Hoa Phat (HPG) Proposes 20,000 MW Offshore Wind Farm in Can Tho, 60 Billion USD

Overview

Hoa Phat Group (HPG), Vietnam’s largest steelmaker, has proposed a massive 20,000 MW offshore wind power project in Can Tho, with an estimated investment of 1.5 million billion VND (approximately 60 billion USD). HPG holds a 30% stake in the project company, Song Hau Offshore Wind Power Joint Stock Company, alongside tycoon Tran Dang Khoa and HPG Chairman Tran Dinh Long. The proposal, submitted to the Can Tho People’s Committee, outlines a two-phase development timeline targeting completion by 2035.

Key Facts

• Total proposed capacity: 20,000 MW, split into two phases of 10,000 MW each.
• Estimated total investment: 1.5 million billion VND (about 60 billion USD).
• HPG holds a 30% stake in the project company, Song Hau Offshore Wind Power JSC, contributing 600 billion VND.
• Other shareholders: Tran Dinh Long (20%), Tran Dang Khoa (20%), and KVS Investment JSC (30%).
• The company was established on June 20, 2026, with charter capital of 2,000 billion VND.
• First phase targets completion of 2,000 MW by 2028, with full project completion by 2035.
• The developer has committed to a 1,000 billion VND deposit upon approval of the survey.

What Happened

Song Hau Offshore Wind Power JSC, a newly formed company, has submitted a proposal to the Can Tho Party Committee and People’s Committee to study and survey an offshore wind power project in Vinh Hai commune, Can Tho. The project envisions a total capacity of 20,000 MW, with construction divided into two phases of 10,000 MW each. The first phase is further broken into three stages: 2,000 MW by 2028, 4,000 MW by 2029, and 4,000 MW by 2030. The second phase is expected to be completed by 2035.

According to the proposal, the project will include turbine systems, GIS 35/220 kV substations, a 500 kV Nam Bo 4 substation, and a 500 kV transmission line to Long Phu and Vinh Hai. The developer has pledged a 1,000 billion VND deposit to the state treasury upon approval. HPG’s board approved a 600 billion VND contribution for a 30% stake, with CEO Nguyen Viet Thang representing HPG’s interest.

Market Context

HPG shares closed at 21,850 VND on July 17, 2026, on the HOSE exchange. The steel sector has faced headwinds from global oversupply and weak demand, but HPG has diversified into energy and infrastructure. This offshore wind proposal represents a significant strategic pivot, though it is at a very early stage. The project’s scale is unprecedented in Vietnam, and regulatory approvals, financing, and grid integration remain major uncertainties.

Strategic Significance

For HPG, this project aligns with Vietnam’s commitment to net-zero emissions by 2050 and the government’s push for renewable energy. The partnership with Tran Dang Khoa, a prominent businessman with energy interests, and HPG Chairman Tran Dinh Long’s personal involvement signal strong commitment. However, the project’s massive capital requirement (1.5 million billion VND) far exceeds HPG’s current market capitalization (around 120 trillion VND). HPG’s 30% stake would require 450,000 billion VND, likely necessitating external financing or partnerships. The project could transform HPG into a major renewable energy player, but execution risk is extremely high.

What to Watch

• Approval from Can Tho authorities and central government for survey and feasibility study.
• HPG’s ability to secure financing, including potential foreign partners or project bonds.
• Progress on grid infrastructure, especially the 500 kV transmission line to Long Phu.
• Regulatory clarity on offshore wind power pricing mechanisms and power purchase agreements.
• HPG’s Q2 2026 earnings and any updates on capital allocation for this project.