Aerial view of the Long Son Petrochemicals Complex, a multi-billion-dollar industrial investment project by Thailand’s SCG

Expanding opportunities for the green transition

Vietnam and Thailand have both identified the energy transition as a central pillar of their green growth strategies. Vietnam aims to achieve net-zero emissions by 2050 while accelerating the development of wind, solar, LNG-fired power, and other emerging energy sources under Power Development Plan VIII. Meanwhile, Thailand is pursuing carbon neutrality by 2050 and net-zero emissions by 2065 while implementing its Bio-Circular-Green (BCG) Economy Strategy, with renewable energy as one of its key growth drivers.

Their shared commitment to green development is creating new opportunities for cooperation across the energy value chain. From developing wind, solar, and LNG power projects to technology transfer, infrastructure development, green finance, and governance capacity building, the two countries have strong potential to deepen cooperation and build competitive clean energy supply chains across ASEAN.

This potential is becoming increasingly clear as Vietnam's electricity demand is projected to grow by approximately 8%-10% annually in the coming years, while the continued shift of supply chains into ASEAN is increasing demand for clean, reliable energy that meets the ESG standards of multinational corporations, supporting the development of competitive regional green energy value chains.

In recent years, energy cooperation between Vietnam and Thailand has evolved from individual investment projects into a broader partnership. A clear example is the growing presence of Thai energy companies in Vietnam. In renewable energy, B.Grimm Power is among the pioneers, with the Dau Tieng Solar Power Complex in Tay Ninh Province supplying clean electricity to the national grid while helping attract private investment in the sector.

Cooperation is also expanding into LNG-fired power, which is widely seen as a transitional energy source in the shift toward decarbonization. PV Power is partnering with B.Grimm Power to develop the Vung Ang III LNG Power Plant in Ha Tinh Province, with planned investment exceeding VND51 trillion (US$2.04 billion) and a generating capacity of approximately 1,500 MW. The project supports the transition from coal-fired power to lower-emission energy sources.

Beyond power generation, cooperation between the two countries is also expanding into green industrial development. Thailand's SCG is investing more than US$5 billion in the Long Son Petrochemicals Complex while advancing circular manufacturing, efficient resource use, and emissions reduction across its production chain.

Drawing on their infrastructure strengths and operational expertise, Thai partners are working with Vietnamese companies to develop battery energy storage systems (BESS), green hydrogen, and green ammonia, key technologies for maintaining grid stability as the share of renewable energy increases. In addition, linking Thailand's electric vehicle (EV) manufacturing supply chain with Vietnamese EV brands, along with cooperation in carbon credit markets, is expected to create integrated green transportation and green finance value chains for both economies.

Toward ASEAN's green energy supply chain

Beyond individual investment projects, energy cooperation between Vietnam and Thailand is expanding toward the development of green energy value chains across ASEAN. With favorable geoeconomic locations, growing manufacturing capabilities, and the presence of major energy companies, both countries have the potential to become key players in regional supply chains for wind turbines, solar equipment, battery storage systems, green hydrogen, and other industries supporting the energy transition.

At the ASEAN level, initiatives such as the ASEAN Power Grid and the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026-2030 are expected to strengthen regional power connectivity, expand cross-border electricity trade, and improve the use of renewable energy resources across the region. As transmission infrastructure and coordination mechanisms continue to develop, member countries will be better able to share electricity, optimize power systems, and strengthen energy security.

Despite these opportunities, energy cooperation between Vietnam and Thailand still requires a more coordinated policy framework, particularly in harmonizing legal frameworks, electricity pricing mechanisms, and regulations for Direct Power Purchase Agreements (DPPAs) and long-term Power Purchase Agreements (PPAs). Removing these bottlenecks will help attract investment, promote technology transfer, and improve the effectiveness of green energy cooperation.