Founder Group, a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic systems in Malaysia, announces its proposed acquisition of a majority stake in VES 1 Joint Stock Company (“VES1”), a subsidiary of VES Joint Stock Company (“VES”). VES is a pioneer in renewable energy in Vietnam, specializing in solar and wind power solutions, while VES1 focuses on developing solar energy projects across the country.

Under the terms of the proposed acquisition, Founder Group will acquire approximately 80% of the shares in VES1. VES1 is actively involved in several solar energy projects in Vietnam. Phase 1 includes solar rooftop projects with a combined capacity of 5.6MWp. Under the PPA secured by VES1, VES1 shall have a first right of refusal for in the case that the off-taker wishes to expand the solar capacity at the particular site. Based on the current assessment, VES1 shall have a first right for expansion of the solar project, totalling 50MWp installation with 60MWh energy storage in 2025, and 58MWp solar project with 50MWh energy storage in 2026. These projects will significantly enhance solar and energy storage capacity in Vietnam. The agreement also grants Founder Group exclusive rights to future rooftop solar and energy storage projects in Vietnam secured by VES1 for the next three years.

Vietnam’s strategic energy development plan for 2021-2030 aims to achieve a renewable energy share of 15-20% in the overall primary energy mix by 2030, with a long-term goal of reaching 80-85% by 2050. The solar energy systems market in Vietnam is projected to generate US$12.4 billion in revenue by 2030, with an anticipated compound annual growth rate (CAGR) of 16% from 2023 to 2030, according to Grand View Research. Furthermore, Expert Market Research forecasts that the solar energy market in Vietnam will reach 33.47 TWh by 2032, growing at a CAGR of 3.1% from 2024 to 2032.

“We are excited about the opportunity to expand our footprint in Southeast Asia through this strategic acquisition of a majority stake in VES1,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited. “VES1’s established track record in Vietnam’s growing solar energy market, combined with its pipeline of current and future projects, aligns well with our strategic objectives. This acquisition enhances our position in the renewable energy sector and provides us with exclusive access to key opportunities in rooftop solar and energy storage, further advancing our commitment to sustainable energy solutions.”

“We look forward to working together with Founder Group to advance our renewable energy solutions and improve our business sustainability. We will continue to deliver a range of renewable energy projects and strive to make a significant contribution to Vietnam’s strategic energy development plan,” said Andy Nguyen, Chairman and Founder of VES Joint Stock Company. 

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