A Major Government-Level Milestone Strengthens the Project’s Legal, Institutional and Investment Framework
Vietnam has taken another significant step toward the implementation of the landmark Ninh Thuan 2 Nuclear Power Project, one of the country’s most strategically important energy and infrastructure developments.
On 16 July 2026, Deputy Prime Minister Phạm Gia Túc chaired a high-level Government meeting with the Ministry of Finance, relevant ministries, the Vietnam Electricity Group—EVN—and the Vietnam National Industry-Energy Group—Petrovietnam—concerning the implementation of Vietnam’s revived nuclear power programme.
The Deputy Prime Minister directed the responsible authorities to urgently complete the legal framework, policy documentation and administrative procedures required to accelerate both the Ninh Thuan 1 and Ninh Thuan 2 Nuclear Power Projects.
This represents a meaningful Government-level development. It moves the programme beyond general policy confirmation and toward the creation of the specific legal, administrative and institutional architecture necessary for investment approval, strategic-partner participation, financing and project execution.
State appraisal milestone completed
A particularly important development is the confirmation by the Ministry of Finance that the State Appraisal Council has completed its assessment of the proposed adjustment to the investment policy for the Ninh Thuan nuclear power programme.
The Council recommended restructuring the programme into three independent projects:
- the Ninh Thuan 1 Nuclear Power Project;
- the Ninh Thuan 2 Nuclear Power Project; and
- a separate compensation, support and resettlement project.
This proposed restructuring is highly relevant from an implementation and financing perspective.
Separating the two nuclear power plants from the compensation and resettlement programme should provide clearer responsibility, more transparent project governance and a more manageable approval structure. It may also help isolate different categories of risk, expenditure and administrative responsibility.
For international investors, export credit agencies, commercial lenders, contractors and strategic partners, clearly defined project structures are essential. They facilitate legal due diligence, risk allocation, financing analysis, procurement planning and the establishment of identifiable contractual and regulatory interfaces.
The completion of the State Appraisal Council’s assessment therefore represents an important procedural milestone in the development of the projects.
Special legal and investment mechanisms under consideration
The Government meeting also recognized that nuclear power projects of this scale, complexity and national importance cannot necessarily be implemented efficiently through ordinary administrative procedures alone.
The participating authorities concluded that special legal, policy and investment mechanisms would be required to accelerate:
- investment-policy appraisal;
- investment preparation;
- licensing and administrative approvals;
- compensation and resettlement;
- financing arrangements;
- project implementation; and
- coordination among Government authorities and State-owned project entities.
The Deputy Prime Minister accordingly instructed the Ministry of Finance and other relevant agencies to finalize the required dossiers for submission to the competent authorities and, subsequently, to the National Assembly.
This is an important signal for the international market.
Large-scale nuclear power projects require long-term regulatory certainty, coordinated Government support and clearly defined decision-making authority. The development of special mechanisms may therefore be essential to addressing the practical realities of nuclear project implementation, including extensive capital requirements, long construction periods, technology-transfer obligations, sovereign and regulatory interfaces and the participation of foreign strategic partners.
Why this development matters to investors and lenders
The latest Government action does not itself constitute the final investment decision for Ninh Thuan 2. Nor does it confirm the identity of the foreign strategic partner.
However, it materially strengthens the project’s implementation environment.
For prospective investors and lenders, several consequences are particularly important.
- Stronger evidence of Government commitment
The direct involvement of the Deputy Prime Minister, the Ministry of Finance, relevant ministries, EVN and Petrovietnam demonstrates that the nuclear programme is being addressed at the highest levels of Government.
This is important because projects of this magnitude require sustained political support across multiple administrative, regulatory and financing stages.
- Reduced procedural uncertainty
The completion of the State Appraisal Council’s assessment removes an important preliminary procedural step and allows the authorities to move toward finalizing the revised investment-policy framework.
The proposed separation into three independent projects should also make the approval and implementation process more structured and transparent.
- A clearer pathway toward strategic-partner selection
Vietnam has previously indicated that it intends to select the foreign strategic partner for the approximately 3.2 GW Ninh Thuan 2 project during the third quarter of 2026.
The latest Government instructions are consistent with the need to establish the legal and institutional framework before a foreign strategic partner can be formally selected and before comprehensive project agreements can be negotiated.
- Improved financing readiness
Potential lenders require clarity concerning the identity of the project owner, the applicable legal framework, Government support, land and resettlement arrangements, licensing procedures, project revenues, risk allocation and enforcement mechanisms.
