REGIONAL POWER JOINT STOCK COMPANY 1

REGIONAL POWER JOINT STOCK COMPANY 1 (CÔNG TY CỔ PHẦN ĐIỆN LỰC KHU VỰC 1)  is a state-linked enterprise operating in the strategic sector of electricity transmission and distribution. This segment is decisive in industrial development and everyday life in Vietnam. Established on October 26, 2015, the company is registered under Business ID 2300898532, with its head office located at Giang Lieu Area, Phuong Lieu Ward, Que Vo Town, Bac Ninh Province, Vietnam.

The company’s core business is centered on electricity trading and infrastructure development, complemented by activities in engineering services, construction of electrical works, and technical testing. Its legal structure is a joint stock company, but its operations are closely tied to state-regulated pricing and resource allocation frameworks. This places it among the enterprises that, while corporatized, still operate within the state’s strategic planning for power distribution.

REGIONAL POWER has reported solid financial performance in recent years. By the end of 2023, its total assets reached USD 18.09 million, increasing 12.93% from 2022. Owner’s equity stood at USD 8.56 million, reflecting a 24.93% growth rate. Sales revenue reached USD 107.72 million, up 15.44% year-on-year, while profit reached USD 4.24 million, an increase of 10.25%. These figures show a company with stable operations, steady growth, and effective revenue collection in a regulated sector. However, as with many state-linked utility companies, profitability does not necessarily translate into better consumer service.

Mr. Lai D. B. leads the company and has a diversified group of Vietnamese shareholders. The largest individual shareholder, Mr. Pham D. T., holds 17% of the shares, with the remaining shares divided among several individuals and others categorized under “other shareholders.” Despite this shareholder structure, the company operates within a highly controlled pricing regime, where electricity prices are often determined centrally. This limits market competition and gives the company a quasi-monopoly in its service region.

This monopoly structure raises several critical issues. While REGIONAL POWER demonstrates substantial revenue and profit, it effectively uses state resources and infrastructure to sustain its operations, yet electricity prices for end users remain high. Households and businesses face elevated power bills, a particularly impactful burden on lower-income consumers and small enterprises. This reflects an imbalance between state resource allocation, company profitability, and consumer affordability—a common challenge in Vietnam’s partially liberalized but state-dominated energy sector.

For foreign and domestic investors, suppliers, or regulatory bodies seeking to engage with or evaluate such state-influenced companies, relying on verified, independent business intelligence is essential. Vanguard Business Information LLC (VNBIS) provides professional business verification and financial reporting services, enabling stakeholders to assess operational performance, resource efficiency, ownership structure, and potential risks before entering into partnerships or contracts.

REGIONAL POWER JOINT STOCK COMPANY 1 represents a profitable yet sensitive segment of Vietnam’s energy industry. State involvement ensures stability but also limits competition and keeps consumer prices high. In such environments, independent due diligence through VNBIS is a key tool for businesses aiming to make strategic and well-informed decisions.