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Infrastructure & PPPs in Vietnam - Q3 2021 Update

VIETNAM is one of the most active markets in Southeast Asia for infrastructure development. The country has seen continued activity in greenfield PPP projects and secondary market transactions with increasing investments from international players and financing institutions.

Read the key developments in Infrastructure and PPPs in Vietnam in our latest insight.


July 2021


German renewables developer WPD has entered the Vietnam market through an investment in a 103.5 MW wind project. The Kon Plong project will be developed jointly with Singapore-based Levanta Renewables and will be located in the country's central Kon Tum province. Construction is set to start early next year.

Several international investors, including Japan's Mitsubishi HC Capital, Spain’s Iberdrola and AC Energy have announced investments in wind projects in the country. Vietnam offers a feed-in-tariff of USD 0.085 per kWh for onshore wind projects that will begin commercial operations before November 2021.

The Kon Plong project is included in the country's Power Development Plan VII, Vietnam's roadmap for energy development.


AC Energy, a unit of Philippines conglomerate Ayala Corporation, has reached financial close for four wind projects in Vietnam valued at USD 445Mn.They will be funded through a mix of project and bridge financing.

The four projects are Quang Binh Wind (210 MW), Ninh Thuan Wind (88 MW), Lac Hoa wind & Hoa Dong Wind (60 MW) and Mui Ne Wind, which is currently adding 40 MW of capacity to expand its total capacity to 80 MW. AC Energy is the sole owner of the four projects. They are scheduled to become operational in 2021.

The company already has 525 MW of capacity in solar and wind projects in the country. AC Energy expects to own a renewable energy portfolio of 2.5 GW by the end of FY 2021, compared with an installed capacity of 1.03 GW at the end of March 2021.

August 2021


The Vietnamese province of Long An, near the Mekong River delta, is seeking private investors to develop a 50-hectare logistics center. The complex will aim to boost domestic and international trade, and it will be connected to the North-South Expressway. The project will be located in Long An’s Ben Luc district, which already holds two operational logistics hubs.

Vietnam is seeking to boost its trade capacity as it moves towards its ambition of becoming a regional manufacturing hub. The capital Hanoi is planning to develop 10 logistics centers.


Vietnam has approved the construction of a VND 2.3trn (USD 100.5Mn) industrial park in Hung Yen province, south of Hanoi. The 192.6ha project will be developed by Yen My Industrial Park Investment Joint Stock Company. The investor will be allowed to operate the area for 50 years.

Local industrial park developer Viglacera owns a majority stake in Yen My Industrial Park Investment Joint Stock Company. Services inside the Yen Mi Industrial Park will include a medical center, a logistics center, and a residential area.

Vietnam is developing new industrial parks as it aims to attract manufacturing industries that are exiting China amidst rising labor costs and increasing geopolitical tensions. Viglacera has developed more than 12 industrial parks in Vietnam and Cuba, with a total area of 4,210ha. The company has attracted foreign direct investments totaling USD 15Bn.


Vietnam has awarded a segment of the North-South Expressway PPP to a consortium that includes local infrastructure investor Deo Ca Group and 194 Construction Investment Corporation. The 78.5km Cam Lam-Vinh Hao Road will cost an estimated VND 8.9trn (USD 386.6Mn). The private investors will put in VND 1trn and raise an extra VND 2.7bn in debt. The state will contribute VND 4.1trn.

The segment is part of a batch of five toll roads tendered in 2020 to be developed using the build-operate-transfer model. Two more projects have been awarded, while two other segments - a road connecting National Highway 45 with Nghi Son and a stretch linking Khanh Hoa province with Nghe Anh province - failed to attract any bids.

September 2021


Malaysian water supply and infrastructure utility JAKS Resources and Vietnamese diversified business T&T Group plan to jointly develop the 1.5 GW Quang Ninh 2 liquefied natural gas (LNG) power project in the Quang Ninh province of Vietnam. The two parties signed a memorandum of understanding, which noted that JAKS will be a strategic investor and developer of the project while T&T will handle legal matters related to the project.

In July 2021, Vietnam launched a tender in Quang Ninh with strikingly similar requirements. Respondents were invited to develop a 1.5 GW LNG-fired power project, an LNG import terminal with an annual capacity of 2.4 million tons, two LNG storage facilities with a total capacity of 1.2 million tons per year and a regasification facility.

The overall project was estimated to cost USD 2Bn. The project is scheduled to become operational in the third quarter of 2027 and will have a 50-year concession period.

Korean consortium likely to construct 1.5GW LNG plant in Vietnam

A consortium consisting of mainly South Korean investors is in late stage talks to develop a liquefied natural gas plant in Vietnam's Quang Tri Province. The consortium, called the Korea Consortium, consists of

  • Korea Gas Corporation, Korea

  • Hanwha Energy, Singapore

  • Korea Southern Power, Korea

  • T&T Group, Vietnam

The LNG plant will be built in two stages, with the initial stage in Hai Lang District slated to have a 1.5 GW capacity. The Korea Consortium was formed in December 2019 to target Vietnam's LNG terminal and natural gas power sectors. It is the only consortium that is participating in the bidding process for the Hai Lang LNG plant overseen by Quang Tri Province.


Vietnam is developing preparatory studies for a VND 8.9trn (USD 392Mn) bridge PPP in its capital, Hanoi. The local government has asked real estate firm Him Lam Joint Stock Company to prepare a pre-feasibility study to develop the Tran Hung Dao bridge as a Build-Operate Transfer project.

The bridge is expected to be 5.5km long and will include six-lanes for vehicles. It will connect the Han Kiem district with the Long Bien district, crossing the Red River. The government will fund 50% of the project cost, while private firms will finance the balance. Vietnam has been aiming to attract more private capital to develop much-needed transportation infrastructure.


Vietnam's government is looking at the possibility of using a public-private partnership to build a 188km expressway. It will review a pre-feasibility study for the Chau Doc-Can Tho-Soc Trang expressway and aim to launch the project in 2022.

The six-lane highway will start at Chau Doc City in An Giang province, and end in the port of Tran De in Soc Trang.

Vietnam has been aiming to attract more private capital to develop much-needed transportation infrastructure. The Ministry of Planning and Investment that it aims to attract VND 57trn (USD 2.5Bn) of private capital to the North-South Expressway project in the 2021-2025 period.


List of key transactions - Vietnam Q3 2021

List of upcoming proejcts - Vietnam Q3 2021

Source: Inframation, YOG INFRA analysis



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