Deputy PM denies power price hike to subsidise losses of govt firm

Vietnam's Deputy Prime Minsiter Vu Van Ninh empahsized that the government would not approve any increase in power price in order to offset Electricity of Vietnam Group’s losses from its non-core investments.

Ninh confirmed he had turned down the approach after EVN proposed a power price hike of 10 per cent-13 per cent from November.

There have been rising concerns over EVN and several other state-owned companies focusing on non-core investments despite their desperate need for capital to invest in their core businesses. EVN has incurred huge losses in its non-core investment in telecoms. Will EVN’s power price hike help offset such losses?

Ninh feels that EVN needs to withdraw capital from its non-core investment.

In his report to the NA on October 20, Prime Minister Nguyen Tan Dung stood firm on the issue, advocating state owned industries should withdraw capital from non-core businesses in a bid to focus investment on their core businesses. The government will increase regulations to more strictly supervise investments made by these companies.