Vietnam guarantees 65% power offtake for imported LNG-to-power projects over 10 years
Vietnam will guarantee an offtake of at least 65% of annual electricity output from projects using imported liquefied natural gas (LNG) power for up to 10 years, under a newly-issued government decree.

Nhon Trach 3 LNG-fired power plant in Dong Nai province, southern Vietnam. Photo courtesy of PV Power.
Decree No. 100, released on Thursday, establishes a development framework for gas-fired power projects.
It states that LNG power plants using imported fuel will receive guaranteed power offtake commitments. The specific offtake percentage will be negotiated between the seller (the LNG power plant) and the buyer (Vietnam Electricity, or EVN), but must not fall below 65% of the plant’s multi-year average annual output.
This guarantee applies throughout the loan (both principal and interest) repayment period, and will last no longer than 10 years from the plant’s commercial operation date. After that period, electricity transactions will be based on negotiated terms between the parties.
The mechanism applies to LNG-to-power projects that begin commercial operations before January 1, 2031.
This guaranteed offtake is intended to provide stable cash flow, helping investors meet debt repayment obligations. LNG suppliers and transporters also typically require such guarantees to ensure long-term predictability in fuel volume and pricing.
While the 65% threshold aligns with EVN’s previous recommendations, it falls short of investor expectations. According to an April 2024 EVN report, many project developers have pushed for guaranteed offtake levels between 72% and 90% over the full contract term.
However, higher guaranteed rates could raise the risk of increased electricity prices. Given LNG’s relatively high cost, power generated from imported LNG is more expensive than from other sources.
EVN has also expressed concern that elevated offtake commitments could significantly inflate its input costs, ultimately driving up retail electricity prices once LNG power plants come online.
Additionally, the state utility giant noted that such long-term guarantees could create an uneven playing field, as most other power plants operate under annual contracts based on real-time supply and demand.
In the long term, the aim is to phase down guaranteed offtake levels and promote greater competition through the spot market.
Decree 100 also sets out provisions for gas-fired power plants using domestically sourced natural gas. These projects will be dispatched at maximum capacity based on available gas supply, provided they meet certain fuel, capacity, and output criteria as well as technical requirements of the national grid.
These plants must commence operations by January 1, 2036, and the mechanism remains in effect as long as they continue using domestic gas.
Under the draft amendment to National Power Development Plan VIII (PDP VIII), by 2030, Vietnam needs nearly 37,500 MW of new gas-fired power capacity, of which 60% (or 22,524 MW) will be based on imported LNG, a roughly 7,000 MW increase compared to the pre-adjustment plan.
Vietnam currently has only one operational LNG-fired power project - the Nhon Trach 3 and Nhon Trach 4 in the southern province of Dong Nai.
The Vietnamese government has asked relevant agencies to speed up the progress of LNG-fired power projects towards completion and operation in 2028, earlier than the deadline specified in PDP VIII.
They include those already having investors such as LNG Quang Ninh, LNG Thai Binh, LNG Quang Trach II, phase 1 of LNG Hai Lang, LNG Son My I and LNG Son My II, and LNG O Mon II III IV; and projects without investors like LNG Quynh Lap, LNG Nghi Son, and LNG Ca Na.
- Read More
Vingroup forms consortium with VinEnergo to develop LNG-fueled power plant in northern Vietnam
Vingroup, Vietnam's leading private conglomerate, will join a consortium with VinEnergo, an energy firm majority-owned by billionaire Pham Nhat Vuong, to invest in a 4,800MW LNG-fueled power project in the northern port city of Hai Phong.
Energy - Wed, June 11, 2025 | 5:49 pm GMT+7
Techcombank wins Gold for Innovation in Cross-Media Marketing at 2025 Asia-Pacific Stevie Awards
Techcombank has reaffirmed its position as a leading banking brand in Vietnam by Brand Equity Index (BEI), achieving the highest score in the Vietnamese banking industry for a second consecutive quarter in Q1/2025, according to market research firm NielsenIQ.
Companies - Wed, June 11, 2025 | 5:22 pm GMT+7
Vietnam seeks big investments in high tech, renewables, logistics: forum
Vietnam is looking for critical private investments in the sectors of high technology, semiconductors, renewable energy (LNG, hydrogen, electric batteries), logistics, industrial park development, innovation, and digital transformation.
