AboitizPower Bets on Vietnam’s Growing Energy Market

The $220-million acquisition from Sumitomo Corporation positions AboitizPower as a regional player in Southeast Asia’s rapidly evolving power landscape.

Aboitiz Power Corporation has taken a decisive step beyond Philippine shores with the acquisition of a 25 percent equity stake in Van Phong Power Company Limited (VPCL), marking its first major overseas investment and signaling the company’s regional ambitions amid Southeast Asia’s evolving energy landscape.

AboitizPower’s entry into Vietnam’s energy market highlights the Philippines’ growing participation in ASEAN’s cross-border power expansion. (Photo: Lilama)

The deal, valued at about USD 220 million, involves the purchase of the stake from Japan’s Sumitomo Corporation, which remains the majority owner and operator of the project.

VPCL owns and runs the 1,320-megawatt Van Phong 1 High-Efficiency, Low-Emission (HELE) coal-fired power plant located in Khánh Hòa Province, Vietnam — a facility designed to deliver around 8.5 billion kilowatt-hours of electricity annually, equivalent to roughly four percent of Vietnam’s total power generation.

The plant began commercial operations in January 2024 and operates under a 25-year Power Purchase Agreement with Vietnam Electricity (EVN), the country’s state-owned utility.

It stands as the largest foreign-invested power project in the Van Phong Special Economic Zone, underscoring Vietnam’s continued reliance on high-efficiency thermal capacity to balance its fast-growing renewable energy sector.

Strategic Expansion

In a disclosure to the Philippine Stock Exchange, AboitizPower said the transaction aligns with its strategy to build a “well-balanced portfolio of energy technologies” — one that complements its ongoing investments in renewable generation while supporting regional energy security and affordability.

The company described the move as part of its “balanced long-term energy transition,” combining sustainability with reliable returns to shareholders.

“This venture keeps AboitizPower on track to deliver sustainable returns while maintaining a diversified mix of renewable and baseload assets,” the company said in its statement.

The transaction was approved by the AboitizPower Board in January 2025, with the final agreements executed on October 29, 2025.

Completion of the sale remains subject to customary closing conditions and regulatory approvals from the Government of Vietnam, and is expected to take effect in Fiscal Year 2026 or later.

Regional Outlook

For AboitizPower, the investment signals confidence in the wider ASEAN energy market, particularly as Vietnam continues to expand its industrial capacity and electricity demand.

It also reflects a pragmatic stance in the Philippines’ own energy transition, where policymakers and utilities alike are seeking to maintain system stability amid aggressive renewable build-outs.

While the company emphasized that the acquisition would have no material effect on its financial position, the move represents a symbolic milestone — positioning AboitizPower as a regional energy player capable of participating in high-value international projects.

Sumitomo Corporation, one of Japan’s most diversified conglomerates with a business lineage dating back to the 17th century, welcomed the partnership as part of its ongoing collaboration with strategic regional investors in the power sector.

Balancing Energy Goals

AboitizPower remains one of the Philippines’ largest energy producers, with assets spanning hydro, geothermal, solar, and wind facilities, alongside thermal power plants that ensure baseload capacity.

The company has repeatedly underscored its goal of doubling its renewable energy portfolio while maintaining a dependable mix to support the country’s growing economy.

Its entry into Vietnam’s power market, analysts say, illustrates how Philippine firms are increasingly positioning themselves in Southeast Asia’s broader energy transition — diversifying risk, tapping new revenue streams, and participating in regional grid expansion.

If completed as planned, the Van Phong transaction could become a model for future cross-border collaborations in energy infrastructure, reinforcing AboitizPower’s role not just as a national utility champion but as an emerging regional powerhouse. #GSU