Doosan Enerbility's Strategic Divestment and Expansion in Vietnam: Capital Reallocation and Growth Potential in Southeast Asia's Energy Transition

Southeast Asia's energy transition is accelerating, driven by a confluence of policy reforms, infrastructure demands, and global climate commitments. At the heart of this transformation lies Vietnam—a nation poised to redefine its energy mix through a blend of gas-fired power, hydrogen innovation, and offshore wind. For investors, the strategic moves of companies like Doosan Enerbility offer a compelling lens to analyze capital reallocation and growth potential in this dynamic market.

Strategic Divestment: A Calculated Step Toward Renewables

Doosan Enerbility's recent sale of its Vietnamese subsidiary, Doosan Vina, for 290 billion won to HD Korea Shipbuilding marks a pivotal shift in its capital strategy. The divestment, which follows a decline in Doosan Vina's profitability, reflects a deliberate pivot away from saturated manufacturing segments toward high-growth renewable energy sectors. By shedding underperforming assets, the company is freeing up capital to reinvest in technologies aligned with the energy transition, including small modular reactors (SMRs), hydrogen-fueled turbines, and offshore wind.

This move is not isolated but part of a broader trend. Doosan's earlier sale of its Czech subsidiary, Doosan Skoda Power, further underscores its commitment to streamlining operations and focusing on core growth areas. The proceeds from these divestments are being funneled into projects that align with Vietnam's 2030 energy targets and South Korea's $1.2 trillion clean energy pipeline.

Vietnam's Energy Transition: A Strategic Battleground

Vietnam's energy landscape is undergoing a seismic shift. The country's revised Power Development Plan 8 (PDP8), approved in April 2025, sets ambitious targets for renewables, including 73 GW of solar and 38 GW of onshore wind by 2030. However, the initial success of feed-in-tariff (FiT) programs has exposed financial vulnerabilities in the state utility, Vietnam Electricity (EVN), prompting retroactive tariff cuts for 173 solar and wind projects. These adjustments, while necessary to stabilize EVN's finances, have raised concerns about investor confidence.

Doosan Enerbility's strategy in Vietnam is uniquely positioned to navigate these challenges. By securing the KRW900 billion O Mon 4 gas-fired power plant contract—a 1,155 MW combined-cycle project slated for completion in 2028—the company is leveraging gas as a transitional fuel. This aligns with Vietnam's goal to expand gas-fired capacity to 37.4 GW by 2030 while reducing coal dependency. The O Mon 4 project, part of the Block B–O Mon gas-to-power initiative, is a testament to Doosan's ability to balance immediate energy needs with long-term decarbonization goals.

Offshore Wind and Hydrogen: The Next Frontier

Beyond gas, Doosan is aggressively expanding into offshore wind and hydrogen technologies. Its partnership with Siemens Gamesa to build nacelles for 14MW turbines at the Changwon facility is a critical enabler for projects like the 750MW Bandibuli Floating Offshore Wind Farm, a joint venture with Equinor. With commercial operations expected by 2026, Bandibuli is a cornerstone of South Korea's offshore wind ambitions and a potential catalyst for Doosan's valuation.

Hydrogen, another key focus area, is gaining traction in Vietnam's net-zero roadmap. Doosan's collaboration with local thermal power operators—such as Nghi Son 2 Power Plant and EVN GENCO3—on ammonia co-firing and hydrogen-fueled turbine projects positions the company to capitalize on Vietnam's push for low-carbon technologies. These initiatives, supported by high-level government engagement, highlight Doosan's strategic alignment with national priorities.

Financial and Market Implications

Doosan Enerbility's current valuation, trading at 12x forward earnings, appears undervalued relative to its peers. The company's reinvestment of divestiture proceeds into high-margin renewable projects—coupled with its track record in securing large-scale contracts—creates a strong case for upside potential. Key catalysts in 2025 and 2026 include the full operationalization of the Changwon facility and the commercial launch of Bandibuli. Analysts project a price target of KRW85,000 (an 18% increase from current levels) over the next 12–18 months, driven by these milestones.

Risks and Mitigants

While the strategic reallocation is promising, risks persist. Geopolitical tensions in the South China Sea, competitive pressures from Chinese firms, and policy uncertainties in Vietnam and South Korea could disrupt project timelines. However, Doosan's long-term partnerships—such as its collaboration with PetroVietnam—provide a buffer against regulatory and operational volatility. Additionally, the company's diversified portfolio across gas, wind, and hydrogen reduces exposure to any single market risk.

Investment Thesis

For investors, Doosan Enerbility represents a compelling opportunity to participate in Southeast Asia's energy transition. The company's strategic divestments have created a leaner, more agile organization focused on high-growth sectors. Its deepening presence in Vietnam—through gas, offshore wind, and hydrogen—aligns with both national and global climate goals. With a forward-looking capital structure and a pipeline of projects set to scale in 2025–2026, Doosan is well-positioned to deliver value as the region transitions to a cleaner energy future.

In a market where capital efficiency and innovation are paramount, Doosan Enerbility's approach offers a blueprint for sustainable growth. As Vietnam's energy transition gains momentum, the company's ability to adapt and lead in emerging technologies will be critical to unlocking long-term shareholder value.