The planning map of Hai Duong Thermal Power Plant Project in Vietnam's northern Hai Duong province. [Photo: ce.cn]

A thermal power plant project with a capacity of 1,200 megawatts broke ground in Vietnam's northern Hai Duong province on Sunday.

The China-backed Hai Duong Thermal Power Plant Project is one of the largest installed capacity projects in the country.

It is co-funded and co-built by the China Power Engineering Consulting Group Co., Ltd and Malaysia's JAKS Resources with a gross investment of 1.8 billion U.S. dollars.

Addressing the ground-breaking ceremony, Vu Huy Hoang, Vietnamese minister of industry and trade, said that the Hai Duong thermal power plant was a key power development project of the country.

Hoang expressed his hope that under the diversification of investment and trading, the plant will help develop Vietnamese power sources, maintain the country's national energy security and sustainable socio-economic development.

Wang Jianping, chairman of China Energy Engineering Corporation Limited, said the power plant has been the biggest single investment of a Chinese company to Vietnam so far.

The investment agreement was initiated in July 2015 with a 25 year operation period. After that it will be handed over to the Vietnamese government.