In the context of a global transition to clean energy and sustainable development, Vietnam has emerged as an attractive destination for investment in renewable energy. At the same time, Japan - a country with financial potential, technology and extensive experience - is actively expanding its investment abroad. This is the golden time to promote M&A deals (mergers and acquisitions) between Japanese and Vietnamese businesses in the field of renewable energy.

Why is Japan interested in renewable energy in Vietnam?

Vietnam possesses rich renewable energy potential with more than 3,000 hours of sunshine/year, a long coastline favorable for wind power development, and the same direction.g the Government's clarity on increasing the proportion of clean energy. According to the National Energy Development Strategy, by 2030, renewable energy will account for about 30% of the country's electricity capacity.

Meanwhile, Japan is promoting its strategy of "greening" investment abroad, aiming to be carbon neutral by 2050. Japanese businesses see Vietnam as a potential market thanks to:

• Increasing electricity demand high
• Open policy to attract FDI
• Opportunity to invest early in large-scale projects
• Investment costs are lower than developed countries

Outstanding M&A opportunities between Japan and Vietnam in Renewable Energy

1. Buy project sharesn renewable energy

Many Japanese businesses are looking for opportunities to buy back shares from Vietnamese companies that own solar, wind power, or biomass projects that are already in operation. Typical example:

• JERA (Japan) buys 35.1% of shares in Gia Lai Electricity Joint Stock Company (GEC) – the owner of many large renewable energy projects.
• Hitachi Sustainable Energy invests in the wind power project of Trung Nam Group.

Through M&A, Japanese businesses can quickly enter the market market, accessing stable cash flow from existing projectsh thu.

2. Joint venture to develop new projects

Japan can join hands with Vietnamese businesses in rooftop solar power projects, offshore wind power, or hybrid (combining many types of renewable energy). For example:

• Sumitomo Forestry cooperates with CME Solar to develop rooftop solar power in Vietnamese industrial parks.

These joint ventures not only bring capital but also help improve management efficiency and transfer advanced technology.

3. Investment in the domestic supply chain

Many Japanese businesses have been building energy equipment factories in Vietnam to localize the supply chain and optimize costs. For example:

• Vsun Solar – a subsidiary of Fuji Solar (Japan) – invests in a solar panel factory in Phu Tho.

4. Financial sponsorship and guarantees

Japanese financial institutions such as JBIC, JICA, and commercial banks are ready to support capital and guarantee risks for renewable energy projects in Vietnam. This helps reduce capital costs, creating leverage for M&A deals to take place more smoothly.

Challenges to overcome qua

Despite the open opportunities, M&A in the renewable energy sector also faces some barriers:

• Unstable policy: Changing the electricity purchase price (FIT), project approval, and the PPA mechanism are unclear causing difficulties for investors.
• Weak transmission infrastructure: Some areas have renewable energy potential but cannot release capacity due to limited power grids.
• Legal and financial risks: Project appraisal, asset valuation, Legal barriers and the ability to transfer profits abroad are factors that need to be carefully considered.

To make good use of M&A opportunities, businesses on both sides need to:

• Choose reputable local partners: Have experience in project implementation, legal and environmental knowledge.
• Take advantage of preferential capital from Japan: Such as ODA, green development funds, banks supporting foreign investment.
• Long-term technology investment: Combine renewable energy with electricity storage, hydrogen, smart grid.
• Comply with ESG standards: Meet environmental, social, and governance requirements to attract international capital.

M&A between Japanese and Vietnamese businesses in the field of renewable energy is not only a profitable investment opportunity, but also contributes to building a green, sustainable energy future for the whole world.country. With the support of supportive policies, financial and technological resources from Japan, and large market potential in Vietnam, the M&A wave in renewable energy promises to explode strongly in the coming years.