By 2030, the output of power plants in Vietnam that use both domestic gas and imported liquefied natural gas (LNG) will have increased to 37.33GW, or 24.8 per cent of the country's total installed capacity, with LNG accounting for the lion's share.

"We are now trying to collaborate with a local partner and discuss the plan with the Vietnamese government," Izumi Kai, JERA Asia's chief executive, told Reuters, adding that it was also open to investing in existing projects.

Kai said Vietnam was trying to start multiple LNG projects in a limited timeframe, adding that JERA was focusing on the best designs to work around potential delays.

JERA Asia's investments in LNG and gas power projects in Asia hinge on energy transition policies and dwindling domestic natural gas reserves, said Kai, adding, "The shift towards LNG for power, this trend will continue."

At a meeting with Deputy Prime Minister Tran Hong Ha in July 2023, Steven Winn, chief of global strategy at JERA, said, "We are committed to becoming net-zero in Vietnam and implementing Japan's Asia Zero Emission Community initiative. JERA wants to get involved in the conversion of Vietnam's coal power plants to LNG by adding novel fuels such as green hydrogen, green ammonia, biomass, combined carbon recovery, and landfill."

According to research by data and analytics company Wood Mackenzie, Vietnam's economic growth depends on investment in gas infrastructure and essential policy reforms as the demand is set to grow at an average of 12 per cent annually, potentially tripling by the mid-2030s. Gas consumption will continue to rise amid growing energy demand, increasing from eight million tonnes of oil equivalent (mtoe) in 2020 to 20 mtoe in 2035. As part of this transition, the share of coal will decrease by seven mtoe by 2050.