The three parties wish to establish a cooperation to serve as a framework to form a strategic partnership between PV Power and IDG’s Vietnam Clean Energy Fund. IB Global will act as a strategic advisor to the fund. IDG will close fund raising for Singapore-based fund by the end of 2022. IDG Vietnam Clean Energy Fund is scheduled to raise US$300 million equity capital and US$1 billion total capital for Vietnam's clean and green energy sector in the next three years.

Vietnam is one of the Southeast Asian countries with a fast GDP growth rate, from 6.5 to 7 percent per year, leading to an average increase in energy demand of 11 percent per year. According to the National Power Development Plan, Vietnam needs to achieve a 15-20 percent renewable energy ratio by 2030 and 20-30 percent by 2045. The biggest challenge for renewable energy development lies in the availability of investment capital and the ability of projects to raise debt. Both of these barriers currently constrain renewable energy development in Vietnam.

Prior to signing the MOU, Mr. Giang, Mr. Manchoong and Mr Robert exchanged views on the short and long-term development priorities in clean energy development in Vietnam. Mr. Hughes said, “IDG is excited to enter into this cooperation with PV Power, and strongly believes in the significant investment opportunities that will arise from this co-operation.

With the market potentials and the parties' inherent capabilities, the Memorandum of Understanding is expected to be a massive boost for the energy industry in Vietnam in particular and the region in general.

PetroVietnam Power Corporation (PV Power) is a member of the Vietnam Oil and Gas Group (Petrovietnam - PVN) operating in the field of electricity, established on May 17, 2007.

IDG began its journey in Vietnam in 2004 as IDG Ventures Vietnam and, following a rebranding in 2017, is continuing to invest in extraordinary companies as IDG Capital Vietnam. As a global private equity fund specializing in global energy assets investment and management, IDG wishes to make an investment in the clean energy sector with or via its financial partners to capitalize on the post-pandemic rebound in demand for power consumption in Vietnam.

IB Global is a boutique investment bank & M&A advisory house located in Singapore. They are a trusted partner for foreign investors, seeking opportunities in Vietnam. By designing and executing strategic M&A and financing solutions for clients, which meet international standards, satisfy clients' needs, and are in accordance with market conditions.

Thuy Duong