On Wednesday, U.S. Secretary of State Mike Pompeo stated, AES Corp will sign a deal with PetroVietnam Gas to develop a $2.8 billion liquefied natural gas (LNG) import terminal as well as a power plant in Vietnam.
“Vietnam has given the green light to AES Corp. a company based in Virginia, to go forward with the project,” said Pompeo at a virtual Indo-Pacific Business Forum.
Describing the deal as a “real win-win situation” Pompeo said the deal will open the door for the import of billions of dollars worth of U.S. LNG to Vietnam each year.
The virtual Indo-Pacific Business Forum was also attended by Pompeo’s Vietnamese counterpart Pham Binh Minh.
“American companies adhere to the rule of law and transparency and have very high standards of quality for their products,” said Pompeo while adding, “I say that because that’s quite a contrast with the Chinese state-backed companies.”
The development comes at a time when Vietnam is ramping up the construction of LNG-to-power plants, with the first to be operational by 2023. The move could potentially see Vietnam becoming a major energy hub in Southeast Asia and further boost its fast-growing economy. The deal will see Vietnam importing LNG from the U.S., which aims to narrow down its trade deficit with Vietnam, which incidentally widened to $44.3 billion during the first nine months of 2020, up from $33.96 billion during the same period a year ago.