Nguyen Thi Mai Thanh to return to board chairperson position at utility major REE Corp

Ashok Ramachandran will become general director of Vietnam’s private utility firm REE Corp, while Nguyen Thi Mai Thanh will return to the position of chairperson of the board of directors.

The information was revealed at the 2025 AGM of REE, listed on the Ho Chi Minh Stock Exchange (REE), on Tuesday in HCMC.

Shareholders at the AGM approved the revenue target of VND10,248 billion ($400 million), up over 22% compared to last year. If achieved, this will be the first time the company's revenue exceeds the VND10,000 billion ($390 million) mark.

The profit after tax attributable to the parent company shareholder is targeted at VND2,427 billion ($94.6 million), up 22% compared to 2024's actual figure and only below the record level of 2022.

Speaking at the AGM, Thanh said that to achieve the growth target of 15% in the coming years, the company must expand capacity and business activities.

New activities include raising energy and water production capacities (a new waste-to-energy project with a capacity of 2,000 tons per day and a new project to produce about 300,000 cubic meters of water a day), expanding investment into new sectors like real estate development along traffic axes (transit oriented development or TOD), such as along the metro line system and ring roads in HCMC, and data center infrastructure.

Notably, in 2025, the real estate segment is expected to reap a revenue of VND2.11 trillion ($82.26 million) and a net profit of VND803 billion ($31.3 million), equivalent to an increase of 84% and 58%, respectively, year-on-year.

The company said it will complete sales of the remaining low-rise products at The Light Square project in the northern province of Thai Binh, find customers for the New City office building in HCMC's Thu Duc city, and continue to expand its land fund to develop offices for lease.

The electro-mechanical segment is also assessed to have great potential thanks to the rise of FDI and public investment.

REE M&E, a member company of REE, signed a new contract worth more than VND5,100 billion ($198.8 million) in 2024, exceeding the plan by 28% and nearly five times higher than the same period. This company also won a bid for the Long Thanh airport project worth VND2,534 billion ($98.8 million).

At the AGM, shareholders also approved the dismissal of Huynh Thanh Hai, former CEO of REE, from the role of board member. Ashok Ramachandran, an Australian, was elected as board member for the 2023-2027 term.

In July 2024, Hai transferred the position of CEO to Le Nguyen Minh Quang, who held that position for five months before transferring it to Nguyen Thi Mai Thanh.

Thanh said that Ramachandran will become CEO, while she will return to the position of board chairwoman. The election of the executive board will take place in the near future.

Ramachandran has a master's degree and more than 20 years of experience as an engineer and business manager in Asian countries like Vietnam, Malaysia, and India. He is currently general director of JSW Energy.

The 2025 AGM also approved the proposal to pay a dividend of 25% in 2024 (including 10% in cash and 15% in shares), and issue 500,000 ESOP 2025 shares at a preferential price of VND10,000 ($0.39) per share. The issuance of shares, restricted from transfer for three years, is expected to be implemented in Q1/2026.

What did REE's CEO say about Vingroup's plan to venture into renewable energy development?

At the AGM, shareholders asked REE's leaders about the development of its 176 MW wind power projects and the 40 MW waste-to-energy project in Cu Chi district, HCMC. They asked whether these projects would be sold under the direct power purchase agreement (DPPA) mechanism or to state utility EVN.

In response, Thanh said that REE has plans to sell these projects to EVN at a lower price than initially expected, around VND1,913 (over $0.07) per kWh.

She noted that the investment cost for turbines significantly decreased compared to before. With this electricity price, REE’s internal rate of return (IRR) can be over 10%. If the projects are developed and operated efficiently, the figure could be several percentage points higher.

REE has registered a number of new projects under the DPPA mechanism. The company has also been in discussions with several large potential foreign customers.

Some investors have proactively reached out to REE. The firm has introduced the basic terms of a DPPA contract to these investors, but their concern is about selling prices.

REE has approached 53 major potential customers and is about to sign an MoU with a large enterprise in Vietnam.

Regarding the issue of expanding REE's ownership at affiliated companies like Song Ba Ha Hydropower JSC (UPCoM: SBH), Thac Mo Hydropower JSC (HoSE: TMP), and Central Hydropower JSC (HoSE: CHP), Thanh stated that if the state plans to divest, REE will consider acquiring more shares.

However, she emphasized that any purchases would depend on the profitability of the companies. Typically, when the state divests, valuations are high, meaning the profitability tends to be only around 5-6%, which is not very attractive.

"I hope the government will consider a different approach, such as divesting at a slightly lower price to raise capital for investments in nuclear power, LNG power, or other infrastructure projects.

"Private investors are now fully capable of developing power. If the government maintains its view that it must the investor for electricity infrastructure, it should focus on ensuring transmission capacities and prevent line disruptions," Thanh noted.

In response to a shareholder's question about Vingroup's proposed participation in renewable energy, Thanh said that renewable energy is an area open to all investors, as the current mechanism involves bid openings to select investors. "For many years, hundreds of investors have lined up to invest in various types of power generation."

"Investors must research projects in advance, register with provincial authorities, and submit to the Ministry of Industry and Trade, and then the Government Office for re-evaluation.

"Vingroup is also aware of the increasing need for power sources, so they have registered to participate. They, too, have to queue up, which doesn’t really affect REE much," she said.

Regarding REE's divestment of VIB bank shares, REE leaders said the company invested over VND700 billion ($27.3 million) in VIB shares at the end of 2022. For 2025, VIB targets double-digit growth while maintaining an ROE at 20% and reasonable dividends.

As a result, REE intends to hold onto its investment in VIB for as long as possible. To date, this investment has helped REE achieve a 60% profit on the original purchase price (about VND400 billion or $15.59 million).