Central Vietnam province Gia Lai draws billion-dollar renewables investment flow

With abundant sunshine and steady winds, Vietnam’s central province of Gia Lai is drawing large-scale investments into renewable energy, creating new growth drivers for the local economy.

String of mega projects approved

Last July, Binh Dinh and Gia Lai provinces were merged to form the new Gia Lai which borders Dak Lak, Quang Ngai, Cambodia, and the East Sea.

Following the merger, Gia Lai is emerging as a renewable energy growth pole in the south-central coast, combining coastal advantages with sun-drenched, wind-swept highlands.

These favorable natural conditions allow the province to develop a diverse renewables portfolio, spanning onshore and offshore wind power as well as ground-mounted and floating solar projects.

Gia Lai has in recent years selected a number of strategic investors for large-scale wind power projects.

Notably, the provincial People’s Committee has approved VinEnergo Energy JSC, founded by Pham Nhat Vuong - chairman of Vietnamese conglomerate Vingroup (HoSE: VIC), as the investor for the Hon Trau wind power plant – phase 1, designed with capacity of up to 750 MW and total investment of about VND48.37 trillion ($1.86 billion).

The decision marks VinEnergo’s second wind power project in Gia Lai. Previously, the company was approved as the investor for the 143 MW Vinh Thuan wind power plant project worth VND4.68 trillion ($179.69 million).

Saigon-Bac Giang Industrial Park Corp., a subsidiary of KinhBac City Development Holding Corporation (KBC), has been selected as the investor for the Van Canh 1 and Van Canh 2 wind power projects, with combined capacity of 340 MW and total investment of over VND14.6 trillion (around $560.57 million).

Local authorities have approved in-principle four wind power projects — Ia Blu 1, Ia Blu 1 - phase 2, Chu Pong and Ia Hla, with combined investment of more than VND6.9 trillion ($264.93 million). The projects will be subject to open domestic bidding to select investors.

Of the four, Ia Blu 1 and Ia Blu 1 – phase 2 will both be developed in Ia Le commune, each with installed capacity of 42 MW and investment of around VND1.85 trillion ($70.8 million). The two plants are expected to generate a combined 240 million kWh of electricity per year.

The 42 MW Chu Pong project will be developed in Bo Ngoong commune at an estimated VND1.62 trillion ($61.92 million). Meanwhile, the Ia Hla project, located in Ia Ko and Chu Puh communes, will have capacity of 40 MW and investment of about VND1.6 trillion ($61.29 million).

In a further push, the provincial Department of Finance has invited investors to submit bids for 12 renewable energy projects, with combined capacity of nearly 708 MW and total investment of about VND22 trillion ($842.77 million).

Wind power dominates the pipeline, comprising eight projects with aggregate capacity of 508 MW and capital outlay of nearly VND18.5 trillion ($708.61 million).

Solar makes up the remainder, with four projects totaling nearly 200 MW and requiring more than VND3.4 trillion ($130.23 million).

Feeding 15 billion kWh a year into national grid

Gia Lai has so far put 85 renewable energy projects into commercial operation, with combined capacity of 4,179 MW, according to official data.

The portfolio includes 57 hydropower plants totaling 2,516 MW, 19 wind farms with aggregate capacity of 1,048 MW, seven solar projects at 485 MW, and two biomass plants with combined capacity of 130 MW.

Renewable energy plants operating in recent years have supplied more than 15 billion kWh a year to the national power system, said Tran Thuc Kham, deputy director of the provincial Department of Industry and Trade,

In 2025 alone, the electricity production and distribution index rose 23.05% from a year earlier, making it the largest contributor to the province’s industrial growth.

“The development of renewable energy has supported the province’s socio-economic expansion at this stage and will make a major contribution toward achieving double-digit growth in the 2026–2030 period,” Kham said.

Under the adjusted National Power Development Plan for 2021-2030 with a vision to 2050 (Power Development Plan VIII), total renewable energy capacity in Gia Lai is projected to reach about 9,657 MW by 2035.

Beyond projects already approved under the plan, the province has a substantial pipeline of potential developments with combined capacity exceeding 23,000 MW.

In the coming years, Gia Lai aims to integrate renewable energy development with key pillars of the circular economy, including green industry, high-tech agriculture, and modern logistics, to build sustainable green value chains, said Kham.

The province is charting a course toward developing carbon-neutral industrial, eco-industrial, and smart industrial zones.

It is also pursuing a selective investment strategy, targeting industries that utilize green electricity, including decarbonized agro-processing, new materials manufacturing, semiconductors and artificial intelligence, as well as other high-tech segments linked to the energy sector.

At the same time, it plans to develop service, engineering and maintenance supply chains for renewable energy projects, alongside establishing training and workforce development centers to support the industry.

To realize these ambitions, Gia Lai has proposed that the government consider revising the national power development plan to raise renewable energy capacity allocations in line with the province’s resource advantages.

It also called for policy support to foster supporting industries and workforce training for the renewable sector, as well as prioritizing investment in scientific research tied to clean energy development.