This strategic partnership signed in Malaysia highlights the growing commitment among industry leaders to advance regional power integration and accelerate decarbonisation through commercially viable solutions.

Through this agreement, Malaysia's MY Energy Consortium, an unincorporated consortium established by Tenaga Nasional Berhad (TNB) and Petroliam Nasional Berhad (PETRONAS), will collaborate with a consortium comprising PetroVietnam Technical Services Corporation (PTSC), a member of Petrovietnam, and Sembcorp Utilities Pte Ltd, a subsidiary of Singapore-based Sembcorp Industries (Sembcorp).

Together, the parties will focus on unlocking Vietnam’s rich renewable energy resources, particularly offshore wind power, as a source for green electron generation and to supply clean electricity across borders. This alliance reflects the growing momentum towards a regionally integrated ASEAN power grid.

Under this agreement, the parties will evaluate the feasibility of exporting renewable energy from Vietnam to Malaysia and Singapore via a new subsea cable. To this end, the parties will work closely with the relevant national authorities throughout the development process, seeking necessary approvals at various project phases, and paving the way for this significant regional power integration and energy interconnection.

As the chair of ASEAN in 2025, Malaysia plays a central role in fostering collaborative efforts that advance sustainability, resilience, and economic growth in the region.

“Malaysia’s participation in this initiative reflects our strong commitment to the ASEAN power grid vision, which aims to strengthen regional energy security through the creation of a power transit hub. This partnership is a step forward in advancing transnational green infrastructure, tapping into Vietnam’s renewable energy potential, and delivering stable, low-carbon electricity to communities and businesses. It marks a significant milestone in our collective journey towards achieving net-zero emissions,” said members of the MY Energy Consortium.

"By participating in this trilateral collaboration, Vietnam seeks to catalyse new economic opportunities, stimulate sustainable growth, and generate quality employment, while reinforcing ASEAN’s shared ambition for a resilient, low-carbon energy future. This agreement highlights the role of PTSC in particular, and PVN as a whole, in advancing national energy transition strategies. We expect its effective implementation will mark a significant milestone, a starting point for renewable energy investment in Vietnam,” said Tran Ho Bac, president and CEO of PTSC.

Wong Kim Yin, group CEO of Sembcorp Industries, said, “We are pleased to be part of this groundbreaking initiative, which underscores the strength of regional collaboration. This agreement highlights Singapore’s strategic role as a demand centre and a key enabler of cross-border power imports to support its decarbonisation goals. We are committed to supporting ASEAN’s low-carbon transition through shared infrastructure and strengthened partnerships.”

This agreement endeavours to open pathways for a scalable model of cross-border renewable energy cooperation in Southeast Asia, which would position the region as a global leader in collaborative decarbonisation and energy transition.

Source: Vietnam Investment Review