Decision No. 538/QD-TTg 2021 approving the Development Strategy of Vietnam Electricity to 2030

DECISION
Approving the Development Strategy of Vietnam Electricity to 2030,
with a vision toward 2045

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Electricity dated December 3, 2004; the Law Amending and Supplementing a Number of Articles of the Law on Electricity dated November 20, 2012;

Pursuant to the Law on Management and Use of State Capital Invested in Production and Business at Enterprises dated November 26, 2014;

Pursuant to the Government's Decree No. 10/2019/ND-CP dated January 30, 2019 on the exercise of rights and performance of responsibilities of the State owner’s representatives;

Pursuant to the Government's Decree No. 26/2018/ND-CP dated February 28, 2018 on the Charter for Organization and Operation of Vietnam Electricity;

Based on results of the appraisal of the "Development Strategy of Vietnam Electricity to 2030, with a vision toward 2045" conducted by the Ministry of Planning and Investment, which are stated in the Report No. 6569/BKHDT-KTCN dated October 5, 2020;

At the request of the Chairperson of the Commission for the Management of State Capital at Enterprises,

DECIDES:

Article 1. To approve the Development Strategy of Vietnam Electricity to 2030, with a vision toward 2045 (hereinafter referred to as the Strategy) with the following contents:

I. DEVELOPMENT PERSPECTIVES

1. The Vietnam Electricity (EVN) is an enterprise of which 100% charter capital is held by the State and an important material force of the State economy, contributing to economic development and realization of social progress and equality. The economic group shall be operated by the market mechanism, consider economic efficiency as its main evaluation criterion, self-control and take self-responsibility, and equally compete with the enterprises of other economic sectors in accordance with the legal regulations. It shall ensure publicity, transparency, and accountability. It shall separate the task of producing and trading ordinary commodities and services from the task of producing and supplying public commodities and services. It shall take advantage of every opportunity to proactively transform into a digital business.

2. To deploy the synchronous and reasonable development in depth and breadth of the power generation – transmission – distribution and business, focus on the advanced, long-term sustainable efficiency of the national power system and other criteria for power supply safety and reliability, and power quality. To ensure the transmission capacity of power sources, especially renewable energy sources.

3. To harmonize the relationship between the implementation of political and social tasks assigned by the Government synchronously and consistently with EVN's role, capacity, and sectors of operation; between the exploitation and use of environmental resources and the responsibility to protect the environment, minimize harm to the environment and respond to climate change.

4. To develop based on scientific and technological advances to gradually modernize technical facilities in order to improve the efficiency of production and business, the quality of electricity supply services and labor productivity, and the efficient use of resources and fuel.

5. To develop production and business in association with the human development goal, to build a professional workforce with good professional qualifications and skills, with a sense of responsibility and labor discipline; to ensure the lives and interests of its employees, encourage and create conditions for the employees to develop their knowledge, skills, suggestions, and creative ideas.

II. DEVELOPMENT STRATEGY

The Vietnam Electricity shall be developed into a strong economic group with sustainable, efficient and profitable business; the State capital invested in EVN and EVN capital invested in other enterprises shall be preserved and developed. The Vietnam Electricity shall be developed with a high level of technology, modern management and specialization; producing, transmitting, distributing, buying and selling electricity and providing electricity consultancy services shall be considered as its main lines of business. The production and business shall be closely linked with science, technology, research and development, and training; playing a key role in rapidly and sustainably developing Vietnam's Electric power industry to effectively compete and integrate into the international economy; operational efficiency of the Vietnam Electricity shall be maximized.

III. DEVELOPMENT OBJECTIVES

1. Regarding production and business results:

- Annual production and business results are effective and profitable; the State capital invested in EVN and EVN capital invested in other enterprises are preserved and developed.

- The paid debt to equity ratio is less than 3 times.

- Self-investment rate is greater than 30%.

- Short-term solvency is greater than or equal to 1 time.

2. Regarding power supply:

- To take main responsibility in ensuring electricity for the economy and people's lives according to the according to the norms set forth in the national power development planning (PDPs) for each period approved by the Prime Minister.

- To develop smart, effective power grids synchronized with the power plants which can provide for additional loads with regional interconnectivity, ensuring safe and stable power supply, specifically:

+ By 2025: Meeting N-1 criteria for important load centers.

+ By 2030: Meet N-2 criteria for extremely important load centers and N-l criteria for 220 kV power grids.

+ By 2045: Meeting N-l criteria for 110 kV power grids.

- To ensure power supply for people in remove areas and islands by power grids or located sources.

3. To actively participate and contribute to the development and completion of a competitive electricity wholesale and retail market based on the roadmap, conditions, and structure of the electric power industry to form and develop electricity market levels in Vietnam, then report the results to competent authorities for approval.

4. Power loss rate: To reduce electricity losses to straight level with the advanced countries in ASEAN.

5. To increase the average labor productivity by 8% to 10% per year. Contribution of total factor productivity (TFP) to the growth in 2025 will be above the national target level (45-50%).

6. To promote efficiency in applying scientific and technological advances of the Fourth Industrial Revolution.

- By 2025: EVN will complete its transformation into a digital enterprise.

- To develop advanced dispatching systems, widely apply smart grid technology. To complete the goal of remote control and unmanned operation for 100% of 110 kV substations in the 2021 - 2025 period and 100% of the 220 kV substations in the period 2025 - 2030.

- By 2030, to develop 01 science and technology organization, with 1-2 laboratories. In the 2030 - 2045 period, facilities and equipment for research and application of electrical engineering of the laboratories will reach an advanced level and on a straight level with the advanced countries in the region.

