Overcoming difficulties and challenges
Over the period of 2011 – 2015, EVN was adversely affected by: difficulties in mobilizing capital for production and investment due to high inflation and interest rates; serious financial imbalance due to losses in power production and business activities during 2010 – 2011 and unexpected droughts, hurricanes, floods every year that have exaggerated the inherent difficulties.
Therefore, in order to increase revenues, optimize cost and improve labour-use efficiency, EVN has adopted a range of solutions i.e. reorganizing production and business activities, specializing subsidiaries’ operations and making divestment of non-core businesses.
EVN proudly owns Son La Hydropower Plant as the biggest hydropower plant in the South East Asia
As a result, EVN has successfully accomplished its main mission in supplying sufficient power to the country. Power loss rate has fallen by 2.15%, or 0.43% on average every year and reached 8% at the end of 2015 (attained the goals assigned by the Prime Minister).
Capital for investment and construction have also been acquired sufficiently. During 5 years, the total investment amount of EVN as a whole has exceeded VND 492,000 billion (2.42 times as high as the amount in the period of 2006 – 2010).
In addition, EVN has made great effort to overwhelmingly the investment plan bringing electricity to rural areas and islands during 2011 – 2015 with the total investment amount of more than USD 640 million and nearly VND 3,500 billion to implement rural electrification investment projects all over the country, focusing more on ethnic minorities in the Northern mountainous area, Central Highlands and South West region. Labour productivity during 2011 – 2015 increased by 6.8% per year on average, of which the labour productivity in 2015 was 10% higher than 2014. These achievements attained over the last five years have motivated EVN and its subsidiaries to continue fulfilling their objectives in the upcoming time.
Keeping pace with the region
Between 2016 and 2020, EVN has aimed at striving to become an enterprise with the following competences:
- Possessing advanced and highly specialized technology qualification and management capability;
- Maintaining efficient and sustainable operation;
- Playing a key role in securing sufficient power supply for socio-economic development and national defense security;
- Positively contributing to the rapid and sustainable development, the efficient international economic competition and integration of power sector in Vietnam;
- Gradually participating in the process of completing and developing electricity market according to the road map set forth by the Government;
- Achieving efficiency in operation and improvement in providing services;
- Becoming one of the four leading corporations in ASEAN countries.
At the Conference on conducting the program “Enhancement of production - business efficiency and labour productivity during 2016 – 2020” (early January 2016), leaders of power corporations, power generation corporations and the National Power Transmission Corporation presented their programs on enhancing production – business efficiency and labour productivity in the period of 2016-2020. In which, they analyzed specifically the current status, put forward specific objectives and propose appropriate solutions for implementation in each corporation. Mr. Le Van Phuoc – President and CEO of Ho Chi Minh City Power Corporation said, in addition to goals assigned by EVN, EVNHCMC set up its own objectives, for examples, home-collecting electricity bills outdated by the year 2017, un-manned substations successfully established by 2018, conventional electricity meter completely replaced with Smart AMR electricity meter by 2020, 100% of the medium voltage grid equipped with mini – SCADA.
Highly appreciating the objectives and solutions of power corporations, EVN President and CEO Mr. Dang Hoang An stressed that: “Any enterprises which desires for sustainable development all have to run efficiently. Therefore, EVN and all the subsidiaries shall immediately put the paper program into action since 2016. It is so essential that the targets should be specified and disseminated thoroughly to every single unit and employee”.
The President and CEO requested that objectives and goals of production – business efficiency and labour productivity must be developed in conformity with the current situation and specific features of each organization. During the implementation, it is important to specify major or key-point goals which could be achieved efficiently, then it shall be immediately implemented rather than delayed until 2020. At the same time, decentralization associated with inspection and supervision should be intensified. The core objective of 2016 – 2020 period is not only the fulfillment of the program “Enhancement of production – business efficiency and labour productivity”, but more importantly the sustainable development of Vietnam Electricity.
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Some major goals of the 5-year plan of 2016 - 2020:
- Average growth rate at 10.5 - 11%/year;
- Average labour productivity increases by 8 - 10%/year.
- Electricity-access Index from 2016 decreases to only 10 days;
- Capital mobilized for investment reaches VND 610,000 billion for the period of 2016 - 2020 ;
- Projects under the Government approved Program of supplying power to rural, mountainous and island areas during the period of 2013-2020 aiming at ensuring power supply to most of rural households and completing process of national-wide electrification.
Up to 2020:
- Power sales: 234 - 240 billion kWh;
- Domestically produced and imported power of the whole system: around 262 - 270 billion kWh;
- Power produced by generation corporations of EVN: around 35 - 40% of the total demand;
- Power loss during transmission and distribution:6.5%;
- Average power sales per employee: 2.5 million kWh;
- Reliability of power supply: System Average Interruption Duration Index (SAIDI) SAIDI shall go down to 400 minutes/customer/year.
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