VIETNAM: EVN ordered to ensure 17% growth

Deputy Prime Minister Nguyen Sinh Hung has asked the Electricity of Viet Nam (EVN) to ensure an average growth rate of 17 per cent in the 2006-10 period in order to keep up with the nation’s gross domestic product (GDP) growth.

Deputy Prime Minister Hung attended a working session with leaders of EVN in Ha Noi yesterday. The session focused on the future directions of the group’s development and measures to ensure power supply in 2007, particularly during the next dry season.

He said that in the 2010-15 stage, the electric industry’s growth rate might shrink, but it still must be double that of the GDP. Regarding EVN’s proposal for equitisation, Hung allowed EVN to sell a portion of shares of their equitised enterprises to accumulate enough capital to reinvest in their production.

He agreed to allow EVN staff to buy preferential stocks, up to VND500 million a share, instead of the current price of VND30-40 million.

The Deputy Prime Minister said the current power consumption, which doubles economic growth, was wasteful and ineffective; therefore, ministries, sectors, agencies and the population should turn the "energy saving" slogan into a proactive campaign.

Agency heads should also be accountable for their agency’s energy consumption, or face disciplinary measures, he stressed.

According to EVN Management Council Chairman Dao Van Hung, the sector now faces many difficulties and needs timely Government decisions. Profits in the energy sector are lower than 3 per cent, making it an unattractive gamble in the eyes of both domestic and foreign investors.

Vneconomy

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