Vingroup shifts to renewables and plans taxi unit IPO
Vingroup will replace its LNG power project with renewables and launch a taxi unit IPO in 2028. Chairman Pham Nhat Vuong also expects VinFast to break even by 2025.
VINGROUP JSC has announced a significant shift in its energy strategy within Vietnam, opting to cancel a major liquefied natural gas (LNG) power project in favor of renewable energy sources. Chairman Pham Nhat Vuong informed shareholders on Wednesday that the conglomerate is also preparing for an initial public offering (IPO) of its electric taxi business. In a signal of how the Middle East war is affecting business, the chairman confirmed that plans for a 4.8-gigawatt LNG-fired power plant in Haiphong have been scrapped. This project, which would have been the largest in the country, will be replaced by a focus on wind and solar energy integrated with a battery energy storage system.
\"We have already submitted a proposal to the government for wind, solar energy and a battery energy storage system.\"
Regarding the group's transportation ventures, the Green SM taxi unit is scheduled for a stock market debut in the second half of 2028. Preparations for the IPO are expected to commence within the next few months, a move the chairman believes will bring enormous value to the parent company. Meanwhile, VINFAST AUTO LTD is now projected to reach a break-even point by 2027, confirming a delay in its financial targets. Despite the shift in timeline, the electric vehicle unit will not return to producing internal combustion engine cars and aims to deliver 300,000 EVs this year.
According to company documents, two-thirds of the targeted deliveries are intended for the domestic market. Financially, Vingroup is targeting a net profit of 35 trillion dong (approximately $1.33 billion) for the current year, a substantial increase from the 11.1 trillion dong recorded in the previous year.
