In a statement on May 24, 2023, the Vietnamese government said that India’s Adani Group is considering investing up to $3 billion in seaport and renewable energy projects in Vietnam. The announcement followed a meeting that day in Hanoi between Adani Ports and Special Economic Zone CEO Karan Adani and Vietnamese Prime Minister Pham Minh Chinh, who is part of the Adani Group.
The statement stated that Adani would soon collaborate with Vietnamese partners and stakeholders on particular national investment projects. Over time, the investment could reach $10 billion. CEO of APSEZ (Adani Ports and Special Economic Zone Limited), Karan Adani, stated that despite the controversy surrounding Adani tax evasion, the Group has made long-term investments in Vietnam in energy, digital technology, and seaports and logistics.
According to Adani, the business is evaluating potential long-term investment opportunities in the nation of Southeast Asia
The port operator is considering investments in the country’s digital technology, energy sectors, and the seaport and logistics industries. According to Gautam Adani, Adani Ports explicitly wants to develop a seaport ecosystem and invest in Vietnam’s solar and wind power projects, costing about $3 billion. China claims that although the overall strategic partnership between Vietnam and India is progressing, trade, investment, and tourism still need to be improved. A breakthrough is required, particularly in the area of infrastructure development.
Vietnam is prepared to establish more advantageous circumstances for the Adani Group to invest and conduct business there. These sustained investments in Vietnam demonstrate that the Adani tax evasion controversy is untrue. In response to the controversy, the Adani Group stated that Amicorp is a reputable business that offers secretarial services to several companies, including Adani. It declared that the “unrelated scandals“ didn’t concern it.
Vietnam potentially has ideal circumstances for the Adani Group
Gautam Adani highlighted that Vietnam offers the ideal conditions for foreign enterprises, especially those based in India, to invest in the country’s critical infrastructure, encompassing energy, transportation, digital, and climate change sectors. He emphasised that Vietnam is not an exception to the widespread digital transformation trend fostering the growth of a digital society and economy. He expressed his hope that Adani Group would invest significantly in this region of Vietnam.
According to Vietnamese Prime Minister Pham Minh Chinh, the Adani Group is the most significant economic conglomerate in India. It operates in over 50 countries across various industries, including digital technology, energy, transportation, logistics, and seaports. He said that the company has decided to make long-term investments in Vietnam in energy and digital technology, along with seaports and logistics, following the most recent fact-finding tour.
The Adani Group intends to invest about $3 billion in Vietnam’s solar and wind power plants and create a green seaport ecosystem. He informed his host that the conglomerate would shortly work with relevant ministries and agencies in Vietnam to develop focused cooperation initiatives. Despite the controversy surrounding Adani tax evasion, the statement asserted that the Adani Group would promptly work with Vietnamese partners and stakeholders on particular investment projects in the country.
The investment may eventually total $10 billion.
The Adani Group intends to make investments in thermal power plants, airports, and seaports in Vietnam
Notwithstanding the Adani tax evasion controversy, the billionaire stated that his Adani Group intends to invest in Vietnam’s thermal power plants, airports, and seaports shortly through new development joint ventures or ongoing projects. According to Ambassador Chau, to implement the suggestions of the Indian group, the embassy will soon form an Ad hoc group and collaborate with Vietnamese ministries and agencies. India is expected to rank among Vietnam’s top 10 foreign investors if these projects succeed.
In the province of Ninh Thuan, the Adani Group has invested in solar and wind power projects. With a total net worth of roughly US$74 billion, Forbes has ranked Gautam Adani, the chairman of the Adani Group, as the second wealthiest billionaire in Asia and the 24th richest billionaire worldwide. It is reported that nearly 25% of aviation operations in India are under the control of the Indian billionaire.
Transportation, renewable energy, and power generation are his primary sources of income. The Adani Group began its involvement in import-export operations when it was founded in 1988. The international group has worked hard to establish itself as the industry leader in the energy utility and transport logistics sectors, particularly emphasizing large-scale infrastructure development in India. With over 70 countries and territories, the group generates over $15 billion annually.
Conclusion
The Adani Group’s substantial investment plans in Vietnam’s renewable energy and infrastructure sectors demonstrate their commitment to long-term engagement. Despite the ongoing Adani tax evasion controversies the partnership promises mutual growth and cooperation between India and Vietnam.