French President Emmanuel Macron will soon travel to Hanoi amid strong international competition surrounding Vietnam’s civilian nuclear program, recently reactivated by local authorities. While France aims to position its companies in this strategic sector, it must now contend with increased competition, notably from the United States and Russia. Vietnam signed a memorandum of understanding this Tuesday with the American firm Westinghouse Electric through its state-owned enterprise PetroVietnam. This agreement follows a previous partnership signed in January with the Russian nuclear giant Rosatom for the construction of the country’s future nuclear power plants.
Vietnam between economic pressures and nuclear ambitions
The agreement between PetroVietnam and Westinghouse Electric occurs in a particular economic context marked by trade tensions between Vietnam and the United States. For several months, Washington has threatened to impose a 46% tariff on Vietnamese goods, responding to a trade deficit considered excessive by the American administration. Vietnam currently represents the third-largest trade deficit for the United States, behind China and Mexico. Vietnamese Minister of Industry and Trade, Nguyen Hong Dien, indicated that this nuclear partnership with Westinghouse could serve as leverage to reduce trade imbalances between the two nations.
Heightened competition in the Vietnamese market
The revival of Vietnam’s nuclear program is driven by rising electricity demand linked to the country’s economic dynamism. Hanoi plans to build its first two nuclear power plants in the central province of Ninh Thuan, a project initially launched in 2009 but suspended in 2016 due to financial and environmental concerns. Historical stakeholders in this program, Russia’s Rosatom and the Japanese consortium Jined, remain in competition for resuming construction. The entry of Westinghouse Electric, a major American nuclear player, adds a new dimension to this competition, prompting other interested nations, including France, to intensify diplomatic and commercial efforts.
Challenges for France in this new context
Facing these Russian-American agreements, Emmanuel Macron aims to promote French nuclear expertise, particularly through Électricité de France (EDF). To date, France has not signed any formal nuclear agreement with Hanoi but hopes this presidential visit will open opportunities for future cooperation. Beyond nuclear power, France seeks to diversify cooperation with Vietnam by negotiating about thirty agreements across various strategic areas, including transportation, notably a significant high-speed rail project connecting Hanoi to Ho Chi Minh City, valued at approximately $67 billion.
