MoF meets with major energy groups

MoF meets with major energy groups

On June 24, Vietnam’s Ministry of Finance held a working session with three major energy groups: Vietnam Electricity, Vietnam National Industry-Energy Group and Vietnam National Coal and Mineral Industries Group, to discuss measures aimed at unlocking resources, enhancing production capacity and safeguarding national energy security.

Representative from Petrovietnam. Photo: Manh Tuan

The three state-owned groups play a pivotal role on both the supply and demand sides of the economy.

According to reports presented at the meeting, in implementing government Resolution No.109/NQ-CP on achieving double-digit economic growth, Vietnam National Industry-Energy Group (Petrovietnam), Vietnam Electricity (EVN) and Vietnam National Coal and Mineral Industries (TKV) have executed their production and business plans, overcome difficulties and maintained stable operations.

Despite adverse impacts from global geopolitical and economic developments, particularly the conflict in the Middle East that has disrupted global energy supply chains, all three enterprises have delivered encouraging results and contributed directly to the country’s overall growth.

Ministry of Finance's meeting with EVN, PetroVietnam, and TKV to bolster energy security and economic expansi

EVN ensured adequate electricity supply for socioeconomic development in the first half of the year. Electricity generation and purchases are estimated at 163.9 billion kWh, while consolidated revenue reached $13.8 billion, equivalent to 51 per cent of the annual target.

To support double-digit growth and ensure energy security, EVN is expected to be assigned targets based on the high-load scenario, under which electricity generation and purchases would total 347.1 billion kWh, allowing consolidated revenue to reach around $28.5 billion, up 11.6 per cent. However, achieving a double-digit growth scenario would require electricity production in the second half of the year to increase by 16.9 per cent, posing a major challenge and demanding maximum efforts from the utility.

For TKV, coal output reached 19.7 million tonnes in the first six months. Consolidated revenue amounted to $3 billion.

For the full year, TKV’s consolidated revenue is projected to reach $5.9 billion, representing growth of 10 per cent compared with 2025. The group has the critical task of ensuring sufficient fuel supply for power generation and therefore needs to raise coal output, balance imported supplies and expand production of other minerals, including bauxite, copper, iron and zinc, to secure raw materials for downstream industries.

Representative from TKV

According to the State-owned Enterprise Development Agency, the combined value added generated by Petrovietnam, EVN and TKV accounts for 6.04 per cent of Vietnam’s GDP. Every 1 per cent increase in the growth of the three groups contributes around 0.05 percentage points to national GDP growth. As such, the role of these energy champions has become increasingly crucial in realising the country’s double-digit growth ambitions.

To support the economic growth target for the 2026-2030 period, the three groups put forward a total of 20 recommendations, focusing on three key areas: institutional mechanisms, policies and legal reforms; mobilisation and management of financial resources and investment capital; and the removal of impediments affecting major projects.

Specifically, Petrovietnam submitted nine proposals centred on special financial mechanisms, resolving historical issues, restructuring loans and matters related to the state budget.

EVN raised seven recommendations, mainly concerning investment in power generation and transmission projects, the Ninh Thuan nuclear power project, capital mobilisation and credit access, investment procedures and the implementation of nationally important projects.

TKV’s recommendations focus on adjustments to mineral development planning, mechanisms allowing production beyond existing capacity limits to ensure energy security, solutions for mining investment projects and higher coal prices for power producers.

VIR