EVN may face restrictions on investment in many areas.

The draft financial management regulations stipulate that EVN will not invest in real estate, banking, insurance, securities, etc.

According to the draft decree promulgating the financial management regulations of Vietnam Electricity Group (EVN), recently published by the Ministry of Finance for public comment, EVN may be prohibited from investing in many sectors.

The draft regulations clearly state that EVN is prohibited from contributing capital or issuing bonds to invest in the real estate sector, and from contributing capital or purchasing shares in banks, insurance companies, securities companies, venture capital funds, securities investment funds, or securities investment companies, except in special cases as decided by the Prime Minister.

EVN is entitled to mobilize idle capital from its wholly-owned subsidiaries. If EVN mobilizes capital from companies with less than 100% ownership, it must obtain the agreement of those companies. The interest rate will be agreed upon by both parties but must not exceed the market interest rate at the time of mobilization, as stipulated in EVN's capital mobilization regulations.

EVN is entitled to guarantee loans from banks and credit institutions for wholly-owned subsidiaries of EVN, in accordance with the law. The total value of loan guarantees for a wholly-owned subsidiary of EVN (excluding loans that EVN provides to the subsidiary) shall not exceed the value of EVN's capital contribution in that company.

EVN has the right to raise capital from domestic and foreign organizations and individuals in accordance with regulations through forms such as issuing bonds, treasury bills, promissory notes, etc., and has the right to use EVN's capital to invest outside the business sectors stipulated in EVN's organizational and operational charter, but ensuring the principles of efficiency, capital preservation and development, increased income, and without changing the operational objectives.

Furthermore, EVN has the right to sell overdue receivables, uncollectible receivables, and uncollectible receivables to recover capital. EVN is only allowed to sell debts to economic organizations with the function of buying and selling debts, and is not allowed to sell debts directly to debtors. The selling price of the debts is determined by mutual agreement between the parties, who are solely responsible for their decision to sell the receivables.

In the event that the sale of debt leads to EVN incurring losses, losing capital, or becoming insolvent, resulting in EVN's dissolution or bankruptcy, the Board of Members and those directly involved in the 발생 of these debts must compensate for the losses and be subject to legal penalties and penalties as prescribed by law and EVN's charter.

According to VOV