7. To promote quality of electricity distribution and customer services: have a comprehensive customer management system, provide high-quality customer services. To promote the quality of electricity distribution and customer services: By 2025, SAIDI ≤ 300 minutes/year, SAIFI ≤ 3 times/year (including the number of power cuts as planned); the Access-to-electricity Index (the time for carrying out procedures at electricity units) is in the group of ASEAN-3 countries (among the top 3 leading countries). By 2030, SAIDI ≤ 100 minutes/year and SAIFI ≤ 2.5 times/year (including the number of power cuts as planned); the Access-to-electricity Index (the time for carrying out procedures at electricity units) is in the group of ASEAN-3 countries and sustain this position in the 2030-2045 period.

8. To modernize and specialize activities on business and customer service so as to be in the group of ASEAN-3 countries regarding customer service from 2025 up and sustain this position up to 2045.

9. Regarding energy saving and use of clean and environmentally friendly energy:

- EVN shall coordinate with the People's Committees of provinces and municipalities to implement the Prime Minister’s Directive No. 20/CT-TTg with the goal of saving electricity at least 2% (compared to that of the same period in the previous year) in the 2020-2025 period.

- To implement demand response (DR) programs, reduce peak load capacity of the power system by at least 1,000 MW (by 2025) and 2,000 MW (by 2030).

IV. DEVELOPMENT ORIENTATIONS

1. To invest in developing power plants and grids in accordance with the approved PDP to ensure quality, progress, and efficiency. Investing in the power system development must ensure synchronization and rationality from generation to transmission, distribution, and business with a large capacity to integrate renewable energy power plants. EVN must access to advanced technology to ensure safety, reliability, and environmental protection; make overall review and plan to deploy as soon as possibly upgrading technologies of the existing coal thermal power plants to meet the requirements of environmental protection and conform to the concrete conditions at each stage.

a) To develop power source projects based on efficient exploitation, resource saving, environmental protection, and sustainable development.

- To continue to efficiently exploit water resources in the direction of expanding currently operating large hydroelectric plants; research on the possibility of building hydroelectric plants with low water column.

- To invest in thermal power plants with modern and efficient technology, meeting the criteria of environmental protection. To invest in the assigned coal-fired thermal power plants in accordance with the approved PDP associated with investing in infrastructure to receive domestic and imported coal. To research coal mixing solutions to improve operation efficiency of the plants.

- To carry out procedures to launch assigned projects on construction of power plants using natural gas after 2020.

- To study and propose the establishment of liquefied natural gas (LNG) distribution centers to fuel power generating units, synchronized with the operational progress, and located around ​​power plants using LNG at the Electricity Centers in accordance with the approved PDP, in order to optimize the efficiency of investment, management and operation.

- To research and develop power plants using renewable energy sources (wind, solar...) in potential areas to conform to the transmission capacity of the power grids and ensure efficient exploitation.

- To research and apply electric charge systems in some areas with many solar power plants and islands.

- To coordinate and create incentives to promote the development of rooftop solar power projects. To focus on investment in distributed solar power systems with centralized storage systems in areas where it is difficult to access the national grid or the investment in the grid is ineffective.

b) To invest in the system of transmission and distribution grids synchronously with the development of power sources, in line with socio-economic development plans of the country and localities, ensuring safe and efficient operation.

- To develop the system of transmission and distribution grids synchronously with the development of power sources, in accordance with the electricity development planning and the electricity market development roadmap.

- Investment projects must be attached to production and business objectives, plans, and demands of the market.

- To build ultra-high-voltage grid circuits around load centers to increase flexibility and reliability of power supply, to apply GIS technology, digital substations, underground substations, multiple-circuit lines… to reduce ​​land occupation. To apply new control equipment and technology protection equipment in power plants and substations synchronously with the infrastructure.

- To research and apply technology of voltage greater than 500 kV and direct current transmission.

- To promote the capacity of the transmission system, ensure information flow and dispatching for the complete development of the electricity market and the need for higher quality of loads.

- To develop smart grid, prepare modern information technology infrastructure to integrate distributed power sources.

- To apply grid system power supply and independent off-grid power supply solutions for efficiency and sustainability, combined with the use of new and renewable energy sources.

- To balance the length of power lines in correlation with appropriate voltage levels; the capacity of the substations at the voltage level of each area and region.

c) To invest in the development of power sources and grids in association with the efficient use of natural resources and forces, and in accordance with the PDPs and plans on use of land and minerals. To minimize the use of rice and forest land for investment and construction of power grid projects by using technical solutions, such as raising the height of power poles, using monopoles, using advanced construction and operation methods... while paying attention to environmental protection.

d) To coordinate in promoting power projects invested in the form of PPP:

- To join with the Government, ministries, sectors, and local authorities in elaborating and appraising master plans of electricity centers, to select suitable technologies and fuels when planning investment in power source projects.

- To focus on developing power sources mentioned in the PDPs, of which EVN is assigned as the project owner, to ensure power generation as scheduled in order to promptly add more power sources to the system. To monitor and urge PPP project investors to strictly comply with their commitments, and report promptly to the Government, ministries and sectors about PPP projects which are not on schedule in order to promptly take solutions to ensure adequate electricity supply.

- To timely deploy the transmission grid system in order to release the capacity of PPP projects as scheduled. To coordinate with and make proposals for the Government and competent agencies in special cases of construction investment in transmission grids in order to release the capacity of PPP projects.

dd) To develop and apply a modern enterprise management system, including a risk management system, which meets international standards and complies with Vietnam's laws and EVN's practical conditions.

