French infrastructure developer HDF Energy has committed to a $500 million investment pipeline across Vietnam’s energy and transport sectors, with Ho Chi Minh City positioned as the primary deployment zone for hydrogen-powered mobility and port infrastructure projects. The announcement, delivered Thursday by HDF Energy’s Vietnam country director Tran Khanh Viet Dung to HCMC Vice Chairman Bui Xuan Cuong, marks the most substantial foreign commitment to Vietnam’s nascent hydrogen economy.
The investment strategy targets four distinct verticals: a hydrogen-powered river bus network on the Saigon River, green port development at Can Gio, renewable energy systems for the Con Dao Special Administrative Zone, and hydrogen-integrated urban rail infrastructure. These proposals build on HDF Energy’s April 2025 pitch to deploy island-based renewable-hydrogen systems in Phu Quy, Phu Quoc, Nam Du, and An Son—a blueprint now being scaled to Vietnam’s largest metropolitan economy.
HDF Energy’s Vietnam positioning reflects calculated market timing. The company established its Hanoi representative office in 2022, securing partnerships with multiple ministries and state-owned enterprises across renewable energy, maritime operations, and petrochemicals before committing capital. This two-year partnership-building phase aligns with Vietnam’s 2020-2030 Energy Development Strategy, which mandates 15-20% renewable energy in total primary supply by 2030 and prioritizes low-carbon transport infrastructure in major cities.
The Saigon River bus proposal addresses specific urban mobility pain points. HCMC’s existing waterway transport remains diesel-dependent, contributing to air quality deterioration in a city where PM2.5 levels frequently exceed WHO guidelines. Hydrogen fuel cell vessels eliminate local emissions while leveraging existing river infrastructure, avoiding the land acquisition and construction costs associated with new metro lines. However, the economic viability hinges on hydrogen production costs—currently $3-6 per kilogram in Southeast Asia versus $1-2 for diesel energy equivalents—and refueling infrastructure development timelines.
The Can Gio green port initiative targets Vietnam’s shipping sector, which accounts for approximately 8% of national CO2 emissions. Port electrification and hydrogen bunkering infrastructure would position HCMC to capture growing demand for low-emission maritime logistics, particularly from European and North American importers implementing Scope 3 emissions reporting requirements. Singapore and South Korea have already committed $1.2 billion and $900 million, respectively, to green port development, creating competitive pressure on Vietnamese logistics hubs.
HDF Energy’s project pipeline exceeds €3 billion globally, with APAC operations managed by a 150-person team spanning 35 nationalities. The company’s Euronext Paris listing in 2021 provides capital market access for large-scale hydrogen infrastructure, distinguishing it from venture-backed competitors still operating in pilot phases. Vietnam represents HDF Energy’s second Southeast Asian market after partnerships in maritime-focused economies, though the company has not disclosed project-level returns or operational hydrogen infrastructure to date in the region.
Vietnam’s hydrogen strategy faces infrastructure gaps that complicate rapid deployment. The country currently lacks commercial-scale green hydrogen production, hydrogen transport networks, or established safety regulations for public hydrogen systems. HDF Energy’s projects would require parallel development of electrolyzer capacity—likely sourced from renewable energy in southern provinces—and distribution infrastructure connecting production sites to HCMC deployment zones. These prerequisites add 24-36 months to project timelines and front-load capital requirements before revenue generation begins.
HCMC Vice Chairman Cuong committed municipal support for green transition projects across transport, industry, and environmental management, though no specific policy mechanisms or financial incentives were detailed. Vietnam’s regulatory framework for hydrogen infrastructure remains under development at the national level, creating potential misalignment between city-level commitments and central government approval processes. The Ministry of Industry and Trade’s draft hydrogen strategy, circulated in 2024, proposed production targets of 100,000-500,000 tons annually by 2030, but implementation decrees have not been finalized.
The Con Dao energy proposal tests hydrogen’s viability in isolated grid systems. The archipelago’s current diesel generation costs exceed $0.30 per kWh due to fuel transport expenses, creating economic space for renewable-hydrogen systems despite higher upfront capital costs. Successful deployment would establish technical precedents for Vietnam’s remaining 28 island districts, collectively representing 450 MW of diesel generation capacity.
HDF Energy’s hydrogen rail research confronts competing electrification standards. Vietnam’s existing rail network operates on diesel, with electrification plans for major corridors already incorporating overhead catenary systems—a proven, lower-cost alternative to hydrogen fuel cells for fixed-route applications. Hydrogen’s advantage in rail applications typically emerges in long-distance freight or routes where electrification infrastructure costs exceed fuel cell economics, conditions less applicable to HCMC’s planned urban rail extensions.
The $500 million commitment scale suggests HDF Energy anticipates multi-project deployment rather than concentrated investment in a single infrastructure. At current global benchmarks, hydrogen refueling stations cost $2-4 million each, fuel cell buses $500,000-800,000 per unit, and maritime hydrogen bunkering facilities $50-100 million, indicating HDF Energy’s capital could support comprehensive mobility infrastructure across multiple transport modes if deployment progresses beyond feasibility studies.
Vietnam’s hydrogen ambitions align with broader ASEAN decarbonization commitments, but execution timelines remain uncertain. Thailand and Indonesia have announced $2-3 billion in hydrogen investments through 2030, creating regional competition for technology partnerships and export markets. HDF Energy’s success in Vietnam will likely depend on securing offtake agreements with state-owned transport operators, navigating regulatory approval processes, and demonstrating cost competitiveness against conventional fuels before hydrogen infrastructure achieves scale economies.
