HANOI: Japan has quietly stepped back from plans to help Vietnam build a major nuclear power plant—an unexpected turn that could make it harder for Hanoi to keep the lights on as its factories hum and its cities swell.
Japanese Ambassador to Vietnam Naoki Ito told mediamen that Tokyo would no longer move forward with the long-delayed Ninh Thuan 2 plant, saying the timeline had simply become too tight to meet. The project, expected to generate up to 3.2 gigawatts of electricity, has long been one of the cornerstones of Vietnam’s strategy to boost power supply and prevent the rolling blackouts that have increasingly hit homes and industrial zones alike.
“We are not in a position to implement the Ninh Thuan 2 project,” Ito admitted, drawing a quiet close to more than a decade of planning between the two countries.
A power grid feeling the heat
Vietnam’s energy needs aren’t just rising—they’re surging. With global giants like Samsung and Apple pumping out products from massive factories in the country, electricity demand has exploded. Combine that with extreme weather—droughts that dry up hydropower reservoirs, storms that rip through power lines—and Vietnam’s grid has been stretched dangerously thin.
The government hopes to bring two nuclear plants, Ninh Thuan 1 and 2, online by 2035. But those plans keep hitting speed bumps: regulatory confusion, pricing disputes, and slow-moving approvals have all held back progress.
Japan’s departure also comes at a delicate moment for the usually warm relationship between Tokyo and Hanoi. A proposed ban on petrol motorbikes in central Hanoi—a move that would directly impact Honda, the dominant player in the market—has stirred irritation. The Japanese embassy raised concerns months ago, but still hasn’t received a formal answer.
A nuclear vision interrupted
Vietnam first partnered with Russia and Japan on the two Ninh Thuan plants back in the early 2010s. But fears about cost and safety—fueled in part by the global fallout from Japan’s own 2011 Fukushima disaster—led Hanoi to shelve the entire nuclear program in 2016.
When Vietnam revived its nuclear ambitions last year, it invited both countries back. So far, Russia hasn’t publicly responded, and no agreements have been finalized.
Insiders say Japan’s hesitation is also rooted at home: its nuclear workforce is still rebuilding after Fukushima, making companies reluctant to take on a massive overseas project.
What happens now?
Ito says Japan isn’t closing the door forever. Tokyo is still interested in supporting Vietnam’s nuclear future, especially with newer, smaller modular reactors that many countries see as the next big thing in clean energy.
In the meantime, the gap left by Japan is already attracting attention. Officials say investors from France, South Korea, and the United States have expressed interest in stepping in.
For Vietnam, one of the fastest-growing economies in Asia, the stakes couldn’t be higher. As factories expand, cities grow, and climate shifts intensify, securing enough power isn’t just a long-term challenge—it’s an urgent one.
