Van Phong energy complex secured state investment credit financing with Techcombank funding

The Van Phong Energy Complex, proposed for development in Dong Ninh Hoa Ward in Khanh Hoa Province within the Van Phong Economic Zone, has a total investment of 16,956 billion dong and will be implemented on about 354.71 hectares. The project is expected to run from 2026 to 2030, with a vision to build a modern energy complex integrating port infrastructure, storage facilities, and energy production components.

Project overview and key components

The complex is designed to support both energy demand and the fuel and clean energy supply chain. It is considered strategically significant as Vietnam seeks to balance energy security with accelerating its transition to a greener development model.

Main components include:

• A dedicated port capable of servicing ships of 30,000 DWT and 150,000 DWT
• LNG storage with a capacity of 1–3 million tons per year
• Total storage capacity for oil, solvents and basic chemicals of about 1 million m3
• A green hydrogen production plant with a capacity of 24,000 tons per year
• A battery energy storage plant with a capacity of 50–80 MW per year

Funding structure and financing terms

The investor consortium, led by INDEL Investment and Development Joint Stock Company (INDEL) and BB Power Holdings JSC (BB), reported that it has completed arrangements for project funding, including access to state investment credit through the Vietnam Development Bank (VDB).

VDB will finance up to 70% of the total investment (excluding working capital), equivalent to 11,869 billion dong, at an interest rate of around 6.7% per year. The article notes that commercial loan rates typically range from 9–11% per year, meaning subsidized state investment credit is expected to reduce financing costs and improve investment efficiency—particularly important for large-scale energy infrastructure projects with long payback periods and exposure to market volatility.

In addition, the consortium plans to mobilize 2,600 billion dong from Viet Nam’s Techcombank. With these sources, total financing for the 2026–2030 period is reported at 14,469 billion dong, securing resources for the implementation phase.

Expected impact

With large LNG and oil storage facilities, the complex is expected to enhance national storage capacity, reduce dependence on external supply, and improve resilience to fluctuations in global energy markets. Beyond direct economic value, the project is expected to become a new growth driver for Khanh Hoa Province and help the Van Phong Economic Zone develop into a national-scale energy hub.

Investor background

INDEL, founded in 2012, has experience in energy infrastructure development, gasoline and oil trading, and implementing large-scale projects. The company currently owns an extensive gasoline distribution network and is gradually shifting toward cleaner energy and port infrastructure.

BB is a member of BB Group, with strengths in managing and operating renewable power plants, including hundreds of MW of capacity from solar, hydro, and wind energy. The unit’s stated orientation is to develop a sustainable, safe energy ecosystem.