top of page
Search
  • YOG INFRA

Infrastructure & PPPs in Vietnam - Q4 2022 Update

VIETNAM is likely to see strong activity in transport sector in coming months, especially with development of airports and ports. We also see new projects in clean energy technologies including hydrogen and battery storage, mostly driven by private sector initiatives. The country has also seen renewed interest from international investors from China, South Korea etc. besides lending support from DFIs like AIIB, ADB etc.

Read the key developments in Infrastructure and PPPs in Vietnam in our Q4 2022 insight.

 

October 2022

SEMBCORP TO DEVELOP VIETNAM INDUSTRIAL PARK

Sembcorp Development, a subsidiary of Singapore-based Sembcorp Industries, has received an investment license to develop an industrial park in Vietnam’s Can Tho City. The 294-hectare facility will be jointly developed and operated with the Vietnam Singapore Industrial Park (VSIP) Group and Becamex IDC Corporation.


VIETNAM PREPARES TO LAUNCH USD 340 Mn AIRPORT TENDER

Vietnam's Lai Chau province is moving ahead with a public-private partnership project to develop a USD 340 Mn airport. The facility, to be located on 295 ha in Cam Con commune, is now open to bidders from the private sector. It will have a designed capacity of 500,000 passengers per year.

The Inter-sectoral Appraisal Council sent a report to the People's Committee of Lao Cai province on the evaluation results of the feasibility study report of the project. Lai Chau is a mountainous province that shares a 265 km border with China. It is linked with Hanoi via National Highway 32. The provincial government has been handling site clearance to attract private investors. The Lai Chau Provincial People's Committee will likely be the procurement agency.


VIETNAM PROPOSES UPGRADE OF SIX AIRPORTS IN PPP

Vietnam’s Ministry of Transport has written to the Prime Minister proposing the expansion of six airports in the public-private partnership (PPP) format.

The six projects are Na San Airport in Son La province, Vinh Airport in Nghe An province, Chu Lai Airport in Quang Nam province, Can Tho Airport in Can Tho city, Tho Xuan Airport in Thanh Hoa province and Lien Khuong Airport in Lam Dong province.

The upgrades to these facilities will involve expansions of passenger terminals, runways, and the development of new aprons to handle larger aircraft.

A master plan for the 2021-2030 period projects the Na San Airport to have an annual capacity of about 1 Mn passengers by the end of the decade. The transport ministry approved a proposal by the province's People's Committee to seek private investors.


VIETNAM PROVINCE PLANS USD 94 Mn EFW PPP

Dong Nai province is planning to develop a VND 2.3 Trn (USD 94 Mn) energy-from-waste plant in the public-private partnership (PPP) model.

Construction of the 12-hectare facility in Vinh Tan commune, Vinh Cuu district. The province is aiming for the plant to start operations in 2026. The facility is planned to process 800 tonnes of waste daily, with a power generation capacity of 20 MW in the first phase. It will process an additional 1,200 tonnes of waste and generate another 30 MW at the end of the second phase.

Dong Nai province is also planning another EfW plant in Quang Trung commune, Thong Nhat district. This will be developed in three phases, with the first stage capable of treating 150 tonnes daily and generating 3.4 MW. The development of the second and third phases will depend on the success of the first stage.

The total investment required will be more than USD 27 Mn. Harvest Waste, a Dutch waste management company, obtained approval to conduct pre-feasibility studies for an EfW project in the Mekong Delta region in Soc Trang province.


SOUTH KOREA FUND PLANS INVESTMENT IN VIETNAM PORT PROJECT

South Korea's FG Corporate Investment Fund is looking for opportunities in infrastructure in Vietnam, including participating in setting up a deep-water port planned by Soc Trang province. The province plans to establish the Tran De port with an investment of VND 55.7 Trn (USD 2.3 Bn). Authorities have already granted a land use permit for the facility, which will need about 4,550 hectares.

The project will feature berths that can handle vessels of up to 160,000 DWT. From 2050 onward, it will be able accommodate vessels of up to 200,000 DWT, following an upgrade.

The government will spend VND 8 Trn to build the Dai Ngai Bridge to establish connectivity between the seaport and a national highway. It will also invest in the Can Tho-Chau Doc-Soc Trang Expressway to connect the port with the Can Tho International Airport.


November 2022

JTOWER TO BUILD 5G NETWORK IN VIETNAM

Japanese telecommunications infrastructure sharing company JTOWER will build and operate a fifth generation (5G) communications network in Vietnam. The developer was chosen by Vietnam’s Ministry of Internal Affairs and Communications to implement the demonstration project.

Vietnam has a mission to expand its digital infrastructure, driven by a mobile phone penetration rate of more than 100%. The Vietnamese government has announced a policy to grant 5G licenses to mobile network operators in 2023 and expects more demand for 5G network infrastructure.


VIETNAMESE RENEWABLES COMPANY GIA LAI TO EXPAND INTO HYDROGEN

Vietnamese renewables producer Gia Lai Electricity is looking to expand its portfolio through the development of green hydrogen production and waste-to-energy (WtE) projects in the Southeast Asian nation.

The Ho Chi Minh Stock Exchange-listed company plans to expand its capacity to 1.7 GW by the year 2025 from 728 MW currently. It currently owns 23 operational and under-construction renewable power projects including offshore wind, hydropower, and solar power.

Gia Lai agreed to issue 64.2 Mn convertible preferred shares to German state-owned investor Deutsche Investitions-und Entwicklungsgesellschaft (DEG) to raise VND 642 Bn (USD 25.8 Mn), providing DEG a 16.63% stake in the enlarged capital of Gia Lai. The developer will use the money to finance the VPL Ben Tre offshore wind project, TTC Duc Hue 2 solar power project, as well as to repay a bank loan.


