Laos has formalized a build-operate-transfer (BOT) concession for the 80-megawatt Xekaman 4 Hydropower Project in Sekong province, with all electricity generated designated for export to Vietnam.
The agreement, signed on 15 March, involves the Viet-Laos Electricity Joint Stock Company and Vietnam’s Xekaman 4 Electric Power Company. Xekaman 4 is the latest development in the Xekaman cascade, which includes Xekaman 1, 2, and 3, collectively strengthening Laos’ hydropower output along the Sekong River.
Officials said the new plant will employ modern turbines and transmission systems to ensure efficient power delivery to Vietnam while supporting Laos’ goal of expanding renewable energy production.
The project also aligns with regional energy integration under the ASEAN Power Grid framework, enabling cross-border electricity exports and helping meet Vietnam’s growing electricity needs.
Construction and commissioning will follow standard BOT procedures, with electricity sales governed by the joint venture agreement.
More Exports
Electricity exports from Laos to Vietnam have surged in early 2026, with Hanoi importing around 2.92 billion kWh in the first quarter, almost double the volume from the same period last year.
Meanwhile, by the end of 2025, Vietnam had approved power imports from 47 Lao energy projects, totaling more than 8,260 MW, with 2,379 MW already flowing across the border.
Hydropower remains the backbone of Laos’ energy sector, accounting for most of the country’s 12.4 GW installed capacity in 2025. Investments in renewable energy are also rising, including the 1,000 MW Oudomxay solar plant and the Monsoon Wind Power Project in southern Laos, which directly exports electricity to Vietnam.
Cross-border energy trade has become a core part of Laos’ economy under its “Battery of Southeast Asia” strategy.
At the same time, the country is expanding transmission links with China and Thailand, with exports to Thailand reaching over USD 2.3 billion last year.
However, officials warn that domestic supply can be tight during the dry season, prompting plans for more transmission upgrades and renewable energy projects to maintain a stable supply for both local and regional consumers.


