Vietnam’s authorities selected a newly created subsidiary of real estate conglomerate Vingroup to develop the first phase of one of the country’s largest offshore wind power projects, excluding Morgan Stanley-backed German renewable firm PNE which said the decision came as a surprise.
It is the latest setback for foreign investors in Vietnam’s energy sector, after Hanoi last year retroactively cut subsidies for several renewable companies.
Diverging views over electricity prices and deadlines are also weighing on foreign investment in the country’s nascent liquefied natural gas and nuclear sectors. The decision is a new win for Vingroup, Vietnam’s largest firm by market capitalisation, which is expanding amid supportive government policies.
From its core real estate business it has branched out into tourism, education and healthcare. It owns Nasdaq-listed electric vehicle maker VinFast and last year set up companies in new sectors, including railways, steel, energy, entertainment and space.
