Sao Mai Group seeks JV partner for solar energy project in Vietnam – exec says

Vietnam-based conglomerate Sao Mai Group [HOSE: ASM] is seeking a joint venture (JV) partner for
phase two of the 210 megawatt (MW) Sao Mai Solar PV1 power project in Vietnam, Sao Mai Solar CEO
Le Tuan Anh said.

THE VND 2.13trn (USD 91.56m)-market cap firm, which has already developed phase one with an
installed capacity of 104MW, plans to add up 106MW during phase two to extend the total capacity of
the solar plant to 210 MW, Le said. The development of phase two will cost about USD 100m, he added.

The Sao Mai Solar PV1 project, which is located in An Giang province on the south-central coast of
Vietnam, has phase one reaching commercial operation before the 30 June deadline this year to receive
a feed-in-tariff (FIT) of USD 9.35 cents per kilowatt-hour (kWh) for a period of 20 years, according to a
July 7 media report. The development of phase one costed around VND 3trn (USD 129m), according to
the same report.

Sao Mai Group has secured permit and completed the land preparation process for phase two of the
solar project, Le said. The company expects to start the construction of phase two early next year, with
plans for it to reach commercial operation by end-2020, he added.

According to the executive, an ideal JV partner would be a renewable energy company, or a company
specialized in power plant construction. Alternatively, it could also be a private equity firm with
experience in energy investment.

The company prefers to hold majority ownership in the second phase of the solar project, Le said. It will
tap local lender HDBank for financing in the project, he added.

Simultaneously, the company has a pipeline of 500 MW in combined generation capacity from solar
farms in Vietnam and will also be on the lookout for JV partners to roll out these projects moving
forward, Le said. It is receptive to serious approaches from advisors with target companies looking to
form JV in Vietnam, he added. The company will also be looking to hold majority ownership in these
projects, he noted.

Vietnam has not yet released a new feed-in tariff FIT regime for solar power projects. The country’s
Ministry of Industry and Trade in a document submitted to the Vietnamese government has proposed to
reduce the FIT to USD 7.69 cents and USD 7.09 cents per kWh for floating solar power projects and
ground-mounted solar power projects, respectively, according to a 25 September media report.

This news service reported on 11 October that SB Energy Corp, the Tokyo-based natural energy power
generation subsidiary of Softbank Group [TYO:9984], is seeking JV partners to develop renewable energy
(RE) projects in Vietnam.

Founded in 1998, Sao Mai Group is engaged in real estate development, renewable energy, seafood
processing, hospitality and infrastructure among others. Sao Mai Group’s major shareholders include Le
and Chairman Le Thanh Thuan with 7.41% and 19.31% ownership in the company, respectively,
according to local newswire Vietstock.

Sao Mai’s 2018 net profit rose 614% YoY to VND 1.2trn (USD 51.58m), while revenue rose 323% YoY to
VND 8.88trn (USD 381.75m), according to its financial statement.

By Anh Duy Giap in Ho Chi Minh City