Prime Minister Nguyen Xuan Phuc has approved the equitisation of electricity-generating companies belonging to three major State-owned corporations.

However, the Government will continue to retain control over electricity transmission and the construction and operation of large hydropower dams, a recent report on the Government website said.

The equitisation of the electricity-generating companies under the Electricity of Vietnam (EVN), Vietnam National Oil and Gas Group ( PetroVietnam) and Vietnam National Coal and Mineral Industries Group (Vinacomin) will be completed by 2018.

Until two years after the equitisation, the parent corporations will continue to hold a majority stake in the companies.

After the two years, the parent corporations will consider reducing their stake to below 50 per cent and establishing the companies as separate entities.

The equitisation is part of a five-year (2016-20; with vision until 2050) project to complete restructuring of the electricity sector. The PM has assigned the Ministry of Industry and Trade (MoIT) to collect feedback on the project.

The report cited the PM as saying that improved business effectiveness, transparency, equality and healthy competition must be ensured during the restructuring process that seeks, among other things, to build a competitive electricity wholesale market.

Measures to be taken must ensure sufficient power supply for all socio-economic activities, the PM stressed.

The roadmap for restructuring the sector should suit operations of the wholesale electricity market and include preparations for developing an electricity retail market.

The sector should attract “reasonable investment” from the larger society (outside the State Budget), the report said.

It said the PM has also asked MoIT to work with EVN to review the equitisation process as well as State management of the power sector in order to make the restructuring work more efficient. 

VNS