The Export-Import Bank of Korea ( Kexim ) signed a memorandum of understanding ( MoU ) on June 23 to finance a 3-gigawatt ( GW ) US$3 billion LNG-to-power complex being developed in southern Vietnam’s Long An province by VinaCapital GS Energy, a joint venture between South Korean firm GS Energy and VinaCapital, Vietnam’s largest investment and asset management firm.

The deal, signed in Hanoi, is among a series of MoUs in various areas inked between Korean and Vietnamese businesses during South Korean President Yoon Suk Yeol’s three-day state visit to boost the two countries’ multi-faceted ties.

Yoon’s largest-ever economic mission includes Samsung Electronics executive chairman Lee Jae-yong, SK chairman Chey Tae-won, Hyundai Motor executive chairman Euisun Chung, LG chairman Koo Kwang-mo, Lotte chairman Shin Dong-bin and other top Korean business figures.

Long An authorities licensed the major liquified natural gas ( LNG ) project – to be located on a 90-hectare site one hour’s drive from Ho Chi Minh City, Vietnam’s economic powerhouse – in March 2021.

The first phase ( Long An I plant ) should start operations at the end of 2025, and the second phase ( Long An II plant ) would go online at the end of 2026.

Vietnam targets carbon neutrality by 2050 by discouraging coal-fired power and accelerating the cleaner energy transition. The process includes investments in LNG-to-power plans and developing renewable energy, such as wind, solar, biomass and hydrogen sources.

The Vietnamese government approved the country’s latest power development plan, PDP VIII, on May 15. Central to the plan, which marks a milestone for sustainable energy development in the country, is the extensive development of renewable energy sources for electricity production. Renewable energy sources are projected to experience a nearly twofold increase, accounting for about 50% of energy capacity, by 2030.

As well, in a Just Energy Transition Partnership plan for Vietnam announced in mid-December, a group of wealthy nations and multilateral development banks promised to mobilize US$15.5 billion to support the country’s clean energy transition.