REE to set up 2 subsidiaries for wind projects in southern Vietnam

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE) has decided to establish two wholly-owned subsidiaries to develop two wind power projects in Vinh Long province, expanding its renewable energy portfolio in southern Vietnam.

According to a board of directors resolution, the first unit – REE Duyen Hai 2 Wind Power Co., Ltd. – will have an initial charter capital of VND30 billion ($1.14 million) which will later rise to VND677 billion ($25.7 million).

The company will be responsible for developing the V1-3 phase-two wind power plant, which has a total estimated investment of nearly VND2,260 billion ($85.79 million), including VND677 billion in equity and VND1,160 billion ($44.04 million) in loans.

The second subsidiary, REE Duyen Hai 3 Wind Power Co., Ltd., will have an initial charter capital of VND50 billion ($1.9 million) which will later expand to VND1,160 billion ($44.04 million) .

It will oversee the development of the V1-5 and V1-6 phase-two wind power plants, with a total investment estimated at VND3,860 billion ($146.53 million), comprising VND1,160 billion in equity and VND2,710 billion ($102.88 million) in loans.

Both subsidiaries will be based in Long Hoa ward, Vinh Long province. They will be fully funded by REE in cash. The investments are expected to be completed by the fourth quarter of 2025, the company said.

The move reinforces REE’s continued push into Vietnam’s renewable energy sector, following a series of expansions in wind and solar power projects across the Mekong Delta and central regions.

Earlier, REE won bids for these two nearshore wind power projects with a total capacity of 80 MW and an estimated investment of VND3,860 billion ($146.53 million). The projects are expected to start commercial operation by late Q4/2026.

According to Vietcap Securities, the projects will generate post-tax profit of VND123 billion ($4.67 million), with an average electricity selling price of 7.7 US cents/kWh, contributing around 10% to REE’s 2027 earnings growth. The internal rate of return (IRR) is projected at 11.8%.

These are among the first renewable energy projects in Vietnam to benefit from the new pricing mechanism. REE is also one of the earliest companies to secure investment licenses for renewables via competitive bidding.

On May 30, 2025, the Ministry of Industry and Trade issued Decision 1508/QĐ-BCT, setting new price caps for wind power. The new tariff is 18% higher for onshore and 9% higher for nearshore wind compared to the transitional rate.

REE shares closed down 1.41% to VND62,900 ($2.4) each on Friday.