Power Company No. 1 and Ha Thanh Securities signed a comprehensive strategic cooperation agreement on Aug. 30.
Under the agreement, the power company will contribute capital to Ha Thanh Securities, while Ha Thanh is expected to pour capital in power transmission, real estate and finance services projects invested by Power company No. 1.
Ha Thanh will become a partner in providing outline consultation for equitisation, share issuance, shareholder management and other services as the power company carries out its equitisation.
The power company will work with Ha Thanh to open transaction units and stock order agents at the power company’s several locations.
The General Director of Electricity of Viet Nam (EVN), Pham Le Thanh, said that the agreement aimed to fully utilise the two companies’ potential.
Cooperation enhancement between Ha Thanh Securities and Power Company No. 1 is regarded as the first step in the development of EVN’s multi-sectoral economic growth.
Source: VNA
Showing posts with label EVN. Show all posts
Showing posts with label EVN. Show all posts
Friday, August 31, 2007
Monday, July 30, 2007
Vietnam bank to underwrite VND720 bln bond
The telecoms arm of dominant utility Vietnam Electricity (EVN) group has signed a contract for a domestic bank to underwrite a VND720 billion (US$44.6 million) corporate bond, local media reported Saturday. EVN Telecom's bond might raise more funds than the offer thanks to investor's interest, An Binh Bank's Chief Executive Luu Duc Khanh was quoted by the Liberation Saigon daily as saying, after EVN Telecom signed the contract with An Binh Bank on Friday.
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
Friday, July 27, 2007
New non-life insurance company makes debut
The Global Insurance Company (GIC), which offers non-life insurance, reinsurance and finance investment services, made its debut in Ha Noi on July 26.
The company’s shareholders include Electricity of Viet Nam (EVN), Dong A Bank (EAB), Viet Nam National Reinsurance Cooperation (Vinare), Song Da Urban and Industrial Zone Investment and Development JSC (Sudico) and Viet Nam Air Service Corporation.
To date the company has reached a revenue of nearly 150 billion VND, providing more than 50 insurance products to its clients nationwide.
Speaking at the ceremony, chairman of the board of directors, Ho Nam Thang, said the company’s charter capital is planned to reach 1,000 trillion VND (62.7 million USD) by 2010.
If it’s successful in achieving its target revenue of 300 billion VND (18.7 million USD) this year, GIC would be one of the top five leading insurance companies in the country’s non-life insurance sector.
During the launch ceremony, Electricity of Viet Nam signed a comprehensive cooperative agreement with GIC.
Under the agreement, the two sides will promote joint-venture activities and make capital contributions in order to expand and develop other multilateral businesses activities.
GIC also inked several contracts with partners such as Bao Viet group, Vietnam Air Service Corporation, Power Transmission Company 3 and others.
Source: VNA
The company’s shareholders include Electricity of Viet Nam (EVN), Dong A Bank (EAB), Viet Nam National Reinsurance Cooperation (Vinare), Song Da Urban and Industrial Zone Investment and Development JSC (Sudico) and Viet Nam Air Service Corporation.
To date the company has reached a revenue of nearly 150 billion VND, providing more than 50 insurance products to its clients nationwide.
Speaking at the ceremony, chairman of the board of directors, Ho Nam Thang, said the company’s charter capital is planned to reach 1,000 trillion VND (62.7 million USD) by 2010.
If it’s successful in achieving its target revenue of 300 billion VND (18.7 million USD) this year, GIC would be one of the top five leading insurance companies in the country’s non-life insurance sector.
During the launch ceremony, Electricity of Viet Nam signed a comprehensive cooperative agreement with GIC.
Under the agreement, the two sides will promote joint-venture activities and make capital contributions in order to expand and develop other multilateral businesses activities.
GIC also inked several contracts with partners such as Bao Viet group, Vietnam Air Service Corporation, Power Transmission Company 3 and others.
Source: VNA
Friday, July 13, 2007
Power shortage seen less severe than expected
State utility Electricity of Vietnam (EVN) has said a shortage of electricity would not be as severe as earlier forecast for it has found solutions to deal with a reduction in gas supply for a major southern power complex.
The Nam Con Son Pipeline was suspended from Monday as scheduled and the down-time lasts eight days under a plan to install a new air compressor for the platform in offshore Block 06.1 off the coast of Vung Tau City.
The suspension of gas supply was earlier believed to cause a serious power shortage as Phu My 1, Phu My 3 and Phu My 2.2 power stations with a combined output capacity of 4,000MW in the Phu My power complex in Ba Ria-Vung Tau Province run on gas supplied by the Nam Con Son project.
In a report, the electricity supply regulator AO of EVN forecast the power shortage in the daytime would reach 1,000MW a day.
However, Ngo Son Hai, deputy director of AO, said the office had asked local electricity companies to practice thrift. EVN will make the most of power stations that will switch from running on gas to diesel oil.
AO experts have forecast a power shortage of around 400MW in peak hours.
