Vietnam Backs Vingroup in Major Offshore Wind Project Snub

Vietnam has chosen Vingroup, a subsidiary of the country's largest firm, over foreign companies like PNE for a significant offshore wind power project. This decision highlights national champions in Vietnam's energy sector. The move is part of a new growth model supporting local firms, causing surprise among foreign investors.

In a surprising move, Vietnam has favored its largest conglomerate, Vingroup, excluding foreign competitor PNE, for the initial phase of a major offshore wind project. This decision underscores the country's shift towards backing homegrown businesses in a vital sector.

Vingroup's subsidiary, VinEnergo, was awarded the first 750-megawatt phase of the offshore project valued at $1.9 million, upsetting Germany's PNE, which had planned a massive $4.6 billion investment. The project is part of Vietnam's ambitious plan to achieve 6,000 megawatts of offshore wind capacity by 2035.

While PNE is reassessing its position, Vingroup has secured its foothold amid supportive government policies. However, this direction, promoting national champions over foreign investors, may reshape Vietnam's energy landscape and pose fresh challenges for overseas companies.

(With inputs from agencies.)