PetroVietnam promoting US partnerships: The future of Vietnam’s energy industry

On November 23, 2021, a round table discussion between PetroVietnam and US investors took place with the topic of potential energy investment in Vietnam.

The discussion was attended by Bui Minh Tien from the Members’ Council of PetroVietnam; Mary Tarnowka, executive director of The American Chamber of Commerce (AmCham) in Vietnam; Louis Nguyen, CEO and founder of Saigon Asset Management Company (SAM); Kevin Flaherty, managing director of SAM, along with representatives from member companies of PetroVietnam and US investors.

Through the discussion, the development potentials based on the geographical advantages of Vietnam and the development potential of PetroVietnam were confirmed, presenting an opportunity for Vietnam to become a leading destination in Southeast Asia and the world for energy investment.

In addition, after the United Nations Climate Change Conference (COP26), Vietnam has further committed to the international community to reduce its carbon emissions. Balancing those commitments with the socioeconomic development target will require a lot of work.

“At SAM, we think that Vietnam’s sustainable energy infrastructure plan will involve different technologies, and each technology will have its own set of requirements for investments, supply chain, and human resources.” added Nguyen. “Therefore, we invited a diversified group of energy partners including downstream, offshore wind, power, and manufacturing to the event; and trust that they will find their synergies with PetroVietnam and its subsidiaries.”

he discussion was attended by Stephen M. Renna, Senior managing director for Global Strategies and Solutions of Ankura Consulting Group; Scott Kicker, founder and CEO of Gen X Energy, a Blackstone portfolio company; Kohe Hasan, partner of Reed Smith LLP; Do Thi Thu Ha, senior partner, head of Infrastructure-Government-Healthcare Sector of KPMG; Benjamin Brown, director of Industry Education of Business Network for Offshore Wind, as well as representatives from many leading partners in the energy industry such as Shell, a global group of energy and petrochemicals companies with offices in more than 70 countries; Nooter Eriksen, a world-leading supplier of Heat Recovery Steam Generators; Tellurian, an LNG supplier developing the 27.6mtpa Driftwood LNG project; and GasLog Partners, the owner-operator of an LNG carrier fleet with a total capacity of over 2.3 million cubic metres.

The round table discussion focused mainly on energy exploitation, including opportunities and trends in the agrochemical industry, renewable energy industry, and offshore wind power as well as market focus and the future of sustainable energy.

Bui Minh Tien from the Members' Council of PetroVietnam affirmed the group's potential in energy development. As a leading national economic group and a pillar of the economy, in 2020, PetroVietnam’s total assets still grew over 2019 and gained many outstanding achievements. Over 46 years of development, the group has built a complete oil and gas industry system and implemented oil and gas activities in 14 countries around the world. In the future, PetroVietnam plans to develop into an energy corporation, which will focus on expanding the development of environmentally friendly forms of energy, contributing to Vietnam's goal of reducing carbon emissions.

Besides the potential for business exploitation, Kohe Hasan, partner of Reed Smith LLP, also highlighted the importance of legal issues when implementing international cooperation. Specifically, businesses need to consider the enforceability of contracts, issues of consent between the parties, as well as regulatory restrictions on investment and ownership in each country.

At the same time, businesses also need to define clearly the role of each member in the cooperation, especially the role of leadership and management and minimise risky activities during implementation to avoid causing problems and unnecessary crises.

In the future, besides energy investment, SAM also plans to promote international investment activities in Vietnam in many other fields.

The round table discussion between PetroVietnam and US partners is the first step of SAM in connecting US energy businesses with PetroVietnam and large Vietnamese corporations, to set the foundations for future cooperation in the sustainable energy industry.

Founded in August 2007, Saigon Asset Management is a fund management firm whose portfolio focuses on agricultural, health care, financial services, education, technology, and energy. SAM has invested more than 185 million USD in 65 companies and projects in Vietnam. Managed funds such as Vietnam Equity Holding (VEH) and Vietnam Property Holding (VPH) have outperformed peers and indices. Investment priorities include companies, projects that create environmental, social, and governance (ESG) benefits while maintaining the financial profits for the funds’ investors.

Article: Hai Linh Tran | Design: Hanh Hoang