Following the release of Vietnam's long-awaited Power Development Plan 8 (PDP8), international investors have shown increased interest in investing in the country's energy sector. During the Vietnam-South Korea Business Forum, held as part of South Korean President Yoon's official visit to Vietnam from June 22 to 26, more than 100 MOUs were signed and numerous partnerships were formed among key players such as T&T Group, Korea Gas Corporation (KOGAS), SK E&S, Vinacapital, and GS Energy. These collaborations aim to drive initiatives in LNG infrastructure, supply chains, hydrogen production, and financial support for energy projects. Additionally, VinaCapital and GS Energy also signed an MOU with the Export-Import Bank of Korea (KEXIM) to facilitate financial support of the Long An I and II LNG power plant projects. This agreement enables KEXIM to provide extensive financial support and credit to Long An Energy Group, a joint venture between VinaCapital and GS Energy.
Moreover, PetroVietnam held discussions with ExxonMobil and Novatek (Russia) on July 5, exploring business opportunities in the LNG sector. Novatek expressed interest in cooperating with PV GAS for LNG marketing from 2023 to 2026, while ExxonMobil discussed prospects for LNG supply to Thi Vai LNG terminal and investment opportunities in upstream projects in Vietnam. On July 10, Vietnam achieved a historic milestone with the arrival of the first LNG cargo at Thi Vai LNG Terminal.
These developments hold great importance for Vietnam, particularly as the country is experiencing a major energy shortage due to persistent hot weather and unprecedented drought. Two out of the three largest hydroelectric reservoirs in Vietnam, Son La and Lai Chau, are near dangerous levels, significantly lowering the capacity of Vietnam’s power system. This wave of power blackouts forced multiple foreign manufacturing firms to cut their energy uses, negatively affecting industrial outputs. Continuous power cuts may deter foreign investment and lead some firms to consider relocating their production facilities out of Vietnam.
