commission for Economic Affairs worked with EVN - Photo: PT
98.69% of rural households have access to the national power grid
At the meeting, Mr. Dang Hoang An – EVN’s President and CEO reported that in execution of Decision No. 26-KL/TW dated October 24, 2003 of the Politburo, during the past years, EVN has satisfied adequately electricity demand for production, business activities, residential life of the people and national security and defense.
At the same time, EVN has performed business activities effectively, preserved and developed its capital resources, improved operation productivity. The labor productivity as per power sales until the end of 2016 attained 1.73 million kWh per person, which means the labor productivity has increased by 8.1% every year during the period 2011 – 2016.
EVN’s President and CEO Dang Hoang An stated that from 2017 to 2020, EVN sets a target to become an enterprise possessing advanced management and technology competence, and high specialization level; operating efficiently and sustainably; playing a leading role in securing sufficient electricity supply to the socio – economic development and national defense of the country. EVN has taken part in completing and developing the electricity market, providing services with increasingly better quality, striving to become among the top four power utilities in ASEAN.
Preparing for new movements
According to EVN’s President and CEO, the current biggest challenge confronted by EVN is requirement for investment capital on average of VND 130 – 140 thousand billion per year in order to meet the load demand of the country with the annual average growth rate of more than 10%.
In accordance with the Revised Master Plan No.7, from 2017 to 2030, the power sector will need around USD 128 billion of investment capital for power projects. In the short time, until 2020 about USD 48 billion will be needed.
In order to secure sufficient electricity supply to the country, EVN will manage to arrange a huge amount of finance for capital construction projects – Photo: Viet Cuong
Equitization, particularly equitization of power generation corporations in the short run, through which EVN will retain 51% of chartered capital and after 2019 will divest totally from these corporations, will be a really tough task, considering that the capital market in Vietnam is relatively small.
Concluding at the meeting, the Head of the Party Central Committee’s Commission for Economic Affairs Mr. Nguyen Van Binh highly appreciated the accomplishments of EVN, those gained not only during execution of Conclusion No. 26-KL/TW of the Politburo but also during the whole history of development of Vietnam power sector.
State Owned Enterprises (SOE) in general and EVN in particular have accomplished tasks assigned by the Party, the State and the people. EVN needs to prepare for new development steps; to consider and put forward solutions to resolve tariff related issues. This is a fundamental element for promoting the equitization process, creating incentives to attract investment capital for power projects, as well as developing and completing the competitive electricity market in the coming time.
EVN needs to gradually build its brand name in the international market, and thereby obtain an increasing credit rating level. "With such currently promising potentials, EVN can absolutely realize this objective”.
EVN will be a typical utility to execute the Resolution No. 5 of the 12th Party Central Committee on completing socialist oriented market economy regimes. The Party Central Committee’s Commission for Economic Affairs will direct and support EVN to promptly cope with difficulties to complete the tasks assigned by the Party, the State and the people.