Vingroup's arm VinEnergo okayed to build $204 mln solar power plant in northern Vietnam

VinEnergo, an energy subsidiary of Vietnamese conglomerate Vingroup (HoSE: VIC), has been approved to develop a VND5.37 trillion ($204.35 million) solar power farm in the northern province of Dien Bien as the country accelerates investment in renewable energy capacity.

According to local authorities' endorsement, the project, Dien Bien 1 solar power plant, will cover about 509.5 hectares and have an installed capacity of 300 megawatts, with estimated annual output of roughly 482,411 megawatt-hours.

Of the total investment, VinEnergo will contribute about VND1.61 trillion ($61.31 million), or 30%, while the remainder will be financed through external funding. The project will operate for 50 years from the date of land allocation or lease approval.

Under the proposed timeline, regulatory procedures are expected to be completed in the first quarter of 2026, followed by feasibility studies, technical design, and site clearance in Q3. Construction is scheduled to begin in Q4/2026 and be completed by the end of 2027.

The plant is expected to begin commercial operations in Q4/2027.

The northwestern region of Vietnam is considered to have relatively strong solar energy potential compared with other parts of the country, as it is less affected by monsoon patterns and is well-suited for the deployment of solar power technologies.

According to the Vietnam Energy Association, average annual solar radiation ranges from 4.1 to 4.9 kWh per square meter per day, while total sunshine duration reaches between 1,800 and 2,100 hours per year. The highest levels of sunshine are recorded in provinces such as Dien Bien and Son La.

Established in March 2025, VinEnergo recently tripled its charter capital to VND28.3 trillion ($1.08 billion) to fund power and infrastructure expansion.

Its flagship project, the Hai Phong LNG power plant, broke ground in September with a total investment of VND178 trillion ($6.77 billion). Spanning nearly 100 hectares in the northern port city of Hai Phong, the plant will have a designed capacity of 4,800 MW, making it Vietnam’s largest LNG-fired power facility.

Last December, VinEnergo was named as the investor of two offshore wind power projects in the central province of Ha Tinh, with a total investment of more than VND39 trillion ($1.48 billion).

Dien Bien, located in northern Vietnam, is about 450km from Hanoi. The province borders China and Laos.

It is well known for the Dien Bien Phu battlefield, made famous by the defeat of the French colonial regime in 1954. The battle raged for 56 days before Vietnam's decisive victory spelt the end of France's colonial rule in Indochina and paved the way for national independence.