The Vietnamese government announced on Wednesday that the Adani Group is considering a significant investment of $3 billion in Vietnam's seaport ecosystem as well as wind and solar energy projects.
Vietnamese Prime Minister Pham Minh Chinh welcomed Karan Adani, CEO of Adani Ports and Special Economic Zones Ltd (APSEZ), to Hanoi for discussions. During the meeting, Prime Minister Chinh provided an overview of Vietnam's development strategies, which focus on perfecting institutions, developing human resources, and building infrastructure. He emphasized Vietnam's commitment to mobilizing and efficiently utilizing both domestic and international resources for development.
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Prime Minister Chinh also highlighted Vietnam's dedication to creating a favorable business environment for foreign companies, including those from India, to invest in strategic infrastructure sectors such as transportation, energy, digital technology, and climate change infrastructure.
Acknowledging the global trend towards digital transformation and the establishment of digital economies, Prime Minister Chinh expressed hope that the Adani Group would significantly expand its investments in this area within Vietnam.
Karan Adani, in turn, highlighted Adani Group's position as a leading Indian economic conglomerate operating across various sectors, including seaports, transportation, logistics, energy, and digital technology in over 50 countries worldwide. Following a recent fact-finding tour, he announced Adani Group's decision to make long-term investments in Vietnam, not only in seaports and logistics but also in energy and digital technology.
Adani Group aims to establish an environmentally friendly seaport ecosystem and invest in wind and solar power plants in Vietnam, with a total investment capital of approximately $3 billion, according to Karan Adani.
He assured the Vietnamese government that Adani Group would promptly collaborate with relevant ministries and agencies in Vietnam to develop specific cooperative projects.
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Prime Minister Chinh expressed Vietnam's willingness to provide favorable conditions for large Indian companies, including Adani, to invest and conduct business in the country. Specifically, he mentioned that Vietnam welcomes Adani's investment in the initial phase, focusing on Lien Chieu Port in the central city of Danang. The statement also mentioned the potential for long-term investments reaching up to $10 billion.
In a separate development, Adani Ports and Special Economic Zone Ltd recently completed the sale of its Myanmar port, Coastal International Terminals Pte Limited, for $30 million.
Adani Group's investment plans coincide with a recovery in its stocks after experiencing a significant decline following the release of Hindenburg Research's report. Earlier in May, Adani Enterprises and Adani Transmission announced their plans to raise Rs 21,000 crore through Qualified Institutional Placement (QIP) or other permissible modes.
Despite some profit booking, Adani stocks have been performing well since a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies.