2. To operate the power system and electricity market in a safe, reliable, and reasonable manner to meet the conditions of Vietnam's electricity market levels. To ensure reasonable costs of power generation and purchase, to promote the sustainable development of the electricity market.

a) To operate safely and efficiently, and optimize the power system:

- Following the Politburo's Resolution No. 55/NQ-TW dated February 11, 2020 on orientations of the Vietnam’s national energy development strategy to 2030 with a vision toward 2045, the Prime Minister’s Decision No. 279/QD-TTg dated February 8, 2018 approving the National Program for Demand Side Management (DSM) for the 2018 - 2020 period, with a vision toward 2030, the Prime Minister’s Decision No. 280/QD-TTg dated March 13, 2019 approving the National Energy Efficiency Program for the 2019-2030 period, the Prime Minister’s Directive No. 20/CT-TTg dated May 7, 2020 on enhancing electricity saving in the 2020 - 2025 period, EVN shall continue to deploy solutions to well manage the Demand Side Management (DSM), use energy economically and efficiently with the following objectives: (i) To reduce pressure on EVN in terms of investment and construction of power sources and grids, to operate the power system in an active, safe, reliable and efficient manner; (ii) To improve the competitiveness of electricity units in the electricity retail market by providing more energy-efficient, energy-saving, and renewable energy products and services, in line with the development strategies of many power companies in the world; (iii) EVN shall continue to be the leading unit, playing an important role in ensuring power supply and implementing solutions and programs on cost-effective energy and energy-efficiency usage for electricity consumers; (iv) To disseminate and widely advertise the DSM to raise awareness of people and businesses about energy-saving usage; to further popularize and run demand response (DR) programs to change power-using habits of electricity consumers. To encourage the widespread use of energy-saving equipment, technologies and services; (v) To encourage strong development of new electricity sources and renewable energy (wind power, solar, biomass...) to diversify power sources, contributing to reducing pressure on EVN in investing in the construction of new power sources, towards the use of clean energy and sustainable energy development; (vi) To study and advise the Government, ministries and sectors to make mechanisms and policies on DSM, especially commercial mechanisms to encourage the active participation of the consumers and create favorable conditions for EVN to run demand response programs, as well as mechanisms to attract socialized funds for implementing DSM programs.

- To operate effectively power plants (especially large hydroelectric plants, which are of particular importance to national defense and security), ensure power supply to reduce electricity purchase costs, to operate reservoirs to tackle flooding, supply water for downstream areas in according to law provisions, and effectively conduct production and business.

- To efficiently exploit coal-fired thermal power plants, ensure high availability coefficient and low coal consumption rate, and improve reliability indicators. To renovate and upgrade coal-fired power plants with high operating time.

- To operate the transmission and distribution grids integrated with renewable energy sources, ensuring safety, reliability, stability, flexibility and reducing system loss.

- To implement stable and safe operation methods in the system, make reasonable plans for repair of power plants; strengthen technical management, improve equipment exploitation capacity; avoid incidents and reduce fuel costs and power loss in order to maximize and effectively mobilize power sources; rationally mobilize capacities and power of hydroelectric plants, purchased power sources from independent power plants and backup power sources of consumers.

b) To effectively operate the electricity market, gradually form a fully competitive electricity market with multiple levels; reduce production costs, increase competitiveness and transparency:

- To operate the electricity market in a flexible and reasonable manner, in compliance with regulations on market levels.

- To complete the electricity market infrastructure, train human resources and consolidate the operational apparatus of the electricity market in line with development stages of the electricity market as planned in the roadmap.

- To develop a mechanism of electricity wholesale price between the Parent Company and the electricity distribution businesses in accordance with the mechanism for market-based adjustment of electricity retail price in order to motivate electricity distribution businesses to promote their initiative and operational efficiency.

- To re-elaborate the norms of materials and costs in each stage of power generation, transmission, and distribution in order to strictly control costs while implementing solutions to increase labor productivity, promoting internal control to reduce cost prices in each stage of production and business. To implement power saving programs to optimize investment and exploitation of the power system and market operation. To conduct research programs on demand management and demand response, promote models of energy service companies (ESCOs) and on-grid rooftop solar systems...

3. To improve business and customer service towards providing increasingly perfect customer service, meeting the increasing needs of customers, becoming an enterprise with the professional and modern business model and customer service.

a) To improve the business and customer service, gradually improve the quality of services provided to customers.

b) To modernize and apply scientific and technological advances in management, operation, and sale of electricity. To apply technologies of metering, data transmission and customer data processing, apply smart technologies allowing two-way data and information exchange between electricity service providers and customers.

c) To take measures to reduce time for accessing to electricity, shorten time for carrying out electricity-related procedures, propose and recommend ministries, sectors, and local authorities to simplify related procedures.

d) To perfect and modernize the technologies for maintaining and repairing the currently operating grid system, and equipment for live maintenance and repair in order to minimize the number of times and hours of power cuts.

dd) To apply advanced forms of payment of electricity bills and electricity services at any time and place.

e) To increase the rate of electricity bill payment via banking service.

4. To ensure a healthy financial situation of EVN, preserve and develop State capital invested in EVN and EVN's capital invested in other enterprises; be able to arrange investment capital for the investment needs in power plants and grids as planned.

a) To develop the Parent Company - the Group and its member units into enterprises with high financial credit in order to reduce the costs of capital funding for power projects, self-fund and gradually reduce the Government’s guarantee.

- To strictly and thoroughly implement the financial management, modernize the financial management system for strict management in order to ensure the healthy financial situation of the group.

- To strictly deploy measures to control and improve efficiency of loan use.

- To restructure the financial investment and capital investment in electricity production and business enterprises and restructure the loans.

- To raise the credit ratings of EVN and some member units.

- To review and restructure the loans in order to ensure the solvency of each project.

b) To ensure the arrangement of sufficient investment capital for the investment needs in power sources and grids as planned.

- To actively mobilize capital through issuing bonds at home and abroad for investing in electricity projects.

- To diversify capital arrangements, including international commercial loans and export credits along with ODA and foreign concessional loans.

- To actively seek for new funding sources. To study the objectives, scope and modalities of financial assistance of regional or global funds and banks to evaluate the suitability and consider the ability to arrange loans from such institutions.

- To pilot a model of financial mobilization in the form of project financing by establishing special purpose vehicles (SPVs) in accordance with the law provisions.

