Vietnam and France Strengthen Energy Ties with Focus on Nuclear and Renewable Power

In a significant step towards deepening the Vietnam-France Comprehensive Strategic Partnership, Prime Minister Phạm Minh Chính has urged Électricité de France (EDF), a leading French energy multinational, to expand its investments in green and clean energy initiatives in Vietnam. During a meeting in Hanoi on 12 March with EDF’s Senior Vice President for Government and International Affairs, Erkki Maillard, and French Ambassador Olivier Brochet, the Vietnamese leader also sought France’s support for nuclear power development—a critical component of Vietnam’s ambitious energy transition strategy.

The discussions come at a pivotal moment for Vietnam, a rapidly growing economy with an insatiable demand for electricity. With a target of achieving an 8 per cent growth rate in 2025 and double-digit growth in subsequent years, the country anticipates a staggering 12-16 per cent annual increase in electricity needs. This surge is further driven by Vietnam’s push into high-tech sectors such as artificial intelligence, cloud computing, and big data, all of which require substantial power resources.

A Strategic Energy Partnership

Vietnam’s energy landscape is undergoing a profound transformation as the government seeks to shift away from fossil fuels towards renewable and nuclear energy sources. This aligns with the country’s commitments under the Nationally Determined Contributions (NDC) and its goal of reaching net-zero emissions by 2050. Prime Minister Chính highlighted the recently approved National Power Development Plan for 2021-30, with a vision extending to 2050, which prioritises a robust transition to sustainable energy.

France, with EDF at the forefront, is well-positioned to support Vietnam in this endeavour. EDF, known for its expertise in energy production, transmission, and nuclear technology, already has a foothold in Vietnam through projects like the Phú Mỹ 2 Thermal Power Plant and Sơn Mỹ 1 Power Plant. Ambassador Brochet underscored France’s interest in further collaboration, particularly in renewable energy projects and nuclear power development, as part of the broader strategic partnership between the two nations.

During the meeting, Prime Minister Chính expressed appreciation for the contributions of French partners to Vietnam’s energy sector, noting their role in fostering a more “intensive, substantive, and effective” bilateral relationship. He urged EDF to not only expand its investments in clean energy but also to assist Vietnam in crafting policies and mechanisms for nuclear power development, selecting cutting-edge technologies, and training human resources.

Nuclear Power: A Restart with High Stakes

A focal point of the discussions was Vietnam’s renewed interest in nuclear energy. After years of delays, the country has restarted plans for the Ninh Thuận 1 and Ninh Thuận 2 nuclear power plants in the central province of Ninh Thuận. These projects, initially shelved due to safety concerns following the 2011 Fukushima disaster in Japan, are now back on the agenda as Vietnam seeks to diversify its energy mix and reduce reliance on coal, which still dominates its power sector.

Prime Minister Chính emphasised that Vietnam would prioritise partners capable of facilitating technology transfer and collaborating with local investors in nuclear power development. He specifically called on EDF to provide expertise in adopting the “most modern and advanced” nuclear technologies available, alongside exploring preferential funding options and investments in supporting industries such as electrical equipment manufacturing.

While EDF’s potential involvement in Vietnam’s nuclear ambitions is promising, challenges remain. Nuclear power projects are capital-intensive and require stringent safety regulations, robust policy frameworks, and public acceptance. Vietnam’s earlier hesitation to pursue nuclear energy reflects lingering concerns about safety and environmental risks, issues that any foreign partner, including EDF, will need to address transparently. If confirmed, EDF’s participation could mark a turning point, leveraging France’s decades of experience in nuclear energy—France generates over 70 per cent of its electricity from nuclear sources, one of the highest rates globally.

Renewable Energy as a Shared Priority

Beyond nuclear power, the meeting underscored a mutual commitment to renewable energy. Vietnam’s tropical climate and extensive coastline offer immense potential for solar and wind power, sectors in which EDF has considerable expertise. The Vietnamese government’s push for renewables is not merely an environmental imperative but also an economic one, as the country seeks to attract foreign investment in sustainable infrastructure to fuel its growth.

Prime Minister Chính welcomed EDF’s proposals to develop clean energy projects, aligning with Vietnam’s broader strategy to balance economic development with environmental sustainability. However, the scale of investment required to meet Vietnam’s energy demands poses a significant hurdle. Analysts suggest that while foreign partnerships like those with EDF are crucial, Vietnam must also streamline regulatory processes and offer incentives to accelerate the deployment of renewable energy projects.

If successful, collaboration with EDF could position Vietnam as a regional leader in clean energy adoption. Yet, as with nuclear power, the outcomes remain speculative. Estimates of the economic and environmental impacts of such partnerships are yet to be confirmed, and no evidence currently guarantees that these initiatives will fully meet Vietnam’s ambitious targets.

Broader Implications for Vietnam-France Relations

The energy discussions are emblematic of the deepening ties between Hanoi and Paris across multiple domains. Prime Minister Chính advocated for enhanced cooperation in science, technology, and innovation, particularly in emerging fields like artificial intelligence and the Internet of Things. He also proposed collaboration in culture, healthcare, and technical exchanges, reflecting the multifaceted nature of the Vietnam-France Comprehensive Strategic Partnership.

For France, strengthening ties with Vietnam offers strategic benefits in the Indo-Pacific region, where it seeks to counterbalance China’s growing influence. Vietnam, in turn, views France as a key partner in diversifying its international relationships and accessing advanced technologies. The energy sector, with its blend of economic and geopolitical significance, serves as a critical arena for this partnership to flourish.

However, the road ahead is not without obstacles. Vietnam’s energy transition requires not only technological and financial support but also careful navigation of domestic political and social dynamics. Public opinion on nuclear power, for instance, remains divided, with memories of past safety concerns still fresh. Meanwhile, the integration of renewables into the national grid demands substantial upgrades to infrastructure, a process that could take years even with foreign assistance.

A Path Forward

The meeting between Prime Minister Phạm Minh Chính, EDF’s Erkki Maillard, and Ambassador Olivier Brochet signals a renewed commitment to energy cooperation between Vietnam and France. It highlights Vietnam’s determination to address its pressing energy needs through sustainable means, whether by reviving nuclear power plans or accelerating renewable energy projects. For EDF, the opportunity to expand its footprint in Vietnam represents a chance to play a pivotal role in one of South East Asia’s fastest-growing economies.

As Vietnam charts its course towards a greener and more technologically advanced future, partnerships with global leaders like EDF could prove transformative. Yet, the success of these initiatives hinges on careful planning, transparent collaboration, and a shared commitment to balancing economic growth with environmental responsibility. While the potential benefits are immense, they remain conditional on overcoming significant technical, financial, and societal challenges.

For now, the discussions in Hanoi lay the groundwork for what could be a landmark chapter in Vietnam-France relations. Whether this translates into tangible outcomes—be it the construction of nuclear power plants in Ninh Thuận or the proliferation of wind and solar farms across Vietnam’s landscape—remains to be seen. What is clear, however, is that energy cooperation has emerged as a cornerstone of the strategic partnership between these two nations, with implications that extend far beyond their borders.