HOA BINH POWER COMPANY

Established on March 14, 1995, HOA BINH POWER COMPANY operates as a Northern Power Corporation (EVNNPC) branch, one of Vietnam’s key state-owned electricity distribution units. The company is registered under Business ID: 0100100417-019, with its head office located on QH7 Street, Quynh Lam Ward, Hoa Binh City, Hoa Binh Province, Vietnam. With more than 30 years of continuous operation, the company has played a vital role in delivering stable electricity to residential, commercial, and industrial customers across Hoa Binh Province and neighboring regions

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Ownership and Leadership

The company is managed under the  Vietnam Electricity (EVN) umbrella through Northern Power Corporation (EVNNPC). Mr. Nguyen P. T. currently serves as the Owner and Director, overseeing grid operations, infrastructure maintenance, and customer service initiatives aimed at improving power supply reliability in the mountainous northwestern region of Vietnam

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Core Business and Operational Scope

HOA BINH POWER COMPANY focuses primarily on electricity transmission and distribution, including grid operation, network maintenance, and energy retail services. Its activities also support rural electrification and the integration of renewable power sources into the local grid — a critical step toward Vietnam’s national energy sustainability and regional development goal.

Financial Overview and Performance

As of December 31, 2023, the company reported total assets of USD 57.35 million, slightly down 0.28% year-on-year, while owner’s equity declined 6.64% to USD 26.66 million. Sales revenue, however, rose 12.91% to USD 106.08 million, showing strong operational demand, while net loss improved by 18.53%, narrowing to USD -6.57 million from USD -8.05 million in 2022

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Despite positive revenue growth, continued losses highlight systemic inefficiencies, likely tied to state-mandated price controls, aging infrastructure, and high maintenance costs in remote areas. Still, working capital increased 188.35% to USD 2.53 million, suggesting improved liquidity management and reduced short-term financial strain.

Operational Challenges and Risk Profile

As a state-owned utility branch, HOA BINH POWER COMPANY faces constraints typical of government-regulated entities: limited pricing autonomy, slow capital disbursement, and dependence on central allocation for infrastructure investment. The consistent negative profitability over the past three years raises questions about cost recovery mechanisms and efficiency in capital utilization.

Nevertheless, despite financial underperformance, the company’s strategic role in ensuring power stability across Hoa Binh — a region essential for hydropower and industrial development — underscores its operational importance.

VNBIS Insight: Financial Risk and Monitoring

According to VNBIS, HOA BINH POWER COMPANY remains a low-credit-risk entity due to its government ownership and policy support. Still, it demonstrates moderate operational risk due to recurring losses and declining equity. Its long-term viability depends on the national energy reform roadmap, investment in grid modernization, and improved cost control mechanisms.

Through its Company Report and Financial Risk Management Services, VNBIS offers in-depth assessments of public-sector enterprises like HOA BINH POWER COMPANY, helping stakeholders evaluate creditworthiness, fiscal sustainability, and operational performance within Vietnam’s evolving power industry landscape.