Enterprise restructuring: EVN preserves and develops State capital

Implementing the policy on arranging and restructuring State-owned enterprises of the Party and Government, in recent years, Vietnam Electricity (EVN) has organized drastic implementation and achieved many good results.

The divestment will be completed in 2019

In the period 2011-2015, all the objectives and tasks of restructuring were completed by EVN under the direction of the Prime Minister in Decision No. 1782/QD-TTg dated 23rd November 2012.

In particular, the Group completed its divestment in 100% of enterprises not related to EVN’s main business lines. Thereby, more than VND 2,341 billion was collected, capital surplus was VND 127 billion, investment capital of state owners were preserved and developed.

The rearrangement and reorganization of enterprises in the Vietnam Electricity has been completed by EVN in the orientation of specialization in the stages of power generation, focusing on the main and related business lines of EVN.

Illustrative photo

Entering into the period 2016-2020, EVN has accomplished many important targets and tasks in equitization and divestment. Specifically, the transfer of Power Generation Corporation 3 (EVNGENCO 3) to operate as a joint stock company from 1st October 2018 was done. Shortly thereafter, shares of EVNGENCO 3 (stock code: PGV) were traded on the UpCom stock exchange.

The Group conducted divestment and reduction of capital in 2 out of 6 enterprises subject to divestment under Decision No. 852/QD-TTg with more than VND 296 billion earned, higher than the book value of nearly VND 63 billion.

Currently, the divestment in the remaining enterprises is actively implemented by EVN, with the goal of basically completing the divestment in 2019.

All member and associated enterprises in the Group that meet the eligibility criteria have registered for listing, trading on the stock market and have a market capitalization much higher than the value of the owner’s investment capital.

Restructuring based on roadmap

The Group and its member units have been separately implementing operation management and repair services. A scheme on separation between power distribution and retailing will be completed in 2019, in order to speed up the competitive electricity retail market roadmap.

The Group has completed the scheme of transferring the National Load Dispatch Centre into One-Member Limited Liability Company and submitted to the Commission for the Management of State Capital at Enterprises by the end of 2018. The Commission is currently considering to submit to the Prime Minister for approval.

Pursuant to Decision No. 58/2016/QD-TTg of the Prime Minister dated 28th December 2016, in the  field of management of power distribution grid, 100% charter capital is owned by the State; the field of power retail shall be equitized in accordance with the roadmap for formation and development of power market levels, the State holds the capital at over 50% - 65%.

Following the direction of the Government, the Ministry of Industry and Trade, EVN has instructed the power corporations to conduct the accounting separately for power distribution and retailing from 1st January 2016, at the same time, to approve the organizational model of district-level Power Companies/Units in the Group in the direction of rearranging and reorganizing the power operation and trading management departments, thereby, step by step separating the organization work, facilitating the separate accounting between power distribution and retailing costs in the period of Competitive electricity wholesale market, proceeding to separate the organization between these two stages in the Competitive electricity retail market.

Since 2017, the power corporations have actively and step by step implemented this task effectively.

All restructuring factors are aimed at forming a competitive electricity retail market. A pilot Scheme on competitive electricity retail market is being developed by EVN, which is expected to be submitted to the Ministry of Industry and Trade for approval in July 2019; The IT Infrastructure Project serving for the complete electricity wholesale market is under construction investment and expected to be completed by 2020, etc.

To strengthen the governance model

EVN has become the first state-owned economic Group promulgating a set of General governance regulations applicable throughout the Group; at the same time, setting up an internal control system from the EVN parent company to its member enterprises, making an important contribution to risk prevention and improving the governance efficiency in the Group.

The Group issued a set of indicators to assess the performance of member enterprises under the balanced score card method in corporate governance as a basis to assess the performance of enterprises and their managers; to strengthen the public corporate governance model for public and non-public joint stock companies in the Group under the provisions of Decree No. 71/2017/ND-CP.

EVN has signed contracts to authorize the Representatives to manage the capital of EVN and Corporations under EVN in its member and associated enterprises. This is an important legal basis that bind to the rights, obligations and responsibilities of the Representatives; thereby attaching the legal responsibility of the Representatives, the Managers of  enterprises to the results and performance of the enterprises;

Parent company - EVN and member enterprises have made full and timely disclosure of information in accordance with regulations. Particularly, in 2018, EVN was rated at BB by the International Consultancy Organization Fitch Rating in international credit rank, being equal to the national credit rating. The Group was considered one of the leading state-owned enterprises in information transparency.

In the period 2019-2020, EVN will continue to focus on speeding up the implementation of tasks, solutions on arranging, restructuring enterprises, equitization and divestment under the general orientation of the Party and State, with the determination to complete the targets and tasks in the Overall scheme on arranging and restructuring enterprises under Vietnam Electricity in the period 2017-2020, which has been approved by the Prime Minister.

CONTACT INFORMATION:

Communication Department - Vietnam Electricity

E-mail: banqhcd@evn.com.vn

Tel: 04.66946405/66946413; Fax: 04.66946402

Address: No. 11 Cua Bac Street, Truc Bach Ward, Ba Dinh District - Hanoi;

Website: www.evn.com.vnwww.tietkiemnangluong.vn


  • 02/06/2019 10:31
  • evn.com.vn