Japan exits Vietnam nuclear plant project, setting Korea up as leading contender

Vietnam sees nuclear power as a way to ease its power shortages while expanding low-carbon energy use. Pictured is an illustration of the Ninh Thuan Nuclear Power Plant. (Image: Electricity Authority of Vietnam)

Vietnam’s plan to revive nuclear power has hit turbulence after Japan withdrew from the Ninh Thuan 2 project, citing an overly compressed construction schedule.

The exit raises fresh concerns over Vietnam’s already strained power supply outlook.Tokyo, however, has not ruled out future cooperation on small modular reactors (SMRs) or other nuclear initiatives. With Japan stepping back, investors from France, South Korea, and the United States are reportedly expressing strong interest.