During the downtime of Block 06.1, Dinh Co gas terminal will not be shut down but the gas flow will be reduced. Therefore, some small-scale power plants with a total generation capacity of 1,000MW are continuing running on gas and other power plants with a total capacity of 3,000MW in cities and provinces will be fueled by diesel oil, Hai explained.
Hai stressed that if EVN effectively practiced electricity savings, it could ensure sufficient power supply.
EVN also plans standby solutions to deal with all possible contingencies to limit electricity cuts. In case of a huge power shortage, EVN will cut electricity supply for household users to ensure sufficient power for the manufacturing sector.
Block 06.1 is scheduled to close three times - July 9-14, August 29-September 6, and September 29-30.
According to BP, the operator of the Nam Con Son Pipeline project, Block 06.1 will be suspended for 14 days in September but the Nam Con Son Pipeline would be down for only eight days, and after eight days, the pipeline would potentially continue transportation of a maximum of 2.7mil cubic meters of gas a day from KNOC's Block 11.2.
Lan Tay and Lan Do gas fields in Block 06.1 that are being tapped by India's ONGC with a 45% stake, BP Vietnam (35%) and PetroViemam (20%) can supply an average three billion cubic meters of gas a year for the Phu My power complex over 20 years to produce 12bil kWh a year, 40% of the current national demand.
Source: VNE
The Nam Con Son Pipeline was suspended from Monday as scheduled and the down-time lasts eight days under a plan to install a new air compressor for the platform in offshore Block 06.1 off the coast of Vung Tau City.
The suspension of gas supply was earlier believed to cause a serious power shortage as Phu My 1, Phu My 3 and Phu My 2.2 power stations with a combined output capacity of 4,000MW in the Phu My power complex in Ba Ria-Vung Tau Province run on gas supplied by the Nam Con Son project.
In a report, the electricity supply regulator AO of EVN forecast the power shortage in the daytime would reach 1,000MW a day.
However, Ngo Son Hai, deputy director of AO, said the office had asked local electricity companies to practice thrift. EVN will make the most of power stations that will switch from running on gas to diesel oil.
AO experts have forecast a power shortage of around 400MW in peak hours.
During the downtime of Block 06.1, Dinh Co gas terminal will not be shut down but the gas flow will be reduced. Therefore, some small-scale power plants with a total generation capacity of 1,000MW are continuing running on gas and other power plants with a total capacity of 3,000MW in cities and provinces will be fueled by diesel oil, Hai explained.
Hai stressed that if EVN effectively practiced electricity savings, it could ensure sufficient power supply.
EVN also plans standby solutions to deal with all possible contingencies to limit electricity cuts. In case of a huge power shortage, EVN will cut electricity supply for household users to ensure sufficient power for the manufacturing sector.
Block 06.1 is scheduled to close three times - July 9-14, August 29-September 6, and September 29-30.
According to BP, the operator of the Nam Con Son Pipeline project, Block 06.1 will be suspended for 14 days in September but the Nam Con Son Pipeline would be down for only eight days, and after eight days, the pipeline would potentially continue transportation of a maximum of 2.7mil cubic meters of gas a day from KNOC's Block 11.2.
Lan Tay and Lan Do gas fields in Block 06.1 that are being tapped by India's ONGC with a 45% stake, BP Vietnam (35%) and PetroViemam (20%) can supply an average three billion cubic meters of gas a year for the Phu My power complex over 20 years to produce 12bil kWh a year, 40% of the current national demand.
Source: VNE
Thursday, July 12, 2007
Opinions differ on power trading company project
The Department of Electricity Regulation under the Industry Ministry on July 10 convened relevant ministries and agencies to discuss the project to establish a power trading company (PTC) initiated by the Electricity of Vietnam (EVN) group.
The group has submitted to the Government its project to set up a PTC under the mode of a joint-stock company, which, it stressed, will be independent from EVN.
According to the Department of Electricity Regulation’s viewpoint, the establishment of a PTC is necessary for forming a competitive power market by 2009. However, it said the PTC must ensure the power supply at rational prices, while also attracting investment.
Both the Finance Ministry and the Energy Department of the Industry Ministry are concerned of the establishment of the suggested PTC model in the context that there is still the pressure on power prices and legal documents have not been uniform.
Representatives from the Government Office stressed the Government could not subsidise the PTC in any forms, particularly after Vietnam’s joining the World Trade Organisation.
All the viewpoints from relevant ministries and agencies will be collected to be submitted to the Industry Minister and the Prime Minister within July.
Source: VNE
The group has submitted to the Government its project to set up a PTC under the mode of a joint-stock company, which, it stressed, will be independent from EVN.
According to the Department of Electricity Regulation’s viewpoint, the establishment of a PTC is necessary for forming a competitive power market by 2009. However, it said the PTC must ensure the power supply at rational prices, while also attracting investment.
