Source: Vietnam Government Portal

In this memorandum, the government aims to accelerate the progress of all LNG power projects, particularly those with a total capacity of 2,250 MW that must be completed by 2029. Additionally, the government has instructed the Ministry of Industry and Trade to focus on investment and the completion of six key LNG projects by 2030, including Nhon Trach 3 and 4, Hiep Phuoc Phase 1, Quang Trach II, Quang Ninh, Hai Lang, and Thai Binh.

Recent Investment moves

Along with the acceleration of LNG project implementation, Vietnam is also attracting interest from both international and domestic investors.

New investment project in 2025

Source: B&Company Compilation

With active investments from both domestic and international stakeholders, Vietnam’s LNG market is expected to grow significantly, aligning with the government’s vision in PDP8 to establish the country as an energy hub in Southeast Asia.

Opportunities and Challenges for the LNG Market in Vietnam

The LNG market is receiving significant attention from both the government and domestic and international investors. Moreover, Vietnam possesses several advantages that could further drive the development of this sector in the future. Firstly, Vietnam’s strategic geographical location at the heart of Southeast Asia positions it as a potential regional LNG hub, attracting international investors and enterprises. Secondly, with the government’s commitment to achieving net-zero emissions by 2050, clean energy sectors such as LNG are expected to receive substantial investments and government support in the coming years to accelerate project completion and meet development targets.

However, as a relatively new and developing sector, Vietnam faces several challenges in managing and expanding its LNG energy industry. First, the high cost of infrastructure investment poses a significant hurdle. Developing LNG transportation, storage, and distribution facilities requires substantial capital and advanced technology. Second, Vietnam remains heavily dependent on LNG imports from international markets, leading to high import costs. With LNG fuel accounting for 70–80% of the electricity price for end users, this reliance significantly impacts pricing and affordability[6]. Finally, while the government has introduced plans for LNG power plant development, there is still no clear regulatory framework governing the management, taxation, and policies related to this sector.

Conclusion

In 2025, Vietnam’s LNG market will see significant progress, with accelerated power plant and terminal construction and increased investment. However, high infrastructure costs and reliance on international LNG supply remain major challenges. Overcoming these barriers will be crucial for Vietnam to establish itself as a regional energy hub.

[1] Vietnam Briefing (2024). Vietnam’s National Electricity Development Plan <Access>

[2] Vietnam Energy Online (2025). Nhon Trach 3 Power Plant Successfully Ignited for the First Time <Access>

[3] The LNG Industry (2024). Room for LNG Growth in Asia <Access>

[4] The Reuters (20214). Singapore and Japan LNG Deals <Access>

[5] Vietnam Government Portal (2025). Adjustment of the National Power Development Plan for the 2021-2030 Period, with a Vision to 2050 <Access>

[6] Tinnhanhchungkhoan (2023). LNG Fuel is Costly, Leading to High Power Price <Access>

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