Van Phong 1 BOT Thermal Power Plant – Photo: VGP/ Toan Thang
According to the Philippine News Agency, Aboitiz Power Corp. (AboitizPower) has announced the acquisition of a 25% stake in Van Phong Power Company Limited (VPCL) from Sumitomo Corporation. Local media reports the deal is valued at approximately $220 million. This marks the century-old Philippine energy giant’s first major investment in Vietnam.
Sabin M. Aboitiz, CEO and Chairman of Aboitiz Equity Ventures
AboitizPower is the flagship energy subsidiary of Aboitiz Equity Ventures (AEV). AEV is one of the Philippines’ oldest and largest conglomerates, tracing its roots back to the late 1800s and formally established in 1920.
Evolving from a maritime and hemp trading enterprise, AEV has grown into a diversified conglomerate operating in energy, banking (UnionBank), infrastructure, food manufacturing, and technology. As of December 31, 2024, AEV’s consolidated assets totaled ₱893.0 billion (approximately $15.4 billion).
VPCL operates the 1,320 MW Van Phong 1 coal-fired power plant in Van Phong Economic Zone, Khanh Hoa province. Utilizing ultra-supercritical boiler technology, the plant commenced commercial operations in 2024 and currently supplies approximately 4% of Vietnam’s annual electricity output.
A key asset feature is the 25-year Power Purchase Agreement (PPA) with Vietnam Electricity (EVN), ensuring stable, long-term revenue.
This acquisition is a pivotal step in Aboitiz Equity Ventures’ (AEV) “Great Transformation” strategy. The century-old conglomerate is aggressively diversifying to reduce reliance on its core energy sector, which previously accounted for nearly 60% of profits. While AEV expands into banking and consumer sectors, AboitizPower pursues geographic diversification, starting with Vietnam.
Aboitiz Power currently operates nearly 50 power generation projects in the Philippines. Photo: Aboitiz Power
The investment in a coal-fired plant appears to contradict AboitizPower’s green transition commitments. The company has pledged to halt new coal projects and invest $3.35 billion in renewable energy, targeting 50% clean energy capacity by 2030.
However, analysts note that acquiring an operational asset rather than building a new one aligns with a “balanced energy transition” strategy. This move provides immediate stable cash flow (via the 25-year PPA) to fund large-scale investments in renewable projects.
For Sumitomo, partially divesting from Van Phong 1 reflects portfolio restructuring. The transaction reshapes ownership in one of Vietnam’s largest FDI energy projects and is expected to close in fiscal year 2026 pending regulatory approvals.
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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.
