Abstract

Vietnam’s energy market in Q4 2025 showed strong momentum in both investment activity and policy reform. The sector attracted significant investment through mergers and acquisitions, particularly in renewable energy assets and power generation infrastructure. At the same time, several major projects were completed or initiated, strengthening the national electricity supply. Policy developments such as the national energy security action program and electricity tariff reform also signaled Vietnam’s continued transition toward a more diversified, market-oriented, and investment-friendly energy sector.

Investment updates

M&A Activities in the Energy Industry

Mergers and acquisitions (M&A) activity in Vietnam’s energy sector remained active throughout Q4 2025, reflecting growing investor interest in energy infrastructure and renewable power assets. In 2025, there were 29 M&A deals with a disclosed value of 747 USD Million in the energy sector, accounting for 9% of the total M&A transaction value across all industries[1]. In Q4 alone, there are 15 M&A deals with the value of around 409 USD Million[2][3].

Vietnam M&A transactions disclosed value by sectors (2025)

100% = 8,715 USD Million

Source: Grant Thorton

The energy sector continued to attract international investors, particularly in renewable energy and power generation assets.

Some notable M&A deals in Q4 2025

B&Company synthesis

Renewable energy projects coming into operation

Vietnam continued to expand its renewable energy capacity in Q4 2025 through the completion and commissioning of several key power projects, mainly led by Vietnam Electricity (EVN).

Hoa Binh Hydropower Plant Expansion Project   The project was officially inaugurated in December 2025, adding 480 MW of generation capacity to the national power system. The expansion includes the installation of two additional turbine units at the existing Hoa Binh Hydropower Plant[4].

Source: TTXVN

Phuoc Thai 2 Solar Power Plant   The project was completed in December 2025, located in Khanh Hoa Province with the capacity of 87MW[5]. The project was part of efforts to expand solar power capacity in one of Vietnam’s most favorable regions for solar energy development. The plant contributes clean electricity to the national grid and increases the share of renewable energy in the country’s energy mix.

Source: VOV

LNG-to-power projects

LNG is increasingly viewed as a transitional energy source that can provide reliable baseload power while supporting the integration of renewable energy. It saw notable developments in Q4 2025 as Vietnam accelerated the diversification of its power generation mix.

The Nhon Trach 3 & 4 power plants are Vietnam’s first LNG-fired power plants to be completed and put into operation in December 2025. Located in Dong Nai Province and developed by Petrovietnam Power Corporation, the two plants have a combined capacity of approximately 1,624 MW. With modern combined-cycle gas turbine technology and imported LNG fuel supply, the plants are expected to provide stable electricity generation while reducing emissions compared to conventional coal-fired power plants[6].

The Nhon Trach 3 & 4 power plants

Source: Government News

Another major development is the Hai Phong LNG thermal power project, which officially commenced construction in late 2025. The project is invested by Vingroup through its energy subsidiary VinEnergo – a notable participation of the private companies. The project is expected to become one of the largest LNG power plants in Vietnam once completed[7]. By 2026, VinEnergo has partnered with GE Vernova, a leading global energy technology provider, to supply advanced gas turbine technology and technical solutions for the plant[8].

In contrast to newly built LNG facilities, the Ninh Bình project focuses on transforming an existing power generation site into a flexible power plant. The project involves the gradual phase-out of  aging coal-fired power units with a modern flexible power generation system that can utilize LNG and other cleaner fuels[9]. By December 24, the project was announced to have total investment of nearly VND 7,108 billion[10]. The project is led by a consortium including Power Generation JSC3 (EVNGENCO3) and Thuan Hai Transportation Service JSC. The plant is expected to adopt internal combustion engine (ICE) technology from Wärtsilä (Finland), which enables high operational flexibility to balance intermittent renewable energy[11].

Grid infrastructure expansion

Alongside investments in power generation, Vietnam also made significant progress in expanding its power transmission infrastructure and strengthening regional electricity connectivity in Q4 2025.

Vietnam has increased regional energy cooperation through the import of renewable electricity from Laos, notably through Savan 1 wind power plant, developed by TT Group in Savannakhet Province, Laos. The project is designed to export electricity directly to Vietnam through cross-border transmission lines, with commercial electricity exports expected to begin by the end of 2025[12]. This project represents the first overseas wind power investment by a Vietnamese company and demonstrates a growing trend of regional power trade in Southeast Asia.

