Hanoi pushes for a Russia deal by January as energy security risks grow amid surging industrial demand.
Vietnam has warned of mounting delays in its long-revived nuclear power program and is now racing to finalize negotiations with Russia after Japan officially withdrew from one of two planned nuclear projects. The development highlights the growing strain on Vietnam’s energy system—and the geopolitical and execution risks behind its long-term power strategy.
According to the government’s official news portal, Prime Minister Pham Minh Chinh has instructed relevant ministries to complete talks with Russia within January, while urgently seeking a new partner to replace Japan for the second nuclear plant. The goal is to bring both facilities online after 2031, later than originally planned.
Vietnam restarted its nuclear power ambitions in 2024 after shelving the program in 2016, citing cost and safety concerns. The renewed plan envisioned two plants with a combined capacity of 4–6.4 gigawatts, negotiated separately with Russia and Japan. Hanoi had aimed to sign agreements with Russia by September 2025 and with Japan by year-end—but progress has fallen short.
“Negotiations have been slower than expected and remain heavily dependent on foreign partners,” the Prime Minister told officials, underscoring structural challenges in Vietnam’s energy diplomacy and project execution.
Japan’s withdrawal crystallized those risks. In December, Tokyo’s ambassador confirmed to Reuters that Japan had exited the project, citing Vietnam’s ambitious timeline to have the plant operational by 2035 as unrealistic. The exit forces Hanoi to reassess not only partners, but also timelines and financing models.
The urgency is driven by fundamentals. Vietnam—now a major manufacturing base for global giants such as Samsungand Apple—has suffered repeated power shortages and blackouts as electricity demand from factories and a growing middle class outpaces supply. Climate stress, including droughts and typhoons, has further strained hydropower and grid reliability.
While Vietnam is expanding renewables and gas-fired generation, many projects face regulatory bottlenecks, pricing uncertainty, and construction delays. Nuclear power—once abandoned—has returned to the agenda as a baseload solution to support long-term industrial growth and energy security.
For global investors and policymakers, Vietnam’s nuclear pivot raises a broader question: can the country balance speed, safety, and geopolitics to secure reliable power—without repeating the delays that have plagued its broader energy transition?
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Source: Vietnam Insider