Vietnam holds on to nuclear policy to drive growth

Despite the nuclear disaster that has rocked Japan and is knocking a few percentage points off that country’s GDP in the process, Asean member Vietnam will proceed with its own plans for nuclear energy.

“The Japanese accident has made each country rethink its nuclear energy policy. But for Vietnam, the government has decided to go ahead and build nuclear power plants, a decision based on the long-term demand and supply outlook,” Vietnamese Deputy Prime Minister Hoang Trung Hai said during a recent trip to Japan.

The minister, who is also in charge of national infrastructure development, said that otherwise Vietnam stood to become a net importer of energy by 2015 against its current status as a net exporter.

“Energy is vital for the sustainable growth of the country,” said Mr Hai.

Vietnam has laid out plans to build four nuclear plants in the coming years that would generate 4,000 megawatts of electricity.

The first one, costing US$3.5 billion, will be in Ninh Thuan province along the southeastern coast.

Mr Hai said Vietnam believes it can learn safety lessons from the Fukushima I nuclear power station catastrophe.

He has met with Japanese Economy, Trade and Industry Minister Banri Kaieda to request that country’s continued cooperation on existing nuclear plant construction in Vietnam.

Japan has so far received orders from the Vietnamese government to build two of the nuclear plants.

Vietnam needs these projects because it continues to experience tremendous growth, although the country is mindful that the growth must become more balanced, said Mr Hai.

He said climate change was also becoming a more formidable challenge, to the world in general and Southeast Asia in particular, and development must be in a sustainable format.

“Southeast Asia is is one of the most vulnerable regions to climate change,” he said.

Mr Hai cited a World Bank study showing Vietnam will be one of the most affected countries in terms of rising sea levels.

The study said by 2100, the country could see its average temperature rise by 2-3 degrees Celsius and its sea level by as much as one metre.

“This means 40% of the Mekong River delta and 11% of the Red River delta, the two biggest rice producing regions of Vietnam, will be submerged. Apart from this, 3% of present coastal land and 20% of Ho Cho Minh City will also go under water,” he said.

This scenario would directly affect 10-12% of the population while shaving 10% off of GDP. “Therefore, a sustainable economic development model for a developing country such as Vietnam is extremely important. No matter how difficult it may be, it’s not impossible,” said Mr Hai.

To achieve this goal, the government is undertaking a two-pronged approach _ policy implementation and coordination with other countries.

The country has also undertaken various projects with agencies from the UK, Denmark, Japan and others worth a combined $1.28 billion, while another 11 projects worth $1.3 billion are in the pipeline.

Mr Hai said while Japan is the largest investor in Vietnam, with bilateral trade rising to $16 billion last year, up by 24% from 2009, the world’s third-largest economy is also one of the biggest contributors of sustainable development technology to Vietnam.

“An initiative called ‘A Decade Towards a Green Mekong’ put forward by Japan helps the Mekong River countries to take a comprehensive overview of environmental protection and responses to climate change and improve policy coordination,” said Mr Hai. – Stoxplus.com

Tags: Vietnam energy, Vietnam nuclear power project