Both the Finance Ministry and the Energy Department of the Industry Ministry are concerned of the establishment of the suggested PTC model in the context that there is still the pressure on power prices and legal documents have not been uniform.
Representatives from the Government Office stressed the Government could not subsidise the PTC in any forms, particularly after Vietnam’s joining the World Trade Organisation.
All the viewpoints from relevant ministries and agencies will be collected to be submitted to the Industry Minister and the Prime Minister within July.
Source: VNE
Friday, June 29, 2007
EVN mulls blackouts for July
Vietnam’s State-run electricity provider is considering rolling blackouts next month when it is scheduled to shut down a major oil field for maintenance, company officials announced this week.
Electricity of Vietnam could cut off power to homes for one to two hours a day during periods of high demand, said Ngo Son Hai, deputy director of the company’s National Electricity Dispatching Centre.
The company used rolling blackouts in May to contend with another shortage. The latest conservation efforts could stretch into September, Hai said.
The power company is scheduled to close down the Nam Con Son oil field in three stages; from July 1 to 6, August 29 to September 16 and finally September 20 to 30. The maintenance was planned one year ago.
The field provides fuel for generators at the Phu My power complex, which produces 4,000 MW, one-third of the country’s total production. Electricity of Vietnam is expecting a shortfall of almost 1,000MW.
Thermo-electric plants in the north, including those in Pha Lai and Uong Bi, would also be closed for maintenance, adding to the shortage, Hai said. The hot July temperatures also cause hydro-electric reservoirs to evaporate.
Electricity of Vietnam planned to increase the amount of power it buys from China, adjust its maintenance schedule and maximising output at other plants, Hai said.
The company was guarding against shortages at hospitals, schools, military bases and other public security institutions, he said.
The announcement of blackouts was met with disapproval by-homeowners and agencies like the Vietnam Electrical Industry Association, which criticised the timing of the maintenance at Nam Con Son.
The work comes as water levels are as their lowest and as thousands of students take university entrance exams.
Source: VNE
Electricity of Vietnam could cut off power to homes for one to two hours a day during periods of high demand, said Ngo Son Hai, deputy director of the company’s National Electricity Dispatching Centre.
The company used rolling blackouts in May to contend with another shortage. The latest conservation efforts could stretch into September, Hai said.
The power company is scheduled to close down the Nam Con Son oil field in three stages; from July 1 to 6, August 29 to September 16 and finally September 20 to 30. The maintenance was planned one year ago.
The field provides fuel for generators at the Phu My power complex, which produces 4,000 MW, one-third of the country’s total production. Electricity of Vietnam is expecting a shortfall of almost 1,000MW.
Thermo-electric plants in the north, including those in Pha Lai and Uong Bi, would also be closed for maintenance, adding to the shortage, Hai said. The hot July temperatures also cause hydro-electric reservoirs to evaporate.
Electricity of Vietnam planned to increase the amount of power it buys from China, adjust its maintenance schedule and maximising output at other plants, Hai said.
The company was guarding against shortages at hospitals, schools, military bases and other public security institutions, he said.
The announcement of blackouts was met with disapproval by-homeowners and agencies like the Vietnam Electrical Industry Association, which criticised the timing of the maintenance at Nam Con Son.
The work comes as water levels are as their lowest and as thousands of students take university entrance exams.
Source: VNE
Wednesday, June 20, 2007
Citigroup sign Vietnam finance deals
Citigroup said on Tuesday it has signed financing deals with three major Vietnamese companies to provide loans, banking services and consultation on a domestic bond issue.
A Citigroup statement said it signed the agreements in New York for undisclosed amounts with dominant state utility Vietnam Electricity (EVN) group, Vietnam National Shipping Lines (Vinalines) and top coal producer Vinacomin.
None of the companies are listed.
Vietnamese President Nguyen Minh Triet arrived in New York on Monday in the first visit to the United States by a Vietnamese head of state since the U.S. war in Vietnam ended in 1975.
Citigroup would advise Vinacomin, also the largest mining firm, on a bond issue on Vietnam's markets, the statement said without elaboration.
"This financing will enable Vinacomin to diversify funding sources to meet increasing local demands in energy," Vinacomin chairman Doan Van Kien was quoted in the statement as saying.
Citigroup, which runs two bank branches in Vietnam, will provide EVN with financing, cash management and online banking products, the statement said.
The state utility needs $3 billion in annual investment to meet electricity demand, which has been growing at 16% to 17% a year, EVN Chief Executive Pham Le Thanh said.
Communist-ruled Vietnam has targeted economic growth of 8.5% this year and up to 8.7% in 2008.
Under the deal with Vinalines, Citigroup would finance the state-run firm to expand its fleet and build ports, the global financial services company said.
Vietnam joined the World Trade Organisation in January but foreign investors say it needs big improvements in infrastructure in sectors such as transport, telecoms, banking and financial services and energy.
