Vietnam aims to conclude Ninh Thuan 1 nuclear power plant talks with Russia in July

The Ministry of Industry and Trade must conclude negotiations with the Russian side in July to get an intergovernmental agreement signed on construction of the Ninh Thuan 1 nuclear power plant in central Vietnam.

Deputy Prime Minister Bui Thanh Son made the request in a notice released by the Government Office on Tuesday.

Son noted that negotiations with partners on cooperation and investment in nuclear power plant construction have been progressing more slowly than expected.

The sluggish pace could jeopardize the goal of completing the project by December 31, 2030, or by December 31, 2031 at the latest, as directed by the Prime Minister, he warned.

The Ministry of Industry and Trade (MoIT), which serves as the standing body of the steering committee for nuclear power plant development, was instructed to form a negotiation team for the Ninh Thuan 1 nuclear power plant. The ministry will also define the responsibilities of all parties in ensuring project implementation.

“This must be completed within July to pave the way for signing an intergovernmental agreement on the project in August,” Son noted.

State utility Vietnam Electricity (EVN) and the MoIT will prepare negotiation materials, with a particular focus on technical and technological aspects. Both were required to join the negotiation team.

In parallel, the MoIT, the Ministry of Foreign Affairs, Petrovietnam, and relevant agencies were assigned to engage with Japanese counterparts on the potential resumption of cooperation for the Ninh Thuan 2 nuclear power project. The outcome must be reported to the Prime Minister within July.

Vietnam has revived the Ninh Thuan nuclear power project, with completion targeted within five years. Ninh Thuan 1 will be located in Phuoc Dinh commune, Thuan Nam district, and Ninh Thuan 2 in Vinh Hai commune, Ninh Hai district. EVN and Petrovietnam have been named as the respective investors.

Developing power sources, including nuclear energy, is vital to ensuring energy security and sustaining Vietnam’s projected double-digit economic growth, according to the notice. The country’s 2050 net-zero commitment also demands an accelerated shift toward clean, green, and renewable energy.

Deputy Prime Minister Son also instructed ministries, agencies, and Ninh Thuan province to proactively resolve bottlenecks to facilitate project implementation.

Accordingly, the MoIT, in coordination with the Ministry of Home Affairs, was tasked with promptly consolidating the steering committee and working with other ministries to finalize an implementation plan for special investment mechanisms related to the project. The plan must be submitted to the Prime Minister by June 25.

The Ministry of Science and Technology and the MoIT have been assigned to jointly finalize regulations on the minimum safety distance between residential areas and the plant’s perimeter fence. They were also tasked with providing guidance to Ninh Thuan province and completing this work by June 25.

The Ministry of Science and Technology was also required to complete a report in August assessing Vietnam’s nuclear power infrastructure in line with International Atomic Energy Agency (IAEA) standards.

The Ministry of Finance was tasked with finalizing documentation on allocating funding to Ninh Thuan province from the 2024 central budget revenue surplus to implement resettlement plans.

The ministry, along with the State Bank of Vietnam (SBV), EVN, and Petrovietnam, was assigned to negotiate with partners on credit agreements, clarifying payment mechanisms for each project. The results must be reported to the Prime Minister in July.

Meanwhile, the SBV, the Ministry of Finance, and EVN will work with relevant Russian authorities to resolve payment-related issues during negotiations.

Ninh Thuan province is responsible for completing adjustments to its provincial planning and land-use plan to serve as the basis for implementing resettlement projects.

In 2005, Vietnam’s Party Central Committee greenlighted a plan to build two nuclear power plants in Ninh Thuan. Four years later, the National Assembly, Vietnam's legislature, approved the plan with an initial investment of VND200 trillion ($7.65 billion at the current forex rate). In November 2016, the parliament decided to halt the project, citing safety, funding and technology reasons.

However, in November 2024, the legislative body agreed to resume the project after an eight-year suspension. Ninh Thuan aims to complete the site clearance for Ninh Thuan 1 nuclear power plant in 2025.

In an interview with The Investor in November 2024, Ivan Sergeevich Nesterov, Chargé d'affaires of the Russian Federation in Vietnam, affirmed that Russia stands ready to construct a nuclear power plant in Vietnam if requested by the Vietnamese government.

Russia is a leading nuclear power country, possessing sufficient capacities and expertise to carry out a nuclear power project in Vietnam, he said.

Russia cooperated with Vietnam in preparing for the construction of the Ninh Thuan 1 nuclear power plant in Ninh Thuan before the project was halted in 2016.