Renewable energy becomes new 'strategic piece' for major Vietnamese firms

Many leading corporations in Vietnam are expanding their presence in the wind and solar power sectors through huge investments, making renewable energy an increasingly important component of their long-term development strategies.

Businesses expand investment ecosystems

Renewable energy is no longer an exclusive domain for traditional power companies. The sector is witnessing a strong wave of participation from large enterprises across various industries.

With investment commitments ranging from several to tens of trillions of VND (VND1 trillion = $38 million), these companies are steadily expanding into solar and wind power projects, viewing renewable energy as a new growth driver within their long-term strategic plans.

One notable move comes from multi-sector conglomerate Taseco Group JSC. As part of the company's strategy to expand its investment ecosystem and pursue sustainable development, the company signed a memorandum of understanding with the Lai Chau province People's Committee to cooperate on researching, surveying and proposing solar power investment projects in the northern mountainous locality.

Under the agreement, Taseco will study and propose solar power projects with a planned total capacity of approximately 1,000 MW and an estimated total investment of VND22 trillion ($836.23 million), with implementation expected during the 2026-2030 period.

Steel giant Hoa Phat Group JSC (HoSE: HPG) has also officially entered the offshore wind power industry. According to a board resolution, Hoa Phat has contributed capital to establish Song Hau Offshore Wind Power JSC, which operates in renewable electricity generation, including both wind and solar energy.

The newly established company has charter capital of VND2 trillion ($76.02 million), of which Hoa Phat contributed VND600 billion, representing a 30% stake. The group has also authorized its CEO, Nguyen Viet Thang, to manage its entire capital contribution in the company.

In addition to Hoa Phat, KVS Investment JSC contributed VND600 billion (30%). Two individual shareholders, Tran Dinh Long and Tran Dang Khoa, each contributed VND400 billion (20% each). Khoa serves as the company's legal representative, chairman, and CEO.

Meanwhile, leading industrial park developer Kinh Bac City Development Holding Corporation (HoSE: KBC) announced that it had received notification from its member Sai Gon-Bac Giang Industrial Park JSC (SBG) that Sustainable Renewable Energy Co., Ltd. has officially become a subsidiary of SBG.

As a result, sustainable renewable energy is now indirectly controlled by Kinh Bac through a 96.46% ownership interest. The company has charter capital of nearly VND2.94 trillion ($111.76 million) and will develop the Van Canh 1 and Van Canh 2 wind power projects in the central province of Giai Lai, with a combined investment of nearly VND14.7 trillion ($558.79 million) and total installed capacity of 340 MW.

The most notable development comes from the Vingroup ecosystem, where VinEnergo Energy JSC has rapidly emerged as one of the fastest-growing non-utility companies in Vietnam's renewable energy sector.

In Gia Lai province, formed through the merger of the former Gia Lai and Binh Dinh provinces, VinEnergo has received approval to invest in the Thang Hung and Thang Hung Phase 2 wind power projects, with a combined capacity of 80 MW and total investment exceeding VND2.6 trillion ($98.83 million).

The company is also the investor of the Hon Trau Wind Power Plant – Phase 1, with total investment exceeding VND48.37 trillion ($1.84 billion), as well as the VND4.68 trillion Vinh Thuan Wind Power Plant.

Alongside its projects in Gia Lai, VinEnergo is studying and developing numerous large-scale renewable energy projects across multiple provinces throughout Vietnam.

Notably, it has continuously established new legal entities in Gia Lai, Ha Tinh, Dien Bien, and Lai Chau provinces to support research, development, and implementation of clean energy projects.

Renewable energy becomes long-term growth driver

After more than two decades of development, Taseco has built a diversified investment ecosystem comprising 29 subsidiaries, charter capital of VND1.35 trillion ($51.29 million), and total assets exceeding VND14.5 trillion ($551.08 million).

Building on its foundations in real estate, industrial infrastructure, and aviation services, the firm is continuing to expand into sectors with long-term growth potential, with renewable energy identified as one of its new strategic growth engines.

Similarly, Kinh Bac has identified renewable energy, artificial intelligence, and data centers as strategic sectors that will gradually become core business pillars, contributing an increasingly significant share of future revenue.

In addition, investments in advanced technology and clean energy not only diversify revenue streams but also enhance the competitiveness of existing industrial parks while attracting foreign direct investment (FDI) from high-tech industries seeking industrial infrastructure integrated with AI capabilities and green energy solutions.

Both Vingroup (HoSE: VIC) and VinEnergo aim to become leading developers of comprehensive, large-scale energy projects in Vietnam and international markets.

Under this strategy, the group plans to develop a diversified portfolio of sustainable green energy projects by applying advanced technologies and international standards for safety and quality.

Furthermore, VinEnergo intends to invest in Battery Energy Storage Systems (BESS) manufactured by EV maker VinFast, another subsidiary of Vingroup, creating integrated energy solutions that increase localization, enhance technological content, and strengthen the intellectual value embedded in Vietnamese-made products.