Vietnam renewable power developers sell projects to foreign investors

In a recent wave of renewable energy investments in Vietnam, many domestic tycoons have registered large-scale projects and then quickly transferred stakes to foreign investors to take a fast profit.

This trend was mentioned in an inspection conclusion issued by the Government Inspectorate on Monday on the observance of policies and laws in the management and implementation of the national power development plan for the 2011-2020 period (PDP VII) and its amended version (2016-2020).

The first case to mention is tycoon Mai Van Hue with the sale of Huong Linh 3 Wind Power Joint Stock Company, developer of the Huong Linh 3 wind power plant; and Huong Linh 4 Wind Power Joint Stock Company, investor of the Huong Linh 4 wind power plant.

The two projects, with a capacity of 30 MW each, had their investment plans approved by the People's Committee of Quang Tri province in April 2019 and December 2019, respectively.

In June 2020, the board of directors of Thailand’s Eastern Power Group Public Company Limited approved a plan to buy 99.8% of the shares in the two above-mentioned enterprises for $9.6 million in total.

In a similar scenario, two months later, the board of directors of the Thai firm approved plans to purchase 2.25 million shares, or 90% of the charter capital of Chu Prong Gia Lai Wind Energy Joint Stock Company, which is developing the Che Bien Tay Nguyen wind power plant at a cost of $7.875 million; 2.5 million shares or 100% of the charter capital of Chu Prong Gia Lai Wind Power Joint Stock Company, developer of the Phat Trien Mien Nui wind power plant for $8.75 million. The sellers are a group of shareholders with connections to Central Highlands businesswoman Nguyen Thi Sen.

Tai Tam Group has become known for selling the cluster of Dak N'Drung 1,2,3 wind power projects to Sungrow Power (Vietnam) - a member of Chinese major renewable energy corporation Sungrow Power.

Another case is KN Investment Group of tycoon Le Van Kiem with KN Cam Lam and Cam Lam VN solar power plant projects in Cam An Bac commune, Cam Lam district, Khanh Hoa province, which have a combined capacity of 100 MW and total investment capital of nearly VND2.3 trillion ($94.84 million). Immediately after successfully connecting to the grid, Le sold 70% of the shares in both projects to Hanwha Energy Corporation Singapore Pte Ltd - a member of Hanwha Group from South Korea.

During the 2018-2019 period, Hung Hai Group JSC of businessman Tran Dinh Hai actively applied for project researching and planning adjustments. The projects included Bao Dai-Quang Tri floating solar power plant and Hung Hai wind power plant in the central province of Quang Tri; and a 750-hectare wind power project in the central province of Phu Yen. It also proposed to survey investment in wind power development in the northern province of Thai Binh.

In February 2019, domestic media reported that Hung Hai Group had invested VND12 trillion ($494.85 million) in building a solar power complex in the southern province of Binh Phuoc. The complex includes five plants (Loc Ninh 1-5), each with a capacity of 200 MW (except Loc Ninh 3 with 150 MW). The developer signed power purchase agreements (PPA) for these projects with state utility Vietnam Electricity (EVN) in mid-March 2019.

Just one year later (March 2020), Thailand's Super Energy Corporation (SEC) announced it would spend $456.7 million buying Loc Ninh 1, Loc Ninh 2, Loc Ninh 3 and Loc Ninh 4.

By the end of 2022, SEC owned Loc Ninh Energy Joint Stock Company, Loc Ninh 2 Energy Joint Stock Company and Loc Ninh 3 Energy Joint Stock Company, which are the developers of Loc Ninh 1 (200 MW), Loc Ninh 2 (200 MW), and Loc Ninh 3 (150 MW).

Besides the Loc Ninh solar power complex, the motif of “registering renewable energy projects and then transferring them to another unit” was also applied by Hung Hai Group at the Hung Hai Gia Lai wind power project. This project had its investment plan approved in September 2020, covering an area of 47 hectares with total investment capital of over VND3.7 trillion ($152.6 million).

Its developer is Gia Lai Wind Power Investment & Development Joint Stock Company, a legal entity established by a group of Hung Hai Group shareholders on July 16, 2020, with a charter capital of VND800 billion ($33 million). Of which, Hung Hai Group held 29.5%, Nguyen Van Tuyen 49.5%, and Nguyen Xuan Kien 21%.

However, just one month after being approved, the company was sold to new owners, with BB Power Holdings Corporation - a member of BB Group - and Nguyen Tien Luc holding 51% and 19.5% respectively. With the new owners, this project was renamed BB Power Gia Lai wind power plant and went into operation in 2021.

In September 2023, BB Group also approved its member company, Big Energy Joint Stock Company, to hold 55% of the capital of Hung Hai Construction Company Limited – a member of Hung Hai Group established in April 2003.