Gia Lai Province in Central Vietnam Attracts Billion-Dollar Investments in Renewable Energy

With abundant sunshine and steady winds, Vietnam’s central province of Gia Lai is drawing large-scale investments into renewable energy, creating new growth drivers for the local economy.

String of Mega Projects Approved

In July 2022, the merger of Binh Dinh and Gia Lai provinces gave rise to a novel administrative entity that enhances the province’s potential as a renewable energy hub. Located strategically, Gia Lai borders Dak Lak, Quang Ngai, Cambodia, and the East Sea, offering a mix of coastal advantages and the sun-drenched, wind-swept highlands that are ideal for renewable energy development.

These favorable natural conditions allow the province to build a diverse portfolio of renewable energy projects, including both onshore and offshore wind power as well as ground-mounted and floating solar installations.

In recent years, Gia Lai has been proactive in selecting strategic investors for large-scale wind power projects. One notable investment is from VinEnergo Energy JSC, under the leadership of Pham Nhat Vuong, chairman of the prominent Vingroup. The company is spearheading the Hon Trau wind power plant (phase 1), which is set to feature a capacity of up to 750 MW and a total investment of approximately VND48.37 trillion ($1.86 billion).

This project marks VinEnergo’s second venture into wind power in Gia Lai. They previously secured approval for the 143 MW Vinh Thuan wind power plant, backed by an investment of VND4.68 trillion ($179.69 million).

Another key player in the renewable sector is Saigon-Bac Giang Industrial Park Corp., a subsidiary of KinhBac City Development Holding Corporation (KBC). This company has been selected as the investor for the Van Canh 1 and Van Canh 2 wind power projects, which will yield a combined capacity of 340 MW and investment exceeding VND14.6 trillion (approximately $560.57 million).

Local authorities have also approved four additional wind power projects—Ia Blu 1, Ia Blu 1 – phase 2, Chu Pong, and Ia Hla—together valued at more than VND6.9 trillion ($264.93 million). The projects will undergo open domestic bidding to select appropriate investors, paving the way for competitive development.

Of these, both phases of Ia Blu 1 are set to take shape in Ia Le commune, with a capacity of 42 MW each and an investment of around VND1.85 trillion ($70.8 million). Together, they are expected to produce an impressive 240 million kWh of electricity annually. Meanwhile, the Chu Pong project, located in Bo Ngoong commune, will have a capacity of 42 MW with an estimated investment of VND1.62 trillion ($61.92 million). The Ia Hla project will also contribute to the energy mix with a 40 MW capacity and an investment of about VND1.6 trillion ($61.29 million).

The provincial Department of Finance is actively inviting investors to submit bids for 12 renewable energy projects, with a combined capacity of nearly 708 MW and total investment nearing VND22 trillion ($842.77 million). This ambitious plan is heavily geared toward wind power, constituting eight projects with an aggregate capacity of 508 MW and capital required of nearly VND18.5 trillion ($708.61 million), while solar energy projects will add nearly 200 MW, necessitating more than VND3.4 trillion ($130.23 million).

Feeding 15 Billion kWh a Year into the National Grid

As of now, Gia Lai has successfully launched 85 renewable energy projects into commercial operation, boasting a total capacity of 4,179 MW. This robust portfolio includes 57 hydropower plants with a capacity of 2,516 MW, 19 wind farms with a combined capacity of 1,048 MW, seven solar projects at 485 MW, and two biomass plants that contribute 130 MW.

According to Tran Thuc Kham, deputy director of the provincial Department of Industry and Trade, these renewable energy plants contribute over 15 billion kWh annually to the national power system, marking a significant milestone in Vietnam’s energy landscape. The electricity production and distribution index reported a 23.05% increase in 2025 compared to the previous year, showcasing the sector as a crucial driver for the province’s industrial expansion.

Kham highlighted that the development of renewable energy is pivotal for Gia Lai’s socio-economic growth and is expected to substantially contribute to achieving double-digit growth from 2026 to 2030. Furthermore, as part of the revised National Power Development Plan for 2021-2030 with a vision extending to 2050 (Power Development Plan VIII), Gia Lai is poised to reach a total renewable energy capacity of approximately 9,657 MW by 2035.

In addition to the projects currently approved, the province holds a promising pipeline of potential developments with a combined capacity exceeding 23,000 MW. As it moves forward, Gia Lai aims to intertwine renewable energy development with essential components of a circular economy, which include green industry, high-tech agriculture, and modern logistics. This approach will facilitate the creation of sustainable green value chains.

To realize these ambitions, Gia Lai has petitioned the government to revise the national power development plan, advocating for increased renewable energy capacity allocations that align with the province’s resource advantages. It has also called for policy support to foster auxiliary industries and workforce training for the burgeoning renewable sector. Additionally, enhancing investment in scientific research connected to clean energy development is seen as a priority for fostering innovation and sustainability.