Vietnamese group Gelex Corporation (GEX) is currently engaged in negotiations to divest its equity stakes in some power projects. It is actively engaged in negotiations to reach consensus and finalise transactions with international partners.

Looking ahead, the corporation is strategically inclined to concentrate on the development of larger-scale renewable energy ventures, forging alliances with significant partners. As part of this strategic realignment, the company intends to divest its current smaller-scale projects to potential buyers, thereby generating capital to fuel its overarching strategic initiatives.

GEX's wind power projects located in Huong Hoa district of the central province of Quang Tri, encompassing Huong Phung 2, Huong Phung 3, and GELEX 1, 2, and 3 wind power plants, have attained commercial operational status. These ventures stand to benefit from preferential electricity prices of 8.5 cents/kWh over a 20-year period, as stipulated by the Vietnamese government's Decision No. 39/2018/QD-TTg issued in September 2018, promoting wind power project development in the country.

To secure funding for its wind power projects, the corporation has secured financial support from BIDV, VietinBank, and co-financing from Germany's Landesbank Baden-Württemberg , facilitated through an export credit arrangement with Euler Hermes providing insurance coverage. This financing structure enables GEX's projects to access low-interest capital with extended repayment periods.

Cumulatively, the corporation's wind power projects, coupled with its existing initiatives, have resulted in an impressive total installed capacity of 260 MW, with an estimated annual electricity output of approximately 700 million kWh. As part of its future vision, GEX aims to bolster its renewable energy capacity to 800MW by the year 2025.

GEX underscores its commitment to expedite the restructuring process and materialise sustainable development objectives. Recent endeavours have witnessed intensified collaboration between GEX and foreign corporations, aimed at expanding market presence and diversifying product offerings across the conglomerate's core business segments.

Additionally, the corporation remains actively engaged in exploring potential investments in promising wind power projects while actively seeking opportunities for cooperation in new ventures.

These initiatives by the corporation exemplify its proactive approach in adapting to the evolving energy landscape, forging strategic international alliances, and capitalising on the immense potential of renewable energy within Vietnam's ambitious sustainable development trajectory.

In 2022, GEX proactively engaged in bond repurchases, which played a significant role in reducing the debt burden associated with its electricity segment.

The surge in global interest rates during the latter half of 2022 served as a catalyst, propelling the vigorous bond repurchase activities undertaken by various companies.

Its strategic objective centres around the development of renewable energy projects capable of generating billions of VND in revenue within a five-year timeframe, while delivering impressive returns.

In the event of a successful divestment, the corporation is poised to register noteworthy transactions that will positively impact its financial performance.