EVN clears losses and estimates $0.5 billion profit in first eight months

EVN clears losses and estimates $0.5 billion profit in first eight months

Vietnam Electricity has cleared all accumulated losses from previous years and is estimated to have posted a profit of over VND12.2 trillion ($480 million) in the first eight months of the year.

Chairman Dang Hoang An shared the figures during a working session with Permanent Deputy Prime Minister Pham Gia Tuc on September 15, which focused on Vietnam Electricity's (EVN's) business performance and the restructuring direction for Vietnam's power sector.

Photo: EVN

DPM Tuc said Vietnam aims to sustain double-digit GDP growth during 2026–2030, which will drive continued strong growth in electricity demand. EVN and other state-owned enterprises must therefore maintain their core role while effectively mobilising resources from other economic sectors to develop the national power system.

"EVN’s restructuring should go beyond simply streamlining its organisational structure and must focus on building a stronger and larger-scale group, strengthening its mastery of sci-tech, improving competitiveness and contributing more effectively to energy development and economic growth," he said. "By 2030, EVN aims to rank among the three Vietnmese companies included in the Fortune Global 500, with the goal of achieving a high position rather than simply securing a place on the ranking."

DPM Tuc said a stronger EVN would be better positioned to perform its leading role in ensuring national energy security and providing stable, reliable and high-quality electricity for socioeconomic development and people’s lives.

Dang Hoang An, EVN's chairman. Photo: EVN

An said that following a difficult period during 2022–2023, EVN had cut costs, improved operational management and restructured its activities.

"By the end of June, the group had fully eliminated accumulated losses carried over from previous years," he said.

EVN incurred losses of around $1.9 billion in the 2022-2023 period, largely because a number of costs associated with electricity generation and supply were not fully reflected in retail electricity prices. The group returned to profitability in 2024, reducing its accumulated losses to around $1.3 billion.

According to consolidated financial statements for 2025, the group fully eliminated its accumulated losses by the end of last year. At the parent-company level, EVN still had around $220 million in accumulated losses at the end of 2025, although its production and business performance had improved significantly.

In the first eight months of this year, the company reported revenue of more than $18.9 billion, equivalent to around 70 per cent of its full-year target. Estimated profit reached $479 million, or 103 per cent of the annual plan, while payments to the state budget stood at around $673 million.

For the full year, EVN expects to earn about $530 million in profit and contribute over $1 billion to the state budget.

Deputy Minister of Finance Tran Quoc Phuong. Photo: chinhphu.vn

An said, "The power system would require substantial investment in the coming years, with estimated funding needs of around $32 billion through 2030."

Under the revised Power Development Plan VIII, Vietnam’s power system needs to add around 93,000 MW of generation capacity by 2030. EVN has been assigned to invest in and complete around 6,066 MW of generation capacity, along with 1,700 MW of energy storage systems.

"Rapidly rising electricity demand was one of the sector’s key challenges, while progress on new generation projects varied significantly among investors," EVN's chairman said. "Some projects developed by private and foreign investors have fallen behind schedule, potentially affecting the system’s ability to add capacity in line with the national power development plan."

He added that there was also a mismatch between the pace of investment in power generation and transmission infrastructure. Wind and solar projects can be developed relatively quickly, while 220-500 kV transmission lines require more time due to administrative procedures, site clearance and construction.

EVN has proposed studying mechanisms to attract private and other social-sector resources into transmission infrastructure investment, helping ease the group’s capital requirements.

During the first eight months of the year, 118 grid projects were started construction, and 116 110-500 kV grid projects were put into operation. Total electricity generation and imports reached nearly 236 billion kWh, up 9.3 per cent on-year.

Electricity demand is forecasted to rise by around 10.5-12 per cent from now until the end of the year. EVN is targeting $4.8 billion in investment capital disbursement this year, plans to bring Quang Trach I Thermal Power Plant into operation and accelerate generation and grid projects under the national power development plan.

Photo: chinhphu.vn

At the meeting, DPM Tuc asked EVN to continue playing a core role in ensuring national energy security. On restructuring the power sector, he said EVN should reorganise its operations around clearly defined pillars aligned with its development strategy, while strengthening competitiveness and operational efficiency.

He also stressed that power generation development must go hand in hand with grid development, with transmission infrastructure needing to be developed ahead of generation capacity to avoid situations in which completed power plants are unable to transmit their full output to the grid.

"EVN should also accelerate the development of rooftop solar power for self-consumption, wind power and energy storage systems," he said. "Regarding electricity prices, EVN should comply with regulations, ensure transparency and openness, and balance the interests of the state, businesses and consumers."

VIR