Is Mitsubishi’s withdrawal from the Vinh Tan coal power plant a signal for Vietnam’s energy transition?

In late February 2021, Japanese trading company Mitsubishi Corporation decided to pull out of the Vinh Tan 3 coal-fired power plant project in Vietnam after facing considerable pressure from investors and activists over the company's fossil fuel investments. This decision follows in the footsteps of HSBC's withdrawal one year previously. Scheduled to go on-grid in 2024, the 2-gigawatt plant was expected to feature ultra-supercritical technology. This is the first time that Mitsubishi has pulled out of a coal development project. Work on Vinh Tan 3 will now continue under the aegis of China Southern Power Grid, which is also a major investor in the Vinh Tan 1 power plant. However, this outcome will not serve the interests of Vietnam in terms of job creation, air quality, and achieving climate targets.