_2.4 2009-2018: Gradual and continuous implementation of power sector reforms_ **Privatization plans proceeded slower than originally planned in parallel to other reform steps.** In 2010, by Prime Ministerial Decision, EVN became a State-Owned Single Member Limited Liability Company. The Prime Minister set principles for unbundling generation with EVN, with the intention that most power plant companies would be privatized and become fully independent from EVN by 2014. EVN would retain ownership and operating control of three strategic multipurpose hydropower plants (SMHPs). However, from 2009 to 2010, EVN suffered financial stress, due in part to large foreign exchange losses as many power purchase contracts are denominated in US dollars and Japanese yen, and EVN was not permitted to hedge. Independence from EVN Group as the holding company was not possible without significant equity injection from the government. This led the government to defer the privatization of EVN’s three generation companies. Instead, between 2008 and 2010, several joint stock generation companies were formed with non-EVN SOE majority ownership and some with minority private participation. Meanwhile, in 2010, MOIT set the terms for standard power purchase agreements (PPAs), issued a new grid code, and moved the Institute of Energy from EVN to the Ministry.

**By the end of 2018, EVN’s power plants accounted for 59 percent (28 GW) of total installed generation capacity, largely unchanged since 2010.** Between 2010 and 2016, EVN partially divested 1.9 GW of thermal and hydropower generation capacity. In 2016, the government issued a policy discouraging SOEs from investing further in the power sector. In 2017, the Prime Minister approved a plan to ‘equitize’ EVN generation assets starting from 2018, with EVN holding at least 51 percent of the shares.<sup>7</sup> The government would assess results after two years, with the aim of continuing to fully divest the state’s share in power generation. In February 2018, an attempted IPO for 16 percent of EVN Generation Company No. 3 was unsuccessful due to its high valuation and indebtedness. As of 2018, the three main generation companies, and SMHPs, remain fully owned by EVN, accounting for 60 percent of total domestic large-scale power generation, and other SOEs account for 13 percent (6 GW), while domestic and foreign private sector account for 27 percent (12.8 GW). See Table 1.

**Table 1: Ownership of Domestic Large-Scale Power Generation in Vietnam, 2018**

|**Owner**|**MW**|**Percent of total**|
|---|---|---|
|EVN Corporate (strategic multipurpose hydropower plants)|8,720|18|
|EVN Generation Company No. 1|7,189|15|
|EVN Generation Company No. 2|4,495|9|
|EVN Generation Company No. 3|8,152|17|
|Vinacomin|1,715|4|
|PetroVietnam|4,262|9|
|Private and Joint Venture|8,854|19|
|Foreign Private Build-Own-Transfer (BOT) plants|3,976|8|
|**TOTAL**|**47,363**|**100**|

Source: NLDC. Note: Imports from China and Laos provide an additional 1,372 MW.

> 7 In 2017 the government also fully divested EVN Finance Joint Stock Company (JSC) and restructured other six specialized EVN subsidiaries for full divestment, including Thu Duc Electrical and Mechanical JSC, Dong Anh Electrical Equipment Corp., Binh Thuan Wind Power JSC, EVN Power Engineering Consulting Joint Stock Company No.3 (PECC3) and EVN PECC4.

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