LS Eco Energy landed a 45.4 billion won ($33 million) contract to supply ultra-high voltage cables for Vietnam’s national power grid, highlighting the Korean manufacturer’s growing dominance in Southeast Asia’s infrastructure boom.
The deal, announced Tuesday, represents about 5.2% of LS Eco Energy’s annual sales for 2024 and involves its Vietnamese production subsidiary LS-VINA supplying cables to state utility Vietnam Electricity (EVN). The cables will connect substations linking Hanoi’s city center with outlying areas as the capital struggles with surging electricity demand.
Vietnam plans to more than double its power generation capacity from 69 gigawatts to over 150 gigawatts by 2030, creating substantial opportunities for equipment suppliers. LS-VINA controls roughly 80% of Vietnam’s ultra-high voltage cable market and remains the only manufacturer of such cables in the country.
The contract adds to LS Eco Energy’s regional expansion strategy as Vietnam emerges as a renewable energy hub. Vietnam’s power transmission infrastructure struggles to keep pace with rapid capacity growth, presenting bottleneck risks that benefit specialized cable manufacturers.
LS Eco Energy has been aggressive in pursuing Vietnamese opportunities, recently signing agreements with EVN’s research arm on superconducting cable technology and securing rare earth supply partnerships with Vietnamese officials.
