Vietnam’s Vingroup proposes up to US$30 billion in power projects by 2030
The conglomerate’s proposed power projects have so far not been included in the latest draft of the revised national power plan
[HO CHI MINH CITY] Vietnamese conglomerate Vingroup has proposed developing power projects worth between US$25 billion and US$30 billion by 2030, with a generation capacity of 25.5 gigawatts (GW) for a start, and an additional 27 GW in the following five years.
In what would be its first lot of ventures into the energy sector, the company is seeking approval from the government to develop 13.9 GW of solar power and 6.6 GW of wind energy. Its letter dated Mar 12 to the government, seen by The Business Times, did not specify the number of plants.
Vingroup also plans to build a US$5.5 billion, 5-GW liquefied natural gas (LNG) power plant in Hai Phong between 2025 and 2030. This northern port city is where the factory of Vingroup’s electric vehicle (EV) arm, VinFast, is located.
The company is proposing that these projects, tentatively located across eight provinces and cities in the country, be added to the revised national power plan by 2030.
But the plan, first approved in May 2023, is still in the works. Separate documents dated Mar 15 and 19, acquired by BT, indicate that the country’s Ministry of Trade and Industry has not yet included Vingroup’s additional projects in its planning.
The ministry noted, in particular, that it is possible to consider adding a 1.6-GW LNG power plant proposed by the Hai Phong government for the 2031-2035 plan, which is significantly less than the capacity presented by Vingroup.
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In the draft, which is still subject to changes, the total installed power capacity in Vietnam could reach 183 to 236 GW by 2030, up from the initially approved 150 GW.
New targets for solar and wind (onshore and near-shore) capacity have been markedly increased to 46.5-73.4 GW and 26-38 GW until 2030, respectively, up from 20.6 GW and 21.9 GW in the previous official plan.
These two energy sources could account for roughly up to 48 per cent of the country’s power mix by the end of this decade. The power generation target for LNG has been slightly adjusted to around 22.5 GW, making up 9.5 to 12.3 per cent of the total.
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The cost of energy-source development, based on the revised plan, is estimated at about US$118.2 billion in the next five years, the document showed.
Vingroup’s 2024 earnings report announced a profit after tax of 5.25 trillion dong (S$274 million), up 155 per cent from 2023. Its revenue grew 19 per cent year on year to hit 192.16 trillion dong last year, mainly driven by Vinhomes’s property sales and VinFast’s strong EV deliveries.
The conglomerate has also just proposed an investment of US$4 billion into a 48.7-km long, elevated high-speed urban railway line connecting Ho Chi Minh City’s District 7 and Can Gio coastal urban area. The group’s property arm has a residential project worth US$11.3 billion in Can Gio.
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