Why is nuclear power essential for Vietnam’s industrial future?

Vietnam is entering a pivotal stage of transformation with highly ambitious economic goals. The government aims for economic growth above 8% in 2025 and to reach double-digit levels during the 2026–2030 period. However, alongside this growth comes a major challenge – energy security. For every 1% increase in GDP, electricity demand rises by roughly 1.5%, pushing annual power consumption growth to between 12% and 16%. This dynamic compels the government to expand and diversify its energy sources to meet development goals — and among them, nuclear power is emerging as an inevitable trend.

1. Industrial development and the energy security challenge

In Vietnam’s energy consumption structure, the industrial sector has emerged as both a key driver of economic growth and the largest consumer of electricity. According to the National Program on Economic and Efficient Use of Energy (2019–2030), industry accounts for over 50% of the country’s total energy consumption. As Vietnam prioritizes the development of the semiconductor industry and data centers, electricity demand is expected to soar — since data centers alone require more power than the steel, cement, and chemical industries combined.

Alongside its industrial development goals, Vietnam has pledged to achieve Net Zero by 2050 at COP26. However, the industrial sector is currently the largest source of carbon emissions, accounting for up to 40% of the nation’s total CO₂ output. Therefore, reducing the environmental impact of power sources used for manufacturing is not only essential to meet international commitments but also a key factor in enhancing the global competitiveness of Vietnamese enterprises.

It is clear that ensuring energy security while transitioning to clean energy represents a dual challenge the Government must tackle in the coming phase of industrial expansion. This balance will also play a vital role in attracting high-quality FDI inflows, especially in the context of a global investment slowdown.

2. Nuclear power – an inevitable trend

Renewable energy sources such as wind and solar power, though highly regarded, remain unstable and weather-dependent. Imported LNG power is also considered an important transitional energy source, yet its development requires synchronized infrastructure and a suitable pricing mechanism. Moreover, increasing dependence on imported fuels makes the economy vulnerable to price fluctuations and geopolitical risks.

In this context, nuclear power emerges as the most feasible solution:

• High and stable output, largely unaffected by weather conditions.
• Near-zero carbon emissions during operation, aligning with Net Zero commitments.
• Exceptional efficiency: just 1 kg of enriched uranium can generate as much energy as 160 tons of coal, enough to power a city of 100,000 people for an entire year.

Nuclear power is produced from the thermal energy released during controlled nuclear reactions, primarily nuclear fission. In this process, nuclear fuels such as uranium or plutonium are split in a reactor, releasing immense heat. This heat boils water to produce steam, which drives turbines connected to generators, producing electricity.

Of course, nuclear power also has its drawbacks — notably high initial investment costs, the need for highly skilled human resources, and strict management of radioactive waste. However, in the long term, it stands as a strategic energy source, capable of ensuring both energy security and environmental sustainability for Vietnam’s industrial future.

3. Ninh Thuan nuclear power project – a turning point for nuclear energy in Vietnam

Vietnam began researching nuclear energy in the 1970s, with significant progress made between 1996 and 2009. On November 25, 2009, the 12th National Assembly approved the investment policy for the Ninh Thuan Nuclear Power Plant Project, which consisted of two separate plants — Ninh Thuan 1 and Ninh Thuan 2 — with a total planned capacity of 4,000 MW. However, by 2016, the National Assembly decided to halt the project, citing capital pressure and the need to prioritize investment in other socio-economic infrastructure projects.

After eight years of suspension, the Ninh Thuan Nuclear Power Project was officially revived at the end of 2024. During a site visit, General Secretary To Lam emphasized that this was a “necessary choice” and “the solution to Vietnam’s energy challenge.” This marks a strategic shift in Vietnam’s energy policy, reflecting a new perspective on the critical role of nuclear power in ensuring national energy security. Of course, the project still faces challenges related to funding and human resource development. However, its reactivation signifies a major milestone, ushering in a new era for nuclear power development in Vietnam.

In a context where electricity demand is surging, industry has become the largest energy consumer, and emission reduction pressure is mounting, nuclear energy is not merely an option — it is an inevitable trend in the country’s future energy mix. With its stable, clean, and sustainable energy output, nuclear power will play a pivotal role in driving Vietnam’s industrialization, modernization, and global integration in the decades to come.

Above RSL Group has provided readers with information about the nuclear power in Vietnam. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland

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