Vietnam and Russia have signed an agreement to construct Vietnam’s first nuclear power plant, marking a significant development in the two countries’ longstanding energy partnership.
The intergovernmental deal was signed in Moscow on March 23 during a meeting between Vietnamese Prime Minister Pham Minh Chinh and his Russian counterpart, Mikhail Mishustin.
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The agreement follows the Vietnamese National Assembly’s approval in November 2024 to restart the Ninh Thuan nuclear power project, now located in Khanh Hoa province in central Vietnam.
Under the project, Vietnam plans to build two Russian-designed power units equipped with VVER 1200 reactors, with approximately 2,400MW of total installed capacity.
The government estimates that electricity demand will continue to rise rapidly and reach 1,200 billion kWh by 2045.
The two Prime Ministers also discussed strengthening cooperation across economic, trade, investment, transport, logistics, education, tourism and scientific sectors.
Both governments agreed to further open their markets for exports and promote investment activities.
They highlighted energy cooperation, including oil and gas, as a central pillar of their relationship and explored expanding collaboration into new areas such as clean, renewable and new energy technologies.
Vietnam has relied heavily on crude oil imports from the Middle East but is seeking to diversify its sources through partnerships with countries such as Japan, South Korea, Angola and Algeria, reported Bloomberg.
Domestic refineries currently supply about 70% of local demand while imported crude accounts for most remaining needs.
In response to recent supply disruptions, the government has announced measures promoting fuel conservation and alternative energy solutions.
Joint ventures between PetroVietnam and Russian firms Zarubezhneft and Gazprom have been active for decades, with Vietsovpetro, a joint venture established with the Soviet Union, drilling dozens of wells in recent years.
During a visit by Vietnam Communist Party General Secretary To Lam to Moscow last year, both countries agreed to expand cooperation in geological exploration as well as production of oil and gas, both on the Vietnamese continental shelf and within Russia.
The timing for the commencement of construction on the nuclear plant has not been disclosed.
