Vietnam accelerates Laos electricity imports to avert shortages
Hanoi orders stronger grid links and cross-border purchases as Laos' hydropower and renewable projects gain strategic weight.
- Vietnam's government has issued a directive to urgently increase electricity imports from Laos to prevent potential power shortages, particularly in its industrial north.
- To facilitate the increased imports, Vietnam will expand its transmission infrastructure and has already approved power purchase agreements with dozens of Lao energy projects.
- Laos is becoming a key strategic energy supplier for Vietnam due to its growing number of hydropower and renewable energy projects.
- Electricity deliveries from Laos have already surged, with the volume in the first quarter of 2026 increasing by 120% compared to the same period in 2025.
Vietnam is moving to buy more electricity from Laos under urgent steps aimed at avoiding possible power shortages, giving Laos a stronger role as a strategic energy supplier in mainland Southeast Asia.
The plan was set out in a government directive issued after a recent high-level meeting chaired by Prime Minister Le Minh Hung. The directive orders Vietnamese agencies to maintain a stable power supply and places special focus on increasing electricity imports from neighbouring countries, including Laos and China.
The move highlights Vietnam’s deeper dependence on cross-border electricity trade. Laos is becoming an especially important partner because of its growing pipeline of hydropower projects, as well as new renewable energy developments.
Vietnam’s Ministry of Industry and Trade has been told to expand transmission infrastructure so larger volumes of power can be carried into northern Vietnam. Implementation is being targeted as early as 2027.
Laos’ role in Vietnam’s power system has already grown sharply. In the first quarter of 2026, Laos delivered a record 2.92 billion kWh of electricity to Vietnam, equal to about 3.8 per cent of Vietnam’s total power output, according to Tuoi Tre News, which cited Vietnam Electricity.
That volume was almost 120 per cent higher than the 1.33 billion kWh supplied during the same period in 2025. The increase reflects stronger cross-border transmission capacity and the launch of new renewable energy projects in Laos.
By the end of 2025, Vietnam had approved power purchases from 47 Lao projects with a total capacity of 8,260MW. Plants with an installed capacity of 2,379MW supplied electricity to Vietnam last year, compared with 1,700MW in 2024, showing how quickly Laos’ export-oriented power pipeline is expanding.
Vietnam has also indicated that it is willing to revise intergovernmental agreements and adjust its power development plan to allow larger electricity purchases from Laos. This could open more space for Lao power exports as additional projects begin operating.
The trend supports the Lao government’s ambition to turn the country into a major regional energy exporter by using its abundant hydropower resources and attracting more investment in wind and solar power.
Growing demand from Vietnam is expected to lift Lao export revenue and encourage further investment in the country’s energy sector, especially as new generating capacity becomes available.
In the shorter term, Vietnam is preparing backup measures to deal with urgent supply gaps, particularly in its industrial north. These include the possible use of floating power plants. Even so, electricity imports from Laos are expected to offer a more sustainable answer to Vietnam’s medium- and long-term demand.
The directive also calls for stronger energy-saving measures, including electricity conservation campaigns and wider deployment of rooftop solar systems equipped with battery storage. These measures are intended to reduce pressure on the grid while supporting a broader transition towards cleaner energy.
As regional energy links continue to deepen, the Laos-Vietnam power partnership is set to become an increasingly important part of mainland Southeast Asia’s changing energy landscape.
Times Reporters
