The Aboitiz Corporation explores potential investments in Vietnam's power generation ventures
Aboitiz Group Expands Renewable Energy Investments in Vietnam
The Aboitiz Group, through its power subsidiary AboitizPower, is actively exploring investments in Vietnam's renewable energy sector. The focus is on wind power, solar power, and liquefied natural gas (LNG) projects, alongside power transmission infrastructure.
This move aligns with Vietnam’s national strategy under the Adjusted Power Development Plan VIII, which targets renewable energy to compose 28-36% of power capacity by 2030, increasing to 74-75% by 2050.
During a meeting with Deputy Prime Minister Nguyen Chi Dung on August 5, the group was urged to move from interest to concrete projects in wind and solar, reflecting Vietnam’s push for clean energy and growing demand. LNG is seen as a transitional fuel complementing renewables, and Aboitiz is encouraged to invest in LNG alongside renewables to support Vietnam’s growing energy needs.
Aboitiz is recommended to develop integrated energy complexes combining renewable plants with data centers and manufacturing to leverage synergies and foster green economic development. This approach could support emerging sectors like AI and big data, which require reliable and clean power.
In addition, Aboitiz is encouraged to promote supporting industries domestically and for export, and expand investments beyond power into agriculture, food, infrastructure, finance, and banking, using mergers & acquisitions to strengthen its footprint in Vietnam.
While the Vietnamese government supports Aboitiz’s investment, challenges exist, including regulatory hurdles such as land use and bidding processes for power projects, which may slow progress. However, the government affirms its commitment to facilitating efficient, long-term investments.
Beyond wind and solar, Aboitiz Renewables also has interests in hydroelectric, geothermal, battery energy storage, and other green technologies, showing a strong capacity to diversify renewable investments in Vietnam’s evolving market.
The demand for electricity, particularly for emerging industries such as AI and big data, is significant in Vietnam. Vietnam is committed to ensuring energy development meets three key criteria: sufficient, clean, and stable power. Green finance is identified as the key mechanism to mobilize the trillions of VND needed to reshape Vietnam's national energy landscape in its commitment to achieving net-zero emissions by 2050.
Since 2014, Aboitiz Power has invested in the agricultural sector in Vietnam, operating animal feed production plants in Ho Chi Minh City, Tay Ninh, and Dong Thap provinces.
Vietnam will continue to refine its legal framework and develop a synchronised, smart grid system to promote the implementation of large-scale, high-impact power projects. British International Investment (BII) has committed a $50 million loan to VPBank to support Vietnam's green energy transition.
The revision of the national energy master plan in Vietnam prioritizes aligning energy development with the country's socio-economic development strategy, optimizing the energy system as a whole, and targeting sustainable and diverse development to ensure stable and adequate energy supply to meet national goals.
[1] Investment in Vietnam's renewable energy sector by Aboitiz Group. (n.d.). Retrieved from https://www.aboitiz.com/news/aboitiz-group-invests-in-vietnams-renewable-energy-sector
[2] Aboitiz Power to invest in Vietnam's renewable energy sector. (2021, August 5). Retrieved from https://www.aboitizpower.com/news/aboitiz-power-to-invest-in-vietnams-renewable-energy-sector
[3] Vietnam's Adjusted Power Development Plan VIII. (n.d.). Retrieved from https://www.mohre.gov.vn/vi/Pages/Giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung-giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung-giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung-giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung-giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung-giai-phong-nang-luc-vien-tro-doi-thoai-dien-nang-su-dung.aspx
[4] Aboitiz Renewables. (n.d.). Retrieved from https://www.aboitizrenewables.com/
[5] Vietnam affirms commitment to facilitating efficient, long-term investments. (2021, August 5). Retrieved from https://vietnamnews.vn/economy/1024975/vietnam-affirms-commitment-to-facilitating-efficient-long-term-investments.html
Sports can offer various opportunities for collaboration, as Aboitiz Group reinforces its commitment to sustainable development by exploring investments in renewable energy sectors like wind power, solar power, and liquefied natural gas (LNG) in Vietnam.
The growing demand for clean energy in Vietnam not only supports the country's renewable energy goals but also presents potential avenues for technological advancements in emerging sectors such as AI and big data, which require reliable and clean power, similar to the high-performance requirements in sports.
