Power Machines in Vietnam: Half a Century of Cooperation

Cooperation between Power Machines, a leading company in the Russian power engineering and the Republic of Vietnam began more than half a century ago, with the delivery of three generators for the Thac Ba hydraulic power plant, which was the country's most powerful one for a long time. 
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Then came the turn of the Uong Bi and Pha Lai thermal power plants, as well as the Tri An and Hoa Binh hydraulic power plants. The total capacity of the power units and hydroelectric sets produced by Power Machines and installed in Vietnam until the mid-1990s amounted to approximately 4.5 thousand MW – about 15% of the country's present power capacities.

power machines in vietnam half a century of cooperation

In the early 2000s, Power Machines came back to the Vietnamese market as participants of two hydraulic power plant projects: Yali and Can Don. Contracts for construction of the Se San 3 hydraulic power plant and the second stage of the Uong Bi thermal plant helped to consolidate success.

Signing a contract for construction of the 1,200 MW Long Phu-1 power plant, which took effect in 2015, became a key milestone in the history of Vietnamese power workers’ partnership with Power Machines. The Vietnam government considers erection of thermal power plants an important line of development of power generation, since Vietnam's water resources, currently producing nearly 50% of the country's electric energy, are loaded to the maximum, and it is not feasible to increase the number of large hydraulic power plants. The Long Phu-1 thermal power plant means moving to a new level of cooperation with Vietnam. An international consortium consisting of Power Machines and Vietnam's PTCS corporation acts as EPC contractor in this project. Power Machines is the leader of this consortium.

power machines in vietnam half a century of cooperation
The Hoa Binh hydraulic power plants.

Under the contract, Power Machines is entrusted with responsibility not only for the delivery of main and auxiliary equipment, performance of design and pre-commissioning works, and supervision of installation and carrying out guarantee tests, but also for general coordination of the consortium's project implementation work as well. The power plant is to be launched in 2019 and its guarantee period will amount to two years afterwards. In 2016, a Power Machines front office was opened at the Long Phu-1 construction site in order to meet the projects’ needs. Less than a year later, in late 2017, Power Machines plans to double the number of Russian specialists.

At the same time, Power Machines’ representative offices restructuring is underway for more complete market coverage, introduction of a proactive approach and expansion of the supplied product range. It was the Vietnam representative office that became the "pilot": today, it is a large-scale center with a front office for expanding commercial activity, as well as entry into new markets with the whole Power Machines product range.

power machines in vietnam half a century of cooperation
Sunyaev Yury - Deputy CEO of PJSC “Power Machines”.

"We set ambitious goals for ourselves: coordination of the company's activities in the region, promotion of the whole product range, analyzing the opportunities of cooperation and localization," explains Anastasia Kozlova, Director of the representative office. "We take part in industry specific events, supervising current projects, as well as rendering all kinds of assistance to our partners and customers whom we consult on various matters. A principal task of the representative office for the next 3 years is to enter the markets of the countries adjacent to Vietnam: Malaysia, Indonesia, Thailand, Cambodia and Laos".

Today, existing and future projects of Vietnamese power market customers and Russian energy machine manufacturer are discussed at intergovernmental meetings and forums. The business activities of Power Machines in Vietnam, from building the Long Phu-1 thermal power station from scratch, to delivering equipment to strategically important energy facilities, such as Quang Trach, Long Phu-3 thermal power plants, and Hoa Binh hydraulic power plant, are carried out with the participation and state support of both countries.

Within the framework of the new marketing strategy, Power Machines started a Road Show project in Vietnam in 2017. It was supported by the main project owner in the Vietnamese market, Vietnam Electricity (EVN) state company. Thus, Power Machines’ specialists held a seminar for employees and managers of the Vietnamese Tri An hydraulic power plant; they presented new solutions and proposals to the operational personnel and management of the plant. Today, Power Machines hydraulic equipment installed several decades ago operates faultlessly and in the longer term, the company is ready to propose various options for modernization and renovation of the power plants.

power machines in vietnam half a century of cooperation

"The management of the Tri An hydraulic power plant stated that the meeting was really useful because the information provided was customized to the needs of this power plant and the operational personnel had an opportunity to get advice on all matters that were of interest to them. Before the end of 2017, Power Machines plans to hold meetings and master classes for staff of other power plants built back in the 1960s," states Anastasia Kozlova. "We also plan to hold a ‘Powers Machines Clients' Day’ in Hanoi this year. This experience will be the first for us, and very indicative. We hope to attract potential customers and partners from Vietnam and the South-Eastern Asian countries to specify their needs and present our ability and potential".

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Sunyaev Yury
Deputy CEO