President Lee Jae-myung’s recent state visit to Vietnam has sharpened attention among South Korean builders on Vietnam’s large infrastructure pipeline, as expectations grow that the country and the broader Southeast Asian market could open more fully for nuclear power plants and data centers, both still at an early stage. Industry officials expect competition to intensify as companies seek an early foothold.
According to foreign media reports cited on April 28, the Vietnamese government recently completed site surveys and approval procedures for Unit 2 of the Ninh Thuan nuclear power project.
The Ninh Thuan project, ordered by Vietnam Electricity (EVN), calls for building Units 1 and 2 in Ninh Thuan province with a combined capacity of 4 to 6.4 gigawatts. Unit 1 is targeted to begin operating in 2030 and Unit 2 in 2035. Russia has secured preferred bidder status for Unit 1.
The competitive landscape for Unit 2 has shifted after Japan withdrew, citing construction schedule burdens. Korea Electric Power Corp. has moved to enter the bidding, signing a memorandum of understanding with EVN on cooperation in power infrastructure and pushing a “one-team” approach. Unit 2 is planned at 2 to 3.2 gigawatts, with an estimated cost of about $22 billion, or roughly 32 trillion won. South Korean companies are seeking an edge by pointing to experience from the UAE’s Barakah nuclear plant and the Dukovany nuclear project in the Czech Republic.
Construction firms are also repositioning. Daewoo Engineering & Construction created a new Global Infrastructure Division by integrating its overseas business and nuclear units to support expansion in nuclear projects. Hyundai Engineering & Construction and POSCO E&C are also preparing to enter the Southeast Asian nuclear market.
Companies view the contest as more than a single contract, describing it as a bridgehead into Southeast Asia’s nuclear market. Vietnam’s power generation mix is about 10% gas, 47% coal and 0% nuclear, leaving room for a shift. Under its eighth national power development plan, known as PDP8, the Vietnamese government has set diversification of energy sources, including nuclear, and modernization of power infrastructure as key tasks. Malaysia and Thailand have also formally stated plans to introduce nuclear power, raising expectations that the regional market could expand.
With energy security drawing more attention after geopolitical risks in the Middle East, demand for nuclear power is also rising, the article said. “Because Southeast Asia’s nuclear market is still in its early stages, this bidding round will be a turning point that determines who secures an early lead,” an official at the International Contractors Association of Korea said.
South Korean builders also cite accumulated experience in Vietnam as a competitive advantage, built through housing and commercial projects as well as plants, bridges and roads. Daewoo E&C pointed to its Hanoi Starlake City mixed-use development, where it handled development, investment and construction, as a flagship success. GS Engineering & Construction has expanded its presence through the Ho Chi Minh City Nha Be new town development and the NSRP refining and petrochemical plant project.
Data centers are emerging as another growth area. In line with Vietnam’s digital transformation strategy, builders are pursuing projects that combine data centers with urban infrastructure. Daewoo E&C and GS E&C, working with SaigonTel and FPT Corp., respectively, plan to start with data centers of several dozen megawatts and expand in phases, while also pursuing smart city development.
A Daewoo E&C official said Starlake City is a large mixed-use project expected to host relocated central government ministries and major companies, adding that follow-on development is being pursued not only in Hanoi but also in key areas including Ho Chi Minh City.
* This article has been translated by AI.
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