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News| | Publish on Fri, 03/21/2025 - 06:01

Vietnam’s Nuclear Energy Push Is a Strategic Opportunity For the US

The Trump administration has a golden opportunity to improve its relationship with a key Southeast Asian partner.

Vietnam’s Nuclear Energy Push Is a Strategic Opportunity For the US

Vietnam's push for nuclear power is back on track, with plans to complete a nuclear power plant in just five years. The country is seeking funding from various partners, including the United States. However, with President Trump halting foreign aid, the U.S. faces important decisions that will impact its influence in Southeast Asia. Vietnam has a history of ambitious nuclear power proposals, dating back to 2006. In 2011, plans were approved for the development of two nuclear power plants, with the first scheduled for completion by 2020. However, due to the Fukushima disaster and budget constraints, Vietnam postponed its nuclear power plans in 2016. In November 2024, Vietnamese lawmakers approved the resumption of the Ninh Thuan nuclear power project, aiming for completion by 2030. State-run Vietnam Electricity and PetroVietnam are investing in the project, which will have a generating capacity of four gigawatts. To meet the tight deadline of five years for a 10-year project, Vietnam is seeking foreign aid. The country has reached out to partners such as South Korea, France, Russia, Japan, and the United States. In particular, Vietnam has signed a nuclear energy memorandum of understanding with Russia's Rosatom and has resumed nuclear deals with South Korea. The United States, however, is reconsidering financing for energy projects in the region. Southeast Asian nations are concerned about how this will impact green energy financing. Vietnam is hopeful that the U.S. will support its nuclear energy goals, which could also help address the trade imbalance between the two countries. Vietnam's Power Development Plan 8 includes the use of LNG as a transition fuel while building out nuclear and renewable capacity. With LNG import capacity expected to peak by 2030, Vietnam could increase imports from the U.S. to help offset the trade deficit. Pairing this with U.S. financing for nuclear energy production could help Vietnam achieve its energy goals and strengthen its relationship with the United States. Overall, Vietnam's pursuit of nuclear power presents an opportunity for the U.S. to improve its relationship with a key Southeast Asian partner and increase its influence in the region's energy sector. By supporting Vietnam's nuclear energy goals, the U.S. could enhance its partnership with Vietnam under the Comprehensive Strategic Partnership.

Author Name: Lauren Mai

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