$2.2 bln thermal power plant in central Vietnam fully comes online as second turbine begins commercial operations

Vung Ang II thermal power plant has brought its second turbine into commercial operation, completing one of Vietnam’s largest foreign-invested coal-fired power projects and reinforcing baseload supply in the central region.

According to company executives, the second turbine, designed with a capacity of more than 600 megawatts, has completed all technical testing and met operational requirements before entering commercial service.

The successful launch follows the stable operation of the first turbine, which has been generating electricity since July 22, 2025.

The project, a $2.2 billion investment developed under a build-operate-transfer (BOT) model, consists of two turbines with a combined installed capacity exceeding 1,300 megawatts.

Construction began in 2021 at the Vung Ang Economic Zone, positioning the plant as one of Vietnam’s key foreign-invested energy projects.

Vung Ang II is a joint project between Japan’s Mitsubishi Corporation (60%) and the Korea Electric Power Corporation (40%). It is considered an important step for Vietnam’s energy security and sustainable growth in Ha Tinh.

The plant stands out for its adoption of ultra-supercritical (USC) boiler technology, currently the most advanced coal-fired generation technology deployed in Vietnam.

Operating at higher steam pressure and temperature than conventional systems, USC technology significantly improves thermal efficiency, enabling greater electricity output per unit of fuel consumed.

Operational data indicate that the system reduces coal consumption per kilowatt-hour compared with older technologies, lowering greenhouse gas emissions and other environmental impacts.

The deployment of USC is increasingly viewed as a transitional solution for countries seeking to balance energy security with emissions reduction, particularly as renewable capacity continues to scale up but remains intermittent.

With both turbines now online, Vung Ang II is expected to provide a stable electricity supply for industrial and residential demand, supporting economic activity in the central region.

The project also contributes to local fiscal revenues and is expected to stimulate demand for skilled labor and auxiliary services, reinforcing the broader industrial ecosystem around the Vung Ang complex.

The Vung Ang Economic Zone plays a strategic role as a gateway connecting domestic regions with international markets. Under the master plan to 2050, it will develop into a multi-sector hub focusing on metallurgy, energy, manufacturing, seaports, and logistics.