- To study a plan to control and limit risks in borrowing foreign loans in foreign currencies (to negotiate with donors to gradually reduce the proportion of foreign loans with floating interest rates in order to limit exchange rate fluctuations and interest rate fluctuations, especially those in the USD; to study the possibility of increasing the proportion of loans in the domestic currency in order to minimize foreign exchange risks arising from borrowing loans in foreign currencies).

c) To ensure appropriate ownership ratio of the Parent Company in power generation and retail businesses (especially for power generation joint stock companies) to serve a basis for restructuring the financial investment (divestment, selling the plants...) and self-funding by investing in new plants following the State's power source development roadmap.

- To gradually reduce the shareholding rate in power generation joint stock companies, which are stably operated and not required holding of dominant shares, in order to mobilize funds to repay loans or invest in new projects.

- To study plans to sell the whole power plants after they are put into operation to outside investors in order to mobilize capital for new investment projects, ensuring compliance with the Government’s plan to reduce public debts and serve as a basis for EVN to self-fund new power projects.

- To continue to equitize EVN’s member enterprises of which the State is not required to hold 100% capital.

d) To focus investment capital on companies producing, transmitting, distributing electricity, and providing auxiliary services with high economic efficiency; to divest in weak and unprofitable businesses.

dd) To conduct business with efficiency and profit: To improve the efficiency of production and business in order to ensure efficient and profitable business, contributing to ensuring a healthy financial situation of EVN, creating favorable conditions for capital mobilization.

e) To consistently implement financial and electricity price solutions in order to achieve a stable financial balance and profitable business.

5. To develop and improve the quality of the Group's human resources for meeting the increasing requirements of service quality, capture the technologies; build qualified human resources consistent with EVN's core values; promote creative capacity for sustainable development, modernization, and international integration of the Group.

a) To renew thinking in building and training human resources, associated with the rational use of the contingent of staff; adopt mechanisms and policies to promptly encourage and bring into play the forte capacity and creativity of each officer in each working position; build a modern, civilized, and cultured working environment.

- To improve mechanisms and policies in the direction of encouraging the recruitment of talents and attracting human resources, especially salary regimes, preferential regimes, training policies, and policies for encouraging study and fulfillment of missions and public services.

- To review, arrange, streamline, rationally use human resources in order to improve labor productivity. To develop programs and plans and invest in technology innovation in order to reduce labor force and increase labor productivity.

- To elaborate development planning and plans on training human resources specializing in the fields of power source, transmission, distribution, business, science, and technology for the electric power industry. To pay attention to planning and training officers in key positions and skilled technical workers.

- To create equal learning and development opportunities for employees.

- To diversify training forms in order to improve the qualifications of managers, engineers, technical workers, to acquire and master new and modern technologies, and to associate training with practical production. To provide additional and proactive training for the fields that are still demanding and in the making.

- To implement mechanisms to evaluate task performance based on efficiency, productivity, and quality, applying the Balanced Scorecard (BSC) system and Key Performance Indicator (KPI) system.

- To adopt mechanisms and policies to deal with redundant, old-aged, and disqualified workers in order to recruit qualified and capable workers in replacement.

- To promptly encourage and reward the right subjects to motivate staff and employees. To incorporate spiritual encouragement with material benefits.

- To implement the inspection, supervision and evaluation mechanisms and uphold the responsibility of the leading positions; resolutely handle violations of labor management.

b) To strengthen activities of human resource development and knowledge management in order to improve training efficiency:

- To elaborate career development roadmaps to improve the self-learning spirit of employees, develop general regulations on training, management and use of experts throughout EVN, create forums for experience exchange, assist in handling complex technical issues, convert knowledge of the experts to documents or digitize them into EVN's knowledge base.

- To develop and standardize the system of job titles for professional positions including managerial officials and specialized officers, ranks of technical workers and capacity framework for positions, to complete training programs for managers, to build training frameworks and exam banks.

c) To cooperate in training with foreign countries to improve the quality of human resources in the fields prioritized for development of EVN in the coming time, such as new and renewable energy, electricity market management and operation, training of highly qualified human resources in the fields of management, science, and technology for the electric power industry.

- To actively seek cooperation opportunities with prestigious foreign schools, institutes, and training centers to organize training programs to improve professional qualifications and working skills of the staff. To focus on training postgraduates and technical experts in the key fields, such as power system management, transmission, repair of power plants, automation, and information technology…

- To organize exchanges of experts or exchanges of management and operation experience with international organizations; to conduct reforms of the electric power industry; to develop new and renewable energy; to improve corporate governance capacity.

- To improve foreign language skills for staff to be able to participate in training programs and work independently with foreign partners.

6. To improve the scientific and technological capacity of the Group, constantly research, receive and transfer advanced technologies in the electricity sector; study and effectively apply the achievements of the Fourth Industrial Revolution in EVN's production and business activities, focus on improving efficiency, save energy; and ensure information safety and security for EVN's information systems.

a) To organize scientific research facilities with a contingent of qualified and experienced researchers to research, receive and transfer advanced technologies in the electricity sector, research and effectively apply the results in EVN’s production and business activities.

- To establish the Center for Training and Scientific Research with a contingent of qualified and experienced researchers to research, receive and transfer advanced technologies in the electricity sector, research and effectively apply the results in EVN’s production and business activities.

- When the Center for Training and Scientific Research is not established, EVN's research team shall cooperate with external science and technology organizations to research, apply, receive, and transfer technologies to improve EVN’s business efficiency and labor productivity.

b) To continue to improve, modernize and renew electrical equipment and technologies for immediate and long-term energy development.

- To associate the application of new and modern technologies with the improvement of current technologies in order to improve efficiency and save energy. To identify appropriate models and application roadmap of power source and grid technologies, which ensure stable development in conformity with EVN's conditions and investment capabilities, reasonable prices and environmental protection. Newly built energy projects shall use modern technologies in conformity with EVN's conditions; to gradually study, upgrade and renovate existing works to ensure meeting economic, technical, and environmental standards.

