Obligations of Vietnam Electricity Group

The Charter of the Corporation issued with Decree No. 26 specifically stipulates the obligations of EVN as follows:

For obligations regarding capital and assets, EVN must:

- Preserve and develop the state capital invested in EVN and the capital that EVN has mobilized on its own.- EVN is responsible for its debts and other financial obligations within the extent of its assets.- Reassess EVN’s assets in accordance with legal provisions.

In business activities, EVN must fulfill the following obligations:

- Engage in the registered industries and professions; ensure the quality of products and services provided by EVN according to the registered standards.- Innovate, modernize technology and management methods to enhance efficiency and competitiveness, comply with regulations on national electrical system security and safety.- Ensure the rights and interests of the workers and their right to participate in EVN’s management as stipulated by law.- Comply with the State's regulations on national defense, security, culture, social order and safety, environmental resource protection.- Implement accounting and auditing policies and financial, statistical reporting as required by law and the state owner.- Be responsible to the state owner for the use of investment capital to establish other enterprises or invest in other enterprises.- Manage risks and insure EVN’s assets, liabilities, and personnel in production and business as prescribed by law.- Undergo supervision, inspection, and audit by the state owner regarding law compliance; evaluate the realization of assigned objectives, tasks, operational results, business efficiency; manage, use, preserve and develop EVN's capital; evaluate the Chairman and members of the Board of Members.- Fulfill other business obligations prescribed by law.

The financial obligations of EVN are stipulated in the Charter as follows:

- Be financially autonomous, balance revenues and expenditures; conduct business effectively, ensuring the profit margin on state-invested capital as assigned by the state owner; register, declare, and fully pay taxes; fulfill obligations to the state owner and other financial obligations as stipulated by law.- Manage and use business capital effectively, including the portion invested in other enterprises; effectively manage and use resources, land, and other assets assigned or leased by the State.- Use capital and other resources to perform special tasks when requested by the State.- Fully comply with policies on capital, asset management, funds, accounting and auditing policies as prescribed by law; be accountable for the honesty and legality of EVN’s financial activities.- Fulfill other obligations stipulated in EVN's Financial Management Regulations and other legal provisions.

In addition, the Charter of the Corporation also stipulates obligations when participating in public service activities as follows:

- Provide public utility services as assigned or ordered by the State according to the specified subjects, prices, and fees set by the State.- Accept public service tasks assigned or ordered by the State and delegate part or all of the public service tasks to EVN’s subsidiaries as stipulated by State regulations.- Enter into contracts and account for business activities as prescribed by law; be responsible to the State for the results of EVN’s public service activities; be accountable to customers and before the law for public service products provided and delivered directly by EVN.- Ensure the sufficient supply of public service products, guaranteeing correct quality, subjects, and timing.- Fulfill other public service obligations as stipulated by law.

See details Decree 26/2018/ND-CP effective from February 28, 2018.

-Thao Uyen-

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