Trung Nam Group to lead the renewable energy industry in Viet Nam

Friday, Nov 04, 2022 18:39

Trungnam Group organises a meeting with investors, partners and financial institutions to discuss renewable energy industry in Viet Nam. — Photo courtesy of Trungnam Group

Trung Nam Group (Trungnam Group) organised a meeting with investors, partners and financial institutions to share its business activities and ambitions to continue to lead the renewable energy industry in Viet Nam

With the theme "Development prospects of the renewable energy industry after Power Plan 8", the meeting on November 3, gave an overview of the energy market in the next period, the advantages of industrial development of renewable energy power generation technology in the world, upcoming difficulties from the aspect of equipment and construction, as well as the size and taste of the capital market in Viet Nam and the world for this industry.

Head of Analysis Division, VNDirect Securities, Tran Thi Khanh Hien said: “Renewable energy development is an inevitable trend that cannot be changed when Viet Nam's electricity consumption demand is estimated to grow at a rate of more than 8 per cent in the 2022-30 period, and 78 per cent of the world's major manufacturing corporations will eliminate slow-moving suppliers by 2025. In Southeast Asia, Viet Nam is leading the renewable energy race with 16GW of solar power and about 5GW of wind power."

In particular, renewable energy has strongly promoted the privatisation of the electricity industry. By the end of 2021, independent power plants accounted for 41.3 per cent of the total installed capacity of the system, from just 18.4 per cent in 2018, a year before the first wave of solar power was formed. The proportion of renewable energy output is strong from 4-5 per cent in early 2020 to 14-15 per cent in the first 8 months of 2022.

In such a context, Do Tu Anh, Deputy General Director of Trungnam Group, said: “The group has come up with specific plans to access technology, equipment, cost control, procurement, and financial solutions to ensure its growth goals and affirm its position in the industry and potential areas, in line with global trends as well as the Government's commitment to net zero emissions with a vision to 2050.”

Hien said Trungnam Group's goal of increasing electricity sales revenue from US$200 million in 2021 to US$1 billion in 2026, profit before tax, depreciation and interest (EBITDA) will reach about 90 per cent.

In addition, as a private enterprise with the largest electricity generation capacity at present with 1.61 GW of electricity generated to the national grid, Trung Nam shares its expectation in the 8th power plan to be approved by the Government, in which the Group plans to participate in bidding for a series of onshore and nearshore wind power projects in the South Central, Central Highlands and Mekong Delta provinces.

Nguyen Tam Tien, General Director of Trungnam Group, said: “In the current global economic and political context, the competition of renewable energy investors to be able to purchase equipment and control costs is a challenge. We are fortunate to have the experience of successfully implementing, on schedule and on budget with more than 10 projects in Viet Nam, and therefore always receive favour from equipment suppliers, bilateral, multilateral financial institutions and domestic banks. In the past, we have succeeded through careful preparation. That is a great advantage as a foundation, the basis for us to continue implementing future projects. On November 1, we also signed a strategic cooperation agreement with Siemens Gamesa in Ha Noi and worked further with credit funds of Denmark and Germany as a preparation for the next phase.”

In parallel with the energy segment, Trungnam Group also has a certain income from the fields of its ecosystem including infrastructure, construction, electronic industry, real estate and other fields. The areas that are operating and supporting each other develop together, ensuring the overall growth of the business. Through positive growth financial indicators, specific business strategies, along with the ability to implement large-scale projects, Trungnam Group promises to open the door to the success of a full "New Era" potential and prospects, strengthening the position of the number 1 energy investor in Viet Nam. — VNS

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