The Vietnamese government has directed relevant ministries to resolve various obstacles facing the long-delayed Song Hau 2 coal-fired power plant and O Mon 2 and O Mon 3 combined-cycle gas power plant projects by the end of September 2026, it announced on September 15, 2026. Standing Deputy Prime Minister Pham Gia Tuc reportedly issued this directive.
Song Hau 2 is a 2,000-megawatt (MW) coal-fired power project located in Hau Giang Province, Vietnam, for which Malaysia’s Toyo Ink Group Berhad participated as investor and received project approval in 2013. However, after the investor failed to finalize the required financing arrangements, Vietnam’s Ministry of Industry and Trade (MOIT) terminated the BOT (Build-Operate-Transfer) contract in 2024, and this directive is understood as a move to determine the future course of the project. The O Mon 2 and O Mon 3 projects are combined-cycle gas turbine (CCGT) plants belonging to the Block B–O Mon gas-to-power value chain in the Can Tho region, and are reportedly delayed due to various procedural issues including electricity pricing, financing, power purchase agreements (PPA), and gas take-or-pay commitments.
Song Hau 2 is a 2,000 MW project, while O Mon 2 and O Mon 3 are combined-cycle gas power projects fueled by gas supplied from the Block B gas field. The specific investment amounts and resumption timelines for each project have not been disclosed in this report, and the government has reportedly set a deadline of end-September to resolve these obstacles.
Both projects were pursued to stabilize power supply in Vietnam’s southern Mekong Delta region but have been stalled for a long period due to financial and contractual issues; this directive is understood as a government-level move to sort out stalled power projects amid growing concerns over power supply and demand.
This case is cited as an example showing that large power projects in Southeast Asian emerging markets can remain stalled for extended periods due to investors’ financing failures or disagreements over power purchase agreement terms. In particular, for coal-fired projects, once an existing investor’s BOT contract is terminated, the project may be reconsidered from scratch or converted to a different investment structure, meaning EPC and equipment suppliers need to continuously monitor whether the project resumes and what new procurement structure emerges. The Block B–O Mon gas-to-power value chain also illustrates that projects linking gas field development with downstream power plants carry relatively higher delay risk, given the structural need for gas supply agreements and power plant permitting to proceed in tandem. This also aligns with a recent trend of Southeast Asian governments directly intervening in stalled projects and setting deadlines to secure power supply stability.
What concrete measures will emerge within the end-September deadline is of primary interest, particularly whether Song Hau 2 will find a new investor or be restructured under a different scheme. For O Mon 2 and 3, how the power purchase agreement terms and gas supply contracts are settled is seen as the key variable determining whether construction actually begins. Since the target timing for first gas production from the Block B gas field is closely linked to the operational schedule of the O Mon plants, progress on gas field development also warrants continued attention.