Following four years of construction, the Van Phong 1 thermal power plant was completed and put into operation ahead of schedule, towards the end of January. The project is run by Van Phong Power Company, a wholly owned subsidiary of Japan-based Sumitomo Corporation, with an investment of $2.58 billion.

The plant uses ultra-supercritical technology, with a capacity of 1,320MW, comprising two generating sets of 660MW, and is expected to supply about 8.5 billion kWh each year to the national power grid, equivalent to 3 per cent of Vietnam's total capacity.

Van Phong 1 is expected to attract more investment to Van Phong Economic Zone, developing local industries, and creating growth drivers for the economy of Khanh Hoa province and the central region. The project will create jobs and contribute about VND1 trillion ($40.5 million) per year to the local budget.

Nguyen Tuan Tuan, Chairman of Khanh Hoa People’s Committee, said, “We hope that Sumitomo Corporation and other local and foreign companies will continue to research and implement new industrial, infrastructure, and service projects in the locality. Khanh Hoa province is committed to accompanying and supporting investors to achieve shared goals,”

Hirokazu Tsuru, general director of Van Phong Electricity Co., Ltd., said, "Sumitomo Corporation greatly appreciates the support of the Vietnamese government and Khanh Hoa province during the project's implementation and construction. Thanks to our close partnership with Vietnam Electricity (EVN), the corporation can now accelerate the completion of the 500kV Van Phong-Thuan Nam transmission line and the Van Phong transformer station."

The Van Phong 1 thermal power plant is a 'build, operate, and transfer' project and will be handed over to EVN in 25 years.

The plant's general contractor is a consortium of reputable contractors, including IHI Corporation, Toshiba ESSC, CTCI Corporation, and Doosan Heavy Industries & Construction.