Sao Mai Group Corporation, a leading seafood processor and solar energy developer in Vietnam, has applied to develop two wind power farms in the Mekong Delta province of Tra Vinh, according to The Investor.
Notably, the renewable energy segment is a relatively new growth driver for Sao Mai–Sao Mai only started investing in renewable energy in 2017 when it established Sao Mai Solar.
Currently, the firm operates the An Hao Solar Power Plant with a 210-megawatt peak capacity and Europlast Long An Solar Power Plant with a 50-megawatt peak capacity. These projects contribute about 5 percent of Sao Mai’s revenue, however, they account for 20 percent of the firm’s gross profit.
Sao Mai, trading under ticker ASM, closed Tuesday at VND 10,300 a share. Notably, as of July 16, foreign traders held 12.84 percent of the company’s shares with the company sporting a foreign ownership cap of 49 percent.
Of note, Vietnam has set an ambitious goal to achieve net-zero carbon emissions by 2050.
Moreover, the Vietnamese government’s issuance of Decree 80 last week allows for direct power purchase agreements between renewable energy developers and large consumers which could spur further development in the sector.
See also: Electricity in Vietnam: Foreign Investor Cheat Sheet 2024