The Japanese utility, Chubu Electric Power Co., Inc. will invest in Vietnam’s Bitexco Power Corporation (BPC) to become a 20 per cent equity stakeholder in the company. Chubu Electric participated in a bid for a partial share acquisition of BPC, under which it entered into a share purchase agreement with existing shareholders selling their shares in BPC and a share subscription agreement with BPC. This marks Chubu Electric’s first investment in Vietnam.
Tapping into the growth of Vietnam’s electricity market is in line with Chubu Electric’s vision to expand its overseas business while contributing to decarbonisation goals. Recently, the company’s joint venture with Tokyo Electric Power Company Holdings Inc, JERA, announced an investment of $1.58 billion in Aboitiz Power Corp in the Philippines in return for a 27 per cent stake. Last year, Chubu Electric along with Mitsubishi Corporation also acquired the Dutch energy firm Eneco, valued at $4.8 billion.
BPC is a subsidiary of the Bitexco Group of Companies, which undertakes business in the field of energy, infrastructure, oil and gas and real estate, in Vietnam. As of February 2021, BPC has developed a total generation capacity of 1038 MW, under its ownership of 21 hydropower plants and one solar plant in the country. Furthermore, the renewable energy market is expanding in Vietnam as the electricity demand is expected to continue to grow.