- To study and improve the features of some equipment related to the combustion of Vietnamese anthracite coal and mixed coal in order to improve efficiency and increase the operating coefficients of old currently operating plants. To use coal efficiently by improving the combustors and considering the application of Ultra-Supercritical (USC) technology based on the Group's experience and technical advances in the world.

- To work out plans on treatment of domestic coal to have stable quality, conform to the efficient operating conditions of new furnaces, improve efficiency, and reduce heat-up time in furnace calibration.

- To use advanced measuring and control equipment for the new thermal power plants: Newly built plants must have modern automatic control and measurement system which can be stably operated, easy to update and upgrade, avoid major incidents, increase the plants’ reliability, and uphold the readiness to contribute to improving the plants’ efficiency.

- To study to incorporate and manage distributed energy sources. To study the incorporation of renewable energy sources: solar, wind, diesel, energy storage batteries.

- To develop technologies for building multi-circuit lines of the same level or different voltage levels in order to reduce the area of ​​the transmission line corridors.

- To apply new materials; use new types of advanced insulation such as composites and superconducting materials.

- To research and apply heat-resistant conductors to improve the overhead conductors' load capacity, use alloy conductors or aluminum conductors with carbon fiber cores to reduce deflection and size of the power pylons.

c) To promote technology application in electricity business and customer service.

d) To cooperate and exchange experiences with international science and electricity organizations in the field of science and technology in general and electricity science in particular. To develop research cooperation programs with foreign countries on technologies of high-efficiency power plants using high-efficiency electrostatic dust eliminators to reduce emissions from thermal power plants in accordance with standards and law provisions on the environmental protection.

dd) To research and apply technologies of the 4.0 Industrial Revolution into EVN's production and business activities, such as converged infrastructure, cloud computing, virtualization, artificial intelligence, big data processing, mobile computing, IoT... in order to ensure information safety and security.

- To apply the technologies of the 4.0 Industrial Revolution to build and develop separate-use IT and telecommunications systems meeting the needs of production and business administration, corporate governance, and electricity market operation, power system administration/operation of EVN. To research and develop EVN's separate-use telecommunications system in the direction of modernity, ensuring appropriate capacity and redundancy, meeting all telecommunications and information technology needs for EVN's operations.

- To invest in depth, renovate, upgrade, and modernize the existing power sources and grids, improve the management, business and customer service related to them.

- To promote the application of information technology for production management and administration, thus improving the business efficiency of the electric power industry.

- To apply new technologies to reduce costs and improve labor productivity with the following solutions: (i) To modernize the management of power plants and substations by investing in remote control equipment; (ii) To equip smooth communication system; (iii) To improve information technology in order to gradually reduce the involvement of humans in operating power plants and substations towards substation automation.

- To deploy the SCADA/EMS for the National/Regional Load Dispatch Center and gradually perfect the SCADA/DMS for the Power Corporations.

- To use modern operating technologies to ensure optimal operation of the electricity system. To modernize the system of dispatching, operation, communication, control and automation serving domestic grid dispatching and regional interconnection.

- To apply advanced and smart metering technologies to monitor consumers' electricity usage, prevent loss in electricity business, serve the study of load forecasting and management requirements; to use electricity meters using technologies that can analyze and receive data remotely; to automate the distribution grids associated with customer service and demand management.

- To deploy centers for remote control and switching of equipment for the power grids of the units.

- To research on modularization of distribution substations and mobile kiosk substations. To synchronously build and equip protective relay systems for medium-voltage grids, Distribution Automation System (DAS), Distribution Management System (DMS), SCADA distribution system.

- To use condition-based maintenance and monitoring, online diagnosis, and live repair in order to improve the quality of operation and maintenance of the power distribution system.

7. To promote corporate culture, preserve and develop the brand of EVN to become a strong brand, a reliable partner and a professional service provider.

a) To build and develop the brand of EVN on the basis of organization, management, production, and business activities of EVN which are increasingly completed.

- To perform all contracts and commitments with domestic and foreign partners and partners fully and seriously.

- To provide services meeting the needs and requirements of customers, constantly improve the quality of services and customer service, and develop trust and friendliness with customers.

b) To maintain and uphold the brand on the principle of completing the assigned tasks and responsibilities, contributing to the completion of strategies, objectives, and tasks in the fields of production and business.

- To ensure the full implementation of the core values ​​and ethical standards in the culture of conduct and the codes of behavior throughout EVN.

- To develop its Vision/Mission/Slogan/Core Value and Commitments of EVN as specified in the Document of EVN Culture. The whole Group shall strive to build a friendly working environment, ensure fairness and transparency; build a contingent of employees of the Group with good expertise, effective and professional working style, friendly, civilized, and polite behavior which will bring bout satisfaction to partners and customers; successfully build the image of EVN and its subsidiaries to become reliable, friendly and wholehearted partners of the customers.

c) To develop the brand of EVN associated with community relations and implementation of EVN Culture, contributing to preserving and promoting the image of EVN as a reliable brand in the society.

8. To well perform communication activities and community relations throughout the Group to unite awareness and actions of the leaders and employees of the Group, gain understanding, sharing, sympathy and trust of the customers, improve the Group's reputation and build the Group's good image in the domestic and international communities.

a) To unite awareness and actions of the Group's leaders and employees on communication and community relations as one of the key missions of each subunit, from the grassroots level to the Group-level, as the responsibility of the Party Committee, Trade Union, Youth Union at each level as well as each staff and worker of the Group.

- To develop regulations, rules, guidelines, and communication crisis management manuals, and widely disseminate them throughout the Group for consistent and systematic organization of communication activities and community relations from the Group to the subunit level.

