Xuan Thien Group is Financially strong by making good use of international resources
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- Brand
- 23:32 10/04/2023
DNHN - Constantly seeking to expand cooperation with European, American, and Japanese corporations and international investment funds... By 2025, it is anticipated that Xuan Thien Group will invest approximately $1.5 billion in new projects.
In recent years, Xuan Thien Group has consistently made its mark with numerous large renewable energy initiatives of regional significance; as a result, it has become a magnet for the attention of foreign financial institutions. The Group's initiatives generate profitable results in the challenging economic climate.
Through research, Xuan Thien Group is an investor in manufacturing, finance, insurance, and banking, with specializations in construction materials (cement), recycled energy, and high-tech agriculture (livestock, farming, food processing). With the results attained since 2000, Xuan Thien has invested in numerous renewable energy projects with a total capacity of nearly 1,800MW in the field of renewable energy, which is regarded as the Group's particular strength. In addition, Xuan Thien is a co-owner of several cement factories with large capacities that have been put into operation in Ha Nam, Quang Nam, as well as several high-tech agricultural projects with sales and products brought to market.
Xuan Thien has had a strategy to increase investment in industries such as green steel production, petrochemical refining, etc. since 2020. As a result of this strategy, Xuan Thien has expanded its cooperation with international corporations and investment funds from Europe, the United States, and Japan to invest in the Group's successful projects. By 2025, it is anticipated that Xuan Thien will have attracted approximately USD 1.5 billion to add investment resources to new projects.
In 2022, phase 1 of a strategic cooperation agreement between Xuan Thien Group and EDPR, the foremost energy company in Spain, brought in a total of 284 million dollars. Xuan Thien is concluding legal procedures for the next phase, which is anticipated to generate more than USD 1 billion between now and 2025. This financial resource will serve as a firm foundation for Xuan Thien Group's future capacity to develop large-scale initiatives.
In addition, Xuan Thien Group has restructured its finances to capitalize on low-interest capital sources from banks and foreign funds. All of Xuan Thien's initiatives are geared towards the implementation of green technology and sustainable development, attracting the attention of numerous international financial institutions with preferential arrangements on extremely high-interest rates. Specifically, in 2022, Xuan Thien effectively financed several projects in Dak Lak via Korea's KEB Hana Bank at a preferential interest rate of approximately 5 %/year lower than the domestic market. Xuan Thien replicates this model for its member firms.
Actual investment in Vietnam demonstrates that the reciprocal capital ratio of enterprises is only required to be at least 15% for significant Group A ventures. When factory projects are put into operation, there is a low-cost source of capital for the manufacturing sector, particularly when the project has nearly exhausted its depreciation and amortization but the enterprise does not continue to reinvest. This endeavor will receive funding from an excellent source. Future investments in large projects involving tens of thousands of billions of dong are highly feasible for a group such as Xuan Thien, which has many projects that have been in operation for many years and benefits from cooperation with international financial institutions.
Tran Linh
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