Source: Reuters
A Citigroup statement said it signed the agreements in New York for undisclosed amounts with dominant state utility Vietnam Electricity (EVN) group, Vietnam National Shipping Lines (Vinalines) and top coal producer Vinacomin.
None of the companies are listed.
Vietnamese President Nguyen Minh Triet arrived in New York on Monday in the first visit to the United States by a Vietnamese head of state since the U.S. war in Vietnam ended in 1975.
Citigroup would advise Vinacomin, also the largest mining firm, on a bond issue on Vietnam's markets, the statement said without elaboration.
"This financing will enable Vinacomin to diversify funding sources to meet increasing local demands in energy," Vinacomin chairman Doan Van Kien was quoted in the statement as saying.
Citigroup, which runs two bank branches in Vietnam, will provide EVN with financing, cash management and online banking products, the statement said.
The state utility needs $3 billion in annual investment to meet electricity demand, which has been growing at 16% to 17% a year, EVN Chief Executive Pham Le Thanh said.
Communist-ruled Vietnam has targeted economic growth of 8.5% this year and up to 8.7% in 2008.
Under the deal with Vinalines, Citigroup would finance the state-run firm to expand its fleet and build ports, the global financial services company said.
Vietnam joined the World Trade Organisation in January but foreign investors say it needs big improvements in infrastructure in sectors such as transport, telecoms, banking and financial services and energy.
Source: Reuters
Strategic partnerships booming
Strategic partnerships have become a popular option for businesses, especially in the volatile circumstances of the growing domestic stock market and growing globalisation.
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
Monday, June 18, 2007
EVN and PetroVietnam join forces
PetroVietnam and fellow State-owned conglomerate Electricity of Viet Nam signed an agreement on investment in electricity projects.
Under the contract, PetroVietnam and EVN will invest in power plants in the province of Dong Nai, Vinh Tan, and in Laos and Cambodia.
The corporations will also invest in a five-star restaurant, commercial centre and 80-storey tower in My Dinh along with a host of other domestic projects.
They also plan to work together on power and oil projects in Venezuela and Cuba, said deputy general director of EVN Vu Quang Nam.
Source: VNS
Under the contract, PetroVietnam and EVN will invest in power plants in the province of Dong Nai, Vinh Tan, and in Laos and Cambodia.
The corporations will also invest in a five-star restaurant, commercial centre and 80-storey tower in My Dinh along with a host of other domestic projects.
They also plan to work together on power and oil projects in Venezuela and Cuba, said deputy general director of EVN Vu Quang Nam.
Source: VNS
Friday, June 15, 2007
EVN to form finance arm for debt issues
Vietnam Electricity, the country's dominant power utility, plans to establish a financial company to raise funds for energy investments by issuing bonds and other securities.
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
Tuesday, June 05, 2007
State-owned enterprises: strong or weak?
Looking at data of the General Department of Statistics and the Ministry of Finance on State-owned enterprises (SOEs), some noteworthy things can be seen.
In terms of quantity, by early 2006, Vietnam had 4,086 operating SOEs, accounting for only 3.6% of the total active enterprises in Vietnam, and equivalent to less than one-third of the total SOEs in the pre-renovation period. As the equitisation process is accelerated, this ratio will decrease more quickly.
Of the total number of SOEs, the number of SOEs that are managed by provincial and municipal governments is higher than that of those controlled by the central government (55.3% and 44.7%, respectively). The SOEs of the first kind have smaller scale and less modern equipment and technology as well as lower business effectiveness than the second, so the number of SOEs of this kind is high.
Moreover, the mechanism in which SOEs are managed by ministries and provincial People’s Committees is unsuitable to the market economy, which Vietnam is building because in the market economy, all businesses compete equally. This fact requires higher speed of equitisation.
Though the average labour scale of SOEs is higher than private and foreign-invested ones (499.5 workers compared to 28.2 and 330.2 people, respectively) the number of workers in SOEs is gradually declining in total number (from over 4.114 million in early 2002 to nearly 2.041 million in early 2006) and percentage of total number of workers in all kinds of businesses (from 53.8% to 32.7% in the same period).
Though the average capital of SOEs is higher than that of private and foreign-invested ones (VND327.5 billion compared to VND5.8 billion and VND132.5 billion), the percentage of capital of SOEs of the total capital of enterprises has declined, from 55.9% in 2001 to 54.9% in 2005, while that of private businesses has increased, from 12% to 25% in those same years.
According to the Finance Ministry, the total assets of SOEs reached VND747.4 trillion in early 2006. However, debts accounted for 22.2% and 76% of the volume were bank loans.
Except for SOEs that benefit from business advantages and enjoy special preferential policies, the business effectiveness of other SOEs is low.
The Vietnam Oil and Gas Group (PetroVietnam) earned revenue of VND42.31 trillion and VND24.924 trillion of profit; VND38.818 trillion and VND3.2 trillion for the Electricity of Vietnam (EVN) group; VND32.76 trillion and VND11.56 trillion for the Vietnam Post and Telecommunications Group (VNPT); VND22.788 and VND3.130 trillion for the Coal and Minerals Group.
