EVN effectively performs divestment and corporate restructuring

That was the confirmation of Vice President of Vietnam Electricity (EVN) Nguyen Xuan Nam with evn.com.vn on June 4, 2019.

According to Mr. Nam, in execution of the policy on rearranging and restructuring state owned enterprises of the Party and the Government, in recent years EVN has taken drastic actions and achieved many positive results.

EVN’s Vice President Nguyen Xuan Nam talked with evn.com.vn on June 4, 2019

In the period of 2011 - 2015, EVN completed all the restructuring goals and tasks under the direction of the Prime Minister. The Group completed its divestment in 100% of enterprises not related to EVN's core business lines.

In addition, EVN completed its capital withdrawal from EVNFinance in compliance with the Law on Credit Institutions, thereby earned more than VND 2,044 billion, with a capital surplus of VND 64 billion, preserved and developed EVN's investment capital.

EVN has finished the rearrangement and reorganization of EVN’s member companies towards more specialization in electricity production stages, focusing on core and relevant business lines of EVN.

In the period 2016 - 2020, EVN has accomplished many important targets and tasks in equitization and divestment. Specifically, the transformation of Power Generation Corporation 3 (EVNGENCO 3) into a joint stock company has been finished since October 1, 2018. Shortly after that, EVNGENCO 3’s stocks (stock code PGV) were traded on the UpCom stock exchange.

EVN has fulfilled the capital reduction and withdrawal in 2 of the 6 targeted enterprises under Decision No. 852/QD-TTg, earning more than VND 296 billion and a capital surplus of nearly VND 63 billion.

EVN has become the first state-owned economic group to promulgate a set of general corporate governance regulations applicable throughout the Group; at the same time, EVN has set up a transparent internal control system from EVN parent corporations to its daughter companies, making an important contribution to risk prevention and improving the governance efficiency of the Group.

EVN has issued a set of indicators to evaluate the performance of member companies based on balanced score card method in corporate governance, which serves as a basis to assess the performance of companies and their top management.

In addition, EVN has signed authorization contracts to authorize representatives to manage EVN’s or EVN’s Corporations’ equities in subsidiaries and affiliated companies. This is an important legal basis that binds rights, obligations and responsibilities of representatives; thereby attaching legal responsibilities of representatives, top managers with performance and operational efficiency of subsidiaries or affiliated companies.

Sharing about the divestment roadmap in the coming time, Mr. Nam added that EVN has been actively implementing procedures for capital withdrawal from enterprises under Decision No. 852/QD-TTg with the goal of basically accomplishing the capital withdrawal in 2019 (it should be 2020 as planned).

In addition, all qualified subsidiaries and affiliated companies in the Group have registered for listing and trading on the stock market, ensuring public information disclosure, transparency, and being capitalized in the market much higher than the owner's equity value.


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