Vietnam and Russia further cemented ties with a big agreement on strengthening collaboration in areas like the building of nuclear power plants. This partnership is an important sign of Vietnam’s energy transition. Tuesday’s agreement marks a revival of Vietnam’s past nuclear energy efforts, which were suspended nearly a decade ago. Additionally, it aims to increase coordination and cooperation through the oil and gas industry.
Vietnam’s recently revised national energy plan commits the country to a very ambitious goal of rapidly increasing its capacity from renewables to generate electricity by 2030. The plan invests an eye-popping $136.3 billion into the plan. In addition to a strong renewable energy focus, it reintroduces nuclear power into the energy conversation. Vietnam expects to start its first NPPs from 2030-2035. These plants will provide a combined capacity of up to 6.4 gigawatts (GW).
The impetus for expanding electricity generation capacity comes from Vietnam’s double-digit economic growth. In order to satisfy this demand, the country is fast-tracking negotiations with Russia on the construction of NPPs on its territory. This partnership will bring together the best of the best from across the innumerable international partners. Japan, South Korea, France, and the U.S. are some of the countries lending their expertise.
Vietnam will import Russian crude oil and liquefied natural gas under the expanded cooperation agreed upon by the two countries. This agreement will serve to bolster their nascent nuclear energy projects. Underpinning this multifaceted approach is the goal of building a secure and diversified energy supply to support Vietnam’s rapidly growing economy.
“The development of the plants with advanced technology will strictly be compliant with nuclear and radiation safety regulations and for the benefit of socio-economic development.” – Vietnam and Russia
Vietnam is reanimating its nuclear power plans. This strategic pivot towards domestic manufacturers with scale capabilities and long-term horizons marks a necessary shift to greater, more sustainable prosperity and energy security. By prioritizing both renewable sources and nuclear power, Vietnam is positioning itself to effectively address the challenges posed by its growing energy demands.