SOEs that contributed greatly to the State Budget were the Vietnam Petroleum Import Export Corporation (VND8.252 trillion), the Vietnam National Tobacco Corporation (VND3.13 trillion), and the Saigon Beverage Corporation (VND2.13 trillion).
In the 2001-2005 period, the revenue of SOEs rose by 9.1% per annum only and it was just 7.2% in 2005, just a little bit higher than the increase of the consumer price index.
There were many ineffective SOEs and most of them operate in the fields of agriculture, paper, textiles, sericulture, sugar and sugarcane, and seafood. The total losses of SOEs in 2005 were VND1.919 trillion. Loss-making SOEs accounted for 19.5% and 8.8% broke even.
Big loss-making SOEs were the Vietnam Cement Corporation, Coffee Corporation, Transport Work Construction Companies 5 and 6, Thang Long Construction Corporation, Sericulture Corporation with losses from VND220 to VND1,352 billion, 13 times more than the average capital of SOEs.
Major reasons for the weakness of SOEs include backward equipment and technology; poor use of modern equipment (if possessed at all); total investment too big, leading to high deductions and loan interest in production costs; waste in production processes; and higher expenses for salary.
The above analysis shows that it is necessary to speed up equitisation while improving the quality of operations of SOEs so they can compete with foreign rivals when Vietnam opens its door more widely.
Source: VNE
In terms of quantity, by early 2006, Vietnam had 4,086 operating SOEs, accounting for only 3.6% of the total active enterprises in Vietnam, and equivalent to less than one-third of the total SOEs in the pre-renovation period. As the equitisation process is accelerated, this ratio will decrease more quickly.
Of the total number of SOEs, the number of SOEs that are managed by provincial and municipal governments is higher than that of those controlled by the central government (55.3% and 44.7%, respectively). The SOEs of the first kind have smaller scale and less modern equipment and technology as well as lower business effectiveness than the second, so the number of SOEs of this kind is high.
Moreover, the mechanism in which SOEs are managed by ministries and provincial People’s Committees is unsuitable to the market economy, which Vietnam is building because in the market economy, all businesses compete equally. This fact requires higher speed of equitisation.
Though the average labour scale of SOEs is higher than private and foreign-invested ones (499.5 workers compared to 28.2 and 330.2 people, respectively) the number of workers in SOEs is gradually declining in total number (from over 4.114 million in early 2002 to nearly 2.041 million in early 2006) and percentage of total number of workers in all kinds of businesses (from 53.8% to 32.7% in the same period).
Though the average capital of SOEs is higher than that of private and foreign-invested ones (VND327.5 billion compared to VND5.8 billion and VND132.5 billion), the percentage of capital of SOEs of the total capital of enterprises has declined, from 55.9% in 2001 to 54.9% in 2005, while that of private businesses has increased, from 12% to 25% in those same years.
According to the Finance Ministry, the total assets of SOEs reached VND747.4 trillion in early 2006. However, debts accounted for 22.2% and 76% of the volume were bank loans.
Except for SOEs that benefit from business advantages and enjoy special preferential policies, the business effectiveness of other SOEs is low.
The Vietnam Oil and Gas Group (PetroVietnam) earned revenue of VND42.31 trillion and VND24.924 trillion of profit; VND38.818 trillion and VND3.2 trillion for the Electricity of Vietnam (EVN) group; VND32.76 trillion and VND11.56 trillion for the Vietnam Post and Telecommunications Group (VNPT); VND22.788 and VND3.130 trillion for the Coal and Minerals Group.
SOEs that contributed greatly to the State Budget were the Vietnam Petroleum Import Export Corporation (VND8.252 trillion), the Vietnam National Tobacco Corporation (VND3.13 trillion), and the Saigon Beverage Corporation (VND2.13 trillion).
In the 2001-2005 period, the revenue of SOEs rose by 9.1% per annum only and it was just 7.2% in 2005, just a little bit higher than the increase of the consumer price index.
There were many ineffective SOEs and most of them operate in the fields of agriculture, paper, textiles, sericulture, sugar and sugarcane, and seafood. The total losses of SOEs in 2005 were VND1.919 trillion. Loss-making SOEs accounted for 19.5% and 8.8% broke even.
Big loss-making SOEs were the Vietnam Cement Corporation, Coffee Corporation, Transport Work Construction Companies 5 and 6, Thang Long Construction Corporation, Sericulture Corporation with losses from VND220 to VND1,352 billion, 13 times more than the average capital of SOEs.
Major reasons for the weakness of SOEs include backward equipment and technology; poor use of modern equipment (if possessed at all); total investment too big, leading to high deductions and loan interest in production costs; waste in production processes; and higher expenses for salary.
The above analysis shows that it is necessary to speed up equitisation while improving the quality of operations of SOEs so they can compete with foreign rivals when Vietnam opens its door more widely.