- To educate and foster the ideology, raise the sense of responsibility and ethical qualities of the employees, take the implementation of EVN Culture and the traditional education of the Vietnam’s electric power industry as the leverage to build a contingent of officials and employees with professional working style, dedication, good service attitude, and civilized behavior.

b) To build up the community's consensus, understanding and sharing on the image of EVN as a State-owned economic group operating efficiently and transparently. To build an image of a State-owned economic group always at the forefront in implementing social security, national security, and defense policies.

c) To professionalize communication activities and community relations, focus on building good relationships with media agencies, diversifying forms of communication; improve the quality of communication publications; strengthen the professional capacity of officers in charge of communication activities and community relations to ensure professionalism and effectiveness.

- To decentralize the implementation of sponsorship activities, the organization of customer events and social security activities, the brand promotion, and the building of images of the Group’s and its subunits’ leaders in order to create unity at work and overall media effect.

- To build the uniform images of leaders of the Group and its subunits within EVN and to the public. The images of the leaders shall be considered as the representation of not only the leaders themselves but also the Group, which will create public trust and sympathy for the Group.

- To strengthen the communication crisis management. To actively disseminate official information and messages from the Group and its subsidiaries.

- To diversify forms of communication in order to convey the information about the Group to the audiences in the most effective manner, to promote the gradual building of contents about the Group's activities on social networks.

- To building targeted mass media channels for consistent use in communication activities of the Group and its subsidiaries.

- To develop internal communication channels in stages to ensure that the internal communication network has two-way interaction and all features of a social network within the Group.

- To improve the quality of contents and forms of publications and information websites of EVN and its subunits.

d) To conduct community relations under the motto "Transparency -Activeness - Timeliness - Friendliness". Community relations-related activities shall be conducted methodically with apparent plans and be reviewed of their specific effectiveness over the years.

- To organize training courses to supplement basic knowledge about the electric power industry for reporters in charge of the industry.

- To actively coordinate and cooperate with news agencies as well as contact with management agencies and social organizations so as to report, provide information, and explain information about the Group in order to make the people correctly and fully acknowledge the Group.

- To selectively participate in social, humane, charity activities as well as organize events of high social significance to promote the image of the Group.

9. To protect the environment and actively cope with climate change by the appropriate steps in every period with mainly relying on EVN’s internal forces and, at the same time, promoting the efficiency of external resources.

a) To actively respond to climate change as well as strengthen environmental management and protection, meeting immediate requirements and ensuring long-term benefits, of which long-term benefits are fundamental; to ensure that they are both comprehensive and particular; to take appropriate steps in each stage.

- To identify potential fields suitable for applying cyclic and shared economic models in order to maximize the resources and equipment facilities and minimize the impacts on the environment.

- To improve the effectiveness and efficiency of environmental assessment, to ensure that the planning, plans, and development projects meet the requirements of environmental protection from the stage of formulation, approval, to implementation. Not to import or deploy new investment projects using outdated technologies, causing environmental pollution, and having low efficiency.

- To uphold the sense of responsibility for environmental protection among EVN’s employees. To build criteria and standards for environmental protection in EVN's operations. To form cultural institutions and environmental ethics in the enterprise. To conduct environmental assessment and classification for the subunits.

- To combine the application of new and modern technologies with the improvement of current technologies in order to improve efficiency and save energy.

- To encourage the use of new technologies in thermal power plants: Super-critical and Ultra Super-critical boiler technology, coal gasification, high-efficiency gas turbines; waste treatment technology... to improve efficiency and protect the environment. Not to develop new power plants using old, outdated, and low-efficiency technologies. To take measures on dissemination against the use of old equipment and technologies that consume a lot of energy.

b) To strengthen the organization and improve the capacity of the contingent of risk management in the field of environmental protection and climate change response. To simultaneously adapt to climate change and mitigate impacts of climate change, in which adaptation, proactive prevention and avoidance of natural disasters are the focus.

c) To strengthen environmental protection, control and treat pollution, improve the environment, reserve the nature and biodiversity; review and work out plans to soon deploy technology upgrades of currently operating coal-fired power plants to meet the requirements of environmental protection and conform to specific conditions at each stage.

- Newly built energy projects must use modern technologies in conformation with EVN's conditions.

- To work out plans to assess the current technological status of the currently operating coal-fired power plants, at the same time evaluate the levels of satisfaction of the environmental protection requirements in terms of emissions, wastewater, and solid waste.

- To gradually upgrade and improve the technological system of equipment and install additional environmental treatment systems for currently operating coal-fired power plants in order to meet technical, economic and environmental standards.

- To combine the application of new, modern technologies with the improvement of current technologies to ensure stable operation and improve treatment efficiency of environmental protection systems in order to minimize the impacts.

- To use coal effectively by applying mixed coal combustion, improving combustion equipment, and considering applying the Ultra Super-critical (USC) parameter based on the Group's experiences and technological advances in the world.

- To study measures to maximize the reuse of treated wastewater in order to minimize the amount of the wastewater as well as to save water resources.

- To elaborate a roadmap to terminate the operation and invest in the replacement of coal-fired thermal power plants that have reached their end of economic life and whose technologies are ineligible to be upgraded to meet economic, technical, and environmental standards.

d) To implement the treatment and consumption of ash and slag from thermal power plants

- To seek effective and sustainable solutions with qualified partners that have feasible plans and are ready to cooperate with the thermal power plants to consume ash and slag in the long term.

- To coordinate with State management agencies and local authorities to perfect a system of standards, specifications, regulations and technical instructions for the treatment and reuse of ash and slag in Vietnam as well as to strengthen dissemination about, and promote the consumption market for, ash, slag, unburnt bricks, and construction materials made from ash and slag.

- To implement technical solutions to control the reliable, stable, and optimal operation mode of the generating units, ensure the quality of ash and slag meeting the standards, regulations, and technical instructions for use as raw materials in producing construction materials

10. To expand and strengthen international integration and cooperation in internal resource development, improve the institutional capacity and operational efficiency of the enterprise, contributing to improving national competitiveness; to promote international cooperation in the spirit of sustainable development.

a) To expand cooperation and electricity exchange with countries in the ASEAN and the Greater Mekong Sub-region (GMS) towards the goal of forming ASEAN and GMS power system connectivity.

