Chinese electric power companies increases investment in ASEAN
With ASEAN countries being a close trade partner with China, Chinese large electric power companies have all increased their investment there. According to Li, China Guodian Corporation has listed as one of its most important strategic goals to cooperate with ASEAN. At present, the company has invested 5 billion yuan to build three power plants in Indonesia. In addition to Indonesia, China Guodian Corporation is also trying to step up cooperation with other ASEAN countries, too.
China Guodian Corporation has worked with Vietnam National Coal Corporation to jointly build a thermal power plant in Chongzuo, Guangxi. Chinese side has invested about 6.8 billion yuan in the project. The thermal power plant will be a great help to the industrial development in the northern part of Vietnam.
Meanwhile, China Southern Power Grid Corporation has also increased its investment in the ASEAN countries. Since September 2004, China Southern Power Grid Corporation has constructed three 110-kv power lines to Vietnam, one from Yunnan's Hekou to Vietnam's Lao Cai, one from Fangcheng Port in Guangxi to Vietnam's Quang Ninn, and one from Yunnan's Wenshan to Vietnam's Ha Giang. On September 26, 2006, the largest power network connection project between China and Vietnam was put into operation, whereby electricity from Yunnan was transferred to six provinces in Vietnam via a 220-kv power line. It was also the largest electricity project that China carried out with a foreign country. By the end of March this year, China Southern Power Grid Corporation had transferred altogether 1.84 billion kilowatt hours of electricity to Vietnam via the four power lines. The four power lines have generated a sales volume of 80 million US dollars.
China's cooperation with Vietnam in the electricity field has served as a good example for the other ASEAN countries in the Sub-Mekong River region. As the executive organ for the Chinese side, China Guodian Corporation has successfully carried out a series of electricity projects with Vietnam, Laos, Myanmar, Thailand, and Cambodia. China Guodian Corporation has thus become the first domestic company to expand business abroad.