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AES: Reaching Business Opportunities in Vietnam

August 29, 2018

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This is the second entry in a series of guest blogs highlighting ITA activities that help connect U.S. companies to opportunities in the Indo-Pacific region following the recent Indo-Pacific Business Forum where Secretary Ross, Secretary Pompeo and other cabinet officials spoke about the Administration’s commitment to the region.

Click here to read the first entry of our Indo-Pacific blog series.

Guest Blog Q & A with David Stone, President – Vietnam, AES, on ITA’s Vietnam Energy Working Group

 ITA: Tell us about your business and what makes your product/service unique?

Stone: AES is the first independent power producer to reach successful financial closure in Vietnam since 2003, with a total financing of approximately $1.46 billion. The company has been investing in Vietnam since 2010 and successfully developed, built, and currently operates the 1,240 MW Mong Duong 2 BOT Power Project in Quang Ninh province. The project was completed with an award-winning safety record, on budget, and ahead of schedule. The plant is expected to generate up to 7.6 billion kilowatt hours of electricity annually.

AES is looking at other business opportunities in Vietnam including renewable energy and natural gas power generation. AES signed an MOU on November 12, 2017, in the presence of Vietnam President Tran Dai Quang and United States President Donald Trump. This MOU is a critical milestone, expressing the commitment of both PetroVietnam Gas Joint Stock Corporation (PV Gas) and AES to jointly develop the Son My LNG Terminal Project, with a partnership structure of 51 percent and 49 percent for PV Gas and AES respectively. This marks another milestone in the historic partnership and strong collaboration towards mutual economic development between Vietnam and the United States.

In addition to Son My LNG Terminal Project, AES has also expressed interest in investing in the Son My 2 CCGT Project, which will not only create jobs in Vietnam and in the United States through exports of equipment to Vietnam,but could substantially contribute to the bilateral trade and investment relationship between the two countries. The Son My LNG Terminal Project and Son My 2 CCGT Project may pave the way to increased long-lasting economic ties that would benefit both countries, and further increase the visibility of Vietnam in the US and vice versa.

ITA: How do you see Asia affecting your business in the future?

Stone: AES’s mission is improving lives by accelerating a safer and greener energy future. We strongly believe that Asia should be part of the transition to CO2 free energy production and we work in this direction committing to different projects in the region that will bring it to a new level of energy production and consumption.

ITA: What was uniquely useful about the Vietnam Energy Industry Group?

Stone: In the rapidly changing global environment the dialogue and exchange of ideas is the engine that drives the economies further. That is why we are happy that the newly-formed US-Vietnam Energy Industry Group has been able to create an energy forum and that facilitates dialogue to help business communities have the chance to discuss ideas with the local and national authorities of Vietnam, generating plans for economic development of the country.

ITA: Why do you work with ITA? And/or How has ITA already helped you in Asia?

Stone: ITA is a valuable partner that helps us to strengthen the dialogue between the business and the authorities in different country. The fruitful dialogue with our key stakeholders is essential for the development of our ideas reflecting the needs of the local societies. In Vietnam we work with the Embassy and Department of Commerce to provide to the Government of Vietnam messages to reinforce AES commitments as well as request for a thorough consideration from the Government to ensure a fair business.

ITA is proud to connect U.S. companies to opportunities in the Indo-Pacific region. If you are interested in how ITA can help you access Asian markets, contact your local International Trade Specialist