- To research and evaluate in depth the potential to exploit EVN's investment and business opportunities in foreign markets, focusing on the ASEAN energy market.

- To develop expert exchange programs in the framework of GMS cooperation to enhance mutual support, exchange, and training of highly qualified human resources in planning, management, and operation of the power systems, which will actively support the preparation for the establishment and operation of the GMS Coordination Center for Regional Power Trade.

- Through the ASEAN and GMS cooperation forums on energy trade and exchange, to promote more investment cooperation in hydropower, thermal power, and renewable energy projects, cooperation in exchange of experts in the region...

b) To maintain existing electricity trading connection with countries in the region, including Laos, China, and Cambodia.

c) To increase import of electricity from countries in the region, especially for the Southern region. To negotiate PPAs in an open way so that EVN can flexibly mobilize electricity based on its demands and cut down on imported electricity when domestic power is redundant, thus flexibly meeting the needs of the Vietnamese power system.

d) To maintain and expand regional grid connection in parallel with the optimal mobilization of power plants in the system. To flexibly take advantage of the price of imported electricity in each period to harmoniously use of domestically produced and imported electricity.

- For Laos:

+ To focus on importing electricity from Laos through the current 220 kV lines (Xekaman 1,3, Xekaman Xanxay and some hydroelectric plants in southern Laos).

+ To continue to supplement the planning and implement the investment in power grids connecting power sources from Laos directly sold to Vietnam in a synchronous schedule with the power source projects in Laos.

+ To research on investment possibilities and solutions or participate in investment in power plants in Laos.

- For Cambodia: To continue to maintain the sales of electricity to Cambodia through existing 220kV and medium-voltage lines. In the medium/long term, to follow the Government's policy on the import of electricity from Cambodia based on a full cost-effectiveness assessment when importing electricity from Cambodia, to consider power output/time when Cambodia is able to sell electricity to Vietnam (in rainy season) and the value of works EVN must invest in to collect the capacity of Cambodia's power plants connected to Vietnam.

- For China: To maintain the purchase of electricity from China through existing 220 kV and 110 kV lines; research on the connection between Vietnam and China electricity systems through Back To Back station.

dd) To strengthen EVN's role in regional and global energy/electricity platforms; develop foreign strategic partnerships based on assistance commitments for long-term interests of both sides, with great importance attached to finding foreign strategic partners in providing long-term fuels (imported coal, LNG...).

- To establish relationships and actively participate in international organizations and associations (IEC, ISO...) in order to learn from them, create access channels, and collect international reference information.

- To actively participate in and make contributions to international forums and cooperation mechanisms on energy, contribute to building forums and seminars in the form of speeches, experience sharing, and cooperation initiatives.

- To actively send those with the right expertise and qualifications, can comprehend and well convey information to participate in international forums and seminars in order to ensure and improve EVN's representation at international cooperation forums.

- To prefer selecting and building strategic partnerships with reputable foreign corporations and organizations with experience in the field of long-term fuel supply (coal, LNG...) for EVN; the fields of investment and implementation of coal or gas thermal power projects, renewable and new energy projects in the form of signing strategic cooperation agreements with commitments for long-term cooperation and support in terms of finance, technology, experts,... in order to take advantage of and learn from advanced experiences of other countries and then flexibly apply them to the development roadmap of EVN in each period.

e) To proactively make proposals to the donors about the possibility of providing technical support for the research and development of automation and modernization applications in electricity production, transmission and distribution, the application and development of smart grids, possibly accompanied by investment projects (technical support for project preparation) or independently in the form of non-refundable aid to strengthen the capacity of recipients.

g) To expand cooperation with foreign partners and contractors in supplying fuel for power plants; investing and implementing power projects.

- To strengthen cooperation with a number of countries, especially in the Asia-Pacific region with great LNG potential, such as the US, Russia, Australia, Malaysia, Indonesia, in order to enhance the possibility of importing LNG from these countries because they are, and will be, the largest LNG exporters in the region, and to have plans to increase export volume.

- To proactively seek and promote cooperation with partners from Indonesia and Australia, which are countries with great potential for coal export (with advantages of geographical distance, coal reserves, loading and unloading capacity, transportation...) to identify the market of imported coal for Vietnam's power plants.

- To proactively and timely grasp information on energy development and investment trends in the world; and the electricity development technologies.

- To make proposals to partners with experience in developing energy sources such as biomass power, biogas, waste, geothermal energy, marine energy... on promoting cooperation, to learn from experiences of other countries and suggest the possibility of applying them in Vietnam.

h) To encourage foreign investment in the equitization of the electric power industry and the supports in preparation for a competitive retail electricity market from 2021.

To seek and attract qualified foreign investors to invest in the equitization of the electric power industry (electricity generation and retail) and proactively make proposals to foreign partners on the cooperation in improving management and operation capacity for EVN and its subunits when the competitive electricity retail market is piloted in 2021 and officially operated in 2023.

i) To promote cooperation in the electric power industry's priorities in developing thermal power, LNG, renewable energy, and new energy, possibly including nuclear energy as directed by the Government in each period and in each field of transmission or distribution of electricity.

- To organize training courses on foreign investment, international trade, international transaction contracts.

- To promote cooperation in electrical engineering in the form of partnership in equipment production and maintenance-operation services to optimize the system.

k) To strictly manage the signing and performance of cooperation memoranda and agreements with foreign organizations right at the stage of approving cooperation policy, implementation plan, supervision and expedite evaluate the effectiveness of cooperation.

- To develop general principles in signing and implementing Memoranda of Understanding and cooperation agreements with foreign countries such as: the authority to sign; key priorities in the signing; the responsibility in summarizing, managing, and implementing the signed memoranda and agreements.

- To review on a quarter basis the situation and results of the implementation of the signed cooperation memoranda and agreements with foreign partners and report the results to the Members' Council.

