Merger and acquisition activities in the renewable energy industry have attracted foreign investment in Vietnam. As per the data, the total value of such activities has reached 5.7 billion USD in the first ten months of 2022.
According to Tiong Hooi Ong, Deputy General Director and leader of the Transaction Service of PwC Vietnam, M&A activities have continued to attract much attention from foreign investment funds.
"We see an increase in strategic decisions to optimise portfolios as traders divest to focus their resources on enhancing business capabilities and transforming business sectors through M&A,” he was quoted in a local media report.
Similarly, Tran Thi Khanh Hien, Director of the Analysis Division at VNDirect Securities, was of view that the development of renewable energy is at rapid scale, as Vietnam's electricity consumption demand is estimated to grow more than eight times between 2022-2030.
"In Southeast Asia, Vietnam is leading the renewable energy race, with 16,000 MW of solar power and about 5,000 MW of wind power. In particular, renewable energy has strongly promoted the privatisation of the electricity industry," Hien was quoted.
To be noted, renewable energy production has grown from 4-5% at the beginning of 2020 to 14-15% in the first eight months of this year.
It has been reported that this year alone, many such mergers took place which led to a significant milestone for green assets in Vietnam. As per statistics, the country falls within the top 20 countries with the largest renewable energy capacity globally. Vietnam is leading in Southeast Asia, with 16GW of solar power and about 5GW of wind power.
Meanwhile, between 2022-2045, the number of solar power capacity is expected to grow by 8%, and wind power capacity is expected to grow by 16%.