Economy - Wed, June 11, 2025 | 3:05 pm GMT+7
Making home ownership accessible again: Nam Long ADC chairman
Following the success of delivering over 10,000 affordable homes (EHome) and social housing units (EHomeS) in southern Vietnam, Nam Long ADC – a member of Nam Long Group – is strategically expanding this pioneering model to the northern market. Steven Chu, chairman of Nam Long ADC, provides an insight into this strategic move.
Executive Talk - Wed, June 11, 2025 | 2:00 pm GMT+7
Vietnam, France sign energy, mineral cooperation deals
Vietnamese and French agencies signed two cooperation documents in energy and minerals in Paris on Tuesday (local time).
Economy - Wed, June 11, 2025 | 12:19 pm GMT+7
Spain willing to cooperate with Vietnam in high-speed railway development: Spanish PM
Spain, which boasts the world's second-longest high-speed railway system, is ready to cooperate and share expertise with Vietnam in this field, said Spanish Prime Minister Pedro Sanchez.
Infrastructure - Wed, June 11, 2025 | 11:02 am GMT+7
Vietnam's leading construction materials maker Viglacera projects 21% revenue hike in 2025
Viglacera, Vietnam's leading producer of building materials, targets VND14.44 trillion ($555.12 million) in revenue for 2025, up 21% from last year.
Companies - Wed, June 11, 2025 | 10:38 am GMT+7
Vietnam’s first LNG power plants to begin commercial operation this year
Nhon Trach 3 and 4, Vietnam’s first LNG-fired power plants, are expected to begin commercial operations this year, according to a new ministerial decision.
Energy - Wed, June 11, 2025 | 10:00 am GMT+7
Europe-Asia Industry Cooperation Forum to take place in Hanoi today
The Vietnam's Association of Foreign Invested Enterprises (VAFIE), in association with F&H International Industry, will organize the Europe-Asia Industry Cooperation Forum in Hanoi today.
Economy - Wed, June 11, 2025 | 7:30 am GMT+7
Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan
SCG Packaging Public Company Limited (SCGP), a subsidiary of Thailand's multi-sector giant SCG, has acquired an additional 30% stake at Duy Tan JSC, becoming the sole owner of the leading producer of rigid plastic packaging products in Vietnam.
Companies - Tue, June 10, 2025 | 10:53 pm GMT+7
VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri
The Vietnam Opportunity Fund (VOF), managed by VinaCapital, has announced its full divestment from local hospital chain Tam Tri Medical, according to a filing with the London Stock Exchange.
Finance - Tue, June 10, 2025 | 4:43 pm GMT+7
CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam
Singapore's CapitaLand Development (CLD) has broken ground on The Fullton, a luxury low-rise residential development with a gross development value of approximately $800 million.
Real Estate - Tue, June 10, 2025 | 4:26 pm GMT+7
Vietnam’s major affordable housing developer Hoang Quan appoints new CEO
Hoang Quan Real Estate Consulting-Trading-Services JSC (HoSE: HQC), a major affordable housing developer in Vietnam, has appointed Nguyen Long Trieu as its new general director, effective from Monday.
Real Estate - Tue, June 10, 2025 | 4:00 pm GMT+7
US Cargill announces exit from aquafeed business in Vietnam
Cargill, one of the leading animal feed producers in the U.S., has withdrawn from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.
Industries - Tue, June 10, 2025 | 3:26 pm GMT+7
USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB
Singaporean bank UOB on Monday said its updated forecasts on the USD/VND exchange rate are VND26,300 per USD in Q3/2025; 26,100 in Q4/2025; 25,900 in Q1/2026; and 25,700 in Q2/2026.
Economy - Tue, June 10, 2025 | 2:38 pm GMT+7
Four pillars set stage for Vietnam private sector breakthrough: expert
The four resolutions recently issued by the Politburo, Vietnam's highest decision-making body, mark a critical turning point, opening up major opportunities for Vietnam’s private sector to thrive, said Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics.
Economy - Tue, June 10, 2025 | 12:37 pm GMT+7