Country Report Vietnam April 2011

The political scene: Debate over nuclear power is sparked by Japan's woes

Widespread concerns have been voiced about Vietnam's nuclear-power programme in the aftermath of the earthquake and tsunami that devastated north-eastern Japan on March 11th. Vietnam is counting on nuclear energy to help meet an expected surge in domestic power demand in the coming decades, and the government therefore intends to bring eight nuclear reactors on stream over the next 20 years. In October 2010 Russia and Vietnam signed a deal to build the latter's first nuclear complex, while Japan and Vietnam have also planned to co-operate on the construction of two more nuclear-power plants. Many other fast-growing Asian countries have also considered turning to nuclear energy as a way of addressing their power-generation shortfalls and reducing their dependence on imported crude oil and other fossil fuels.

The problems surrounding the damaged reactors at the Fukushima Daiichi complex in Japan are raising questions among the Vietnamese public about the suitability of nuclear power and the issue has the potential to add further momentum to the country's increasingly vocal environmentalist movement. Vietnam's green lobby has loudly criticised bauxite mining (although officials are continuing with the project) and the controversy surrounding the use of nuclear power could provide the movement with additional leverage. Nerves were jangled further after tremors from a March 24th earthquake in Myanmar were felt as far away as Vietnam's capital, Hanoi. The government has stated that Vietnam will continue working to develop its capacity to generate nuclear power, but it is also going to some lengths to reassure its citizens that it will be following stringent safety rules as it presses on with the project.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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