Sumitomo Corporation’s first hydropower investment project in Vietnam. (Photo: Sumitomo Corporation)
Japan’s trading giant Sumitomo Corporation has made its first investment in hydropower in Vietnam, announcing on Oct. 22 that it has acquired a 49% stake in Mekong Electric Power Engineering and Development JSC, gaining ownership of the Dak Di 1 and 2 hydropower projects located in Da Nang. The move marks a significant step in expanding its energy footprint in Vietnam.
Sumitomo buys stake in Vietnam hydropower firm
Sumitomo said the projects have been operational since 2022 and are backed by a 20-year power purchase agreement (PPA) with Vietnam Electricity (EVN). With a combined capacity of 48 megawatts, the acquisition aims to secure a stable supply of renewable energy and accelerate the company’s decarbonization goals. The energy transition has been identified as one of Sumitomo’s key mid-term growth priorities.
