Tae Kwang Vina Industrial has received approval from the Vietnamese Government to build a ₩5tn ($4.5bn) coal-fired power plant in the northern province of Nam Dinh.

The plant will have a capacity of 1,200MW in its first phase by end of 2017, and it will be raised to 2,400MW in the second stage by 2021.

Tae Kwang will build the power plant on a 251-hectare site, under a built-operate-transfer (BOT) deal, reports the Koreatimes.

The firm’s shoemaking arm in Vietnam will contribute 95% of the plant’s total investment and its Vietnamese partner Hashinco will cover the remainder.

Tae Kwang said it expects to sign a memorandum of understanding with the Vietnamese Government in February 2010.