AboitizPower to acquire 25% stake in Vietnam power plant

Aboitiz Power Corp. (AboitizPower) said on Thursday that it will acquire a 25% equity stake in Vietnam’s Van Phong Power Co. Ltd. (VPCL) from Japan’s Sumitomo Corp. for $220 million.

VPCL owns and operates a 1,320-megawatt (MW) high-efficiency, low-emission coal-fired power plant located in Khánh Hòa Province, Vietnam, AboitizPower said in a disclosure.

The power company said the investment marks its first major venture outside the Philippines.

The Van Phong 1 power plant, which began commercial operations in January 2024, operates under a 25-year power purchase agreement with Vietnam Electricity (EVN) and supplies about 8.5 billion kilowatt-hours (kWh) annually, or around 4% of Vietnam’s total power generation.

The completion of the transaction is subject to customary closing conditions, including regulatory approvals, AboitizPower said.—SJT