Vietnam Power Generation EPC Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | > 3.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Power Generation EPC Market Analysis
The Vietnamese power generation engineering, procurement, and construction (EPC) market is expected to register a CAGR of over 3% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.
- Over the medium term, factors such as the increasing electricity generation and energy consumption demand and investments in the power sector, including increased government spending on renewable energy, are expected to boost the market.
- On the other hand, the phasing out of coal-based power plants, which account for a significant share in power generation globally, and volatile crude oil prices leading to delays in several upstream projects are expected to hinder the growth of the Vietnamese power EPC market.
- Nevertheless, the Vietnamese government has planned to meet 10% of its energy demand from renewable by 2030, which is expected to create several opportunities for the power EPC market in the future.
Vietnam Power Generation EPC Market Trends
This section covers the major market trends shaping the Vietnam Power Generation EPC Market according to our research experts:
Thermal Expected to Dominate the Market
- Thermal power is generated through various sources such as coal, natural gas, nuclear, and oil. In the case of Vietnam, out of the above-mentioned sources, only three are being used, i.e., coal, natural gas, and oil.
- In 2021, approximately 4.3 exajoules of primary energy were consumed in Vietnam. In the same year, the primary energy consumption in the Asia-Pacific region amounted to 273 exajoules.
- Vietnam is also dependent on coal power plants. In the past decade, the country heavily invested in coal power plants to meet its power demand. In February 2021, the Ministry of Industry and Trade of Vietnam (MOIT) released the national power development plan 9 (PDP8), where the country plans to add 37 gigawatts of coal-fired power plants by 2030.
- As of 2022, the Quang Trach 1 Coal-fired Power Plant was under construction in Vietnam with a capacity of 1.2 gigawatts, with an estimated plant investment of EUR 1.2 billion. The project is expected to be commissioned by 2025 and generate up to 8.4 billion kilowatt-hours of electricity per year.
- In March 2022, Samsung C&T and Lilama secured an engineering, procurement, and construction (EPC) contract worth VND 24.14 billion (USD1.04 billion) from PetroVietnam Power for the 1.5GW Nhon Trach 3&4 power plant in Vietnam. The project is expected to be commissioned during the 2023-2024 period. Nhon Trach 3&4 is Vietnam's first liquefied natural gas (LNG) fueled power plant.
- Therefore, owing to such factors, the conventional thermal segment is likely to dominate the Vietnamese power generation EPC market during the forecast period.
Increasing Renewable Energy Expected to Drive the Market
- In 2021, the total renewable energy generation plant installed capacity in the country was 42,727 megawatts (MW), which was higher than the installation capacity of 2020, i.e., 38,379 megawatts (MW). Renewable energy in the country includes hydro, solar, wind, and bio-energy.
- Currently, hydro energy is the largest source of renewable energy in the country, followed by solar energy, which saw a record installation of approximately 21,582 megawatts (MW) by the end of 2021.
- In July 2022, NovaWind, ROSATOM's wind power division, and An Xuan Energy signed a cooperation agreement to build a Vietnamese wind farm. This agreement envisages a partnership for constructing a 128 MW wind farm in Son La Province, north-western Vietnam.
- In addition, the country is focusing on renewable energy to achieve net zero carbon emission and reduce reliance on coal imports. Under the PDP8, the country plans to construct 19-20 GW of solar energy and 18-19 GW of wind energy. For example, in 2022, Vietnam's government authorities approved the construction of two floating solar projects on the Khe Go and Vuc Mau lakes with a total capacity of 450 MW. Both are expected to be commissioned by the end of December 2023 and cost USD 340 billion.
- Hence, owing to such factors and increasing renewable energy, the Vietnamese power generation EPC market is expected to grow further during the forecast period.
Vietnam Power Generation EPC Industry Overview
The Vietnamese power generation EPC market is moderately consolidated in nature. Some of the major players in the market (in no particular order) include JGC Holdings Corporation, LILAMA Corporation, Doosan Heavy Industries Construction Co. Ltd, Toshiba Corp., and IHI Corp.
Vietnam Power Generation EPC Market Leaders
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JGC Holdings Corporation
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LILAMA Corporation
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Toshiba Corp
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IHI Corp
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Doosan Heavy Industries Construction Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Vietnam Power Generation EPC Market News
- March 2022: Samsung C&T and Lilama secured an engineering, procurement, and construction (EPC) contract worth VND 24.14 billion (USD1.04 billion) from PetroVietnam Power for the 1.5 GW Nhon Trach 3&4 power plant in Vietnam. The project is expected to be commissioned during the 2023-2024 period. Nhon Trach 3&4 is Vietnam's first liquefied natural gas (LNG) fueled power plant.
- December 2021: The Power Project Management Board contracted Risen Energy Co. Ltd and Tasco Joint Stock Company for the EPC (engineering, procurement, construction) contract for Phuoc Thai 2 and Phuoc Thai 3 Solar Power Plant Projects. The projects would have installed capacities of 100MWp and 50MWp, respectively.
Vietnam Power Generation EPC Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGEMENTATION
5.1 Power Generation Source
5.1.1 Thermal
5.1.2 Hydroelectric
5.1.3 Nuclear
5.1.4 Renewables
5.2 Power Transmission and Distribution (T&D) - (Qualitative Analysis Only)
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 AES Corporation
6.3.2 IHI Corp.
6.3.3 Toshiba Corp.
6.3.4 CTCI Corporation
6.3.5 Doosan Heavy Industries Construction Co. Ltd
6.3.6 LILAMA Corporation
6.3.7 PALMA VIET NAM
6.3.8 JGC HOLDINGS CORPORATION
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Power Generation EPC Industry Segmentation
Power EPC is a contract to construct power generation, transmission, and distribution projects on large-scale, complex energy infrastructure projects. EPC stands for engineering, procurement, and commissioning. Engineering and procurement involve the detailed engineering design of a project and procuring all necessary equipment and raw materials. Construction is related to delivering a functional facility to the client.
The Vietnamese power generation EPC market is segmented by power generation source and power transmission and distribution (T&D). By power generation source, the market is sub-segmented into thermal, hydroelectric, nuclear, and renewables. For each segment, the market sizing and forecasts are based on revenue (USD billion), except for power transmission and distribution (T&D), for which only qualitative analysis will be provided.
Vietnam Power Generation EPC Market Research FAQs
What is the current Vietnam Power Generation EPC Market size?
The Vietnam Power Generation EPC Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Vietnam Power Generation EPC Market?
JGC Holdings Corporation, LILAMA Corporation , Toshiba Corp , IHI Corp and Doosan Heavy Industries Construction Co., Ltd. are the major companies operating in the Vietnam Power Generation EPC Market.
What years does this Vietnam Power Generation EPC Market cover?
The report covers the Vietnam Power Generation EPC Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Vietnam Power Generation EPC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Power Generation EPC Industry Report
Statistics for the 2024 Vietnam Power Generation EPC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Power Generation EPC analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
