Vietnam is rebooting its nuclear energy program. It was a huge deal, an enormous agreement with Russia to make progress in the world. The implementation-protocol of the agreement was signed during the visit of Russian Prime Minister Mikhail Mishustin to Hanoi in January 2025. This announcement is a major breakthrough for Vietnam’s energy policy, long-dormant since 2016.
After the Fukushima disaster, Vietnam suspended its nuclear program and ran into financial limitations that made going forward difficult. Vietnamese government with a new bilateral agreement. They are looking to discover creative, new ways to enhance their energy generation capabilities — such as the promising prospects offered by small modular reactors (SMRs). These reactors are yet to be demonstrated. They’re considered a cheaper option than conventional big nuclear reactors.
Vietnam’s decided to set aside a major down payment on its nuclear program. This figure is more than a quarter of the country’s projected GDP for 2024. This funding is part of a much bigger effort to reduce our reliance on coal. Coal still reigns supreme in much of the nation’s energy mix. In line with Vietnam’s new power development plan, coal-fired facilities are expected to contribute a diminishing role in the share of commune energy capacity in Vietnam. Their share will drop to just 13.1–16.9%. By contrast, liquefied natural gas plants are projected to make up only 9.5% to 12.3% of the energy capacity.
Vietnam’s government is equally proactive and engaged with its foreign partners in fostering an environment conducive to developing its nuclear projects. And countries such as Russia, Japan, South Korea, France and the United States have been key players at the table. This participation further emphasizes Vietnam’s commitment to diversifying its energy sources with a focus on safety and sustainability.
If we’re lucky, the first of these advanced nuclear power plants will begin operations sometime between 2030 and 2035. In total, these plants will contribute 6.4 gigawatts (GW) of new electricity to the national grid. This initiative will go a long way in addressing the country’s increasing energy needs. Perhaps most importantly, it will accelerate inclusive economic growth.