What industries related to the electricity sector does Vietnam Electricity Corporation still invest in? Is the Corporation allowed to do business in professions not related to the electricity sector?

1. What business lines does Vietnam Electricity Corporation have other than electricity trading?

According to Article 4 of the Charter on organization and operation of Vietnam Electricity Group issued with Decree 26/2018/ND-CP, in addition to electricity trading, Vietnam Electricity Corporation also operates the following business lines:

* Business lines main:

– Command and operate the system of production, transmission, distribution and allocation of electricity in the national electricity system;

– Import and export of electricity;

– Investment and management of investment capital in power projects;

– Management, operation, repair, maintenance, overhaul, renovation and upgrading Providing electrical, mechanical, control and automation equipment for production lines, power transmission and distribution, and power projects; electrical testing;

– Project management consulting, design survey consulting, investment project planning consulting, bidding consulting, estimating, verification consulting and construction supervision of power source projects, power line projects and transformer stations.

* Related industries and occupations that directly serve the main business industries and occupations:

– Equipment manufacturing electrical equipment, investment in electrical mechanical business;

– Construction and installation of electrical works;

– Automation and control services; trading in information technology services (research, development, implementation, consulting and training) at home and abroad, managing private telecommunications systems;

– Importing and exporting fuel, raw materials, supplies and equipment for the electricity industry;

– Construction and supervision of installation of telecommunications and information technology equipment; production of construction materials, insulating materials, heat-insulating materials, labor protection equipment;

– Project management consulting; consulting on investment project planning, bidding consulting, estimating and construction supervision of telecommunications – information technology projects, industrial and civil projects;

– Financial investment and capital trading that the State assigns to EVN for power projects;

– Human resource training and labor training cooperation with foreign countries;

– Office rental (business activities at EVN headquarters, 11 Cua Bac, Ba Dinh, Hanoi).

In addition to the above-mentioned business lines, depending on time and production and business situation, Vietnam Electricity Corporation may add other business lines and lines that are not prohibited by law after being approved by the state owner.

2. What is the charter capital to establish Vietnam Electricity Corporation by the end of 2018?

In Article 5 of the Charter on organization and operation of the Vietnam Electricity Corporation issued with Decree 26/2018/ND-CP, there are also regulations on the charter capital of the Electricity Corporation as follows:

EVN’s charter capital

1. EVN’s charter capital by the end of 2018 is 205,390 billion VND (two hundred and five thousand, three hundred ninety billion VND),

2. Adjustment of charter capital is carried out in accordance with the provisions of law.

From the above regulations, currently to establish Vietnam Electricity Corporation, a charter capital of 205,390 billion VND (two hundred and five thousand, three hundred ninety billion VND) is required.

3. Is Vietnam Electricity Corporation allowed to invest in industries that do not directly serve the main business lines?

The issue of investment restrictions and business lines for the Vietnam Electricity Corporation is stipulated in Article 12 of the Charter on organization and operation of the Vietnam Electricity Corporation issued together with Decree 26/2018/ND-CP as follows:

Restrictions on investment and business lines in Vietnam National Electricity Group

…

3. EVN’s outward capital investment is carried out in accordance with the provisions of law on state capital investment in enterprises and financial management for enterprises with 100% charter capital held by the State.

4. EVN and its member enterprises register and can only invest in main business sectors and industries and industries related to the main business sectors and industries; Subject to the owner’s supervision regarding investment, investment capital ratio and investment efficiency in main business lines and industries, and industries related to main business lines and industries. EVN, member enterprises in the Vietnam National Electricity Group are not allowed to do business in unrelated industries.

5. EVN’s Board of Members approves or assigns representatives at EVN’s subsidiaries to exercise the rights of shareholders and controlling members to vote through business decisions in main business lines; decide on adjustments or changes to main business lines and industries; supervise the business of industries and trades related to the main business lines.

Thus, Vietnam Electricity Corporation is not allowed to invest in industries that do not directly serve the main business lines and industries.

In addition, Vietnam Electricity Corporation is not allowed to do business in unrelated industries.