The 7-megawatt project, with a total cost of VND1.5 trillion (US$66 million), is designed to provide electricity for a seaside resort developed by HTP in the southeastern province of Ba Ria-Vung Tau.
The plant, constructed under the build-own-operate model is expected to be complete by the end of 2018 and the deal between the two companies will be effective for 15 years.
This is the first time that a power plant using natural gas will be built at a resort in Vietnam, marking a new trend of transitioning to green energy.
Ho Tram Chairman Michael Kelly said via the agreement with PV GAS D, the company has become the first resort developer in Vietnam to invest in a cogeneration project using natural gas.
The plant will help cut carbon dioxide emissions by half and reduce the amount of air pollutants significantly compared with coal-fired projects.