Source: VNE
Wednesday, May 30, 2007
EVN to raise capital via new subsidiaries
State-utility Electricity of Viet Nam Group (EVN) will create 10 joint stock companies this year in a move to raise capital for the construction of Government-approved energy projects.
The Director of EVN’s Equitisation and Securities Division, Dang Phan Tuong, said with an investment of over 30 trillion VND (1.8 billion USD), EVN will be the dominant shareholder in the 10 companies.
Eight of the companies will be responsible for building and operating eight hydro and thermo-electric power plants, namely: the Song Tranh, Song Bung 2, Song Ba Ha, Huoi Quang, Ban Chat, Ban Ve, Se San 4 and Lai Chau.
The two remaining subsidiaries will be dedicated to the Lao and Cambodian markets.
Tuong said in the first phase of the plan, EVN will seek strategic investors among the other State-owned enterprises and foreign companies to take major stakes in the 10 companies.
In the second phase, the 10 subsidiaries will hold initial public offerings to mobilise additional capital.
The companies will also be allowed to conduct business outside the energy industry, Tuong said.
EVN is currently the majority shareholder of five other joint stock companies specialising in the construction of electricity works.
Analysts have voiced support of EVN’s decision to set up new companies and equitise in order to mobilise capital, instead of relying simply on loans. It also gives investors an opportunity to partake in the country’s lucrative energy industry, said analysts
Source: VNA
The Director of EVN’s Equitisation and Securities Division, Dang Phan Tuong, said with an investment of over 30 trillion VND (1.8 billion USD), EVN will be the dominant shareholder in the 10 companies.
Eight of the companies will be responsible for building and operating eight hydro and thermo-electric power plants, namely: the Song Tranh, Song Bung 2, Song Ba Ha, Huoi Quang, Ban Chat, Ban Ve, Se San 4 and Lai Chau.
The two remaining subsidiaries will be dedicated to the Lao and Cambodian markets.
Tuong said in the first phase of the plan, EVN will seek strategic investors among the other State-owned enterprises and foreign companies to take major stakes in the 10 companies.
In the second phase, the 10 subsidiaries will hold initial public offerings to mobilise additional capital.
The companies will also be allowed to conduct business outside the energy industry, Tuong said.
EVN is currently the majority shareholder of five other joint stock companies specialising in the construction of electricity works.
Analysts have voiced support of EVN’s decision to set up new companies and equitise in order to mobilise capital, instead of relying simply on loans. It also gives investors an opportunity to partake in the country’s lucrative energy industry, said analysts
Source: VNA
Industrial production up 16.8% in five months
Falling inline with Viet Nam's rapidly expanding economy, industrial production value for the first five months of the year surged to nearly 225.78 trillion VND (14.1 billion USD), a year-on-year increase of 16.8%.
The non-State sector led the charge by posting growth of 20.4%, followed by the foreign-invested sector with 19.3%, the Ministry of Industry reported.
The State-owned sector lagged behind, recording a more modest increase of 7.9%.
May alone saw industrial production value registered at around 48.68 trillion VND (3 billion USD), a surge of 2.7% over the previous month.
Market experts have pointed to successes in the industries of steel, electric engines, machine tools, electric fans, pesticides, plastics, clothes and motorbike and automobile spare parts as key drivers for the increased output.
The Ministry of Industry did however urge the Electricity of Viet Nam (EVN) Group to ensure power is maintained to allow for sufficient supply for production to remain in high gear.
Source: VNA
The non-State sector led the charge by posting growth of 20.4%, followed by the foreign-invested sector with 19.3%, the Ministry of Industry reported.
The State-owned sector lagged behind, recording a more modest increase of 7.9%.
May alone saw industrial production value registered at around 48.68 trillion VND (3 billion USD), a surge of 2.7% over the previous month.
Market experts have pointed to successes in the industries of steel, electric engines, machine tools, electric fans, pesticides, plastics, clothes and motorbike and automobile spare parts as key drivers for the increased output.
The Ministry of Industry did however urge the Electricity of Viet Nam (EVN) Group to ensure power is maintained to allow for sufficient supply for production to remain in high gear.
Source: VNA
Monday, May 28, 2007
Power investors wait for approval of strategy
Foreign power investors need to wait until the prime minister approves Vietnam’s new power development strategy towards 2015 for information about future investment opportunities.
A senior official from the Ministry of Industry (MoI) said a project wish list would be issued when the strategy is published. MoI submitted the strategy proposal to the government for final approval in April this year. “In a bid to satisfy the nation’s rising power demand, the MoI has planned to open power projects with combined 10,000 MW of generation capacity, mainly located in the central and southern parts of Vietnam. Huge investment potential and advanced technology will be two requirements deciding eligible investors,” said an MoI source.
MoI also suggested that in cases where more than one foreign investor takes an interest in the same power plant, an open bidding competition should be undertaken. Bid winners should be firms which offer the best price to the nation’s current wholesale buyer, Electricity of Vietnam.
