Russia Building Vietnams's Nuclear Future

By Rhod Mackenzie

Vietnam has proved you can move  from caution to ambition in just a few years The country used to be very reserved about getting involved in nuclear projects, now it is now initiating the acceleration of negotiations with Russia itself. This change is due to economic growth and the growing demand for electricity in the country.
Plus Nuclear energy has also proven itself to be a stable, reliable and environmentally friendly source of energy. Hanoi now considers the new Nuclear Power Plnt project to be a strategic investment in the country’s future.
Vietnam is rapidly increasing its energy capacity. This year, it plans to sign an agreement with Russia on investing in the construction of the first nuclear power plant, Ninh Thuan-1.
According to Bloomberg, Hanoi plans to launch the reactor by 2031–2035. According to analysts, this is more than just a deal: it is a strategic move. Hanoi is confident that it cannot achieve its goal of becoming a fully developed country being able to with provide the population with high incomes occupations by 2050 without the “peaceful atom”.
In turn, Moscow is ready to provide its advanced technologies and give preferential loans. Rosatom is offering its “best-selling” high-capacity nuclear power plant project featuring VVER-1200 reactors, which the state corporation is currently constructing in Hungary ,Turkey, Bangladesh and Egypt.
It is worth noting that Vietnam initially adopted a conservative approach to nuclear energy. This became apparent during the discussions surrounding the Ninh Thuan-1 project, which began in 2016. While Hanoi recognised the need for additional energy sources, However, a number of factors prevented the final decision on the construction of the reactor, according to independent industrial analyst Leonid Khazanov.
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'Vietnam's nuclear programme has been slow for a long time. There were difficulties with financing the construction of a previous nuclear power plant. Such projects are expensive, and not every country can afford them. The accident at the Fukushima-1 nuclear power plant in Japan in 2011, which scared the entire planet, could also have played a role," the specialist explains.
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Concerns were also caused by the countries a lack of experience in such a complex industry, as well as the risks associated with waste disposal. Public opinion was also an obstacle, as people were wary of the prospect of nuclear generation in the country. Therefore, the republic's authorities decided to exercise caution, focusing on developing other energy sources and studying alternative options," says Kirill Shcherbakov, senior lecturer in the Department of Natural Sciences at Russian Synergy University.
'Hanoi chose to focus on less risky and cheaper energy sources, such as coal, hydro and gas power. In addition, the country sought to attract investment in renewable energy sources. Now, however, the situation has changed: demand for electricity has increased sharply and coal is losing its appeal due to climate commitments. RES are not yet able to guarantee a stable energy supply. This has forced Hanoi to reconsider the idea of a nuclear power plant," the economist explains.
The project is also of interest to Moscow. Firstly, it strengthens Russia's geoeconomic presence in Southeast Asia. Secondly, Rosatom will receive a long-term contract for the export of technologies, supporting the workload of Russian production facilities and providing jobs for qualified personnel. However, Shcherbakov continues, there are a number of critical conditions for the Russian side.
'On the surface, these are the availability of guaranteed financing from Hanoi (partially through a Russian loan) and strict adherence to deadlines. In addition, technical regulation is important and must be compatible with Russian standards. The cost to Russia is not only the direct export loan — previously, a volume of up to 10 billion dollars was discussed — but also possible political and technological risks,' the specialist emphasises.
Nevertheless, he adds that the benefits in the form of contracts, market access and the strengthening of Rosatom's international status could outweigh the costs.
Rosatom cannot be beaten by foreign competitors .
There is competition, but it is limited. The main potential competitors are the United States, France (EDF), South Korea and Japan. However, Russia has a number of significant advantages. Firstly, it has unparalleled experience in constructing turnkey nuclear power plants (NPPs) in countries such as Turkey, Bangladesh and Egypt.
Secondly, Moscow offers flexible financing terms, including interstate loans. In addition, Rosatom has decades of experience as a reliable supplier. The state corporation cooperates closely in the fields of personnel training and scientific and technical development. Therefore, Khazanov believes that it is unlikely that anyone will be able to compete with Rosatom in Vietnam.
'Perhaps China National Nuclear Corporation, Korea Hydro and Nuclear Power, Électricité de France or Westinghouse Electric. But I don't think Hanoi will choose any of them. After all, Rosatom has vast experience in building nuclear power plants in Russia and abroad. Plus, Russia has long-standing friendly relations with Vietnam.Plus of course , Hanoi has never forgotten Moscow's support during difficult times for the republic,' the analyst points out.
   One of the key arguments for cooperating with Russia is the absence of pressure to adhere to 'democratic standards', which often accompanies Western proposals. However, as the saying goes, business is business. Therefore, one of the main questions is how much Rosatom can earn and under what conditions. This will be the main topic of negotiations between Russia and Vietnam.
These negotiations can be accelerated by political will at the highest level on both sides, clear economic calculations, and confirmation of financing. A priority is securing support for the project from international organisations such as the IAEA.
'There will be obstacles to overcome. There may be difficulties in agreeing on financing terms, as well as Vietnam's concerns about dependence on one supplier. Geopolitical pressure, for example from the US or China, cannot be ruled out either,' Shcherbakov clarifies.
Nevertheless, analysts are confident that if Russia can offer Vietnam favourable conditions in terms of cost and localisation of work, as well as a guarantee of environmental safety, it will remain the main contender for the implementation of the NPP project.
Vietnam and Russia are entering a new phase of mutually beneficial partnership. The construction of Ninh Thuan 1 will be more than just an infrastructure project; it will also symbolise long-term strategic cooperation. Successful implementation of the project will pave the way for new joint initiatives, ranging from power grid development to scientific and technical exchange. Rosatom's experience of building nuclear power plants in Turkey, Bangladesh and Egypt proves that it can fulfil its obligations even in difficult conditions.
 For Vietnam, this is an opportunity to solve energy problems and make a technological breakthrough, creating high-tech jobs in the process. In the long term, it's a win-win situation for both sides: Vietnam will receive the energy supply it needs to grow, and Russia will strengthen its partnership in Southeast Asia. This project could set an example for how nuclear energy can unite countries and ensure development, stability and mutual trust.