From $1.47 bln accumulated loss to $1.97 bln net profit in 2025: What drove Vietnam Electricity's turnaround?

Strong double-digit revenue growth and tighter cost control helped Vietnam Electricity (EVN) significantly improve its profit margins in 2025, enabling the state utility to post its highest profit after tax in years and erase accumulated losses from previous years.

EVN reported a sharp rebound in earnings in 2025, posting consolidated net profit of VND51.88 trillion ($1.97 billion), more than six times higher than in 2024, after suffering heavy losses in prior years.

The earnings recovery allowed EVN to fully offset losses incurred during 2022-2023, turning accumulated losses of VND38.69 trillion ($1.47 billion) into retained earnings of over VND5.53 trillion ($210 million) by the end of 2025.

Consolidated revenue rose 11.2% year-on-year to nearly VND645.66 trillion ($24.51 billion) in 2025, while cost of goods sold increased by only 3.4%, allowing gross profit to almost double to over VND96.35 trillion ($3.66 billion).

Gross profit margin improved to 14.9% from 8.5% a year earlier. The electricity sales segment alone saw its margin increase to 14.55% from 8%.

Operating expenses rose only modestly. Financial expenses, the group's largest cost item, increased 7.8% to VND23.65 trillion ($897.9 million), including VND16.65 trillion in interest expenses. Selling expenses were broadly unchanged, while administrative costs rose 10.6%.

EVN currently owns three power generation corporations (Genco 1, Genco 2 and Genco 3), nine hydropower and thermal power companies, and five regional power distribution corporations.

Quang Trach 1 thermal power plant nears operation

According to EVN, the utility faced challenges in 2025 due to extreme weather conditions and rising electricity demand. Despite those pressures, the group not only returned to profitability but also exceeded its construction investment targets.

Capital expenditure disbursement reached VND125.78 trillion ($4.77 billion) in 2025, up 14.7% from the previous year.

Several major national infrastructure projects were completed and commissioned during the year, including the expanded Hoa Binh Hydropower Plant and the Lao Cai-Vinh Yen 500-kV transmission line. Other large-scale projects are expected to enter operation in 2026.

As of December 31, 2025, EVN's total assets stood at VND783.09 trillion ($29.73 billion), an increase of more than VND107 trillion from the start of the year. Cash and bank deposits climbed 67.2% to VND152.4 trillion ($5.79 billion), accounting for nearly one-fifth of total assets.

Construction-in-progress assets rose sharply to VND83.47 trillion from VND63.4 trillion. Investment in the Quang Trach 1 Thermal Power Plant increased to over VND29.33 trillion ($1.11 billion) from VND13.6 trillion, while investment in the Lao Cai-Vinh Yen transmission line rose to VND5 trillion from VND97 billion.

Construction of the Quang Trach 1 project in Quang Tri province began in November 2021. The plant comprises two turbines with a combined installed capacity of 1,403 megawatts and is expected to supply about 9.1 billion kilowatt-hours of electricity annually once operational.

EVN said in May that the turbine 1 successfully completed its first coal-firing test, marking a key technical milestone ahead of commercial operation.

Quang Trach 1 is one of Vietnam's priority power generation projects under the national power development plan and is expected to play an important role in ensuring energy security and supporting the development of a sustainable, modern energy hub.

On the balance sheet side, EVN's equity increased 29% to nearly VND260 trillion ($9.87 billion), supported by the strong profit performance in 2025.

The utility also continued to increase borrowings to finance investment projects, with total outstanding debt rising to VND341.3 trillion ($12.96 billion) at the end of 2025, up 5.3% against the beginning of the year.