Under the government’s current pricing regulations, EVN’s reselling electricity price is set at an average of VND842 (5.26 cent) per kWh.
The investment wish list of projects in Vietnam’s power sector is said to be greatly anticipated by foreign firms who are studying cases to build thermal power plants across the nation. Interested organisations include Japan’s Sumitomo, J-Power and Sojitz, the UK’s BP, Taiwan’s Tae Kwang Vina Industrial, Singapore’s Boustead and China’s Southern Grid Corporation. More recently, France’s leading power firm EDF told Deputy Minister of Planning and Investment Cao Viet Sinh about its desire to build a large-scale thermal power plant in the south of Vietnam.
Luc Jacquet, vice president of EDF Southeast Asia Division, unveiled that EDF would soon select the final location of the proposed plant, which the company wanted to start in 2012. The location should be close to a deep seaport to facilitate the import of coal to fuel the new power plant.
“EDF has an ambitious plans to develop power plants of combined 10,000 megawatts within the next 10 years,” Jacquet said.
EDF is a co-investor alongside Japan’s Sumitomo and Vietnam’s Tepco in the $480 million gas-fuelled Phu My 2.2 power plant in the southern Ba Ria-Vung Tau province. The 720 megawatt plant, which is one of two foreign investment power projects in Vietnam, began operating two years ago. MPI deputy minister Cao Viet Sinh admitted that rapid development of power plants in Vietnam was vital because of a sharp increase in electricity demand.
There is a potentially serious power shortage during the country’s dry reason which is caused by the current generation mix where electricity production is highly dependent on hydropower generation.
Sinh said that Vietnam’s current power generation capacity is rated at 11,200 megawatt and the supply is set to double by 2010.
Source: VIR
A senior official from the Ministry of Industry (MoI) said a project wish list would be issued when the strategy is published. MoI submitted the strategy proposal to the government for final approval in April this year. “In a bid to satisfy the nation’s rising power demand, the MoI has planned to open power projects with combined 10,000 MW of generation capacity, mainly located in the central and southern parts of Vietnam. Huge investment potential and advanced technology will be two requirements deciding eligible investors,” said an MoI source.
MoI also suggested that in cases where more than one foreign investor takes an interest in the same power plant, an open bidding competition should be undertaken. Bid winners should be firms which offer the best price to the nation’s current wholesale buyer, Electricity of Vietnam.
Under the government’s current pricing regulations, EVN’s reselling electricity price is set at an average of VND842 (5.26 cent) per kWh.
The investment wish list of projects in Vietnam’s power sector is said to be greatly anticipated by foreign firms who are studying cases to build thermal power plants across the nation. Interested organisations include Japan’s Sumitomo, J-Power and Sojitz, the UK’s BP, Taiwan’s Tae Kwang Vina Industrial, Singapore’s Boustead and China’s Southern Grid Corporation. More recently, France’s leading power firm EDF told Deputy Minister of Planning and Investment Cao Viet Sinh about its desire to build a large-scale thermal power plant in the south of Vietnam.
Luc Jacquet, vice president of EDF Southeast Asia Division, unveiled that EDF would soon select the final location of the proposed plant, which the company wanted to start in 2012. The location should be close to a deep seaport to facilitate the import of coal to fuel the new power plant.
“EDF has an ambitious plans to develop power plants of combined 10,000 megawatts within the next 10 years,” Jacquet said.
EDF is a co-investor alongside Japan’s Sumitomo and Vietnam’s Tepco in the $480 million gas-fuelled Phu My 2.2 power plant in the southern Ba Ria-Vung Tau province. The 720 megawatt plant, which is one of two foreign investment power projects in Vietnam, began operating two years ago. MPI deputy minister Cao Viet Sinh admitted that rapid development of power plants in Vietnam was vital because of a sharp increase in electricity demand.
There is a potentially serious power shortage during the country’s dry reason which is caused by the current generation mix where electricity production is highly dependent on hydropower generation.
Sinh said that Vietnam’s current power generation capacity is rated at 11,200 megawatt and the supply is set to double by 2010.
Source: VIR
Thursday, May 24, 2007
EVN to establish electricity trading arm
State monopoly Electricity of Vietnam is set to launch an electricity trading company that will buy from various producers to sell to power distributors, all of them belonging to EVN.
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
Saturday, May 19, 2007
Blue chip firms speculate in real estate
Vietnamese companies are increasingly moving from their traditional business platforms into real estate speculation and development in a bid to boost corporate values on the stock market.
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
Friday, May 18, 2007
EVN to invests in telecom network
Electricity of Viet Nam (EVN) will invest an additional 24 trillion VND (1.5 billion USD) in its telecom network from now to 2010 to meet demands for technology and service supply.
The group will expand its cable systems to 80% of districts nationwide and increase transmission capacity of both domestic and international cable networks.
