Vietnam leaning to nuclear solutions

Vietnam is weighing small modular reactors as a strategic answer to soaring electricity demand and decarbonisation goals, but high costs and limited capacity remain formidable hurdles.

- By Phuong Thu

At a seminar on small-scale nuclear power held in Hanoi last week, experts described small modular reactors (SMRs) as a promising baseload power source capable of supplying stable electricity around the clock, regardless of weather conditions that often constrain solar and wind generation.

The technology is attracting growing attention as Vietnam faces mounting pressure to secure reliable electricity supplies for power-intensive industries such as semiconductors, AI, and large-scale data centres.

According to Nguyen Ngoc Hung, head of the Energy Economics Department under the Institute of Energy at the Ministry of Industry and Trade, Vietnam’s electricity demand is entering a period of rapid structural growth driven by electrification and industrial expansion.

“Electricity currently accounts for nearly one-third of the country’s final energy consumption, compared to only around 18 per cent previously,” Hung said. “The electrification trend is becoming increasingly evident across residential, industrial, and transport sectors.”

Hung noted that pressure is especially intense in northern Vietnam, where industrial and commercial electricity demand has been growing significantly faster than in the central and southern regions.