IRIA News

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Russian Prime Minister Mikhail Mishustin and high-level Vietnamese officials signed a nuclear energy cooperation agreement on January 14, 2024. The accord was formalized during Mishustin’s two-day visit to the Southeast Asian nation, highlighting both countries’ shared interest in revitalizing Vietnam’s long-stalled nuclear energy ambitions.

Vietnam’s Ministry of Science and Technology revealed that Rosatom, Russia’s state-owned nuclear energy giant, expressed keen interest in aiding the country’s efforts to resurrect the Ninh Thuan nuclear power project.

Initially planned for development with Russian and Japanese collaboration, the ambitious project was shelved in 2016 due to escalating costs and safety concerns. The project originally envisioned two nuclear plants in the central Ninh Thuan province with a combined capacity of 4,000 megawatts.

Renewed focus on nuclear energy

The renewed push for nuclear energy reflects Vietnam’s strategic goals of achieving energy independence and reducing greenhouse gas emissions by 2050. The agreement, signed between Rosatom and Vietnam Electricity (EVN), underscores the country’s intent to revisit nuclear power as part of its broader energy transition strategy.

Rosatom’s director general Alexei Likhachev, who arrived in Hanoi a day before the agreement, underscored his company’s commitment to Vietnam. “Rosatom is ready to help Vietnam build nuclear power plants and centers and to share and localize Russian nuclear technology,” he stated in Vietnamese state media.

Likhachev’s visit marked the third meeting between him and Vietnamese Prime Minister Pham Minh Chinh in just six months, signaling the strategic importance both sides place on the collaboration.

Strengthening bilateral ties

Mishustin’s visit to Hanoi marks another step in the deepening of Russia-Vietnam relations, which date back to 1950. In talks with Vietnamese Communist Party Leader To Lam and National Assembly Chairman Tran Thanh Man, Mishustin reaffirmed Russia’s commitment to strengthening ties with Vietnam, stating, “Vietnam is an important partner of Russia in Southeast Asia. Today we plan to discuss with you a comprehensive plan for cooperation between Russia and Vietnam, which runs until 2030.”

Beyond nuclear energy, the visit yielded agreements in digital technology, electronics, and marine research. Russia also pledged to transfer a scientific research vessel to Vietnam, further cementing their cooperation in science and technology.

Strategic Implications

The alliance between Vietnam and Russia is steeped in Cold War history, with Moscow serving as a key ally to Hanoi during the Vietnam War. Evidence of this longstanding relationship is still visible in Vietnamese cities, where Soviet-style architecture stands as a reminder of their shared past.

However, the economic dynamics between the two countries have evolved significantly. Bilateral trade between Russia and Vietnam was a modest $3.6 billion in 2023, dwarfed by Vietnam’s trade with China ($171 billion) and the United States ($111 billion).

Russia has also been Vietnam’s primary arms supplier for decades, accounting for over 80% of Vietnam’s arms imports between 1995 and 2023. But in recent years, Hanoi has sought to diversify its military procurement amid declining Russian exports, exacerbated by Western sanctions on Moscow over the war in Ukraine.

The nuclear energy agreement comes at a time when Russia is seeking to strengthen partnerships in Asia to counter its increasing global isolation. President Vladimir Putin’s visit to Vietnam in June 2024 laid the groundwork for this cooperation, with both nations agreeing to pursue a roadmap for a nuclear science and technology center in Vietnam.

Opportunities and challenges

Vietnam’s decision to revisit nuclear energy is not without challenges. The country abandoned its previous plans in 2016 due to public safety concerns and soaring costs. The involvement of Rosatom, a global leader in nuclear energy, could provide the technical expertise and financial backing necessary to address these concerns.

Moreover, the collaboration aligns with Vietnam’s broader goals of energy diversification and sustainability. The nation has been expanding its renewable energy capacity, particularly in solar and wind, but faces growing energy demands that nuclear power could help address.

For Russia, the agreement represents an opportunity to deepen its influence in Southeast Asia and showcase its nuclear technology amid a challenging geopolitical landscape. The partnership also demonstrates Vietnam’s pragmatic approach to foreign policy, maintaining balanced relations with major powers, including the U.S., China, and Russia.

While the nuclear energy agreement is just one of several accords signed during the visit, its potential impact could be transformative, not only for Vietnam’s energy sector but also for the broader trajectory of its relationship with Russia. The successful implementation of this deal could set a precedent for future collaborations and solidify Vietnam’s status as a key partner in Russia’s pivot to Asia.