Foreign investors find stake acquisitions fit in Vietnam energy race
Vietnam’s booming clean energy market has been urging foreign firms to get involved, with acquiring stakes from domestic investors probably a more convenient way.
Vietnam in 2020 overtook Thailand as Southeast Asia’s largest renewables market, according to the World Bank, and Thai companies were the first group among foreign investors to launch an acquisition wave in the country. Other multinationals have since followed suit.
DNV, a global independent energy expert and assurance provider, announced Friday that it advised Actis, a leading global investor in sustainable infrastructure, on its acquisition of a majority stake in Singapore-headquartered Levanta Renewables, a Vietnam and Southeast Asia-focused renewables platform.
Actis announced the deal this August, adding that it has 300 megawatts of onshore wind power projects in Vietnam.
DNV said it has provided technical due diligence for the 300 MW portfolio of the ready plants, in addition to a 1,500 MW pipeline of projects.
The firm said as the advisor, it was asked to assess Vietnam’s commercial bankability and identify risks across a wide range of technical issues that may impact valuation of the renewable energy assets.
This Levanta acquisition is Actis’ first energy infrastructure investment in Vietnam and will support the country’s net-zero target by 2050. It follows Actis’ expansion plans.
“Actis has worked closely with DNV on a number of assignments within the Asean region and appreciates the combination of commercial pragmatism with technical expertise within an understanding of the needs and challenges of a due diligence process,” Actis CEO Liam Smith said in a release.
“Actis’ steadfast focus on expanding the installation of renewable energy plants in growth markets coupled with their ability to apply international environmental, social and governance standards in their investments creates tremendous value,” said Benoit Nguyen, head of Renewables - Southeast Asia, Energy Systems, DNV.
Nguyen served as DNV’s country manager in Vietnam from February-June 2021 when he moved to his current post, based in Singapore.
Vietnam's renewable energy market is offering many acquisition opportunities. Fecon, a Vietnamese enterprise in infrastructure construction, is seeking to sell all of its 40% stake in the $58 million Vinh Hao 6 solar power plant in the south-central province Binh Thuan, which began commercial operations in 2019.
Saudi Arabian utilities giant Acwa Power holds a 60% stake in the 50 MW plant as a result of a stake acquisition the same year.
Fecon and multinational power firm Corio Generation signed a joint development agreement this June for a proposed 500 MW offshore wind farm in Ba Ria-Vung Tau province bordering Binh Thuan. It could be among the first large-scale offshore wind projects to be built in Vietnam, once licenses and approvals are obtained.
In July, insiders said Vietnamese conglomerate Trungnam Group was considering selling a minority stake in its renewable energy assets. According to sources, who asked not to be named as the process is private, the corporation mulled over selling a 30% to 35% stake in its portfolio comprised mainly of wind and solar projects, a deal that might be valued its total assets at more than $1 billion.
In June, EDP Renovaveis, S.A., a top renewable energy firm in Spain, reached an agreement worth $284 million with Xuan Thien Group, a main power developer in Vietnam, to acquire two solar power projects in Ninh Thuan province which borders Binh Thuan. The two projects, totaling 200 MW, alternating current (MWAC), or 255 MW, direct current (MWDC), were put into commercial operation in April 2020.
French renewable energy giant EDF Renewables announced in October 2021 it had made a significant investment in SkyX Energy, a subsidiary of Vietnamese leading investment company VinaCapital and the operator of rooftop solar power plant SkyX Solar.
EDF did not disclose how much it invested, just saying that it assisted with the new partnership, and that SkyX Solar was expected to invest at least $100 million in developing 200 more MW of rooftop solar within the next two to three years.
At present, EDF and VinaCapital are seeking Vietnamese authorities’ nod to make initial surveys on a 3 GW wind power project offshore of Vung Tau.
Vietnam 2020 catch-up game with Thailand
Thai power firms got busier during 2020 in the Vietnamese renewables market. In December, the 50 MW Phong Dien II solar power plant commercially switched on in the central province of Thua Thien-Hue after it was just bought by Thai energy firm Gunkul Engineering Plc for $39.9 million. The Stock Exchange of Thailand-listed companies said the transaction was completed late that November.
The full take-over included the purchase of 49% of shares from Bangjak Green Energy Co, a subsidiary unit of Bangkok-based BS Industry Service Co, and 51% of shares from two individual Vietnamese shareholders.
The two women were Tran Thi Huong Hoa, who held a 46% stake, and Phan Thi Bich Nga with 5%. Therefore, more than $20 million from the Thai company into their pockets was reportedly a big profit, but exact gains were undisclosed.
The acquisition was part of Gunkul Engineering’s plans to expand in Southeast Asian renewables, which the company said have low risk and high growth potential. Toward the end, it went on to buy the Tan Chau solar plant in southern Vietnam’s Tay Ninh province bordering Cambodia for a reported $47 million, its fourth such acquisition in a row in 2020 alone. The plant began operations in October of that year.
In the same province, which also borders Ho Chi Minh City, two solar power plants with a combined power generation of 60 MW were bought in February 2020 by Gunkul Engineering at a total price of $60.6 million. Tri Viet 1 and Bach Khoa A Chau 1, each with a capacity of 30 MW, commercially started operation in May 2019.
Gulf Energy Development, another Thai firm, increased its ownership in two solar farms TTC 1 and 2 in the province from 49% in 2019 to 90%. The deals were made with its Vietnamese partner Thanh Thanh Cong Group, whose ecosystem also includes industrial and tourism real estate, as well as agriculture.
Other Thai companies with merger and acquisition deals to invest in the Vietnamese power sector include B. Grimm, BC Container Glass, and Begistics. Among them, B. Grimm’s presence is bolder.
B.Grimm Power, Siemens Energy, and U.S.-based company Energy Capital Vietnam (ECV) embarked on their consortium last December to develop the LNG-to-power Mui Ke Ga project in Binh Thuan, estimated to cost $1.75 billion to build. The 3,200 MW project has not been licensed yet.
- Read More
Vietnam needs large, specialized logistics centers to compete better: official
Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.
Economy - Sun, November 3, 2024 | 11:00 am GMT+7
Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco
Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.
Economy - Sun, November 3, 2024 | 9:00 am GMT+7
Construction majors to continue capitalizing on public investment projects
Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.
Companies - Sun, November 3, 2024 | 8:00 am GMT+7
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7