Vietnam government proposes the state as sole investor in nuclear power

The Vietnamese government has proposed that the State is the sole investor in nuclear power development, under its draft amended law on electricity.

According to the draft, compiled by the Ministry of Industry and Trade and presented by its Minister Nguyen Hong Dien to the National Assembly on Monday, the Prime Minister will regulate special mechanisms on investments, construction and operations of nuclear power plants.

The move aims to ensure the national energy security, in line with the country’s power development plan VIII (PDP VIII), Minister Dien clarified.

The government proposed the State is the sole investor of such projects as they are important and related to national security, he added.

Nuclear power projects must utilize modern and proven technology to ensure the highest security standards, according to the draft law.

The draft also stipulates the State as the sole investor in multi-purpose hydropower plants.

Commenting on the draft law, the National Assembly’s Committee on Science, Technology, and Environment stated that the draft term of the Prime Minister setting special mechanisms for nuclear power projects is not suitable in terms of authority, given the Laws on Government Organization and Promulgation of Legal Documents.

According to Le Quang Huy, Chairman of the committee, there are opinions that it is necessary to review and clarify regulations on areas where the State is the sole investor. "It's necessary to create mechanisms to attract investors, as well as to increase feasibility of projects and efficiency of State management," he noted.

The National Assembly is set to conduct an approval vote for the draft law at the ongoing meeting.

Vietnam currently has no nuclear power project. In September, the Ministry of Industry and Trade was tasked with studying development of nuclear power as a baseload source.

The ministry must comprehensively review the sources of energy stipulated in the national power development plan VIII (PDP VIII) to ensure energy security and annual power supply growth of 12-15%, given economic growth projections of over 7% per year.

Vietnam’s latest national power development plan VIII (PDP VIII) does not include nuclear power, but the country is considering small modular reactors (SMRs), including floating reactors, with a capacity of 300 MW each.