Vietnam to finalize nuclear power plant deal with Russia in July

THE HANOI TIMES — The Ministry of Industry and Trade is expected to complete negotiations with Russian partners for the construction of the Ninh Thuan 1 nuclear power plant in early July.

This timeline was mentioned in Government Office Notice No. 316, dated June 24. In the notice, Deputy Prime Minister Bui Thanh Son pointed out that negotiations with partners on nuclear power plant investment cooperation are progressing more slowly than expected.

"Negotiations are critical tasks that directly affect subsequent steps, such as approval for adjustments to the investment policy, investment approval, and project implementation," the notice stated. Any delays could jeopardize the project's completion by the prime minister's final deadline of December 31, 2031.

As the standing body of the Steering Committee for Nuclear Power Plant Construction, the Ministry of Industry and Trade has been assigned to lead the establishment of a negotiation delegation on investment cooperation for Ninh Thuan 1. This process must be completed by July so that the Vietnam–Russia Intergovernmental Agreement can be signed in August.

Together with the ministry, Vietnam Electricity (EVN) will prepare negotiation talking points, particularly on technical and technological matters. They are required to participate in negotiations with Russia regarding investment in Ninh Thuan 1.

Meanwhile, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, the Vietnam National Oil and Gas Group (PVN), and other relevant agencies must engage with Japan to assess the potential for continued cooperation on Ninh Thuan 2 and report the results to the prime minister by July.

Ninh Thuan 1 will be located in Phuoc Dinh Commune, Thuan Nam District while Ninh Thuan 2 in Vinh Hai Commune, Ninh Hai District, both in the central province of Ninh Thuan. EVN and PVN are the respective project developers.

The government maintains that developing new power sources, including nuclear energy, is essential to ensuring energy security and supporting double-digit economic growth. This is in line with Vietnam's commitment to achieving net-zero emissions by 2050, which requires a rapid energy transition.

In addition to negotiations, the deputy prime minister has urged all ministries and the province of Ninh Thuan to proactively address any obstacles to project implementation.

Moreover, Vietnam must make its nuclear infrastructure assessment report according to IAEA standards by August.

The Ministry of Finance is responsible for finalizing the budget allocation documentation to support the resettlement of those affected by the project from the 2024 central budget surplus. Together with the State Bank of Vietnam, EVN, and PVN, the ministry is responsible for negotiating credit agreements and defining payment methods for each project. These results must be reported to the prime minister in July.

The State Bank of Vietnam, the Ministry of Finance, and EVN will collaborate with Russian authorities to address payment issues during the intergovernmental agreement negotiations. Ninh Thuan Province must adjust its provincial land use and development plans to provide the legal basis for resettlement.