Approval of the Project to restructure The Electricity of Vietnam until the end of 2025

Striving for EVN's total revenue to grow by an average of 7-10% by the end of 2025:

The objectives of the Project are to:

1. Develop EVN into a strong economic group, with a sustainable, efficient and profitable business.

2. Preserve and develop state equity invested in EVN and EVN's capital invested in other enterprises.

3. Take primary responsibility for ensuring electricity for the economy and people's lives, ensuring national energy security, and providing public products and services in the field of electricity supply according to regulations.

4. Play a central role in developing the Vietnam National Electricity Group.

5. Have modern technology, management and high specialization.

6. Production, the business of electricity, and electricity consulting are the main business lines.

7. Closely link production and business with science

8. Maximize the operational efficiency of the Vietnam National Electricity Group.

Be the core for the Electricity of Vietnam industry to study technology, research developing, training, develop rapidly and sustainably, compete and integrate effectively into the international economy; continue to participate in perfecting and developing the electricity market according to the roadmap prescribed by the Government.

The project also sets the target of striving for the Group's total overcome to grow by an average of 7-10% by the end of 2025, contributing to the State budget of the Group of over 23,000 billion VND/year and completing the targets according to the 5-year Production, Business and Investment Development Plan for the period 2021-2025 approved by the Prime Minister (in Decision No. 345/QD-TTg dated April 26, 2024).

Successfully build the image of a business responsible to the community and society, serving customers with increasingly better service quality.

Promote corporate governance restructuring:

The project clearly defines the orientation and solutions for corporate restructuring until the end of 2025.

Accordingly, business lines and sectors shall comply with Decree No. 26/2018/ND-CP dated February 28, 2018 of the Government on the Charter of organization and operation of EVN, Decree No. 105/2024/ND-CP dated August 1, 2024 of the Government with amending and supplementing several articles of Decree No. 96/2022/ND-CP and Decree No. 26/2018/ND-CP and documents adjusting, supplementing or replacing related to the organization and operation of EVN issued by competent authorities by the law.

Promote corporate governance restructuring, focusing on areas such as: Promote corporate governance restructuring, focusing on areas such as: Perfecting the management system; strengthening the management of investment projects, ensuring investment progress and efficiency; strengthening forecasting and risk management; Improving the capacity of audit, supervision and inspection; Improving the capacity of audit, supervision and inspection; reviewing, developing plans, solutions and organizing the implementation of handling weak and loss-making projects and enterprises under EVN according to regulations.

Continue to coordinate with ministries and branches to perfect the management system, mechanisms and policies toward increasing EVN's initiative in production and business activities, in line with market mechanisms and international practices.

Applying corporate governance according to international standards at EVN and perfecting the organization of the management and operation apparatus; innovating the organizational model towards reducing indirect management labor at the intermediate management level and subordinate units to ensure a streamlined apparatus, effective and efficient operation and limit overlapping functions and tasks at the parent company; Research on organizing a central control room (OCC) to centrally control hydropower plants and renewable energy, innovating the organizational model towards reducing indirect management labor at the intermediate management level and subordinate units to ensure a streamlined apparatus, effective and efficient operation and limit overlapping functions and tasks at the parent company; Research on organizing a central control room (OCC) to centrally control hydropower plants and renewable energy.

Restructuring finance and strengthening financial management:

According to the Project, EVN will develop a production, business and investment development plan, and a financial plan to ensure optimal, effective and flexible use of mobilized capital to preserve and develop capital, ensuring financial safety indicators and indicators according to the requirements of domestic and foreign lending credit institutions.

Develop financial plans, capital and cash flow balance plans to analyze and evaluate the impact of solutions on EVN's financial situation, the ability to balance capital sources for investment in developing important power projects until the end of 2025.

Researching EVN's financial mechanism in the competitive retail electricity market period. Developing a plan to separate the organization and cost accounting of the electricity distribution and retail departments of the Power Corporations according to the competitive retail electricity market roadmap; develop a wholesale electricity price mechanism between the parent company - EVN and electricity distribution business units following the mechanism for adjusting retail electricity prices according to the market mechanism...

Plan to arrange and restructure the parent company and its member units:

According to the Plan, the parent company - EVN continues to be a single-member limited liability company with 100% of charter capital held by the State per Decision No. 1479/QD-TTg dated November 29, 2022 of the Prime Minister; maintain the affiliated units (except for Thai Binh Thermal Power Company and Vinh Tan 4 Thermal Power Plant).

Thai Binh Thermal Power Company will carry out the arrangement according to a separate project on establishing a single-member limited liability company after the competent authority approves the establishment policy

Vinh Tan 4 Thermal Power Plant will carry out the arrangement according to a separate project on establishing a single-member limited liability company after Vinh Tan 4 Thermal Power Plant will carry out the arrangement according to a separate project on establishing a single-member limited liability company.

Enterprises in which EVN continues to hold 100% of the charter capital include National Power Transmission Corporation; Northern Power Corporation; Central Power Corporation; Southern Power Corporation; Hanoi Power Corporation; Ho Chi Minh City Power Corporation; Power Generation Corporation 1; Thu Duc Thermal Power Company Limited.

Enterprises in which EVN maintains a holding ratio of over 50% of the charter capital include: Power Construction Consulting Joint Stock Company 1; Power Construction Consulting Joint Stock Company 2; Power Construction Consulting Joint Stock Company 4; Power Generation Corporation 2 - CTCP; Power Generation Corporation 3 – CTCP

Enterprises in which EVN maintains a holding ratio of less than 50% of the charter capital include: Power Construction Consulting Joint Stock Company 3; Dong Anh Electrical Equipment Corporation - JSC; Vinh Tan Energy Joint Stock Company 3.

Roadmap to complete the EVN restructuring plan by the end of 2025:

Regarding the implementation roadmap, EVN focuses on restructuring the organization and ownership, striving to complete the restructuring plan of EVN and EVN member units by the end of 2025 according to the plan approved by competent authorities.

continue to hold 100% of the capital or controlling shares in subsidiaries in the fields, EVN EVN's main business lines (electricity generation, power transmission, electricity distribution and trading, electricity construction consulting) until 2025 by the criteria for classifying state-owned enterprises. By the end of 2025, the organizational model and apparatus will be streamlined; operate effectively, and balance finances; average annual labor productivity will increase by over 8%/year; corporate governance will be following international standards; have modern technology, become an enterprise operating under the digital enterprise model by 2025; complete research and implementation of energy transition; develop sustainably and be competitive regionally and internationally./.