LILAMA breaks through aligning with Resolution No.79-NQ/TW’s spirit: from a traditional machinery state-owned enterprise to a leading force in technology mastery

Mr. Nguyen Van Hung- LILAMA’s President & CEO and Mr. Klaus Ohlig – CTO of Thyssenkrupp Nucera signed a MOU on cooperating green hydrogen projects development

Near-70-year internal strength development – a foundation for breakthrough

For nearly 70 years of establishment and development, LILAMA has been associated closely with industrialization progress of the country in which the company’s brandmark was left in most of the national large industrial-power projects nationwide including the Hoa Binh and Yaly large-scale hydropower;  the Dung Quat, Nghi Son, Long Son petrol-chemical refinery; and the Bim Son, Hoang Thach cement , etc.

Beyond construction work, LILAMA has positively mastered the technology of fabrication and installation step by step from many large projects whereby LILAMA directly engaged in manufacturing equipment from 30% to 40% of the total work volume, along with carrying out operation technique transfer to the clients. As a result, this became a core value helping LILAMA accumulate the knowledge, experience and inner ability which was considered a key factor that an enterprise undertook mission in an ‘engine’ role as requested in Resolution No.79-NQ/TW.

Breaking into the international market

One of the highlights in LILAMA’s breakthrough was the deep involvement in the world market through exporting constructional and technical services – a field always dominated by large global groups only as before.

In 2018, LILAMA and Thyssenkrupp (Germany) had joined in construction of Brunei A/U Fertilizer Production Plant with the total investment of over one million USD. In this project, LILAMA undertook one third of the contract value; about 1,500 labourers including engineers and workers had been sent to Brunei to take part in management, manufacturing and execution of the project, and returned to Vietnam after the plant completion.

This activity not only had an economic significance but also demonstrated a Vietnamese business’ corporate capability in project organization, management and technology mastery within international environment, aligning with the Resolution’s spirit of “keeping technology, retaining experience” as stated.

Master new energy technology: a strategic advance according to the Resolution

LILAMA’s breakthrough spirit has emerged in the field of new high technology, especially the production chain of Green Hydrogen modules for clean electricity generation. More particularly, the company proactively cooperated with the world big-tech power groups wherein LILAMA could deeply entered in engineering – fabrication – installation chain. In year-2023 COP28 conference held in UAE, LILAMA was recognized as one of the nations involved in the green hydrogen production chain which played a very important role in the world energy transition.

Particularly, LILAMA also was an only Vietnamese state-owned company trusted and awarded by big tech groups with the Green Hydrogen equipment manufacturing contract with a total value of over 300 million USD. More importantly, the company also took manufacturing work to Vietnam, carrying out equipment fabrication and assembly via a factory located in Hai Phong city. As a result, LILAMA gradually built-up domestic capacity on green electricity technology performance which became a strategic direction in line with the Resolution’s requirement of sustainable industrial development.

Nhon Trach Gas Power Plant 3 & 4 built up by LILAMA as an EPC Contractor and completed by December 2025

A pioneering enterprise in retaining technology in Vietnam

The core message throughout the Resolution is: SOEs are not only doing business but also playing a leading role, spillover and laying a long-term foundation for the national economy.

The practical situation shows that if large projects are implemented by foreign contractors, the technology and experience usually “come with the project then leave” after finishing. In contrast, when an enterprise like LILAMA joins as an EPC or a main contractor, the technology will be retained, engineers and workers be trained, and construction experience be accumulated for the future project’s display.

Presently, this fact was demonstrated through Nhon Trach LNG Power Plant Project - a leading large-scale modern in Vietnam. With a total investment of 1,4 billion USD, LILAMA joined in as a member of an EPC consortium taking over 40% the total contract value including equipment fabrication and technological process. Specifically, LILAMA also mastered the technology of adjustment, operation and made 100% operation transferring to PV Power’s engineers and workers as the Owner.

The achievement of Nhon Trach 3&4 not only affirmed the capacity of LILAMA but also exposed a leading role of an enterprise conforming to the Resolution’s spirit in securing the national energy security on the state economy development going with other macro-balances of the national economy.

A necessity of supporting mechanisms - from green credit to science and technology

From the practice in LILAMA’ breakthrough showing that, it is necessary to have sufficient supporting mechanisms to bring the Resolution No.79 quickly and effectively into the real life. At present, LILAMA has mainly utilized trade credit usage for highly green technologies projects, while in many other countries, green credits with low interest rates have been formerly set up with fast loan disbursements meeting project life circle, in combination with the State preferential policies of priorities on land, taxes and infrastructural service fees.

Therefore, the green credits development as well as green policies and mechanisms shall encourage SOEs including LILAMA to invest, master and scale strategic technologies whereby to further take deep participation into the global green technological chain.

Whereas, there is  also another barrier emerged from the practice showing that the mechanism on science and technology fund management within these companies still being heavily administrative and unsuitable for specific production and operation, for it is not only about academic topics but also creative ideas on innovation, procedure and capacity elevation of which the values are visible but limited in “disbursement” under the current regulations.

The matter of early completion of the state regulations and separating documents on science and technology funds guidance for SOEs on flexibility shall motivate enterprises like LILAMA to make further investment in innovation.

LILAMA signed an EPC contract with EVN for implementation of Quang Trach 2 LNG Power Plant Project in February 2026

LILAMA under Resolution No.79-NQ/TW: from spirit to specific action

From an overall perspective, practical actions by LILAMA could be seen through realization of the Resolution’s spirit as follows: keep the pioneering role in national power-industrial projects implementation; master and localize new technologies especially in new field of green energy; reach out the world market by providing constructional and technical services export; accumulate acknowledgement, train human resource; retain the world technology and experience inside the country. Within a circumstance of Vietnam’s new development stage, SOEs are requested not only to develop sustainably, but also break through and promote their leading role. As a result, LILAMA’s efforts proved that when these SOEs are truly trusted by the State with clear orientations and supporting mechanisms, they are likely to make transformation their competitiveness into powerful capacity as described in Resolution No.79-NQ/TW, carrying a practically valuable significance to the long-term economy development.

Within the circumstances of developing the National Power Plan VIII including new large-scale and high-technological energy projects carrying very lateral significance to national energy security, a necessity of strong supporting mechanism from the State is required for enterprises to show off their leading roles. Upon the spirit of Resolution No.79-NQ-TW, the National Assembly, the Government and the Prime Minister are requested to conduct building up and complete institutions, policies and legislations upon which competent and experienced enterprises like LILAMA to be appointed implementing new national power projects. This not only helps secure progress, quality and safety in developing the national electricity system but also creates more opportunities for domestic companies generally to retain world technology, gain experience and master operation to elevate internal capacity of the national economy as well as secure the national energy security in the long-term.

Trần Vũ Vương