Vietnam Energy 2025: From Planning to Action (Top 10 Events)

TOP 10 Typical Events of Vietnam’s Energy Industry in 2025

Closing 2025 marks an important “pivotal moment” in the history of Vietnam’s energy development. No longer just plans on paper or debates about mechanisms, 2025 was a year of practical action.

From the first flow of LNG officially generating electricity to the reshaping of the market price structure, the energy industry has truly moved past the “hot growth” stage to enter the era of “depth optimization.” Below are the 10 most typical events, depicting a vivid panoramic picture of the national energy industry in the past year, selected by the Science Council of Vietnam Energy Magazine.

Context: In 2025, Vietnam’s energy industry was in a state of both strong movement and unprecedented pressure. Extreme climate fluctuations, rapidly increasing electricity demand, and the urgent energy transition process—while source infrastructure, grid, and market institutions had not yet kept up—posed difficult problems regarding security, efficiency, and sustainability. In that context, every decision on electricity, oil and gas, or coal carried not only technical or economic significance but was also directly linked to macro stability and national security.

1. Numerous Policies and Mechanisms Issued: Moving from “Planning” to “Execution”

2025 is considered a hinge year when the Adjusted Power Development Plan VIII (PDP8) no longer stopped at orientation but was gradually concretized by investment decisions for power sources and grids. Many long-standing “bottlenecks” regarding procedures, progress, and project lists were removed. Although results are not yet uniform, this is an important shift—from the mindset of “planning” to the vision of “implementing planning.”

2025 also witnessed the efforts of the Party, National Assembly, Government, and Ministry of Industry and Trade (MOIT) as Resolution No. 70-NQ/TW of the Politburo, the Law on Atomic Energy (amended), the Resolution of the 15th National Assembly on mechanisms/policies for national energy development (2026–2030), along with decrees and circulars guiding the Electricity Law No. 61/2024/QH15, were passed and issued. Specifically:

• Decree 56/2025-ND-CP: On power development planning, grid development plans, investment in power projects, and bidding for investor selection.
• Decree 57/2025/ND-CP: On the Direct Power Purchase Agreement (DPPA) mechanism.
• Decree 58/2025/ND-CP: On renewable energy and new energy electricity.
• Circulars: MOIT timely issued circulars on generation price frames for solar, onshore/offshore wind, LNG, pumped storage hydro, and battery energy storage systems (BESS).

Mechanisms “Paving the Way” for Capital Flow: If in previous years, the energy story was often stuck at the procedural stage, this year, the legal “knot” was untied. 2025 witnessed a shift in management thinking from “ask-give” to bidding, publicity, and transparency. The guidance documents for the Electricity Law (amended) and DPPA decrees entering practice created great confidence for foreign investors.

Highlight: Many offshore wind and gas power projects that were previously “mothballed” awaiting price mechanisms have begun restarting survey works and signing EPC contracts. This signals that the Government has found the answer to balancing benefits between the State – Investor – People.

Legal Corridor for Nuclear Power Development: On June 27, 2025, at the 9th Session, the 15th National Assembly officially passed the Law on Atomic Energy (amended). The Law consists of 12 chapters, 73 articles, officially taking effect from January 1, 2026, focusing on promoting atomic energy application, ensuring nuclear safety, and creating a legal corridor for future nuclear power projects. This is a major step in restarting the nuclear power program in Vietnam. Concretizing technical, safety, security, and lifecycle management requirements will enhance reliability and transparency, facilitating project implementation while building social and international trust.

2. Nhon Trach 3 and Nhon Trach 4 LNG Power Plants Officially Operational

The inauguration of Nhon Trach 3 and 4 LNG Power Plants, with a capacity of 1,624 MW, took place on December 14, 2025. The project is invested by PV Power (a member of Vietnam National Oil and Gas Group). This is the event with the greatest impact on the energy industry in 2025.

The grid connection of Nhon Trach 3 and 4 ushered Vietnam into the stage of substantive operation of LNG power sources, supplementing large-scale baseload power for the Southern system. This event marks not only capacity significance but also a strategic shift in power source structure, reducing reliance on coal thermal power amidst climate change.

