Vietnam Electricity Group's parent company recorded a net profit exceeding 8,631 billion VND ($345 million) in the first six months of 2026, clearing away accumulated losses of 5,611 billion VND from the end of 2025, according to a quarterly report released September 10. The state-owned utility now holds more than 120 trillion VND in bank deposits as it strengthens its financial position. The turnaround marks a dramatic recovery for the country's dominant power supplier, which started the year carrying substantial losses but ended the half with over 3,019 billion VND in retained earnings.
The parent company's revenue from sales and services reached 295,030 billion VND for the six-month period, climbing 14.3% compared to the same stretch in 2025. After-tax profit of 8,631 billion VND represented a 26.2% increase year-over-year. However, the second quarter alone showed strain: revenue hit 163,699 billion VND, up just over 16%, but cost of goods sold surged 25.2% to 160,544 billion VND. That squeeze pushed gross profit down nearly 75% from 12,428 billion VND in Q2 2025 to just over 3,154 billion VND this year, compressing the gross margin from roughly 8.8% to 1.9%. Net operating profit for the quarter dropped 54.2% to 4,643 billion VND, and the company's Q2 net income fell 54.3% to 4,654 billion VND.
Financial performance told a different story. According to the report, finance income rose 18.4% to 2,748 billion VND in the second quarter, while finance costs plunged 81% from 4,176 billion VND to around 789 billion VND. Interest expenses dipped slightly from nearly 1,193 billion VND to 1,108 billion VND. Other income contracted sharply, falling almost 69% from 36.8 billion VND in Q2 2025 to 11.5 billion VND. Total assets stood at more than 542,269 billion VND by the end of June, with short-term assets climbing roughly 38,300 billion VND from the start of the year to exceed 230,575 billion VND. Short-term financial investments alone grew about 28% to top 127,774 billion VND. The company's bank deposit holdings—combining term and demand accounts—totaled more than 126,450 billion VND, the bulk of which sat in term deposits worth over 121,835 billion VND, while demand accounts held more than 4,615 billion VND.
The report explains the financial turnaround as driven by improved financial governance and cost discipline. EVN conducted tenders for 8,539 procurement packages in the first half, achieving an average savings rate of 6.32%. The group refined its financial governance rules and developed plans for average consumer electricity prices and transmission costs for 2026, which it will submit to authorities. On the liability side, short-term loans and finance lease obligations stood at more than 10,207 billion VND as of June 30, with long-term borrowings and finance leases exceeding 114,169 billion VND out of total liabilities of more than 304,851 billion VND. The company is preparing to secure financing for major projects including the Quang Trach II liquefied natural gas facility and a project to strengthen the integrated renewable energy system.
EVN's turnaround positions the state utility to fund critical energy infrastructure as Vietnam races to expand power capacity. The company's cash cushion and reduced finance costs give it room to invest in gas and renewable projects that the report identifies as priorities for 2026. With accumulated losses wiped clean and a growing profit buffer, the parent firm can now channel resources toward grid integration and new generation without the drag of past deficits weighing on its balance sheet.