Foreign investors increase acquisitions of renewable energy projects in Vietnam

Foreign investors are increasing investments in renewable energy projects in Vietnam

Chinese investors are increasing their ownership in numerous renewable energy projects in Central Vietnam, the Central Highlands region, and Southwest Vietnam.

Notably, in Dak Nong province, the joint venture between Hung Bac Energy Investment JSC and The North Investment Construction and Development JSC are developing three wind farms with a total capacity of 300MW and the total investment capital of VND10.5 trillion ($456.5 million). 80 per cent of the investment capital would come from loans.

According to newswire Theleader.vn, Sungrow Power (Vietnam) Co., Ltd. holds a 70 per cent stake in the joint venture.

Sungrow Power (Vietnam) was established in September 2019 with the charter capital of VND23.4 billion ($1 million), under Sungrow Power (Singapore) Pte., Ltd. – a China-based renewable energy group.

In Binh Thuan province, Hong Phong 1 Wind Power JSC planned to develop a 40MW wind farm with the cost of VND1.7 trillion ($73.9 million). However, the construction of the project has yet to be kicked off and the board of directors proposed the province to transfer the stake in Hong Phong 1 Wind Power JSC to foreign investors.

Three months since Hong Phong 1 Wind Power JSC sent the proposal, the company now has two large foreign shareholders namely Indochina Wind Pte., Ltd. (Singapore), and Asian Wind Power 2 HK Ltd. (Hong Kong), which hold 51 and 48.9 per cent, respectively.

Asian Wind Power 2 HK Ltd. (Hong Kong) is also one of the investors Binh Thuan People’s Committee approved the investment planning for Hong Phong 2 wind farm project in July 2020.

TTC Group co-operated with Gulf Group (Thailand) to develop TTC 1 and 2 Solar Power Plants in Thanh Thanh Cong Industrial Zone, Trang Bang district, Tay Ninh province. At first, Gulf owned 49 per cent in the joint venture, however, the figure has increased to 90 per cent in September 2019.

Besides, Gulf spent $200 million to buy into two onshore wind farms (Ia Pech 1 and Ia Pech 2) in Gia Lai province from Dien Xanh Gia Lai Investment Energy JSC. The construction is expected to start this year and the two projects will come into effect in the fourth quarter of 2022.

The Thai investor also owns a 95 per cent stake at Mekong Wind Power JSC. The company operates the Mekong Project comprising of a 30MW solar farm and a 310MW offshore wind farm. The Mekong Project is located in Binh Dai district of Ben Tre province in Southern Vietnam. The first 30MW component of the project is expected to enter commercial operation in 2021. The second phase of approximately 49MW is also scheduled to begin operating in 2021, and the 231MW third phase is expected to come into operation between 2022 and 2023.