Vietnam to sell large power firm as part of privatization process

The Vietnamese government plans to offload a 34.7 percent stake in power producer Vinacomin Power Holding Corporation, worth around $145.4m, in keeping with the its strategy of privatizing electric generators.

The state, which owns 99.68 per cent in the country’s third-biggest power producer, plans to reduce its stake to 65 per cent in the first stage, the government said.
Vietnamese street scene

Vinacomin Power produced 4.8 billion kilowatt hour power output in the first half of this year, up 13 per cent from a year earlier. Revenue from power production jumped 15 percent in the same period.

In July last year, Vietnam stopped buying electricity from China, given the increased output from domestic coal-fired and hydropower plants, according to EVN reports.

Hanoi has been striving to trim stakes in state-owned enterprises (SOEs), many of which have low profitability, but the progress has been slow given the small stakes on offer, sizable state control and concerns about vested interests.

The country is also in the process of modernizing its infrastructure. Last month, in a move aimed at reducing power outages and improving grid efficiency,à‚ Vietnamese state utility Electricity of Vietnam Southern Power Corporation (EVN SPC) opened a new main control centre in Ho Chi Minh City.

Developed, designed and built by Siemens, the centre will allow EVN to remotely monitor and control its medium- and low-voltageà‚ gridsà‚ in 21 southern provinces.

EVN plans to use the grid control technology, which Siemens said can be operated locally or remotely, to prepare 110 kVà‚ transformer substationsà‚ for unmanned operation in future.

Meanwhile, also in June, PetroVietnam Powerà‚ Corp (PV Power) started construction works for nineà‚ gas-fired power plantsà‚ with combined output of 5,250 MW, as Vietnam continues to develop sufficient power to catch up with increased demand.



RELATED NEWS
Siemens grid control centre opens in Vietnam

Nine new gas-fired plants to boost southern Vietnam

$7.5bn worth of coal-fired power plants planned for Vietnam

No posts to display