Investment in Run-of-River Hydropower Project in Da Nang, Vietnam - sumitomocorp.com
Published December 17, 2025
Investment in Run-of-River Hydropower Project in Da Nang, Vietnam
Sumitomo Corporation has announced its commitment to invest in a run-of-river hydropower project located in Da Nang, Vietnam. This initiative marks a significant step forward in the development of renewable energy infrastructure in the region, aiming to enhance energy security and support sustainable development goals.
The project is designed to harness the natural flow of water in the region's rivers, converting kinetic energy into electrical energy without the need for large reservoirs. This method is particularly advantageous as it minimizes environmental impact while providing a consistent and renewable source of energy.
With a total investment estimated at approximately USD 30 million, the project is expected to generate around 10 megawatts (MW) of power upon completion. This capacity will contribute to the local energy grid, providing clean energy to thousands of households in the area.
Construction of the run-of-river hydropower facility is slated to commence in the first quarter of 2024, with an anticipated completion date set for late 2025. The project will not only focus on power generation but also aims to create job opportunities for local communities during both the construction and operational phases.
Sumitomo Corporation has a longstanding commitment to promoting sustainable energy solutions across Asia. The company recognizes the importance of diversifying energy sources to meet the growing demand for electricity while addressing the challenges posed by climate change.
Vietnam's energy sector has been undergoing significant transformation in recent years, with the government actively encouraging investments in renewable energy. The country has set ambitious targets to increase the share of renewable energy in its total energy mix, aiming for at least 20% by 2030. This strategic direction aligns with Vietnam's commitments under the Paris Agreement to reduce greenhouse gas emissions and promote sustainable development.
The run-of-river hydropower project in Da Nang is part of a broader initiative to tap into the country's abundant natural resources. Vietnam possesses an extensive network of rivers and waterways, making it an ideal location for hydropower development. By leveraging these resources, the government aims to enhance energy security and reduce reliance on fossil fuels.
In addition to energy generation, the project is expected to have several ancillary benefits for the local community. The construction phase will create job opportunities for local workers, while the operational phase will provide ongoing employment in the facility's management and maintenance. Furthermore, the project is anticipated to contribute to local economic development by providing a stable and reliable energy supply, which is crucial for attracting further investments in the region.
Sumitomo Corporation's investment in the Da Nang project also reflects a growing trend among international investors seeking to engage in Vietnam's renewable energy sector. The country's favorable investment climate, coupled with government support for renewable projects, has attracted numerous foreign companies looking to capitalize on the region's potential.
As part of its commitment to sustainability, Sumitomo Corporation will ensure that the project adheres to rigorous environmental standards throughout its lifecycle. This includes conducting comprehensive environmental impact assessments and implementing measures to mitigate any potential adverse effects on local ecosystems.
The run-of-river hydropower project in Da Nang is poised to play a vital role in supporting Vietnam's transition towards a more sustainable energy future. By investing in clean energy infrastructure, Sumitomo Corporation aims to contribute to the country's efforts in combating climate change while promoting economic growth and energy security.
Overall, the project represents a significant milestone in Vietnam's renewable energy journey, highlighting the importance of collaboration between public and private sectors in achieving sustainable development goals. As the country continues to embrace renewable energy solutions, initiatives like the Da Nang run-of-river hydropower project will be crucial in shaping a cleaner and more sustainable future for generations to come.
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