Under government directives and the structured roadmap outlined in Power Development Plan VIII (PDP8), Vietnam’s LNG market is experiencing significant growth. Moreover, 2025 marks an increase in both domestic and international investments, further reinforcing the market’s potential and promising opportunities for future development.

Overview of the Vietnam LNG Market

Vietnam officially entered the LNG market in 2023 with the operational Thi Vai LNG Terminal (1 million tons per annum), supplying gas for the Nhon Trach 3 and 4 power plants. By 2024, the construction plan for Cai Mep Terminal (3 million tons per annum) was expected to enhance Vietnam’s LNG import capacity further and is expected to operate by the end of 2030. In addition, Vietnam has also been expanding its LNG infrastructure to meet growing energy demands. Under the Power Development Plan VIII (PDP8), LNG is projected to contribute 22.4 GW of power capacity by 2030, making up around 15% of the nation’s total energy mix[1].

With the government’s continuous efforts to promote LNG energy adoption in recent years, Vietnam’s LNG market is entering a pivotal phase in 2025, marked by significant infrastructure developments and increasing imports. For instance, in January 2025, the Nhon Trach 3 and 4 power plants in Dong Nai officially commenced operations and successfully ignited for the first time, with a combined capacity of 1,624 MW[2]. While Vietnam initiated the Thi Vai Terminal (1 MTPA) and plans to add the 3 MTPA Cai Mep Terminal, both in Ba Ria – Vung Tau, its capacity is still modest compared to Thailand’s 10 MTPA at Map Ta Phut and 7.5 MTPA at Nong Fab[3], as well as Singapore’s 11 MTPA SLNG Terminal[4]. This huge gap in production underscores Vietnam’s need to accelerate LNG infrastructure development to meet regional standards.

Nhon Trach 3 power plant in Dong Nai

Source: The Investor

Government Initiatives on the LNG Market

Despite these expansions, as of 2025, Vietnam has only completed two LNG power plants – Nhon Trach 3 and 4 – out of the 16 projects outlined in the Power Development Plan VIII (PDP8). Furthermore, LNG power projects have reported to face significant challenges, including difficulties in negotiating power purchase agreements, securing financing, and managing risks associated with LNG price volatility.

Given these challenges, in February 2025, Vietnam’s Ministry of Industry and Trade issued the memorandum on the “Adjustment of the National Power Development Plan for the 2021-2030 Period, with a Vision to 2050” to revise project timelines and ensure alignment with Power Development Plan VIII (PDP8)[5].

LNG power projects plan under adjusted PDP VIII in 2025

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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