Czech energy giant highly appreciates investment environment in Vietnam

One of the recent notable deals is AES - the leading US energy corporation selling 51% of its shares in Mong Duong II Coal-fired Thermal Power Plant ( Quang Ninh ) to the "big guy" from the Czech Republic, Se.ven Global Investments (Sev.en GI), marking an important milestone in the plan to enter the Asian market of this European corporation.

Mr. Gabriel Staněk, Country Director in Vietnam of Sev.en Global Investments (Sev.en GI). (Source: Sev.en GI)

Mr. Gabriel Staněk, Country Director in Vietnam of Sev.en GI shared with The World and Vietnam about this deal.

In your opinion, what role does the strong relationship between the Czech Republic and Vietnam play in the economic development of the two countries?

We all see that Vietnam and the Czech Republic are two countries with a long history of relations, since the official establishment on February 2, 1950. On the journey of nearly 75 years, we - a typical enterprise of the Czech Republic - are extremely honored and proud to become a friend of Vietnam.

Although our two countries are geographically far apart, there is always a closeness and intimacy. The Czech Republic is also the first European country to recognize the Vietnamese community as an ethnic minority, creating more favorable and easier conditions for Vietnamese people to live, work and study in our country.

I see a promising future between Vietnam and the Czech Republic. In addition to cooperation in politics, culture and defense, our two countries are also strengthening economic cooperation and exchange activities. The Czech Embassy in Vietnam and the Vietnamese Embassy in the Czech Republic also regularly support businesses of both sides in these activities.

The Mong Duong II Coal-fired Power Plant Project is one of the largest projects of the Czech Republic in Vietnam as well as of Europe investing in the energy sector here. We believe that such activities will continue to encourage and promote further economic and investment exchanges between the two countries in the coming time.

For me personally, the Czech Ambassador to Vietnam – Mr. Hynek Kmoníček is a great Ambassador, an experienced diplomat. Before becoming Ambassador to Vietnam, he was the Czech Ambassador to the United States, and before that, the Czech Ambassador to Australia and the United Nations (UN).

Ambassador Hynek Kmoníček understands the needs of the business community and is always ready to provide enthusiastic support. He also participated in many meetings, especially with ministries and government agencies of Vietnam to clearly demonstrate the support of the Czech government to the business community. In our highest-level meetings on the Mong Duong II Coal-fired Thermal Power Plant deal, the Ambassador was present and provided thoughtful support.

Could you share more details about Sev.en Global Investments' business activities around the world? What are the main areas that the Group is focusing on and the development potential of these areas in Vietnam?

Today, our Group is active in several key manufacturing sectors: power generation, mining and steel production. Sev.en GI has also recently acquired a green steel plant to serve the needs of the UK and Norway.

In addition, the Group is also operating mining activities in the United States, especially focusing on coal mining for the metallurgical industry; mining and power plants in Australia; potassium fertilizer production plants, etc.

Globally, we are deeply involved in the mining, energy, and steel sectors. We currently have projects ranging from 500 billion Euros to 1,000 billion Euros.

Mong Duong II Coal-fired Thermal Power Plant is our Group’s first project in Vietnam as well as in Southeast Asia. Currently, the project is in the process of completing approval procedures and waiting for licensing. We expect that in the future there will be more areas where the Group can expand its operations in Vietnam.

Apart from the energy sector, what is the investment “appetite” of Czech enterprises in Vietnam?

Czech companies are very interested in the investment environment in Vietnam. Regarding investment "taste", I think this depends on the specific needs of each company when they want to conduct business activities in Vietnam.

Currently, I know that besides the energy sector, Czech enterprises are also interested in sectors such as mining, mineral exploitation, steel production, etc.

Mong Duong II Coal-fired Thermal Power Plant is a 100% foreign direct investment project in the form of BOT (build – operate – transfer). (Source: Sev.en GI)

What is the significance of Mong Duong II Coal-fired Thermal Power Plant Project to Vietnam's economic development and energy sector?

The project is one of the important power sources and will certainly contribute to Vietnam's energy security. Our group is currently focusing solely on the Mong Duong II Coal-fired Thermal Power Plant project, so it is difficult to make any comments or assessments on Vietnam's overall energy strategy at this time.

What is your view on business associated with sustainable development and how will the Group practice ESG in Vietnam?

The European Union (EU) is one of the leading regions in environmental - social - governance (ESG) standards. Accordingly, starting from 2025, all businesses headquartered in the EU will have to apply the region's ESG rules and we will definitely strictly comply with these regulations.

We will continue to apply and practice ESG in Vietnam as we do in other plants around the world. Energy transition is a process, until we completely switch to green energy, we still have to ensure energy security and stability, which is why coal-fired power plants like Mong Duong II still play an important role.

Thank you!

The acquisition of all 51% of shares of the leading US energy group AES Corporation in Mong Duong II Coal-fired Thermal Power Plant by Sev.en Global Investments is the second largest transaction of this enterprise, only after the acquisition of 51% of the Coronado Global Resources metallurgical plant in Australia in September 2023.

Previously, Mong Duong II Plant was owned by AES Mong Duong Power Company Limited, a 100% foreign direct investment project in the form of BOT.

The first BOT thermal power plant in Vietnam using pulverized coal-fired boiler technology, with a total investment of 2 billion USD and a capacity of 1,242 MW, has been in operation since 2015 and will be transferred to the Vietnamese Government in 2040, after 25 years of operation.

Source: https://baoquocte.vn/ong-lon-nganh-nang-luong-czech-danh-gia-cao-moi-truong-dau-tu-tai-viet-nam-299885.html