Vietnam decided to halt the Ninh Thuan nuclear power plant project in 2016 mainly due to economic factors, not because of concerns about technology or nuclear safety.
The decision to stop the Ninh Thuan nuclear power plant project in 2016 was a surprise to many people. It was not due to concerns about technology or safety issues as many people thought, but the main reason came from the economic situation of Vietnam at that time. Investing in nuclear power requires huge and long-term capital, while the country needed to focus resources on more essential projects such as infrastructure.
By the time the National Assembly decided to stop the project, Vietnam had spent 7 years implementing important tasks. Site clearance, infrastructure construction for the project, and training of hundreds of students in atomic energy in Russia and Japan had been carried out. These projects were not wasteful. For example, the electricity system serving the construction will be used to develop the local economy. Buildings and other infrastructure were also transferred to important projects in Ninh Thuan.
In terms of training, nearly 400 Vietnamese students studying nuclear power programs continue to receive support to complete their courses. The knowledge they learn is not only applicable in the nuclear power industry, but also serves scientific research and other conventional power plants. This human resource is a valuable asset for the future.
So, does this decision affect national energy security? The answer is no. Deputy Minister of Industry and Trade Hoang Quoc Vuong at that time has pointed out that by 2030, the two Ninh Thuan nuclear power plants, if completed, will only contribute about 3.6% of the country’s total capacity. Instead, Vietnam is aiming to strongly develop renewable energy such as wind power and solar power. These energy sources are not only environmentally friendly but also more cost-competitive thanks to investment incentive policies. (note: Hoang Quoc Vuong has now been arrested for corruption).
Another important reason is financial capacity. To complete the nuclear power project, Vietnam needs to borrow a large amount of capital, while the ability to repay the debt is a big challenge. Instead of risking the burden of public debt, the Government decided to focus on investing in more urgent projects such as the North-South Expressway, creating a foundation for sustainable growth.
This decision also did not harm the strategic relationship with Russia and Japan. The Government had frank meetings with partners, receiving sympathy and support. The cooperative relationship between the parties was not only maintained but also opened up many new opportunities in other fields.
Looking back, stopping the Ninh Thuan nuclear power project was a difficult but correct decision. It demonstrated the Government’s clear priority: using resources in the most effective way to serve socio-economic development, in the context that the country needs to focus on more important projects.
