GENERAL INTRODUCTION
Viet Lao Power Joint Stock Company was established under the instruction of the Prime Minister of Vietnam under the Letter No. 1477 / CP-QHQT dated November 19, 2002 with the initial name asViet - Lao Investment and Development Joint Stock Company to realize the Agreement on Energy Cooperation - a focal area for economic and political cooperation between the two Governments of Vietnam and Laos. The main objective of the company is to invest in building hydro projects in Laos in the form of Build - Operate - Transfer (BOT) to import most of electricity to Vietnam, contributing to ensure the National energy security and partly to serve the needs of domestic consumption of Laos.
On July 11, 2003, the Company was granted business license by the Department of Planning and Investment of Hanoi and officially came into operation with initial registered capital of VND1, 800 billion including founding shareholders: Song Da Corporation (60% of the charter capital); Electricity of Vietnam (10% of charter capital); Civil Engineering Construction Corporation No.5 (10% of charter capital); Civil Engineering Construction Corporation No. 8 (10% of charter capital); Mien Trung Construction Construction (5% of charter capital); Vietnam Urban and Industrial Zone Development Investment Corporation (5% of charter capital).
On the basis of the Cooperation Agreements on Economy, Culture, Science and Technology signed periodically and annually and the Agreement on Energy Cooperation between the two governments of Vietnam and Laos, on February 6, 2006, the Prime Minister of Vietnam issued the Letter.No. 207 / TTg-QHQT, assigning the Ministry of Industry to direct Viet - Lao Power Investment and Development Joint Stock Company to conduct research to invest in hydropower projects in Lao PDR, namely:
Xekaman3, Xekaman1, Xekaman4, Đak Y Mon, Se Kong 3A+3B and other hydropower projects aimed at supplying around 7.000 MW from Laos to Vietnam’s Grid by 2020.
To comply the Company’s development with the direction of the Government of Vietnam, ensuring the performance of the tasks assigned by the Prime Minister to the Company, and at the same time consistent to the direction of the Prime Minister of Vietnam In the Letter.No. 1524 / VPCP-KTTH dated March 22, 2007 on shareholding structure and increase of charter capital to invest in projects in Lao PDR.
On April 25, 2007, the General Meeting of Shareholders agreed to adjust the Company's shareholder structure, increase chartered capital from VND 1,080 billion to VND 5,300 billion and rename the Viet – Lao Power Investment and Development of Vietnam - Laos Power as:
• Full Name: Viet Lao Power Joint Stock Company
• International transaction name: Viet Lao Power Joint Stock Company
• Short name: VIETLAOPOWER
At present, the charter capital of the Company is VND 3,250 billion, with the capital contribution of shareholders:
1. Song Da Corporation holding 33.77% of charter capital
2. Viet Ha Construction Investment Management Joint Stock Company accounting for 31.34% of charter capital
3. Lien Viet Post Joint Stock Commercial Bank making up 10% of charter capital
4. PetroVietnam Power Corporation owning 9.48% of charter capital
5. Khai Hung Company Limited holding 4.99% of charter capital
6. Xuan Mai Investment and Construction Joint Stock Company making up 4.99% of charter capital
7. Vietnam Rubber Group representing 1.84% of charter capital
8. PVI Asset Management making up 0.46% of charter capital
9. EVN Generating Corporation 3 occupying 0.6% of charter capital
10. Dai Huu Power Company Limited holding 1.57% of charter capital
Especially, Lien Viet Post Joint Stock Commercial Bank is both a major shareholder and the main financer of the projects.