Vietnam is advancing its energy strategy with a new LNG power plant agreement.
Vietnam Electricity (EVN) and Hiep Phuoc Power Company Limited have signed a power purchase agreement for the Hiep Phuoc LNG Power Plant – Phase 1 in Ho Chi Minh City. This project, with a budget of about VND18.91 billion (8 million) and an installed capacity of 1,200 MW, is set to come online in 2028.
Vietnam’s Commitment to Cleaner Energy Sources
The signing of the power purchase agreement marks a significant step in Vietnam’s energy transition. This is the first LNG PPA under Government Decree No. 56/2025/ND-CP, which provides incentives for power plants using imported LNG. The Hiep Phuoc LNG Power Plant aims to enhance the country’s energy security as electricity demand continues to rise.
Located in Hiep Phuoc commune, about 25 km from Ho Chi Minh City center, the plant will utilize gas turbines from Siemens, focusing on efficiency and emissions reduction. The project is part of Vietnam’s broader strategy to diversify its energy sources and promote sustainability.
Key Figures on Hiep Phuoc LNG Power Plant
- VND18.91 billion (8 million)
- 1,200 MW installed capacity
- More than 7 billion kWh of electricity annually
- Slated to come online in 2028
Next Steps for Vietnam’s Energy Projects
- Completion of the Hiep Phuoc LNG Power Plant – Phase 1 by 2028
- Implementation of additional gas-fired power capacity under Power Development Plan VIII
- Continued focus on cleaner energy sources and national energy security
This agreement signals Vietnam’s strong commitment to a sustainable energy future.
