Japanese conglomerate owns largest $2.58 billion coal power plant in Vietnam: Partners with BRG for $4.2 billion project, investing in leading companies across multiple sectors

In Vietnam, our corporation has made investments and actively participated in various sectors of the Vietnamese economy, including industrial zones, urban railways, power plants, airport projects, logistics, and real estate. We have a diverse portfolio that reflects our commitment to contributing to the growth and development of Vietnam's economy.

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On March 13th, Vân Phong Power Company Limited held the inauguration ceremony for Vân Phong 1 BOT Thermal Power Plant.

Vân Phong 1 BOT Thermal Power Plant started construction in 2019. With an area of 137.11 hectares, it is built in Vân Phong Economic Zone, Ninh Phước commune, Ninh Hoà town, Khanh Hoa province. The project is invested by Sumitomo Corporation from Japan. Vân Phong Power Company Limited (VPCL) is a project enterprise established by the investor – Sumitomo Corporation with 100% capital contribution. The total investment capital is up to USD 2.58 billion, including 2 units with a total installed capacity of 1,432 MW.

With this capacity, Vân Phong is one of the largest thermal power plants in Vietnam and the largest coal-fired thermal power plant.

When operational, Vân Phong 1 BOT Thermal Power Plant will supply approximately 8.5 billion kWh of electricity annually to the national grid, accounting for about 3% of the total electricity output of the whole country.

At the inauguration ceremony, Mr. Nguyen Tan Tuan, Chairman of the Provincial People’s Committee, stated that the Vân Phong 1 BOT Thermal Power Plant project is the largest industrial project in Khanh Hoa province up to now. When the project is completed and put into operation, it will create many jobs and contribute to the local budget with an estimated amount of VND 1,000 billion per year.

Photo: Công Thương

The project investor, Sumitomo Corporation, is one of the largest trading and investment corporations in Japan. Up to now, Sumitomo Corporation has a presence in 66 countries with over 79,500 employees worldwide. As of September 30th, 2023, the company’s shareholders’ equity reached USD 29.2 billion.

In Vietnam, the Corporation has invested and participated in various sectors of Vietnam’s economy, including industrial parks; urban railways; power plants; airport projects, logistics, real estate, etc.

Sumitomo has been involved in major projects such as the construction contractor for the elevated section of Ho Chi Minh City Urban Railway Line 1 (Ben Thanh – Suoi Tien), construction contractor for Pha Lai Thermal Power Plant, Duyen Hai 3 Expansion Thermal Power Plant, Phu My 2-2 Thermal Power Plant, etc.

Sumitomo owns 58% of the capital of Thang Long Industrial Park Development Company Limited (TLIP). Currently, there are 3 Thang Long Industrial Parks in Vietnam, including TLIP 1 in Hanoi, TLIP 2 in Hung Yen, and TLIP 3 in Vinh Phuc.

Sumitomo has formed a joint venture with BRG Group to invest in the Bac Ha Hanoi Smart City Development Investment project (with an investment capital of up to USD 4.2 billion) and holds 50% of the capital in Bac Ha Hanoi Smart City Development Joint Stock Company (NH Smart City) – the investor of Bac Ha Hanoi Smart City project, with charter capital of up to VND 14,260 billion,

In addition, Sumitomo also cooperates with BRG to comprehensively develop the FujiMart supermarket chain in the Vietnamese market, holding 49%.

Sumitomo Corporation and its subsidiary companies also have stakes in many other companies in Vietnam, especially companies in the electronic components and auto parts sectors…

In the stock market, Sumitomo – through SSJ Consulting – currently owns 9.71% of Gemadept’s shares (GMD) and 7% of Truong Long Auto Company’s shares (HTL).

SOURCEcafef
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