Indian conglomerate Adani eyes mega port, thermal power projects in central Vietnam

Indian conglomerate Adani aims to invest in several mega projects in central Vietnam, including the $2-billion Lien Chieu seaport in Danang city and $2.8-billion Vinh Tan 3 thermal power plant in Binh Thuan province.

Group chairman Gautam Adani revealed the investment plans at a Wednesday meeting with Vietnamese Prime Minister Pham Minh Chinh during the latter’s three-day state visit to India. He also offered his condolences on the passing of Party General Secretary Nguyen Phu Trong.

Adani said he was looking to cooperate with Vietnamese partners in logistics and aviation projects like phase 2 of the Long Thanh international airport in Dong Nai province and Chu Lai airport in Quang Nam province.

PM Chinh lauded Adani’s contributions to the Indian economy as well as its target of investing $10 billion in Vietnam. He said the Vietnamese government always encouraged and facilitated business operations, especially in infrastructure.

He suggested that Adani helps Vietnamese businesses with technology transfer and participation in Adani’s value chain and ecosystem.

For the Lien Chieu seaport project, Chinh said Vietnam’s preference was to pick an investor for infrastructure investment and have its operation be a cooperation venture with local businesses.

He asked Danang authorities, the Ministry of Planning and Investment and the Ministry of Transport to work directly with Adani on project implementation.

According to a draft document of the Ministry of Planning and Investment on the seaport, the preferred option is to invest in eight container wharves and six general wharves. The container wharves will be able to accommodate ships of 50,000-200,000 deadweight tonnages (DWT), while the general wharves can host 50,000-100,000 DWT vessels. Covering 450 hectares, the seaport will be able to host merchandise exchanges of about 50 million tons a year.

Danang authorities have reported that the project has attracted interest from financially strong foreign investors like India’s Adani and Japan’s Sumitomo.

On implementing the Vinh Tan 3 thermal power plant, Chinh suggested that Adani collaborates with the Ministry of Industry and Trade for project implementation.

The 1,980-MW Vinh Tan 3 is among the biggest coal-fired plant projects in Vietnam. It was initially invested by state utility Vietnam Electricity (EVN), local business Pacific Corporation, and a joint venture invested by Japan’s Mitsubishi.

In 2021, Mitsubishi withdrew from the project amid the trend of not using fossil fuels; and the project has been seeking a replacement since. The project is featured in Vietnam's power development plan VIII (PDP VIII).

Chinh also backed Adani’s push to join the aviation industry in Vietnam and requested relevant Vietnamese authorities to cooperate with the group in exploring opportunities.

The Long Thanh airport mega project spans an area of 5,000 hectares in Long Thanh district, Dong Nai province, a manufacturing hub in southern Vietnam. It has a designed capacity of 100 million passengers and five million tons of cargo per year once all phases are completed.

After the first phase, slated for competition in 2026, the airport will cater to 25 million passengers and handle 1.2 million tons of cargo per year. In the second phase, a second runway and a new terminal will be built to double the annual passenger capacity to 50 million.