CONSTRUCTION STARTS ON AN USD 275 Mn EV BATTERY PLANT IN VIETNAM

VinES Energy Solutions, a subsidiary of Vingroup Joint Stock Company, and Gotion High-Tech, have commenced construction work on a USD 275 Mn battery plant located in the Vung Ang Economic Zone in Vietnam.

The factory is expected to produce around 30 Mn lithium iron phosphate (LFP) battery cells every year which will be used for electric vehicle (EV) batteries and energy storage systems. Production is scheduled to commence in Q3 of 2023 and EV batteries produced will be supplied to VinFast, the EV unit of Vingroup.


December 2022

LAOTIAN DRY PORT PPP TO SECURE AIIB FUNDING

A private-sector Laotian dry port is likely to receive financing from the Asian Infrastructure Investment Bank (AIIB). The AIIB is considering providing USD 10 Mn of debt for the Thanaleng Dry Port in Vientiane, being built by Sitthi Logistics, a part of Laos' Phongsavanh Group. Construction of the project, which is nearing completion, will cost an estimated USD 86 Mn.

The government expects it will transform Laos into a land-linked country from a land-locked one as it will be located within a kilometre from the Lao PDR-Thailand Friendship Bridge over the Mekong River, the main cross-border trade point between the two countries.


CHINA ENERGY PLANS HYDROGEN TIE-UP IN VIETNAM

A unit of China Energy Engineering Corporation (CEEC) has held talks with Vietnamese construction company, Pacific Group, for a potential partnership for power storage and clean energy projects.

CEEC Shanxi is interested in building hydrogen and ammonia generation plants in Vietnam. CEEC Shanxi is planning a long-term partnership arrangement with Pacific. The two have collaborated earlier with the Chinese company providing the engineering, procurement, and construction (EPC) work for Pacific's 90 MW Tan Thuan Offshore Wind Farm.

CEEC Shanxi is also in talks with Vietnam’s manufacturing-to-trading conglomerate T&T Group and renewables-to-property major, BB Group, for potential joint development in the areas of clean power and smart energy solutions.


VIETNAMESE PROVINCE PROPOSES NEW AIRPORT PPP

A province in Vietnam is looking to launch an airport in a public-private partnership. Yen Bai province has sent a request to the Ministry of Transport and the Civil Aviation Administration, as well as applied for the Sa Pa Airport project to be included in the country's airports master plan for 2021 to 2030. The province intends for the new aerodrome to be able to process 800,000 to 1 Mn passengers annually and to be rated as a Grade 2 military airport.

The proposed facility will be close to a transhipment hub of road, railway and waterway transport routes between Hanoi and Haiphong cities as well as Quang Ninh and Lao Cai provinces, which share a border with China's Yunnan province.


VIETNAM-SINGAPORE JV FORMS ALLIANCE ON INLAND PORT

T&Y Super Port Vinh Phuc — a joint venture between Vietnam's T&T Group and Singaporean supply chain company YCH — is teaming up with a state-owned company to build an inland port project. The JV signed a memorandum of understanding with Vietnam Maritime Corporation (VIMC) to collaborate on the Vinh PhucICD Super Port Project.

T&Y and VIMC will build inland terminals and facilities to enhance the port's connectivity with other transport projects, among other things. The aim is to make the Vinh Phuc ICD Super Port a transhipment hub in the region.

The project will develop infrastructure enhancing connectivity with airports, seaports, railways and roads and serve clients including suppliers, customers and manufacturers. The 83ha port will be located in Binh Xuyen district of Vinh Phuc province. It will have an investment of about USD 300 Mn and a designed capacity of about 530,000 Twenty-Foot Equivalent Units/year. The first phase is under construction.


ADB READIES USD 107 Mn FINANCING FOR VIETNAM WIND PROJECT

The Asian Development Bank (ADB) has readied a USD 107 Mn package to finance an 88 MW wind farm in the Ninh Thuan province of Vietnam. The asset is being developed by BIM Wind Power Joint Stock Company (BIM Wind).

The Manila-based multilateral lender was mandated lead arranger and bookrunner for the financing. It comprises USD 25 Mn from the ADB’s ordinary capital resources, USD 25 Mn from Japan International Cooperation Agency, USD 13 Mn from Hong Kong Mortgage Corporation, USD 17 Mn from Sumitomo Mitsui Banking Corporation, USD 18 Mn from ING Bank and USD 9 Mn from Cathay United Bank.

The ADB will also administer an additional USD 5 Mn grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund to help de-risk the investment. BIM Wind is jointly owned by ACEN Corporation, the listed energy platform of Philippine diversified group Ayala, and Vietnamese conglomerate BIM Group.


HO CHI MINH CITY BRIDGE PPP MOVES FORWARD

Vietnam's Ho Chi Minh City is planning to conduct a feasibility study for a project to build the Thủ Thiêm 4 bridge in the public-private partnership (PPP) model.

The city's Department of Transport recently waved through a plan to choose a developer, based on the bidding, in the second quarter of 2023. The bridge, consisting of six lanes, will link the Thủ Thiêm new urban area at the North-South Expressway intersection and Line R4 (Delta road) with the Tân Thuận Port. Construction will cost an estimated VND 5.3 Trn (USD 224.2 Mn).

 

List of Key Transactions - Q4 2022


Source: Inframation, YOG INFRA analysis

 

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

​YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com


©2023 YOG INFRA. All rights reserved.

#infrastructure #update #PPP #Vietnam

46 views0 comments
Post: Blog2_Post
bottom of page