October 2025 marked the completion and inauguration of the 500kV Lao Cai – Vinh Yen transmission line, a strategic project connecting the Northwest region to the national power system[13]. The project plays a critical role in transmitting electricity from hydropower plants in the Northwest and facilitating future electricity imports from China and Laos[14]. Spanning multiple provinces, the line improves system stability in northern Vietnam, where power demand is growing rapidly.

Another major infrastructure milestone is the completion of the electricity supply project for Con Đao Island on December 2025, which connects the island to the national power grid. Previously, electricity on the island was generated using diesel-powered generators, which were costly and environmentally inefficient. The new grid connection enables electricity to be supplied directly from the mainland, improving energy reliability while significantly reducing fuel costs and emissions[15].

Successfully energized the project to supply electricity from the national grid to Con Dao

Source: Tien Phong

Policy updates

Government Action Program to Ensure National Energy Security

In 2025, the Vietnamese government issued Resolution 328/NQ-CP, outlining key measures for the 2025–2030 period, focusing on ensuring a stable and sufficient energy supply to support Vietnam’s rapid economic growth while promoting sustainable and diversified energy development. Major priorities include accelerating the implementation of the national Power Development Plan (PDP8), promoting renewable energy and LNG development, improving energy efficiency, and strengthening energy infrastructure such as power transmission systems and LNG import terminals[16].

A central objective of the program is to diversify energy sources and reduce dependence on a single type of fuel or supply channel. The policy encourages the development of renewable energy, cross-border electricity trade, and LNG-based power generation while maintaining the role of traditional energy sources to ensure system stability. The government also emphasizes the importance of mobilizing private sector investment and international cooperation to address the significant capital requirements of Vietnam’s energy transition[17].

Pilot Implementation of the Two-Component Electricity Pricing System

Another major policy development in Q4 2025 was the pilot implementation of a two-component electricity retail pricing mechanism. Starting in October 2025, electricity tariffs for selected customers began to include two separate components: a capacity charge, which reflects the cost of maintaining generation and grid capacity to meet peak demand, and an energy charge, which is based on the actual volume of electricity consumed[18]. Selected customers are manufacturers using large amount of electricity (over 200,000 kWh per month)[19]. During this pilot phase, EVN is only performing simulation calculations and recording them on invoices; it is not yet collecting payments, with the aim of analyzing the level of cost fluctuations and consumer reaction.

After a while, several technical issues emerged, such as determining the maximum power consumption for electricity billing and cases where customers have to shut down their machines due to force majeure events like natural disasters and floods. Regarding costs, some customers experienced significant discrepancies in electricity bills compared to the current tariff, especially businesses with seasonal production and uneven load profiles[20]. This pilot stage is planned to extend to 1 year to further analyze the situation.

Conclusion and Recommendations

Vietnam’s energy market in Q4 2025 continued to expand with strong investment activity and policy developments. The commissioning of new renewable energy projects and the operation of the country’s first LNG power plants demonstrate Vietnam’s efforts to diversify its energy mix and strengthen its electricity supply. At the same time, active M&A transactions indicate sustained interest from foreign investors in the sector.

For foreign investors, Vietnam’s energy market continues to offer significant opportunities across multiple segments, including renewable energy, LNG infrastructure, power generation assets, and transmission networks. The government’s policy direction suggests that foreign capital will remain an important driver for the sector’s development.

However, investors should also closely monitor regulatory developments and implementation timelines. Policy reforms such as the two-component electricity tariff and broader electricity market liberalization may affect project economics and revenue models. A thorough understanding of Vietnam’s regulatory environment, as well as strong local partnerships, will be essential for investors seeking to capture long-term opportunities.

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[1] Grant Thorton, Vietnam M&A Market 2026 Outlook, https://www.grantthornton.com.vn/contentassets/38fb344fef5e4fd4ba6c73db60642fdd/ma-outlook-2026—eng-verion.pdf

[2] Grant Thorton, Monthly M&A News – November 2025 https://www.grantthornton.com.vn/vi/insights/t-duy-lanh-o/ma/diem-tin-ma-thang11-2025/

[3] Grant Thorton, Monthly M&A News – October 2025 https://www.grantthornton.com.vn/vi/insights/t-duy-lanh-o/ma/diem-tin-ma-thang10-2025/

[4] EVN, Inauguration of the Hoa Binh Hydropower Plant Expansion: The national power grid gains an additional 480MW of power generation capacity, https://www.evn.com.vn/d/vi-VN/news/Khanh-thanh-Nha-may-Thuy-dien-Hoa-Binh-mo-rong-He-thong-dien-quoc-gia-co-them-480MW-cong-suat-nguon-dien-60-12-506122