The latest developments do not yet resolve all of these matters. However, they demonstrate that the Government is actively addressing the foundational issues required for a financeable project structure.
- Greater institutional coordination
The involvement of both EVN and Petrovietnam reflects the Government’s broader implementation strategy for the two nuclear projects.
Petrovietnam is expected to be the Vietnamese project entity associated with Ninh Thuan 2, while EVN is associated with Ninh Thuan 1.
Clear institutional roles will be critical for future negotiations with foreign strategic partners, technology suppliers, EPC contractors, financing institutions and professional advisers.
Impact on KEPCO and the prospective international consortium
KEPCO remains the leading publicly identified foreign candidate associated with the Ninh Thuan 2 Nuclear Power Project.
The Ministry of Industry and Trade has previously indicated that initial discussions between KEPCO and Petrovietnam have been positive and that cooperation is considered possible. The Government has also identified important expectations for the foreign strategic partner, including:
- the transfer of at least 30% of relevant nuclear technology to Vietnam;
- the arrangement of preferential project financing, reportedly targeting interest rates below 3% per annum; and
- extensive training and capacity building for the Vietnamese workforce.
The latest Government-level action strengthens the environment in which negotiations with KEPCO, or any ultimately selected foreign strategic partner, may proceed.
It should nevertheless be stated clearly that there remains no official public announcement confirming:
- the final selection of the foreign strategic partner;
- KEPCO as the successful project partner;
- the final structure of the international consortium;
- any appointment of Barun Law in relation to the final project implementation;
- the appointment of international or Vietnamese legal advisers;
- the award of any EPC contract;
- the completion of project financing;
- financial close; or
- commencement of construction.
These distinctions are important. They ensure that the current procedural progress is not confused with a final project award or investment decision.
A landmark project of national and international significance
With an anticipated capacity of approximately 3.2 GW and an estimated investment value of approximately USD 22 billion, Ninh Thuan 2 is expected to become one of the largest and most complex infrastructure projects ever undertaken in Vietnam.
Its significance extends far beyond the construction of a single power plant.
The project forms part of Vietnam’s long-term strategy to strengthen national energy security, diversify the country’s electricity-generation mix, support industrial development and reduce dependence on carbon-intensive power generation.
It will also require a sophisticated international ecosystem involving:
- nuclear technology providers;
- strategic investors;
- export credit agencies;
- development-finance institutions;
- commercial banks;
- engineering and construction groups;
- equipment manufacturers;
- insurers;
- technical consultants;
- regulatory specialists; and
- international and Vietnamese legal advisers.
For these participants, the principal questions will concern not only technical feasibility but also project bankability, regulatory stability, risk allocation, State support, currency convertibility, revenue security, licensing, nuclear liability, decommissioning obligations, waste management, dispute resolution and the enforceability of project agreements.
The Government’s current work on the legal and investment framework is therefore fundamental to the successful mobilization of international capital and expertise.
Outlook
The 16 July 2026 meeting should be regarded as a substantive implementation milestone rather than a final project decision.
The State appraisal process has advanced. The Government has directed the urgent completion of the relevant legal and policy framework. Special mechanisms are being considered, and the required dossiers are being prepared for submission to the competent authorities and ultimately to the National Assembly.
These steps materially reduce procedural uncertainty and reinforce the conclusion that Vietnam is actively preparing the legal, institutional and investment foundations required for the implementation of Ninh Thuan 2.
The next major milestones are expected to include:
- finalization of the revised investment-policy documentation;
- consideration and approval of the proposed special mechanisms;
- formal separation of the nuclear programme into the proposed independent projects;
- clarification of the project-development and governance structures;
- selection of the foreign strategic partner;
- negotiation of the principal project and financing arrangements;
- development of the nuclear licensing framework; and
- preparation for procurement, financing and implementation.
For international investors and lenders, the message is increasingly clear: Vietnam’s nuclear programme is moving from policy revival toward structured implementation.
Although significant legal, financial, regulatory and technical work remains, the direction of travel is positive. The Government is taking concrete steps to establish the framework required for one of Southeast Asia’s most consequential energy projects.
The Ninh Thuan 2 Nuclear Power Project should therefore continue to be monitored closely by strategic investors, technology providers, export credit agencies, international financial institutions, commercial lenders and global infrastructure participants seeking to take part in Vietnam’s next generation of major energy development.
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For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under [email protected]. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.