Vung Ang 2 is a 2 x 600MW coal-fired power station in Kỳ Lợi commune, Kỳ Anh district, Hà Tĩnh province in Vietnam.

Location: Kỳ Lợi commune, Kỳ Anh district, Hà Tĩnh province

Estimated Cost: USD $2.2 billion

The expected debt-equity ratio is 77:23.

The investment agreement for this power station was signed in January 2017.

Status: Planning

Completion Expected: 2021-2022

The technology type of this project is ultrasupercritical (information updated 29 March 2019).

  • One Energy Ventures (a 50:50 joint venture between Hong Kong-based CLP Holdings and Diamond Generating Asia (DGA), a subsidiary of Japan’s Mitsubishi Corp)
  • SPV: Vung Ang 2 Thermal Power Joint Stock Company (VAPCO)
  • Financial: SMBC
  • Legal: Allens Arthur Robinson
  • Technical: Poyry


  • Mitsubishi UFJ Financial Group
  • DBS Bank
  • OCBC Bank
  • Mizuho Bank
  • SMBC
  • Standard Chartered Bank
  • Sumitomo Trust

Concerns about the project

The Ministry of Planning and Investment (MPI) has criticized the project, indicating that:

  • there is a disconnect between the land area stipulated by the government for use in the project and the land area referred to in the project proposal;
  • the Environmental and Social Impact Assessment (ESIA) was approved in 2015, but contrary to section 20 of the Vietnamese Law on Environmental Protection 2014, a new ESIA has not been conducted; and
  • the project sponsor has not mobilized sufficient capital to implement the project.

In addition to the issues that the MPI has raised, the ESIA signed off on 19 January 2011 is highly deficient in contrast to international standards, such as the International Finance Corporation Performance Standards or the OECD Guidelines for Multinational Enterprises:

  • The ESIA does not demonstrate that the project-affected community was consulted on the issues.  While consultation meetings were held with government officials, project-affected community members were merely asked questions about various issues such as their knowledge about the project, water usage or transportation needs.
  • There was also no indication that project specific information was provided to the community members about the project at the time of the survey that could inform the communities in their decision-making.  In fact, during the survey it was noted that 136 out of 186 households mentioned that they did not know basic information about the project including the exact location of the project, who the owner of the project was, and the type of project. This was their main concern. The ESIA does not indicate how this information gap was remedied. 
  • The lenders should ensure that the project sponsors have two-way communication with project-affected communities so that the communities’ views can be taken into account in relation to planning and decision making for the project.


  1. Minerva Lau, Project Finance International, (29 March 2019), ‘Vung Ang 2 CFPP to go ultrasupercritical’
  2. Minerva Lau, Project Finance International, (15 August 2018), ‘OneEnergy appoints Vapco adviser’
  3. Mia Tahara-Stubbs, IJGlobal (23 January 2017), ‘Banks mandated on Vietnam Vung Ang 2 coal-fired’
  4. Global Data Point (20 January 2017), ‘Vietnam’s MOIT Investment Agreement signed BOT project in Vung Ang Thermal Power Plant 2’
  5. Vietnam Plus (17 January 2017), ‘Vung Ang II thermal power plant BOT project agreement clinched’
  6. Climate Policy Initiative (2016), ‘Slowing Down the Growth of Coal Power outside of China’
  7. BMI Research (2016), ‘Vietnam Power Report – 2016 Q4’

Information updated: 17 September 2019

In addition to the references noted above, Market Forces also considers information from financial journals, companies’ public disclosures, and news reports.