NATIONAL POWER TRANSMISSION CORPORATION

NATIONAL POWER TRANSMISSION CORPORATION, locally known as TỔNG CÔNG TY TRUYỀN TẢI ĐIỆN QUỐC GIA (EVNNPT), plays a critical role in Vietnam’s power infrastructure by managing and operating the country's national electricity transmission system. Established in 2008, EVNNPT is a wholly state-owned enterprise under Vietnam Electricity (EVN), responsible for ensuring the stable and efficient transmission of electricity across the country. The company is headquartered in Hanoi and maintains branches in Da Nang, Khanh Hoa, and other key locations to support its extensive transmission network.

According to Vanguard Business Information LLC (VBI), EVNNPT reported total assets of USD 3.5 billion in 2023, marking a 2.03 percent increase from the previous year. Its total sales rose by 15.16 percent to USD 797.53 million, reflecting increased electricity demand. However, despite this strong revenue growth, the company’s profitability remains volatile. While profits rebounded 733.3 percent to USD 14.85 million in 2023, this followed a steep decline of 94.89 percent in 2022, indicating ongoing financial and operational challenges.

Legally, EVNNPT operates under Business ID 0102743068, with its Tax Identification Number (TIN) 0102743068. It is registered with the Hanoi City Department of Planning and Investment, with a charter capital of over USD 1 billion and 6,900 employees managing Vietnam’s national transmission grid. Under the leadership of chairman Nguyen Tuan Tung and general director Pham Le Phu, the company focuses on grid maintenance, infrastructure investment, and system upgrades to ensure the country’s energy security.

SWOT Analysis

Strengths

• Essential national infrastructure: As the sole operator of Vietnam’s electricity transmission network, EVNNPT is indispensable to the country’s economic development.
• State-backed stability: Full ownership by Vietnam Electricity (EVN) ensures government support, funding, and policy alignment.
• Growing electricity demand: Vietnam’s industrialization and urbanization drive consistent power consumption growth, increasing transmission needs.

Weaknesses

• Profitability concerns: Despite rising revenue, profits remain unstable, with a history of sharp declines and recoveries.
• High operational costs: Managing a nationwide transmission network requires continuous infrastructure investment and maintenance, straining financial resources.
• Aging infrastructure: Parts of the national grid need upgrading and modernization, requiring large capital expenditures.

Opportunities

• Renewable energy integration: The push for solar and wind energy requires expanding and modernizing transmission systems, offering growth potential.
• Technological upgrades: Investing in smart grid solutions and energy-efficient transmission technologies can enhance operational efficiency.
• International cooperation: Partnerships with foreign energy firms and investors could bring new funding and expertise.

Threats

• Regulatory and tariff constraints: Government-imposed electricity pricing policies may limit revenue growth and investment capacity.
• Energy transition challenges: The shift from coal and traditional energy sources to renewables requires significant infrastructure adaptation.
• Natural disasters and climate risks: Vietnam’s geographic vulnerability to storms and floods threatens transmission reliability and increases maintenance costs.

To maintain its critical role in Vietnam’s energy sector, VBI recommends that EVNNPT focus on cost management, infrastructure upgrades, and strategic partnerships to support the country’s rapidly growing power needs. While government backing provides stability, the company must address profitability challenges and modernize its grid system to sustain long-term operational efficiency and financial resilience.