Vietnam's giant Vingroup eyes mullti-billion-dollar renewable, LNG power projects

Vietnam's leading private conglomerate Vingroup is seeking the government's permission to develop seven renewable energy projects worth $20-25 billion and a $5.5 billion LNG-fired power project from 2025-2030.

The proposal was mentioned in a dispatch sent to the Government recently, which asked for the projects to be included in the country's adjusted Power Development Plan (PDP 8).

Vingroup, listed on the Ho Chi Minh Stock Exchange as VIC, and its subsidiaries are well known for their significant property developments and electric vehicle manufacturing.

Specifically, it proposed to implement seven solar and wind power projects, with a total capacity of nearly 14,000 MW in phase 1 (2025-2030, $20-25 billion) and 27,000 MW in phase 2 (2031-2035), bring the total to over 47,500 MW by 2035.

The renewable energy projects are expected to be deployed in seven provinces: Son La (in the northern region), Dak Lak (Central Highlands), Ninh Thuan, Khanh Hoa (south-central region), Binh Phuoc, Dong Nai, and Tra Vinh/Soc Trang (southern region).

Outstanding renewable energy projects include a 8,000 MW floating solar power project on Son La hydropower reservoir in the northern province of Son La, with a capacity of 3,500 MW in the 2025-2030 period and 4,500 MW in the 2031-2035 period.

Others include a 9,000 MW solar-wind power project in the Central Highlands province of Dak Lak and an over 8,000 MW solar power project in the southern province of Binh Phuoc.

The group also proposed to add a 5,000 MW LNG-fired power plant project in the coastal city of Hai Phong to the upcoming adjusted PDP 8. If added to the plan, this $5.5 billion plant is expected to be built within five years (2025-2030).

According to Vingroup, the Hai Phong LNG power project will help compensate for the capacity of several large coal-fired power plant projects that have been delayed, such as the BOT Nam Dinh 1 (1,200 MW), Quang Tri (1,320 MW), Vinh Tan 3 (1,980 MW) and Song Hau 2 (2,120 MW).

The group said that the projects they proposed have been studied based on the direction of management agencies. It also studied other criteria such as localities with potential land funds, grid connection capabilities, and proximity to large load centers so that the group could build large-capacity projects which will become national energy centers (over 5,000 MW).

The localities where the projects are located are places with good wind and radiation potential. They will help optimize project development time, power production efficiency, and financial efficiency, it argued in the dispatch.

VIC shares closed Friday morning at VND57,600 ($2.25) apiece.

In the draft of the adjusted PDP 8, the trade ministry proposed that the total installed capacity of the country's power sources by 2030 (excluding cogeneration and risk sources) reach 211,805 MW, an increase of more than 56,000 MW compared to the PDP 8 approved nearly two years ago.

In particular, the solar power capacity is expected to increase nearly four times to more than 34,000 MW. Pumped storage hydropower and battery storage will rise 6 times, while electricity imports from China and Laos will also increase by 2030.

According to the ministry, the total investment capital for the 2026-2030 period is about $136-172 billion, of which $118-148 billion is for power sources and $18-24 billion is for transmission grids.