GE Vernova Inc. has announced a significant investment of around $200 million to construct a new large power transformer manufacturing facility in Hai Phong, Vietnam. The plant is designed to produce equipment for high-voltage direct current (HVDC) systems, which are critical for transmitting substantial electricity loads over long distances. This strategic investment underscores the company's commitment to supporting Vietnam's rapidly expanding power infrastructure.
Vietnam's Ambitious Energy Targets
Vietnam is in a race to scale its power generation and transmission capabilities to keep pace with robust economic growth. The nation has set an ambitious goal of reaching 22.5 gigawatts (GW) of LNG-fired power capacity by 2030. However, as of January 2026, only 1.62 GW of this capacity was operational, highlighting a significant gap and the urgency for accelerated development. This shortfall presents both a challenge and an opportunity for international energy technology providers.
Project Timeline and Job Creation
GE Vernova outlined a phased rollout plan for the Hai Phong facility, aiming for full-scale commercial operations by 2028, pending final regulatory approvals. The company anticipates creating approximately 450 new jobs at the site by 2030. Philippe Piron, CEO of GE Vernova's electrification segment, emphasized the global context, stating, "Electrification is accelerating globally, and reliable power infrastructure is increasingly essential to support economic growth and energy security."
The company's involvement in Vietnam's energy sector extends beyond manufacturing. Its advanced 9HA.02 gas turbines and H78 generators have been selected for three major planned LNG power projects, each with a capacity of 1.6 GW. These projects include PV Power's Quynh Lap LNG plant, Vingroup-VinEnergy's Hai Phong LNG facility, and state utility EVN's Quang Trach II project. Furthermore, GE Vernova marked the commercial launch of the 1.6 GW Nhon Trach 3 & 4 plant, Vietnam's first power station to utilize its HA-class turbine technology.
Strategic Importance and Market Context
At a recent summit in Hanoi, GE Vernova CEO Scott Strazik described Vietnam as having entered a "decisive execution phase" in its energy transition. He highlighted the country's status as one of Asia's fastest-growing economies and the ambitious pace of its power system overhaul, noting that the infrastructure built there "extends far beyond Vietnam's borders."
This expansion occurs against a backdrop of global supply shortages for turbines and grid equipment. Manufacturers worldwide are scrambling to increase output. According to Reuters Events, U.S. gas-fired power capacity slated for 2025 has surged more than threefold to 252 GW. Competitors like Siemens Energy and Mitsubishi have also announced expansion plans. Analysts at Wood Mackenzie project U.S. gas-turbine manufacturing capacity will rise by 15 GW over the next year.
Strong Demand and Backlog Growth
GE Vernova itself is experiencing a substantial demand surge. In January, the company reported to investors that it secured over $2 billion in electrification orders for 2025 directly linked to data center projects. Concurrently, its gas-power backlog and reservations for turbine delivery slots jumped to 83 GW, up from 62 GW. Siemens Energy has similarly noted robust demand for gas turbines and grid equipment, recently labeling the U.S. as "the hottest electricity market in the world at the moment."
Despite the optimistic outlook, risks remain in the pipeline. GE Vernova clarified that its technology selections for the Vietnamese LNG projects have not yet been converted into firm orders or added to its official backlog. The Hai Phong plant also awaits final regulatory sign-off. Supply chain constraints add further pressure; Tyler Fitch of RMI told Reuters Events that capital costs for U.S. combined-cycle gas plants have more than doubled compared to 12-24 months ago, cautioning that "expanding the manufacturing capacity is not as straightforward as it might seem."
In a related development last month, Vietnam's state utility awarded a $974 million contract for the construction of the Quang Trach II plant, which is slated to operate on GE Vernova turbines and could be fully operational by 2030. The company confirmed that this Vietnam investment is part of its broader $11 billion capital and research expenditure planned for the 2025-2028 period.
