Vietnam, Russia Sign Agreement on Nuclear Power Plant Construction |
ASEAN Beat | Economy | Southeast Asia
Vietnam, Russia Sign Agreement on Nuclear Power Plant Construction
The agreement was one of several energy-related deals that were signed on the first day of Prime Minister Pham Minh Chinh’s official visit to Moscow.
Vietnam has signed a number of energy-related agreements with Russia, including one on the construction of a nuclear power plant in the country’s south, as the country scrambles to address energy shortages caused by the conflict in the Middle East.
The agreements were signed in Moscow yesterday by Vietnamese Prime Minister Pham Minh Chinh and his Russian counterpart, Mikhail Mishustin, on the first day of Chinh’s three-day visit to Russia.
According to the Moscow Times, one of these agreements laid out the legal framework for the construction of two nuclear power reactors by the Russian state nuclear energy corporation Rosatom at Vietnam’s proposed Ninh Thuan 1 nuclear power plant. Rosatom did not say how much the project would cost, but said that the two reactors will have a total output of 2,400 MW. Rosatom head Alexey Likhachev said that the agreement would be the “foundation for a long-term industrial partnership, which will strengthen Vietnam’s energy independence and open up new opportunities for economic growth,” the Times added.
Chinh’s trip takes place against the backdrop of the global oil supply crisis caused by the closure of the current war in the Persian Gulf, which has led to a spike in fuel prices in Vietnam. Petrol prices have risen by around 50 percent and diesel prices by about 70 percent in the country since the start of the conflict, which has choked off oil exports through the Strait of Hormuz.
In a statement on Saturday, ahead of Chinh’s departure, Vietnam’s government said that Chinh’s visit would focus on deepening ties with Russia, particularly in terms of energy cooperation.
“During this visit, a series of important agreements related to nuclear power plant projects, as well as cooperation in energy and oil and gas will be signed,” the statement said. “Cooperation in oil and gas energy will be reinforced in all fields of trade, exploration, extraction, and human resource training,” it added.
Russia and Vietnam have also signed a deal on oil and gas production in both countries, the state-run TASS news agency reported, without giving further specifics. Meanwhile, the Russian gas company Novatek yesterday signed a preliminary contract with a buyer in Vietnam and is ready to start liquefied natural gas (LNG) deliveries to the country “shortly,” Tass reported.
“We have been in negotiations with potential buyers for over five years, and have very recently signed a preliminary supply agreement with one of them,” Novatek’s CEO Leonid Mikhelson told state broadcaster Rossiya 24, without naming the customer. “We are ready to commence deliveries at the earliest opportunity.”
Of all of these agreements, the nuclear deal has potentially the greatest long-term significance.
Vietnam has been considering nuclear power since 1995, and firm proposals surfaced in 2006 for the construction of two nuclear power plants in Ninh Thuan province in the country’s south, with a combined capacity of 4,000 megawatts. Russia was awarded the Ninh Thuan 1 project, and Japan had agreed to construct a second plant, known as Ninh Thuan 2. In 2016, these plans were canceled due to a number of concerns, including safety risks and “economic conditions.”
However, given the country’s growing energy needs, Chinh announced in late 2024 that the government had put forward a proposal to restart its nuclear energy program. Vietnam asked Japan and Russia to implement the projects, but late last year, the Japanese government withdrew from the country’s nuclear program, stating that the government’s time frame was too tight.
Yesterday’s deals also show how Russia is capitalizing on the crisis to expand markets for its own oil, gas, and energy expertise, especially after the United States issued a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products stranded at sea. Next week, the Philippines is set to take delivery of a shipment of Russian crude oil for the first time in five years.
Get to the bottom of the story
Subscribe today and join thousands of diplomats, analysts, policy professionals and business readers who rely on The Diplomat for expert Asia-Pacific coverage.
Get unlimited access to in-depth analysis you won't find anywhere else, from South China Sea tensions to ASEAN diplomacy to India-Pakistan relations. More than 5,000 articles a year.
Unlimited articles and expert analysis
Weekly newsletter with exclusive insights
16-year archive of diplomatic coverage
Ad-free reading on all devices
Support independent journalism
Already have an account? Log in.
Vietnam has signed a number of energy-related agreements with Russia, including one on the construction of a nuclear power plant in the country’s south, as the country scrambles to address energy shortages caused by the conflict in the Middle East.
The agreements were signed in Moscow yesterday by Vietnamese Prime Minister Pham Minh Chinh and his Russian counterpart, Mikhail Mishustin, on the first day of Chinh’s three-day visit to Russia.
According to the Moscow Times, one of these agreements laid out the legal framework for the construction of two nuclear power reactors by the Russian state nuclear energy corporation Rosatom at Vietnam’s proposed Ninh Thuan 1 nuclear power plant. Rosatom did not say how much the project would cost, but said that the two reactors will have a total output of 2,400 MW. Rosatom head Alexey Likhachev said that the agreement would be the “foundation for a long-term industrial partnership, which will strengthen Vietnam’s energy independence and open up new opportunities for economic growth,” the Times added.
Chinh’s trip takes place against the backdrop of the global oil supply crisis caused by the closure of the current war in the Persian Gulf, which has led to a spike in fuel prices in Vietnam. Petrol prices have risen by around 50 percent and diesel prices by about 70 percent in the country since the start of the conflict, which has choked off oil exports through the Strait of Hormuz.
In a statement on Saturday, ahead of Chinh’s departure, Vietnam’s government said that Chinh’s visit would focus on deepening ties with Russia, particularly in terms of energy cooperation.
“During this visit, a series of important agreements related to nuclear power plant projects, as well as cooperation in energy and oil and gas will be signed,” the statement said. “Cooperation in oil and gas energy will be reinforced in all fields of trade, exploration, extraction, and human resource training,” it added.
Russia and Vietnam have also signed a deal on oil and gas production in both countries, the state-run TASS news agency reported, without giving further specifics. Meanwhile, the Russian gas company Novatek yesterday signed a preliminary contract with a buyer in Vietnam and is ready to start liquefied natural gas (LNG) deliveries to the country “shortly,” Tass reported.
“We have been in negotiations with potential buyers for over five years, and have very recently signed a preliminary supply agreement with one of them,” Novatek’s CEO Leonid Mikhelson told state broadcaster Rossiya 24, without naming the customer. “We are ready to commence deliveries at the earliest opportunity.”
Of all of these agreements, the nuclear deal has potentially the greatest long-term significance.
Vietnam has been considering nuclear power since 1995, and firm proposals surfaced in 2006 for the construction of two nuclear power plants in Ninh Thuan province in the country’s south, with a combined capacity of 4,000 megawatts. Russia was awarded the Ninh Thuan 1 project, and Japan had agreed to construct a second plant, known as Ninh Thuan 2. In 2016, these plans were canceled due to a number of concerns, including safety risks and “economic conditions.”
However, given the country’s growing energy needs, Chinh announced in late 2024 that the government had put forward a proposal to restart its nuclear energy program. Vietnam asked Japan and Russia to implement the projects, but late last year, the Japanese government withdrew from the country’s nuclear program, stating that the government’s time frame was too tight.
Yesterday’s deals also show how Russia is capitalizing on the crisis to expand markets for its own oil, gas, and energy expertise, especially after the United States issued a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products stranded at sea. Next week, the Philippines is set to take delivery of a shipment of Russian crude oil for the first time in five years.
Sebastian Strangio is Southeast Asia editor at The Diplomat.
Vietnam energy sector
Vietnam nuclear power
Vietnam-Russia relations