Norwegian investor eyeing hydropower projects in Vietnam

Norwegian SN Power Company intends to buy big amounts of stakes of hydropower plants in Vietnam, which is
believed to activate the hydropower merger and acquisition market.

According to Nguyen Thanh Tan, Chief Representative of SN Power Holding Singapore Ltd in Hanoi, their group plans to buy a lot of stakes of hydropower plants in Vietnam and is also considering the amount of capital for the investment in Vietnam.

Though the big hydropower projects in Vietnam have had their investors already, Tan believes that there are still many attractive projects which have high feasibility that foreign investors like SN Power desires. He describes the power market in Vietnam as competitive and taking shape to develop more strongly in the upcoming years.

“Hydropower plants will require huge capital, while the projects will develop depending on the characteristics of every nation and every locality,” Tan said.

“Our goal is to share experiences of the Norwegian power group with domestic investors to build and operate hydropower plants in Vietnam,” he added.

Tan said that the Electricity of Vietnam is the nearest targeted partner for the immediate time.

Vietnam is now planning to restructure the power plants of EVN and other power plants, which is really a golden opportunity for experienced and financially capable investors like SN Power to jump into the domestic power market.

However, Tan said that the investor well understands the possible risks; therefore, it needs to take cautious steps.

In order to implement its project, SN Power may cooperate with some foreign funds and financial institutions which have deep knowledge about the Vietnamese market, such as the Interational Finance Corporation, to ensure
the success of the implementation of projects.

When asked if SN Power thinks that it is a big challenge for the group when the electricity prices in Vietnam remain low, Tan said that the electricity price is really a challenge and risk for all foreign investors.

“We would think of the comprehensive measures which allow to minimize the risks and exploit the advantages when the market begins developing,” he said.