Korea Takes on Vietnam's Nuclear Power Sector: Significance of Two MOUs on Development and Finance

12 MOUs Signed During Korea-Vietnam Summit

Vietnam Accelerates Nuclear Power Projects, South Korea's Role Grows

Still at the "Review Stage," but South Korea Secures Foothold by Partnering with Key Vietnamese Enterprise

On the occasion of President Lee Jaemyung's state visit to Vietnam, South Korea and Vietnam exchanged 12 memoranda of understanding (MOUs) and cooperation documents on the 22nd (local time), including the review of possibilities for nuclear power plant development and financial cooperation. Among major infrastructure cooperation topics such as railways and urban development, the MOU in the nuclear power sector drew particular attention.

President Lee Jae-myung and General Secretary of the Communist Party of Vietnam and President Vo Lam shook hands after a joint press conference at the Presidential Palace in Hanoi on the 22nd (local time). Photo by Yonhap News

According to the Office of the President, the most significant achievements of this exchange ceremony were two MOUs in the nuclear power sector. Korea Electric Power Corporation (KEPCO) and Vietnam Oil and Gas Group (PVN) signed an MOU on "reviewing the possibility of cooperation in nuclear power plant development," agreeing to jointly review options for new nuclear plant construction, analyze construction risks, and optimize construction timelines. In addition, a separate MOU on "reviewing the possibility of financial cooperation for nuclear power plant projects" was signed by Export-Import Bank of Korea, Korea Trade Insurance Corporation, and KEPCO. Since both technical and financial reviews will be conducted simultaneously for this massive project, the MOUs are considered to lay the groundwork for the early phase of the business.

Vietnam is accelerating its nuclear power program. The National Assembly of Vietnam approved the resumption of the Ninh Thuan nuclear power project in November 2024, and the Prime Minister established a Nuclear Power Construction Promotion Committee in January 2025. Then, in February 2025, the government designated the Vietnam Electricity (EVN) and PVN as the respective investment entities for nuclear power projects. The Vietnamese government expects power consumption in 2045 to exceed previous plans. This is based on the view that, to prevent power shortages and secure a stable power supply necessary for industrial growth, Vietnam inevitably needs to revive its nuclear power program.

In this context, the fact that PVN is the counterpart in this MOU is particularly noteworthy. The Vietnamese government has positioned PVN as the investment entity for the second nuclear power project. In other words, South Korea's partner in this agreement is not just a cooperative organization, but the core state-owned energy enterprise that will play a pivotal role in Vietnam's nuclear power industry. Therefore, this document is seen as a signal that South Korea has officially entered the Vietnamese nuclear power sector, going beyond simple cooperation.

The timing of the agreement is also crucial. In the process of reviving its nuclear power program, Vietnam acted more swiftly with Russia. According to the Vietnamese government portal and the World Nuclear Association (WNA), Vietnam signed an intergovernmental agreement with Russia in March regarding the construction of the Ninh Thuan Unit 1. As Japan withdrew from the second project, the Vietnamese government now faces the task of finding an alternative partner. In this context, the Korea-Vietnam nuclear power MOU appears to signal an intention to fill the gap left by Japan's departure.

Although many variables remain—such as project ordering structure, technology options, business feasibility, legal frameworks, financial conditions, and the moves of competing countries—South Korea has, through this summit, positioned itself at the starting line for follow-up negotiations by presenting technology and finance as a package. The separate signing of a financial MOU is particularly meaningful. Nuclear power projects entail massive construction costs and long timelines, making policy and export financing packages as important as technical capabilities in determining project success. In fact, Western sanctions made financial transactions difficult during nuclear power cooperation with Russia. In this regard, the active involvement of the Export-Import Bank of Korea and Korea Trade Insurance Corporation sends a message to Vietnam that South Korea can also structure the financial framework, making it an attractive partner.

The MOUs related to nuclear power are also linked with other cooperation documents. The two countries agreed, via a power infrastructure MOU, to cooperate in renewable energy, energy storage systems (ESS), and the modernization and digitalization of power grids. The digital cooperation MOU encompasses AI, telecommunications, cybersecurity, and digital transformation. The science and technology innovation cooperation framework includes research and talent development in bio, energy, AI, and semiconductors. This represents a broad industrial infrastructure package approach that bundles nuclear power with power grids, digital, and workforce development. The Office of the President explained, "This MOU is meaningful in that it establishes a preemptive, customized support system tailored to Vietnam's substantial financial needs, laying the foundation for South Korea's entry into the Vietnamese nuclear power market and strengthening the partnership between the two countries."

This content was produced with the assistance of AI translation services.