The LNG Power Era Officially Begins:

• Historic Milestone: Vietnam officially joins the “club” of nations producing electricity from Liquefied Natural Gas (LNG).
• Scale & Technology: Total capacity over 1,624 MW, using the cleanest thermal power fuel currently available, equipped with H-generation gas turbines (highest efficiency in the world).
• Impact: In the context of fully exploited traditional hydropower and limited coal power, adding 9-10 billion kWh/year from this cluster to the Southern Key Economic Zone is vital for energy security. It proves: LNG power is no longer a “pie in the sky” but an urgent reality.

3. Many 500 kV and 220 kV Grid Projects Commissioned

2025 witnessed a large volume of 500 kV and 220 kV transmission grid projects completed, especially in key load areas and capacity release zones. Strengthening transmission infrastructure directly reduced congestion risks, improved supply reliability, and enabled flexible system operation.

Highlight: The completion of the Lao Cai – Vinh Yen 500 kV line, with a length of nearly 230 km on October 17, 2025 (after only over 6 months of construction), demonstrates the effort and the new stature of Vietnam’s power transmission sector.

Clearing the 500 kV and 220 kV “Arteries”: EVN and EVNNPT completed a massive workload to relieve grid bottlenecks. Following the success of the 500 kV Circuit 3 line (Quang Trach – Pho Noi) from the previous year, 2025 focused on releasing capacity and preventing local overloads.

• Reality: 500 kV substations and connecting lines in the Central Highlands and South Central regions were completed, definitively resolving the situation of “excess electricity but unable to sell” for renewable energy projects. The grid is now not just transmission lines but a digital infrastructure platform for smarter, more flexible operation.

4. Completion and Operation of Key, Cross-Border Power Source Projects

2025 recorded the completion and operation of many important source projects.

• Hoa Binh Hydropower Expansion: Official operation of both units (480 MW) in 2025. This is a technical victory in underground construction.
  • Strategic Value: Peaking power capability. When solar power fades in the evening, this expanded source immediately compensates for the deficit, preventing voltage collapse.
• Vung Ang 2 BOT Thermal Power: Unit 1 (665 MW) in Ha Tinh commenced operation on July 22, 2025. This plant uses Ultra-Super Critical (USC) technology.
• Savan 1 Wind Power (Laos): A renewable energy project invested and developed by T&T Group in Laos, officially bringing clean electricity to Vietnam.
  • Details: Phase 1 capacity reached 300 MW (commercial operation on December 26, 2025). Total capacity for both phases is 495 MW.
  • Construction: T&T Group urgently built a 220 kV transmission line (double circuit) over 50 km long from the plant to the connection point in Vietnam by late August 2025.
  • Message: Confirms the execution capacity of the Vietnamese contractor consortium led by IPC E&C. It proves the aspiration of Vietnam’s private sector in creating sustainable energy infrastructure.

5. Ban Ve Hydropower Cuts Historic Flood, Ensuring Downstream Safety

During the 2025 flood season, Ban Ve Hydropower successfully reduced a massive flood exceeding rare design frequency, contributing significantly to protecting the safety of the downstream Ca River area.

“Flood Cutting” Miracle: The 2025 storm season with extreme La Niña developments posed life-or-death challenges for reservoirs. Ban Ve Hydropower (Nghe An)—the largest reservoir in the North Central region—became a “steel shield.”

• Event: Facing flood inflows exceeding design frequency, Ban Ve Hydropower accepted sacrificing power generation benefits to maintain flood control capacity, completely cutting the flood peak.
• Message: Reaffirms that large hydropower is not just an economic tool but a dual-use facility serving social security and national water resource security.

6. Piloting the Two-Part Electricity Price Mechanism

The piloting of the two-part electricity price mechanism (capacity charge and energy charge) in 2025 is seen as an important step in power market reform. This mechanism gradually reflects the true costs of capacity and energy, encouraging more efficient electricity use.

Revolution in Price Structure: For the first time in history, “Capacity charge & Energy charge” is piloted, marking a shift to a true competitive power market per international standards.

