C47 Expands Into Renewable Energy With Vu Phong Partnership

Mr. Phong, Pham Nam was a well-known person in solar power before becoming Chairman of the Board of Directors of C47. He was the founder, Chairman, and CEO of Vu Phong Solar for more than 12 years.

With many discerning investors, Mr. Phong Pham Nam’s appearance at C47 in 2020 indicated that C47’s next strategic business field would most likely be tied to renewable energy.

On January 3, 2022, the Board of Directors (BOD) of Construction Joint Stock Company 47 (C47) approved a Resolution to collect written shareholder opinions to add 13 business lines, including transmission and distribution of electricity; electrical works construction; production of concrete and products from concrete, cement, gypsum; exploitation, treatment, and supply of water, among others.

According to C47, with the addition of these industries, C47 will capitalize on its experience and capabilities in irrigation and hydroelectric power project building, which is the company’s remarkable strength after more than 46 years of establishment and development. This is also an excellent opportunity for C47 to anticipate the development of clean energy and renewable energy – a field that is rapidly growing and is prioritized by the State for growth in the global trend, particularly since Vietnam and many other countries are actively implementing solutions aimed at reducing greenhouse gas emissions and neutralizing carbon, driving Vietnam clean energy development.

This opportunity will help C47 increase revenue and profit, expand scale and market share, and achieve even greater growth, solidifying C47’s strategic expansion renewable energy initiatives.

Previously, on December 15, 2021, C47 opened up a new field by signing the Memorandum of Understanding (MoU) in cooperation with Vu Phong Energy Group and STEAG Energy Services GmbH (Germany) to provide services for wind power projects in Vietnam.

According to the signed agreement, C47, Vu Phong Energy Group, and STEAG will collaborate to provide consulting services for wind power project development and implementation based on promoting and combining the strengths of each side. The collaboration also aims to participate in a portion of the investment in wind power projects in Vietnam.

C47 will expand its business activities in the field of renewable energy while also participating in the construction of gas power plants, the production of concrete and products made from concrete, cement, gypsum, the supply and construction of traffic infrastructure, urban underground works, and so on.

A synthesis of previous events and information concerning Vu Phong Energy Group also indicates that, since Mr. Phong Pham Nam joined C47, a robust cooperation relationship has emerged between the two construction giants. One specializes in construction and installation of irrigation and hydroelectric projects, while the other focuses on renewable energy. Furthermore, prior to the aforementioned tripartite cooperation agreement, Vu Phong and STEAG signed a cooperation agreement in early 2021 to jointly provide Value-Driven Asset Management service packages, designed to optimize plant output potential and maximize asset value and profit for investors, exemplifying Vu Phong Energy Group asset management expertise.

Furthermore, Vu Phong Energy Group has the financial capability and considerable experience in the sector of solar and wind power plant EPC and O&M. Vu Phong Group, with many years of experience from a series of large-capacity solar power plant projects, has constructed more than 500 MWp, and is now operating and maintaining more than 350 MWp.

C47, a stock exchange-listed firm, is renowned as a corporation with decades of expertise in the field of construction and installation, specializing in the implementation of irrigation and hydropower projects. Over the previous 15 years, the firm has completed more than 30 irrigation and hydropower projects around the country, totaling more than 20,000 billion VND. Several of these projects are national key projects.

So, what made Mr. Phong Pham Nam, who specialized in renewable energy and built a name for himself with the Vu Phong Group, become Chairman of the Board of C47?

The chairman of C47 shared that he has worked in the construction industry of renewable power projects since very early, and that the construction of solar power plants or hydroelectric power plants is both construction and installation industries, so participating in C47 has many advantages because he has run a construction company for over 13 years.

Many listed and unlisted enterprises participate in the renewable energy sector in Vietnam: Bamboo Capital, Ha Do Group, PC1, TTC, etc., or REE are examples of powerful units in terms of capital, human resources, and experience in this industry. Mr. Phong, on the other hand, stated that C47 and Vu Phong both have their unique competitive advantages. The two units have capabilities and experience in renewable energy industries such as hydroelectricity and solar power. In terms of capital, the firm is improving its financial ratios; the issue of the capital increase in 2022 is anticipated to be favorable and will enhance the company’s capital capacity.

Currently, Vu Phong Energy Group (VPEG) and C47 have collaborated to participate in a joint venture to implement a number of projects. The leaders of the two parties are now considering other deeper cooperation structures in the near future to promote the strengths of industry finance, project implementation, and management capacity of both parties, further strengthening the Vu Phong C47 partnership.

Mr. Phong estimated that 2022 is the peak year for medium-term capital and disbursement of public investment, and C47 would have many significant projects with available preparedness and advantages. Currently, in addition to the value of back-log works in 2021, which has surpassed VND 2,000 billion, the firm is planning to bid and negotiate a workload of more than VND 5,000 billion, and will strive to generate sales of more than VND 3,000 billion annually beginning in 2025, outlining Mr. Phong Pham Nam’s C47 vision.

According to the plan, C47 will engage in the construction of hydroelectric projects in Laos and the infrastructure for industrial facilities such as gas power plants, steel plants, airports, and ports. Furthermore, the prefabricated concrete plant will be finished in the first quarter of 2022 and generate revenue in 2022.

Source: Baodautu.vn