Japan has withdrawn from a key nuclear power plant project in Vietnam citing an overly tight timeline. Japan’s Ambassador to Vietnam, Naoki Ito, told Reuters: “The Japanese side is not in a position to implement the Ninh Thuận 2 project.”
Ninh Thuan 2 is scheduled to come online by 2035 alongside Ninh Thuan 1. In 2009, Vietnam’s National Assembly approved investment in the Ninh Thuận nuclear power project, planning two plants with a combined capacity exceeding 4,000 MWe. However, economic and financial difficulties led to a temporary suspension in 2016, although nuclear research continued, maintaining a skilled workforce and preserving decades of expertise. Russia had been awarded the Ninh Thuận 1 project, and Japan Ninh Thuận 2.
The National Power Development Plan VIII recognises nuclear power as a strategic resource for long-term stable operations and a key contributor to achieving net-zero emissions by 2050.
At the end of 2024, the National Assembly officially restarted the nuclear programme with Resolution 174/2024/QH15. The Government’s subsequent Resolution 70/NQ-CP outlined clear steps for preparation, emphasising mastery of nuclear technology, absolute
In April, Prime Minister Phạm Minh Chính officially assigned the Vietnam Electricity Group (EVN) and the Vietnam National Oil and Gas Group (Petrovietnam) as investors the projects, while delegating Khánh Hòa Province to manage resettlement and land clearance.
The total land to be prepared for Ninh Thuận 1 and 2 exceeds 1,130 hectares, affecting 1,153 households with 5,229 residents. The estimated cost for land clearance, relocation, resettlement, and livelihood stabilisation stands at VND12,392bn ($469m), of which the central government has so far allocated VND3,236bn. Ninh Thuận 1 will be built in Phước Dinh Commune on 485.54 hectares and Ninh Thuận 2 in Vĩnh Hải Commune on 643.6 hectares.
After the nuclear energy programme was resumed, Vietnam had asked Japan and Russia to implement the projects, Ito said. However, he added that, after meetings with Vietnamese officials, Japan had decided in November that it would pull out as the deadline for completion was too close. Vietnam had been expected to sign agreements in September for Ninh Thuan 1 and in December for the second plant but as yet no agreement has been signed.
However, in September Rosatom and the Vietnamese company Power Engineering Consulting Joint Stock Company 2 signed a memorandum of understanding for cooperation on the Ninh Thuận-1 NPP project, including updating the feasibility study and site profile, as well as to deepen cooperation in infrastructure development and personnel training. Rosatom said its “potential participation in this project could become the driving force behind a strategic partnership for decades to come”.