• Nature: Instead of paying only for consumed electricity (kWh), large customers pay an additional capacity registration fee (kW).
• Impact: Helps the power sector recover fixed investment costs and avoids risks of “phantom” capacity booking. It forces manufacturing plants to manage load charts more scientifically, creating a premise to attract private investment into power infrastructure.

7. Thi Vai LNG Terminal Officially in Commercial Operation

2025 marked the Thi Vai LNG Terminal entering stable commercial operation (1 million tons/year, aiming for 3 million tons/year), completing an important link in the national LNG supply chain. Simultaneously, August 23, 2025, marked the inauguration of Phase 1 of the Cai Mep LNG Terminal by Hai Linh Phu Tho Co., Ltd. (a private project) in Ho Chi Minh City.

Significance: Thi Vai is currently the first and largest LNG terminal in Vietnam. Its successful operation helps Vietnam proactively source gas, no longer depending entirely on rapidly declining domestic gas fields, and opens opportunities to participate in the global LNG trading market.

8. Block B – O Mon Gas & Power Project Chain Executes Key Items

After a long period of stagnation, 2025 recorded clear movements of the Block B – O Mon Gas-Power Project Chain, as mechanism and investment obstacles were gradually removed.

The “Super Project” Awakens: After more than 20 years of delays, this nearly 12 billion USD project chain made substantive progress in 2025.

• Movement: Final Investment Decisions (FID) for upstream (rigs) and midstream (pipelines) were activated. Downstream, O Mon 2, 3, 4 power plants resolved capital borrowing and gas consumption mechanisms.
• Vision: Upon completion, it will supply gas for 4 power plants with a total capacity of 3,800 MW, acting as an energy security pillar for the entire Southwest region for the next 20 years.

9. Coal Sector Completes Mine Expansion and Stabilizes Supply for Generation

In 2025, the coal industry completed several mine expansion items and deployed long-term coal supply contracts for key thermal power plants.

Silent and Durable Support: Amidst the green transition, coal remains the “team carrier” for the Northern power system during peak dry season months. TKV and Dong Bac Corporation performed a difficult dual task: Increasing output while “greening” the process.

• Deep Mining: Many TKV member companies began digging tunnels deeper to -300 meters, even -500 meters (Ha Lam Coal began digging inclined tunnels to -550 meters).
• Milestone: On December 25, 2025, at level +35, Nui Beo Coal JSC welcomed the 2 millionth ton of underground coal, achieving the design capacity of the project. This marks the successful transition from open-pit to underground mining.

10. National Power System Operates Safely Under Extreme Weather Conditions

2025 was a challenging year for system dispatch due to abnormal weather. However, close coordination helped the national power system operate safely, limiting widespread incidents.

Elasticity Coefficient: Electricity production in 2025 grew only about 4.8%, lower than 2022 and 2024. With expected GDP growth in 2025 around 8%, the electricity/GDP elasticity coefficient for the 2021-2025 period is estimated at only 0.99 (lower than 1). This challenges the traditional view that the coefficient must always be greater than 1 or equal to 1.5.

NSMO’s Trial by Fire: 2025 was a test for the National Power System and Market Operation Company Ltd. (NSMO) after separating from EVN to MOIT.

• Challenge: Facing the deepening “Duck Curve” due to high solar penetration and record heatwaves pushing peak capacity (Pmax).
• Result: Through smart dispatch algorithms and smooth coordination (hydro for peaking, thermal for baseload, RE for support), Vietnam avoided blackouts. This is a success of the intelligence and bravery of Vietnam’s power system operators.

Conclusion: Towards 2030 – The Era of Efficiency and Sustainability

Looking back at 2025, Vietnam’s energy industry is not marked by grand slogans but by concrete works, difficult decisions, and stressful operating hours. From wind, LNG, hydro, grid to coal and gas… every event reflects an important transition phase where security, flexibility, and efficiency are paramount.

The foundations built in 2025—from LNG infrastructure and smart grids to market pricing mechanisms—will be the solid launchpad for Vietnam to realize the ambitious goals in PDP8 (2026-2030) and the Net Zero commitment by 2050.