Fri , 08/01/2021, 05:02:56 (GMT+7)
On January 7, 2021, Vietnam Construction and Import-Export Corporation (VINACONEX) successfully transferred for TOYOTA TSUSHO CORPORATION (TOYOTA TSUSHO) 35% of the issued ND2 shares for the Northern Electricity Development and Investment JSC No. 2 (NEDI2).
This is VINACONEX's first deal for international cooperation in the energy. With head offices in Nagoya and Tokyo, Japan, TOYOTA TSUSHO is a leading expertise with strong financial capacity in this field.
Energy is a promising industry since there is a rising need for electricity while Vietnam's capacity to provide it remains limited and undiversified. Along with the global transition to renewable energy sources (hydropower, wind power, solar power, etc.), the cooperation with seasoned investors worldwide to advance in this field is an essential and suitable direction.
With the experience gained by investing in, building, and operating hydropower plants in Vietnam, VINACONEX believes that in the near future, VINACONEX and TOYOTA TSUSHO would work together and maximize their capacities for the growth of NEDI2 in particular, as well as the renewable energy in general, laying a strong basis for establishing and growing partnership in several other business and production fields.
Some important details about NEDI2 and the Ngoi Phat project
Since it began generating power, Ngoi Phat hydropower project has been exploited and operated stably by NEDI2. NEDI2 consistently manages cash flow (pays bank loans in advance) and distributes dividends at a 20% annual rate.
| Plant name | Ngoi Phat Hydropower Plant |
| Location | Ngoi Phat River Basin, Lao Cai Province, Vietnam |
| Operating company | Northern Electricity Development & Investment Joint Stock Company No. 2 (NEDI2) |
| Shareholders | VINACONEX: 38%, Toyota Tsusho: 35%, Individual shareholders: 27% |
Purchaser | Electricity of Vietnam (EVN) |
Power generation capacity | 84 MW |
Startup year |
2014 |
Some background information about Toyota Tsusho:
Founded in 1948, Toyota Tsusho is a member as well as the trading & investment arm of the Toyota Group with US$ 60.3 billion of revenue in 2019.
Toyota Tsusho is present in about 120 countries with main investment fields including Minerals; Automotive industry; Global Logistics; Machinery, Chemicals & Electronic Equipment; Food & Consumption. Especially, Toyota Tsusho is a seasoned investor in the power generation, in which hydropower plants have a total capacity of over 3,400MW, wind power plants have a total capacity exceeding 2,411 MW, solar power plants with a total capacity exceeding 342 MW, and a variety of energy with a total capacity exceeding 4,666 MW.
The two biggest credit rating agencies in the world, S&P and Moody's, have affirmed Toyota Tsusho at the "A+" and "A3" credit ratings respectively, placing it at a good level.
Some background information about Vinaconex:
Founded in 1988, after more than 30 years of building and development, VINACONEX is aiming to become a leading economic corporation in the fields of construction, real estate, and financial investment. VINACONEX has been taking part in large-scale projects with complex requirements that a substantial impact on the country's development and provide benefits to the community.
As of September 30, 2020, VINACONEX's total assets were VND 19,357 billion, the equity was VND 8,979 billion, and invested funds in close to 40 units operating in a variety of fields, including construction, real estate, energy, clean water, education, and labour export, etc.
With its three core business areas of construction, real estate, and financial investment, VINACONEX is on the verge of becoming the leading economic corporation in Vietnam and the region.
