Vietnam’s utility major REE wins two wind power projects worth $152 mln in southern Vietnam

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE) has won bids for two nearshore wind power projects in the southern province of Vinh Long, with a total capacity of 80 MW and an estimated investment of VND3.86 trillion ($146.58 million).

According to Vietcap Securities, REE was the sole qualified investor for the V1-5 and V1-6 phase 2 wind farms. The projects are expected to start commercial operation by late Q4/2026.

The broker forecasts the projects will generate post-tax profit of VND123 billion ($4.7 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.

Strong growth expected in M&E segment

Over the next two years, REE’s mechanical & electrical (M&E) business is expected to post strong profit growth. Recently, REE, as part of a consortium of six contractors, broke ground on the construction and installation package for the T2 passenger terminal at Cat Bi International Airport in the northern city of Hai Phong.

The construction contract is valued at approximately VND2.3 trillion ($87.32 million), with REE responsible for the full design and installation of all MEP (mechanical, electrical, plumbing) systems.

Vietcap projects REE’s M&E segment will see post-tax profit grow by 52% year-on-year in 2025, and by 33% in 2026.

The company recorded nearly VND2.07 trillion ($77.07 million) in net revenue in Q1, a 13% increase year-over-year, while the cost of goods sold rose by 2%.

As a result, gross profit surged to VND950 billion ($36.53 million), up 208%, according to its newly-released Q1 consolidated financial statement.

Other financial indicators also showed positive performance. Financial income rose 57% to VND110 billion ($4.22 million), while financial expenses dropped 15% to VND191 billion ($7.34 million).

Profit from associated companies climbed 16% to VND140 billion ($5.38 million).

Net profit for the quarter reached VND611 billion ($23.49 million), up 27% year-over-year. This represented 20% of the year's revenue target and nearly 34% of the year's after-tax profit goal, as approved at the 2025 AGM of shareholders.

On the Ho Chi Minh Stock Exchange (HoSE), REE closed Monday at VND64,000 ($2.43) per share.