South Korea-Vietnam Nuclear Collaboration Signals Shift in Energy Policy
South Korea and Vietnam are collaborating on a nuclear power plant construction project. This collaboration marks a revival of Vietnam’s nuclear ambitions, initially proposed in 2009 with the Ninh Thuan 1 and 2 nuclear power projects. These projects, consisting of four reactors with a total generation capacity of 4.8 gigawatts (GW), were halted in 2016 following the Fukushima disaster. Recent amendments to Vietnam’s National Power Development Plan (PDP8) have reignited these plans, aiming to diversify energy sources and reduce reliance on coal.
On April 14, South Korean Minister Ahn Duk-geun signed a memorandum of understanding (MOU) on nuclear cooperation with Vietnamese Minister Nguyen Hong Dien in Hanoi. This MOU signifies a strengthened partnership between the two nations in advancing nuclear energy projects. Earlier, on April 11, Team Korea—comprising KEPCO, Doosan Enerbility, and Hyundai Engineering & Construction—held a technology briefing for the Vietnamese Ministry of Industry and Trade and the nuclear project client. The briefing showcased Korean government project financing capabilities, with participation from the Export-Import Bank of Korea and Korea Trade Insurance Corporation.
The Vietnamese government announced at the end of last year its intention to amend PDP8 to include nuclear power as an energy source. Since then, the Vietnamese National Assembly has approved resuming Ninh Thuan 1 and 2 projects. Initially, Russia’s Rosatom and Japan Atomic Power Company were selected as preferred bidders at $8.9 billion each.
KEPCO is poised to play a pivotal role in this renewed venture. In 2011, KEPCO conducted a preliminary feasibility study for two nuclear reactors in central Vietnam, separate from Ninh Thuan 1 and 2. The study evaluated economic viability and technical feasibility for two APR-1400 reactors with a generation capacity of 1.4 GW. Industry insiders are optimistic that if Vietnam proceeds based on this study, KEPCO is likely to secure this central nuclear project order.
A source from the nuclear industry highlighted KEPCO’s strong presence in Vietnam: “KEPCO has a significant presence in the Vietnamese power market, operating the 1.2 GW Nguy Son 2 coal-fired power plant and constructing Vung Ang 2 coal-fired power plant.” This trust positions KEPCO favorably as Vietnam seeks reliable partners for its ambitious energy goals.
Some speculate that costs could rival those seen in other international bids by KEPCO, such as their $24 trillion won (approximately $16.5 billion) bid for two APR-1000 reactors in Czech Republic.