Sumitomo Explores New Energy Ventures in Central Vietnam
Japan’s Sumitomo Corporation is actively exploring new investment opportunities in Vietnam’s evolving energy sector, specifically focusing on the central coastal province of Khanh Hoa. The company is considering the development of an LNG-to-power plant, known as Van Phong 2, and is also looking into potential offshore wind power projects within the province. This strategic interest is in direct alignment with Khanh Hoa’s development priorities, as local authorities have made it a key goal to attract new energy investments through 2030. Provincial officials have welcomed Sumitomo’s proposal, recognizing the company’s established track record and its potential to contribute to a greener and more sustainable energy future for the region.
Building on a Strong Regional Presence
Sumitomo’s new energy exploration builds upon its already substantial presence in Khanh Hoa province. The company is the current investor of the $2.58 billion Van Phong 1 BOT coal-fired power plant, a 1,320 MW facility that began commercial operations in early 2024. This plant has already proven to be a significant contributor to the provincial budget. In a related strategic move, Sumitomo has also announced plans to divest a 50% equity interest in the plant’s operator. This reclassification of the plant from a consolidated subsidiary to an equity-method affiliate is part of the company’s broader strategy to shift its focus and resources toward power generation with lower environmental impacts.
Regional Mergers Facilitate New Opportunities
The timing of Sumitomo’s new project exploration coincides with a significant administrative change in the province. Khanh Hoa and Ninh Thuan have recently merged to form a larger and more strategically positioned Khanh Hoa province. This merger is intended to unlock new development potential by consolidating resources and streamlining governance. The provincial chairman has affirmed that local authorities will create a favorable environment and actively facilitate opportunities for investors like Sumitomo. This government support for new energy developments underscores Vietnam’s commitment to transitioning to a cleaner energy future, and it signals a strong desire to collaborate with international partners to achieve its sustainability goals.
