The deal is awaiting regulatory approval, and neither side has disclosed its value.

Bitexco owns 21 hydropower plants and one solar farm in Vietnam with a total generation capacity of 1,038 megawatts.

This is Chubu’s first investment in Vietnam and a foreign hydropower company anywhere.

Established in 1951, it has power generation facilities in over 200 locations, most of them hydroelectric.

Vietnam’s electricity demand is expected to continue to grow, and the country has great potential in renewable energy since many parts have abundant solar radiation and appropriate wind conditions for both onshore and offshore generation, it said.

The government has stated its intention to increase the ratio of renewables in the country’s power mix.