Philippine energy group eyes investment in Vietnam’s power sector

AboitizPower wants to invest in Vietnam’s electricity industry, especially in transmission infrastructure, said Danel Aboitiz, executive director of the corporation.

Aboitiz made the statement at a meeting with Deputy Prime Minister Nguyen Chi Dung on Tuesday in Hanoi.

He said AboitizPower also wants to learn about Vietnam's priorities and orientations in energy development.

Founded in 1998, AboitizPower currently operates 51 power plants across the Philippines, with a total capacity of approximately 5,000 MW. Its energy portfolio includes thermal, hydroelectric, geothermal, wind, and solar power. AboitizPower is the Philippines's leading energy company under Aboitiz Group.

In Vietnam, Aboitiz Group has been active in the agricultural sector since 2014, operating animal feed manufacturing facilities in various locations, including Tay Ninh, Dong Thap, and Ho Chi Minh City.

In addition to its expertise in coal-fired and hydropower generation, Aboitiz Group is exploring the application of artificial intelligence (AI) to develop maintenance systems for its power projects.

In response, Deputy Prime Minister Nguyen Chi Dung emphasized that Vietnam’s pursuit of double-digit economic growth in the coming years will require a substantial increase in electricity demand, especially in the emerging sectors like AI and Big Data.

To ensure a clean, reliable, and affordable energy supply that aligns with Vietnam’s international commitments and development targets, the country has adopted the Adjusted Power Development Plan VIII. This roadmap aims for renewable energy sources to make up 28-36% of the total power capacity by 2030, increasing to 74-75% by 2050.

Dung praised Aboitiz Group’s successful business performance - particularly in renewable energy - and expressed support for its plans to expand investment in Vietnam’s green energy sector.

To accelerate the transition from investment interest to concrete projects, he encouraged Aboitiz Group to engage in detailed discussions with the Ministry of Industry and Trade and local authorities to identify suitable projects, especially in wind, solar, and LNG power.

He suggested the group explore investment models that combine renewable energy plants with data centers, develop supporting industries for both domestic needs and export, and actively provide input on policy frameworks for power source management and workforce training.

Dung also encouraged the group to expand its investments in sectors where it already has expertise, including through mergers and acquisitions, in areas such as animal feed production, agricultural products, food, banking and finance, and infrastructure.

According to its 2024 annual report, AboitizPower posted revenues of PH 197.49 billion (approximately $3.43 billion), a 5% decrease from 2023. Net profit rose 2% to PHP33.9 billion ($589.8 million).

As of end-2024, total assets stood at PHP517.6 billion (around $9 billion), up 6% year-over-year, while the debt-to-equity ratio decreased by 7% to 1.4.