Viet Lao Power has started constructing a 332MW hydroelectric power plant in Laos, which is expected to export part of its electricity output to Vietnam.

The $441m Xekaman plant will be situated 80km from the border of both countries, reports Dow Jones.

Power generated from the hydroelectric plant will be sold to the southern region of Laos along with that sold to central Vietnam.

The plant is said to be a part of a previous deal between the two countries to jointly develop hydropower plants with a combined capacity of 5,000MW.

The Xekaman plant is expected to begin power generation starting 2014.