[5] EVN, EVN inaugurates Phước Thái 2 solar power plant, https://www.evn.com.vn/d/vi-VN/news/EVN-khanh-thanh-Nha-may-dien-mat-troi-Phuoc-Thai-2-60-17-506128

[6] Government News, Nhon Trach 3 and 4 power plants: A pioneering milestone for Vietnam’s LNG power generation, https://baochinhphu.vn/nha-may-nhon-trach-3-va-4-dau-moc-tien-phong-cua-dien-khi-lng-viet-nam-102251206110225844.htm

[7] Hai Phong Portal, Construction commenced on two major projects: the Tan Trao Industrial Park infrastructure investment project (phase 1) and the Hai Phong LNG Thermal Power Plant project, https://haiphong.gov.vn/su-kien/khoi-cong-02-du-an-trong-diem-quy-mo-lon-du-an-dau-tu-ha-tang-khu-cong-nghiep-tan-trao-giai-doan-786572

[8] The leader, VinEnergo partners with US ‘energy technology giant’ for Hai Phong LNG power plant, https://theleader.vn/vinenergo-chon-cong-nghe-my-cho-nha-may-dien-lng-hai-phong-d44723.html

[9] The leader, Ninh Binh urges halt of coal-fired power plants and investment in new, flexible power generation solutions, https://theleader.vn/ninh-binh-hoi-thuc-dung-nha-may-dien-than-dau-tu-moi-dien-linh-hoat-d39439.html

[10] Dau Thau News, Ninh Binh seeks investment for a power plant project worth nearly 7,108 billion VND, https://baodauthau.vn/ninh-binh-goi-dau-tu-vao-du-an-nha-may-dien-gan-7108-ty-dong-post191340.html

[11] Lao Dong, Flexible power plant investment and decommissioning of Ninh Binh thermal power plant, https://laodong.vn/kinh-doanh/dau-tu-nha-may-dien-linh-hoat-va-dung-van-hanh-nha-may-nhiet-dien-ninh-binh-1606341.ldo

[12] Vietnam Energy, Dự án điện gió đầu tiên của T&T Group tại Lào sẽ xuất khẩu điện về Việt Nam từ cuối năm 2025, https://nangluongvietnam.vn/du-an-dien-gio-dau-tien-cua-tt-group-tai-lao-se-xuat-khau-dien-ve-viet-nam-tu-cuoi-nam-2025-33699.html

[13] People’s Army Newspaper, The Lao Cai – Vinh Yen 500kV power line was inaugurated, https://www.qdnd.vn/kinh-te/tin-tuc/khanh-thanh-duong-day-500kv-lao-cai-vinh-yen-878824

[14] Lao Dong, The 500kV Lao Cai – Vinh Yen transmission line, a strategic energy bridge connecting the Northwest region with the rest of the country, https://laodong.vn/xa-hoi/duong-day-500kv-lao-cai-vinh-yen-cau-noi-nang-luong-chien-luoc-tay-bac-voi-ca-nuoc-1593304.ldo

[15] VTC News, EVN brings the national power grid to Con Dao Island and completes the expansion of the Hoa Binh Hydropower Plant, https://vtcnews.vn/evn-dua-dien-luoi-ra-con-dao-hoan-thanh-nha-may-thuy-dien-hoa-binh-mo-rong-ar993898.html

[16] Resolution 328/NQ-CP, https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Nghi-quyet-328-NQ-CP-2025-thuc-hien-Nghi-quyet-70-NQ-TW-bao-dam-an-ninh-nang-luong-quoc-gia-677275.aspx

[17] Government News, Government Action Program on Ensuring National Energy Security, https://baochinhphu.vn/chuong-trinh-hanh-dong-cua-chinh-phu-ve-bao-dam-an-ninh-nang-luong-quoc-gia-102251015121739795.htm

[18] EVN, Pilot implementation of a two-tiered retail electricity pricing system will begin in October 2025, https://evn.com.vn/d/vi-VN/news/Trien-khai-thu-nghiem-gia-ban-le-dien-hai-thanh-phan-tu-thang-102025-60-142-505112

[19] Vietnam Energy, Implementing a two-tiered electricity pricing system in Vietnam: Who benefits?, https://nangluongvietnam.vn/thuc-hien-gia-dien-hai-thanh-phan-o-viet-nam-ai-duoc-loi-34986.html

[20] CafeF, The Ministry of Industry and Trade has released information regarding the implementation date of the two-component electricity pricing system, https://cafef.vn/bo-cong-thuong-thong-tin-ve-thoi-diem-ap-dung-gia-dien-2-thanh-phan-188260128144426726.chn