The state-owned Electricity of Vietnam Group (EVN) has pledged to withdraw investment in non-core businesses in order to focus on power production this year.

EVN's losses less than originally thought 

Pham Le Thanh, EVN’s General Director, said that the group would turn their attention to ensuring a stable power supply for the country in 2012.

“EVN will prioritise restructuring this year, withdrawing investment in non-core business activities, such as securities and real estate," Thanh said.

According to him, EVN set a target to attain a total power output of 118.5 billion kWh this year, which would mark an 11.5% increase from a year earlier.

EVN will produce 50.88 billion kWh of electricity, while buying 67.62 billion kWh from domestic and foreign sources, including 4.64 billion kWh from China.

EVN’s total power supply in 2012 is expected to reach 105.18 billion kWh, up 11.9% on-year, he noted.

The group will continue its programme of encouraging both individuals and organisations in Vietnam to apply power saving methods, including the use of energy-saving light bulbs, in order to cut down on consumption by at least 1%.

They also plan to reduce the power leakage rate to less than 9.5%, he said.

It is estimated that EVN will need VND75.567 trillion (nearly USD4 billion) for its investment projects in 2012, up 18.7% from last year. Of the sum, VND22.851 trillion (USD1.08 billion) will be used to repay debts.

In order to gain enough capital to meet the goals of their projects planned for this year, EVN will seek over USD2 billion in official development assistance (ODA) from international donors, as well as USD1 billion in loans from foreign banks.

He added that EVN incurred a loss of VND3.5 trillion (USD166.38 million) in 2011. This figure is much lower than that announced earlier by the Ministry of Industry and Trade, which was VND11 trillion (USD522.91 million).