Domestic nuclear power corporations that won the $26 billion project last year to build a new nuclear power plant in Dukovany, Czech Republic, are turning their eyes to Vietnam as the next target for orders.
According to the nuclear power industry on the 4th, the Vietnamese government has recently picked up speed in selecting a new contractor to build the Ninh Thuan Nuclear Power Plant Unit 2. Vietnam has completed site selection and surveys for the construction of Unit 2, as well as all related approval procedures, and is said to be planning to decide on a contractor through a private contract instead of an open bid.
The Ninh Thuan nuclear power project is to build Units 1 and 2 with a capacity of 4 to 6.4 gigawatts (GW) in Ninh Thuan Province on the south-central coast of Vietnam. Unit 1 targets commercial operation in 2030, and Unit 2 in 2035. The total project size for Units 1 and 2 is estimated at about $22 billion to $25 billion (about 30 trillion to 35 trillion won).
Ninh Thuan Unit 1 was won by Rosatom, Russia's state-owned nuclear power corporations. Vietnam and Russia have remained close allies since the former Soviet era. Rosatom succeeded in winning the order by offering a "one-stop full package" that bundled all options including not only nuclear plant construction but also financing, uranium enrichment, plant operation, and maintenance, with Russia providing 85% of the construction expense as a Vice Minister.
With this strategy, Russia is expanding its presence mainly in nuclear power markets in developing countries such as Egypt, Turkey, Bangladesh and India. According to the International Atomic Energy Agency (IAEA), as of March this year, 72 nuclear power units are newly under construction worldwide. Of these, Rosatom is building five at home and 15 overseas. However, since the 2022 invasion of Ukraine, its position has narrowed due to economic sanctions and other factors.
Ninh Thuan Unit 2 is a project that Japan's public-private consortium Japan International Nuclear Energy Development won but withdrew from, citing a tight construction schedule. Japan had also won the project by promising Vietnam large-scale official development assistance, infrastructure investment and low-interest Vice Minister.
Some interpret Japan's withdrawal from Vietnam's nuclear project as influenced by trade friction between the two countries. To improve air pollution, the Vietnamese government decided to completely ban the operation of internal combustion engine motorcycles in downtown Hanoi starting in 2030. As this was expected to cause enormous damage to Japanese corporations, which hold 80% of the local motorcycle market, the Japanese government reportedly raised objections and stepped back from nuclear plant construction.
The Vietnamese government initially considered entrusting both Ninh Thuan Units 1 and 2 to Rosatom, but is said to have decided to hand the construction of Unit 2 to another country to reduce energy dependence on a specific nation.
Team Korea, which includes private corporations such as Doosan Enerbility and Daewoo Engineering & Construction centered on Korea Electric Power Corporation and Korea Hydro & Nuclear Power Co. (KHNP), is eyeing the Ninh Thuan Unit 2 order that Japan abandoned. During President Lee Jae-myung's state visit to Vietnam last month, KEPCO signed a memorandum of understanding (MOU) with PVN for "a review of the potential for cooperation in nuclear power development."
Doosan Enerbility also signed business agreements with Vietnamese corporations PTSC and PetroCons for cooperation on new nuclear projects and supply chain development, respectively. Daewoo Engineering & Construction has established a Global Infrastructure Headquarters by integrating its Overseas Business Division and Nuclear Power Division, laying the groundwork for entry into Vietnam.
The government is also moving to provide covering fire for winning Vietnam's nuclear order by reviewing ways to unify the nuclear export system, which is currently split between KEPCO and KHNP. A leading option is for KEPCO to serve as the external export window while KHNP takes on technical operations and construction capabilities.
Jung Beom-jin, a professor in the Department of Nuclear Engineering at Kyunghee University, said, "Vietnam lacks the funds to build a nuclear plant on its own," and added, "As when Russia's Rosatom won the Ninh Thuan Unit 1 project, the key for Team Korea to succeed in winning the order will be to offer Vietnam favorable financing terms."