Saudi Arabian private energy giant ACWA Power stands ready to invest up to $5 billion in Vietnam, a senior executive said Wednesday.

He mentioned the investment possibility during a Wednesday meeting between visiting Vietnamese Prime Minister Pham Minh Chinh and Saudi Arabian Minister of Investment Khalid bin Abdulaziz Al-Falih in Riyadh, according to a report on the governement's news portal.

Minister Khalid bin Abdulaziz Al-Falih and representatives of major Saudi Arabian companies proposed cooperation in different fields including Halal food, electricity, digital transformation and manufacturing of electric vehicles.

The minister noted that many Saudi Arabian investors like Zamil Steel have operated effectively in Vietnam, indicating the country was a stable and attractive destination for long-term investments.

For his part, PM Chinh encouraged Saudi Arabian investment funds to consider engaging in Vietnam’s crucial projects, including building a petroleum storage and distribution hub for Southeast Asia and implementing renewable energy projects already specified in the country’s Power Development Plan VIII (PDP VIII).

Vietnam was working to fast-track investment procedures in the electricity sector, Chinh said, noting the nation’s Electricity Law was being amended. He also pledged that Vietnam will act promptly to meet investors' needs.

He invited the Saudi Arabian minister and businesses to visit Vietnam and materialize cooperation projects.

The minister said Saudi Arabia’s government agencies and businesses were ready to discuss with the Vietnamese partners and speed up negotiations on cooperation projects in the fields that PM Chinh has suggested, including the petroleum storage and distribution hub.

Saudi Arabia is Vietnam’s third largest trade partner in the Middle East, with bilateral trade reaching $2.68 billion in 2023 and $2.21 billion in the first nine months of this year, according to government data.

As of September, Saudi Arabia ranked 79th out of 148 economies investing in Vietnam with eight projects worth $8.57 million.

The ASWA Power executive said there was vast potential for cooperation between the two countries given Vietnam’s rapid economic growth, young population, abundant workforce and liveability status.

He said the company was interested in long-term collaboration with Vietnam, including in workforce training.

Established in 2004, ACWA Power has become the world’s largest private water desalination company, a leader in energy transition, and a pioneer in green hydrogen. ACWA Power currently operates a global portfolio of 65 GW, according to the company.

The company’s net profit reached SAR927 million ($246.8 million) in the first half of this year, growing 36% versus the comparable period in 2023. Operating income before impairment losses and other expenses reached SAR1,389 million ($369.8 million) in the same period, representing an increase of SAR100 million.