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Vingroup drops LNG plant, shift to renewables
Vietnam-based conglomerate Vingroup said it has dropped plans for a 4.8 gigawatt LNG power plant in Haiphong.
The shift followed risks linked to the Middle East war, said Chairman Pham Nhat Vuong.
Vingroup also plans to list its taxi unit Green SM in the second half of 2028, while EV arm VinFast is expected to break even in 2027 and deliver 300,000 vehicles in 2026.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
Vingroup’s switch fits Vietnam’s new energy policy
- Vingroup dropped the planned liquefied natural gas (LNG) plant for wind, solar, plus battery storage. The change followed Vietnam’s revision of Power Development Plan VIII, which raised the 2030 target for battery energy storage systems (BESS) 1.
- The target climbed from 300 megawatts (MW) in the original plan to 10,000–16,300 MW in the April 2025 revision. That gave projects like this far more policy backing 2.
- Storage has become more important because grid limits have hurt renewable projects before 3.
- In 2022, transmission bottlenecks forced some solar sites to cut output by as much as 40%. That drop makes clear how grid limits can curb renewable generation 3.
The change opens a path into Vietnam’s green tech market
- Replacing LNG with renewables plus battery storage could give Vingroup a sizable home market for industrial batteries. That could support a later push into battery production or nearby parts of the supply chain.
- If Vingroup builds a track record in this field, it could improve its standing in the race for part of the US$119.8 billion needed for Vietnam’s power sources by 2030 4.
- The project could also connect with VinFast, Vingroup’s electric vehicle subsidiary.
- Know-how from large energy storage projects may carry over to electric vehicle battery systems plus charging networks. That could help Vingroup build a wider business across energy and mobility.
