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Vietnam Infrastructure Spotlight - September 2022

Freshfields' Vietnam Infrastructure Spotlight keeps you up-to-date with the key business and legal developments in this sector. Please contact us if you would also like to receive our Vietnam M&A Spotlight, Vietnam Environment Spotlight or Vietnam Competition Law Spotlight.


Updated PDP VIII

Yet another draft of Vietnam’s National Power Development Plan VIII (PDP VIII) was submitted by the Ministry of Industry and Trade (MoIT) to the Government in August 2022.

The Government batted it back, requesting the MoIT to address the following key points:

  • national energy security interests, rapid development of new technologies, international geopolitical tension, supply chain disruption, and domestic socio-economic needs;
  • reducing the number of coal-fired power plants in period up to 2030. The MoIT needs to work with investors of current coal-fired power plants on whether or not to continue their projects;
  • reviewing solar power planning for 2030 to ensure efficiency, and avoid economic damage, especially the unreasonable calculation of electricity prices;
  • reviewing the status of feasibility studies of power projects using domestic gas;
  • reducing the capacity of LNG-to-power projects in the period to 2030;
  • increasing capacity of wind power projects on a reasonable and feasible scale;
  • considering electricity imports from neighbouring countries such as Laos; and
  • expanding the scale of biomass and hydrogen power sources.


Electricity of Vietnam (EVN)

  • EVN loses US$701 million. EVN reported a consolidated loss of VND16,586 billion (US$701 million) in the first six months of the year as the price of fuel for electricity production like coal, oil, and gas sharply increased. Source: The Investor


  • Shaking up the coal market. PetroVietnam subsidiary PV Power has agreed on a 30 per cent capital contribution to a consortium that will build a US$2 billion LNG-to-power complex in Quang Ninh province. The other companies in the consortium include Tokyo Gas and Marubeni. Source: The Investor
  • In limbo. LNG power could reduce Vietnam’s carbon emission, but the country faces several hurdles in using it. LNG emits substantial carbon, though less than coal. But for this, the country will have to import all of the LNG for generation – around 14-18 billion cubic meters in 2030 – at a time prices have hit record highs. Source: Vn Express International

Renewable Energy

  • Negotiable or not. The MoIT has suggested to the Prime Minister (PM) solar and wind power projects, that failed to go into operation by the FiT deadline should negotiate electricity prices and power purchase and sale contracts with EVN. Source: Vietnam Investment Review
  • The answer is NO. EVN has explained to the MoIT that it can not negotiate prices with wind and solar power projects that have failed to meet the country’s FiT deadline of 1 November 2021. Source: The Investor
  • Searching for location. The consortium of VinaCapital and EDF Renewables proposed surveying four locations for an offshore wind power project in Ba Ria - Vung Tau province with a total project investment of about US$13 billion and a capacity of 3,000MW. This is not the first large-scale energy project proposed by VinaCapital and its partners. In December 2021, VinaCapital, SkyX Solar, and EDF Renewables announced investment of more than US$100 million to develop 200MW of rooftop solar and distributed solar energy projects for commercial and industrial customers in Vietnam. Source: Vietnam Investment Review
  • Ørsted. Danish offshore wind developer Ørsted has signed an MOU with PetroVietnam Technical Services Corporation (PTSC) to collaborate on offshore wind projects. Ørsted expects to invest in 2GW offshore wind power capacity in Vietnam before 2030, spending US$5.5 billion and creating 25,000 jobs. Source: Renewables Now
  • BP. BP and Vietnamese conglomerate Sovico have proposed a 3GW offshore wind project in Quang Ninh province. The farm would be developed in three phases: the first in 2027-2030 with a capacity of 500 MW; and the second and third phases in 2030-2035 with a combined capacity of 2,500 MW. Source: The Investor
  • Total. Total will generate solar power from rooftop systems installed in industrial properties developed by KCN Vietnam. The partnership is expected to put 280,000 sqm of solar panels on factory and warehouse roofs, pumping out 51 gigawatt-hours of electricity and reducing 23,390 tons of CO2 per year. Source: The Investor
  • EDPR Sunseap. Clean energy provider EDPR Sunseap has completed a US$284 million acquisition of two solar power projects in Ninh Thuan province. The deal is the first step in establishing a relationship between EDPR Sunseap and Xuan Thien Group. Source: Sunseap


  • O Mon III. EVN has been appointed as the investor of the US$1.19 billion O Mon III thermal power plant located in Can Tho, under a decision issued by the municipal People’s Committee. EVN is expected to invest about US$430 million in the project and the remainder will be mobilised from lenders. Source: Vietnam Plus

Oil & Gas

  • Refinery. PetroVietnam has proposed investing US$19 billion in a refinery and petrochemical complex, and a national oil and fuel reserve, in Ba Ria – Vung Tau. The file for the investment will be submitted to the Government in January 2023. PetroVietnam expects to receive approval for the investment in the first quarter of 2024. Source: The Saigon Times
  • Top 3. Thai Oil PLC (TOP), Thailand’s largest oil refining company by capacity, will select Vietnam as one of three destinations for its investment expansion, along with Indonesia and India. TOP will invest in the fields of oil refinering, lube oil, and high-value petrochemical products. Source: Vietnam Investment Review


  • Overloaded. To ease the burden of heavy passenger traffic at Noi Bai International Airport after 2050 and meet the demand for modern infrastructure in the capital, Hanoi will construct a second international airport. According to the Civil Aviation Administration of Vietnam, Noi Bai will handle a total of 100 million passengers by 2050. A specific location has not been disclosed. Source: The Saigon Times
  • Prepare for landing. IPP Air Cargo, Vietnam’s first cargo airline, seeks to start operations this November. The airline is awaiting approval for different licenses from six government organizations. Source: The Investor
  • Different routes. Vietravel Airlines will team up with HCMC-based Asean Cargo Gateway JSC to launch an air cargo service. The carrier will focus on transporting cargo between Vietnam and Asian production hubs like China, Malaysia, Indonesia, and Thailand. Source: VN Express International


  • Long way. The U.S.-based PHI Group said that it has registerd to invest in constructing the US$711 million Ho Chi Minh City-Moc Bai Expressway project. The 50-kilometer expressway will be implemented as a public-private partnership (PPP) project, with a designed speed of 120 km per hour. It will ease traffic pressure on existing National Highway 22 that runs from Ho Chi Minh City to Moc Bai border gate in Tay Ninh province. Source: The Investor
  • Longer. Vietnam is considering building a high-speed railway that runs along the country's length with a possible price tag of up to US$58.7 billion. The Ministry of Transport will submit a proposal to build the 1,545 km (960 miles) railway to the Politburo. The first two sections with a combined length of 665 km (413 miles) and total investment of US$24.72 billion would be open to traffic by 2032. The entire project would be completed by 2045-2050. Source: Vn Express International