Vietnam’s government has issued a new decree allowing state utility Vietnam Electricity (EVN) to amortize foreign exchange losses, electricity meter expenses, and disaster recovery costs over multi-year periods, easing immediate pressure on the firm’s balance sheet.
Decree 407/<a href="https://bitcomme.com/top-3-growth-stocks-to-watch-in-november-2026/” title=”Top 3 Growth Stocks To Watch In November 2026″>2026, recently signed by Deputy Prime Minister Nguyen Van Thang, establishes a special operating and financial management framework for the parent company EVN.
Under the decree, exchange-rate differences arising from investment in power projects included in the national power development plan may be accumulated and allocated to financial revenue or expenses over a maximum period of five years once a facility begins commercial operation. For projects of national importance, the amortization timeline may be extended up to the duration of the project’s loan repayment term.
The decree also outlines specific multi-year allocation schedules for operational and unexpected costs.
Regarding electricity meters, procurement and installation expenses can be amortized over a period not exceeding five years from the date incurred, aligned with the group’s business performance.
In case of incidents and disaster recovery, repair costs resulting from objective force majeure events, such as natural disasters or fires – that depress EVN’s profits below target or push the utility into a loss – may be amortized over up to three years, net of insurance payouts and other subsidies.
Additionally, the decree introduces a mechanism for EVN to write off sunk costs from aborted high-risk power projects using its after-tax profits. This applies to non-tax-deductible preparation and execution expenses for projects halted directly due to state-mandated changes in master planning or investment policies
To qualify, EVN must provide the relevant planning adjustment document or policy decision, together with an assessment of how the changes have affected the project’s feasibility.
The group must also submit acceptance and settlement records for completed work, or documentation establishing the value of investment costs incurred, as well as an independent audit report verifying those costs.
In the first eight months of 2026, EVN recorded more than VND482.04 trillion ($18.55 billion) in revenue, equivalent to 70% of its full-year target. Estimated profit reached nearly VND12.22 trillion ($470.25 million), or 103% of the year’s plan, while its state budget contribution was about VND17.16 trillion ($660.62 million).
EVN expects full-year profit to exceed VND13.5 trillion ($519.72 million) and its state budget contribution to top VND26.3 trillion.
Notably, as of the end of June, EVN had cleared all accumulated losses built up from previous years. The firm lost nearly VND50.03 trillion ($1.93 billion) in 2022-2023 as many costs related to power generation and supply were not fully reflected in regulated retail electricity prices.
The group returned to profit in 2024, reducing its accumulated losses to over VND33.79 trillion ($1.3 billion).
According to its 2025 consolidated financial statements, EVN had eliminated its accumulated losses by the end of last year. However, its parent company still had accumulated losses of over VND5.61 trillion ($216 million) at the end of 2025, which have since been reduced as its business performance improved.
