Canadian company CMX Renewable Energy is reportedly planning to construct a 150MW solar photovoltaic (PV) power plant worth $150m.
News website Dau Tu reported that the company is awaiting approval for the project, which would be developed in Vietnam's central province of Ninh Thuan over an area of 250ha.
A company executive stated that nearly 1% of the plant's generation would be supplied to local residents for free.
CMX is looking for a licence to build the plant at a time when the Vietnamese Government is drafting policies to motivate more private investment in its PV sector.
According to one of the plans being considered, state monopoly Electricity of Vietnam and other electricity distributors will have to purchase the entire power generation capacity of solarpower plants in ten to 20 years, reported media sources.
Vietnam receives nearly 2,000-2,500 hours of sunlight every year and solar energy capacity is equivalent to 43.9 million tonnes of oil.
The country is also building its first large-scale 19.2MW solar PV plant in central province Quang Ngai. This 36.12m plant has been built by Vietnamese investor Thien Tan Group.