Vietnam: A Delay in Nuclear Power Raises Energy Security Concerns

Vietnamese Prime Minister Nguyen Tan Dung has announced that the construction of the country's first nuclear power plant, the 4,400-megawatt Ninh Thuan 1 — slated to begin this year — will be delayed until 2020 due to concerns about safety and efficiency. Dung said national energy company PetroVietnam will need to build a 5,000-megawatt, natural gas-fired power plant complex to provide electricity in place of the nuclear plant.

The delay would undermine the energy security that nuclear power is eventually supposed to bring to Vietnam. Hanoi will increase imports of hydropower, coal and liquefied natural gas to make up for the share of future power supply that was ultimately projected to come from nuclear sources. This energy profile will put pressure on Vietnam's ability to maintain trade balances and secure its maritime supply chain. Nevertheless, Hanoi hopes that buying time now will give it a greater capability to pursue nuclear power in future.