- The continued signing of new foreign cooperation memoranda and agreements shall be selectively implemented, in line with the priority orientations of EVN in the coming time. Not to sign cooperation memoranda and agreements with unclear or impractical contents, without cooperation activities in specific implementation roadmaps.

- To prioritize research cooperation in the fields of renewable energy, new energy, transmission, and distribution of electricity. To consider expanding the possibility of signing memoranda and agreements in the field of renewable energy with partners who have extensive experience in renewable energy development, such as Germany, India, Denmark...

- To carefully consider the following contents: Regulations on commitments to confidentiality and regulations on force majeure events to minimize costs and obligations that may arise when such events occur; sensitive issues (diplomacy, politics...) to avoid potential risks that could affect or disrupt the cooperation/project in progress.

l) To expand cooperation with partners and financial institutions to ensure EVN's ability for capital funding in the future.

11. To develop EVN's power construction consultancy sector with sufficient capacity to perform and ensure service quality for all types of power projects, especially new and renewable energy projects, in all consultancy phases, from surveying and planning to designing, construction supervision and construction management. To gradually implement electricity construction consultancy activities in foreign markets to expand the operating scope and market, creating development opportunities for units in the field of electricity construction consultancy of EVN.

a) To improve the capacity of electricity construction consultancy organizations of EVN to participate in consulting in all stages of power projects, capable of acting as EPC general contractor for all power projects in Vietnam.

- To strengthen the organizational apparatus and improve the capacity of electricity construction consultancy units of which EVN continues to hold dominant shares or capital contributions. To divest capital at consultancy units of which EVN does not need to hold shares or capital contributions under the directions of the Prime Minister.

- To recruit qualified human resources and prefer young workers; formulate and implement remuneration policies to attract high-quality human resources meeting the job requirements; build and regularly adjust job description system and title standards to recruit the right people for the right jobs.

- To strengthen the work-oriented training and on-the-job training to improve the qualifications and capacities of young human resources; regularly assign young human resources to support big projects and new projects to gain experiences. To create conditions for qualified young workers to improve their qualifications and competencies in consulting work as well as to focus on training soft skills for employees.

- To gradually equip correct and sufficient specialized equipment and software to meet the job requirements of the units.

b) To let EVN's electricity construction consultancy units expand the consulting market throughout the country, gradually approach foreign markets, and be able to independently undertake consulting work, including performance of EPC contracts.

To research and analyze market and specifically evaluate the products to make appropriate investment decisions. To develop specific financial solutions for each stage of production and business for organizing the implementation; to well implement cash flow management; to build and supervise the implementation of appropriate cost plans for production and business activities.

Article 2. Organization of implementation

1. The Commission for the Management of State Capital at Enterprises shall:

a) Direct and guide the operation of EVN to well preserve and develop the State capital invested in EVN.

b) Monitor and supervise the implementation of EVN's development strategies, promptly direct and urge such implementation; summarize the results and advise competent authorities to develop and adopt mechanisms and policies to create favorable conditions for EVN to develop sustainably.

c) Create favorable conditions for EVN in the process of production, business, development, and investment, contributing to ensuring power security for the country.

2. The Ministry of Industry and Trade shall:

a) Assume the prime responsibility for formulating mechanisms and policies in investment and development of power sources and grids, ensuring that investment projects are put into operation on schedule.

b) Assume the prime responsibility for building policies, mechanisms, and infrastructure to meet import of primary energy for electricity production, especially coal and gas.

c) Assume the prime responsibility for making necessary conditions for the operation and development of the electricity market, ensuring the practical and effective operation of the electricity market, creating signals to attract investment in electricity system development.

d) Assume the prime responsibility for developing policies to manage customers' electricity demand.

dd) Assume the prime responsibility for building a system of legal frameworks and standards to limit outdated technologies, encourage the use of modern and high-efficiency technologies, especially in industries that consume a lot of electricity such as metallurgy and cement production.

3. The Ministry of Finance shall:

Coordinate with the Ministry of Industry and Trade to develop electricity price policies based on the market mechanism.

4. Relevant ministries, sectors and agencies shall be responsible for organizing the implementation of the Strategy within its assigned functions and tasks and in accordance with current law provisions.

5. Vietnam Electricity shall:

a) Disseminate and educate thoroughly the views, objectives, and contents of the Development Strategy of Vietnam Electricity to 2030 with a vision toward 2045 throughout the Group, thus creating high consensus from EVN to its subunits, from leaders of the subunits to the employees in the course of implementing the Strategy.

b) Develop appropriate long-term, medium-term plans and annual plans to effectively implement and achieve the goals set out in the Development Strategy of Vietnam Electricity to 2030 with a vision toward 2045 and submit them to competent authorities for approval and implementation.

c) Annually brief the Prime Minister and the Commission for the Management of State Capital at Enterprises on the implementation of the Development Strategy of Vietnam Electricity to 2030 with a vision toward 2045.

6. The Vietnam National Coal - Mineral Industries Holding Corporation shall:

a) Make investments and put power projects into operation on schedule.

b) Ensure the output and quality of coal to be supplied to power plants according to the agreed contracts and plans.

7. The Vietnam Oil and Gas Group shall:

a) Make investments and put power projects into operation on schedule.

b) Ensure the oil and gas output and quality to be supplied to the power plants according to the agreed contracts and plans.

8. The People's Committees of provinces and municipalities shall:

a) Give priority to ensuring sufficient land fund for electricity works approved in the PDPs.

b) Assume the prime responsibility for, and coordinate with the project owners in, site clearance, compensation, relocation, and resettlement of citizens for power projects.

Article 3. Effect

1. This Decision takes effect from the date of its signing for promulgation.

2. Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of People's Committees of provinces and municipalities, the Members' Council of Vietnam Electricity as well as relevant organizations and individuals shall be responsible for implementing this Decision./.