This year, the group will use 3.7 trillion VND to increase the number of its base transceiver stations (BTS) to 2,500. The figure will be boosted to 5,000-6,000 BTS, able to serve eight million subscribers.
It will also increase broadband and high-speed internet services in a bid to cover 10% of internet users.
Source: VNA
The group will expand its cable systems to 80% of districts nationwide and increase transmission capacity of both domestic and international cable networks.
This year, the group will use 3.7 trillion VND to increase the number of its base transceiver stations (BTS) to 2,500. The figure will be boosted to 5,000-6,000 BTS, able to serve eight million subscribers.
It will also increase broadband and high-speed internet services in a bid to cover 10% of internet users.
Source: VNA
Wednesday, May 02, 2007
Vietnam needs Chinese electricity
Vietnam’s import of electricity from China will jump to 2.5 billion kilowatt-hours this year, according to Vietnam’s state-owned power utility, Electricity of Vietnam Corp. (EVN).
According to Chinese statistics, China exported 1.84 billion kilowatt-hours worth some US$80.7 million to Vietnam from September 2004 to March 2007.
EVN CEO Pham Le Thanh said EVN was building more transmission lines to bring the electricity to other provinces to cope with ongoing shortages expected to continue next month.
Under a contract with the China Southern Power Grid Company, EVN is to buy electricity for use in northern Vietnam for at least 10 years. Thanh said he hoped new power plants would come into operation as scheduled so EVN could stop buying Chinese electricity when the contract is up.
EVN plans to supply 67 kilowatts of electricity this year, including 18 billion kilowatts bought from other sources, said Thanh.
He added that EVN was selling electricity at lower prices than it had to pay and would thus suffer some VND4 trillion ($250 million) in losses this year.
Source: Thanh Nien
According to Chinese statistics, China exported 1.84 billion kilowatt-hours worth some US$80.7 million to Vietnam from September 2004 to March 2007.
EVN CEO Pham Le Thanh said EVN was building more transmission lines to bring the electricity to other provinces to cope with ongoing shortages expected to continue next month.
Under a contract with the China Southern Power Grid Company, EVN is to buy electricity for use in northern Vietnam for at least 10 years. Thanh said he hoped new power plants would come into operation as scheduled so EVN could stop buying Chinese electricity when the contract is up.
EVN plans to supply 67 kilowatts of electricity this year, including 18 billion kilowatts bought from other sources, said Thanh.
He added that EVN was selling electricity at lower prices than it had to pay and would thus suffer some VND4 trillion ($250 million) in losses this year.
Source: Thanh Nien
Friday, April 20, 2007
Ninh Binh Thermal Power Co. raised 7.3mio US$ in IPO
A small Vietnamese power firm raised 117.11 billion dong ($7.3 million) by selling more than one third of its shares to the public, the Hanoi stock market said on Thursday.
Ninh Binh Thermal Power Company sold all 4,088,095 shares on offer, or 31.78% of the company, to Vietnamese investors at an auction on Wednesday, the exchange said in a statement. It did not disclose the identities of buyers.
The shares were sold at an average price of 28,648 dong ($1.78), nearly double the 15,000-dong initial price set for bidding, suggesting the firm was valued at nearly $23 million.
No foreign investors bought shares even though bidders sought to buy 11.58 million shares in the company, which operates a coal-fired power plant in the northern province of Ninh Binh, 90 km (55 miles) south of Hanoi.
Source: Reuters equity mekong capital vinacapital
Ninh Binh Thermal Power Company sold all 4,088,095 shares on offer, or 31.78% of the company, to Vietnamese investors at an auction on Wednesday, the exchange said in a statement. It did not disclose the identities of buyers.
The shares were sold at an average price of 28,648 dong ($1.78), nearly double the 15,000-dong initial price set for bidding, suggesting the firm was valued at nearly $23 million.
No foreign investors bought shares even though bidders sought to buy 11.58 million shares in the company, which operates a coal-fired power plant in the northern province of Ninh Binh, 90 km (55 miles) south of Hanoi.
Source: Reuters equity mekong capital vinacapital
Thursday, April 12, 2007
EVN seeks 875 mio US$ for new facilities
The Electricity of Viet Nam (EVN) Group is seeking for at least 14,000 billion VND (875 million USD) for new power facilities in 2007.
EVN said it plans to get this needed capital from shareholders in its 30 new joint stock companies, which will go public soon. Of the 32 new companies, 24 will be involved in generating power.
Observers believe this sum will ease EVN's capital demands necessary for the construction of new power plants.
It is predicted that the country will cope with severe shortage of power this summer.
Source: VNA
EVN said it plans to get this needed capital from shareholders in its 30 new joint stock companies, which will go public soon. Of the 32 new companies, 24 will be involved in generating power.
Observers believe this sum will ease EVN's capital demands necessary for the construction of new power plants.
It is predicted that the country will cope with severe shortage of power this summer.
Source: VNA
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