GAC inaugurates Vietnam office to tap ‘emerging energy tiger’

Global shipping and logistics provider GAC Group has launched its first office in Vietnam as part of the company’s continued expansion in Southeast Asia and the Asia-Pacific region.

GAC sees Vietnam as “an emerging energy tiger”, the global player said at the opening ceremony in Ho Chi Minh City on Tuesday.

“Establishing GAC’s footprint in Vietnam comes as the Southeast Asian country undergoes a renewable energy revolution with a target of being net zero by 2050,” the Dubai-headquartered company said in a release.

“Vietnam is planning to scale up its wind power generation capabilities to about 30% by 2050, up from 5% currently, with more than 120 offshore wind farm projects scheduled for construction.”

Erland Ebbersten, GAC Group vice president, marine and energy, elaborated: “The push for renewables is a key focus for GAC. We are now leveraging our decade-long expertise in offshore development projects, including offshore wind ones, to ramp up support for renewables projects and are set to play a critical part in Vietnam’s journey to net-zero.”

The new office supports customers at ports along Saigon River with an integrated portfolio of shipping, logistics and marine services to a wide range of sectors, including dry and liquid bulk, liners, fast-moving consumer goods, and offshore energy.

The office was established in partnership with HCMC-based SME Logistics, a Vietnamese firm providing forwarding, logistics and marine services.

“The combination of GAC’s global network with the strong local presence and know-how of SME Logistics will mark a new chapter for us to better serve our customers and deliver their strategy,” said Daniel Nordberg, GAC’s Group vice president, Asia Pacific & Indian Subcontinent.

The Asia-Pacific region continues to show significant growth in a number of sectors, including the offshore energy industry, he added.

GAC’s office in Vietnam follows the opening of a new base in Taichung, Taiwan, in November 2022.

Renewable energy was the third-biggest power source in Vietnam in the first two months of this year, with 6.45 billion kWh, or 16.7% of the total at 38.61 billion kWh, down 2.2% year-on-year. Output included 3.87 billion kWh of solar power and 2.4 billion kWh of wind power.

Other key sources were thermal power with 16.47 billion kWh, or 42.7% of the total; hydropower with 10.57 billion kWh, or 27.4%; gas-fired electricity with 4.32 billion kWh, or 11.2%; and imported electricity with 735 million kWh, or 1.9%.