THAI NGUYEN POWER COMPANY (CÔNG TY ĐIỆN LỰC THÁI NGUYÊN – CHI NHÁNH TỔNG CÔNG TY ĐIỆN LỰC MIỀN BẮC): State Revenue Up, But Efficiency Remains A Core Issue

THAI NGUYEN POWER COMPANY (CÔNG TY ĐIỆN LỰC THÁI NGUYÊN – CHI NHÁNH TỔNG CÔNG TY ĐIỆN LỰC MIỀN BẮC) is a provincial branch of Northern Power Corporation, one of Vietnam’s state-owned electricity conglomerates. Established in June 2010, and registered under Business ID 0100100417-006, this entity handles electricity transmission and distribution in Thai Nguyen Province. Like other government-operated power branches, it has seen steady revenue growth but remains challenged by operational inefficiencies and low capital effectiveness.

Revenue growth masks weak profitability

In 2023, the company reported USD 421.67 million in total revenue, up 11.08% from the previous year—a healthy increase that tracks with rising energy consumption across the region. Total assets also rose by 10.73% to USD 111.59 million, suggesting ongoing infrastructure investment and network expansion.

However, beneath this growth lies a less favorable financial reality. Net profit stood at USD 2.75 million, which although a rebound from a loss in 2022, still represents just 0.65% of total revenue—an extremely thin margin for an entity of this scale. The modest profit came after a significant swing from a USD 4.48 million loss in 2022, making the 161% improvement appear more like a return to baseline rather than strong performance.

Negative working capital and falling equity

The company reported negative working capital of USD -5.97 million at the end of 2023, highlighting liquidity pressure and short-term financing challenges. At the same time, owner’s equity declined by 4.02% to USD 44.54 million, the second consecutive year of erosion. These figures suggest that despite revenue gains, the firm is not retaining earnings or improving its balance sheet—common traits among Vietnam’s state-run electricity providers where pricing and cost structures are often inflexible.

These trends align with a broader pattern in the state-owned power sector: high revenues driven by necessity, but weak profitability due to inefficiency, regulated tariffs, and aging infrastructure.

Structural limits of a state-run model

THAI NGUYEN POWER COMPANY, like all provincial branches of EVN (Vietnam Electricity), operates as a non-independent state-owned enterprise. As such, it lacks autonomy over pricing, procurement, and most strategic decisions. It is formally owned and managed by Mr. Tran Ho Nam, who is listed as the legal representative, but real control rests with the central authorities of Northern Power Corporation.

Because of this structure, performance incentives are typically weak, and investments may be politically directed rather than efficiency-oriented. The result is a company that may meet its basic supply mandate but performs below market standards when evaluated on financial efficiency or commercial sustainability.

Third-party verification is essential

For contractors, suppliers, or financial institutions engaging with this or similar power branches, it is crucial to obtain a clear understanding of their real financial health and creditworthiness. Public-facing data often lacks the nuance required to assess operational risk. That is why it is strongly recommended to use the Business Verification and Risk Management Service by Vanguard Business Information (VBI). VBI offers access to private, verified financial dataon Vietnamese state entities, helping partners navigate the complexities of working with public-sector counterparts.

Publicly funded, operationally constrained

THAI NGUYEN POWER COMPANY reflects the limitations of Vietnam’s public-sector energy model: stable demand and expanding revenue, but an inability to translate scale into profitability or financial efficiency. With declining equity, negative working capital, and minimal net margins, the company is financially fragile despite its strategic importance. Unless structural reforms are implemented across the sector, such trends are likely to persist.