Vietnam's power sector has restructured its local power companies, aligning with the new provincial administrative boundaries effective 1/7. This consolidation has reduced the number of local power companies from 61 to 35 nationwide.
This represents a decrease of 28 provincial power companies. Khanh Hoa is the only province with two concurrently operating power companies.
Currently, residents and businesses purchase electricity from power companies under Vietnam Electricity (EVN). EVN holds 100% of the charter capital in five power corporations: Northern Power Corporation (NPC), Central Power Corporation (EVNCPC), Southern Power Corporation (EVNSPC), Hanoi Power Corporation, and Ho Chi Minh City Power Corporation. Each corporation is responsible for a specific region.
NPC has reduced its affiliated power companies from 27 to 17. They have also converted 262 district-level power companies into regional power management teams and established a new team for Bach Long Vy Island.
An NPC representative stated that eliminating intermediary administrative levels streamlines the organizational structure and shortens the management chain. The regional management teams will have greater autonomy in operations, incident response, and on-site service requests.
Along with the restructuring, NPC offered early retirement packages to nearly 200 employees, reducing management pressure and reorganizing staff.
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Power sector workers inspecting power lines. Photo: Ngoc Thanh |
Power sector workers inspecting power lines. Photo: Ngoc Thanh
EVNCPC has also reduced its affiliated companies from 13 to 8, covering seven provinces and cities in the central and Central Highlands regions. After eliminating the district level, they established 128 power management teams across these areas to serve over 4.8 million customers.
Khanh Hoa is the only province with two concurrently operating power companies after the merger. According to Ngo Tan Cu, EVNCPC's general director, after Ninh Thuan province merged into Khanh Hoa, EVNCPC acquired Ninh Thuan Power Company from EVNSPC.
However, Khanh Hoa Power Joint Stock Company operates as a joint-stock company in electricity distribution (EVNCPC holds a 51% stake). Therefore, Ninh Thuan Power Company did not merge with it.
Following a meeting between EVNCPC and the Khanh Hoa Provincial Party Committee, they agreed to have two power companies manage operations in Khanh Hoa. Ninh Thuan Power Company has been renamed Khanh Hoa Power Company.
EVNSPC formed eight new power companies by merging 21 provincial power companies and transferring Ninh Thuan Power Company to EVNCPC. Nguyen Phuoc Duc, EVNSPC's general director, stated that this restructuring aims to streamline operations, enhance management efficiency, and improve customer service.
Hanoi and Ho Chi Minh City retain their power corporation models under EVN.
According to Bui Trung Kien, deputy general director of Ho Chi Minh City Power Corporation (EVNHCMC), as of 1/7, EVNHCMC acquired the former Binh Duong and Ba Ria - Vung Tau power companies, expanding its service area to cover the entire new Ho Chi Minh City area. These two units are now member companies of EVNHCMC, instead of being under EVNSPC. They also reduced their affiliated companies from 15 to 10.
Similarly, Hanoi Power Corporation (EVNHANOI) reorganized its model from 30 district-level power companies into 12 regional power companies, aligning with the new administrative boundaries.
Currently, the power sector serves nearly 30 million residential customers, 574,000 service businesses, 1.98 million manufacturing customers, and 719,000 administrative customers.
Phuong Dung - Thi Ha
