Nuclear Renaissance in Southeast Asia: South Korea-Vietnam Collaboration Unlocks Strategic Investment Opportunities

Vietnam's decision to revive its nuclear energy ambitions in late 2024, paired with South Korea's proven expertise in constructing the UAE's Barakah Nuclear Power Plant, has created a rare convergence of policy, technology, and investment potential. This partnership, anchored by KEPCO's recent Memoranda of Understanding (MOUs), positions investors to capitalize on a dual opportunity: supporting Vietnam's energy transition while profiting from South Korea's leadership in nuclear infrastructure and grid modernization.

Vietnam's Nuclear Revival: Policy and Projects

Vietnam's National Assembly formally greenlit its nuclear comeback in November 2024, approving the National Electricity Development Plan 8 (PDP8). This plan allocates $136 billion to energy infrastructure through 2030, with nuclear power projected to supply 4–6.4 GW by 2030 and 8 GW by 2050. The centerpiece is the Ninh Thuan Nuclear Power Plant in central Vietnam, split into two phases:
- Ninh Thuan 1 (EVN-led) and Ninh Thuan 2 (Petrovietnam-led), each with two reactors.
- Target completion by 2030, accelerated from earlier timelines, to meet surging demand (projected to hit 1,200 TWh by 2045).

The revised Electricity Law (effective Feb 2025) further incentivizes private investment by dismantling state monopolies (except for nuclear projects) and introducing market-based pricing. This framework creates a fertile ground for foreign firms to partner in technology transfer and grid upgrades.

South Korea's Nuclear Edge: Lessons from the UAE

South Korea's KEPCO-led consortium delivered the UAE's Barakah Nuclear Power Plant—the first large-scale nuclear project in the Middle East—on time and within budget. This 4-reactor, 5.6 GW facility (using APR-1400 reactors) demonstrated South Korea's ability to execute complex projects in challenging environments. The Barakah model offers Vietnam a scalable blueprint:
- Technology Transfer: KEPCO's expertise in reactor design, safety protocols, and workforce training is directly transferable.
- Financing Structure: The UAE project utilized long-term, state-backed loans; similar frameworks could attract investors to Vietnam's Ninh Thuan.

KEPCO (KRX: 010780) has seen a 25% rise in valuation since 2023 as its nuclear and grid projects gain traction in emerging markets.

KEPCO's Strategic MOUs: HVDC Grids and Beyond

In 2024–2025, KEPCO inked pivotal agreements to support Vietnam's energy ambitions:
1. Grid Modernization: An MOU with Vietnam's National Power Transmission Corporation (EVNNPT) focuses on High Voltage Direct Current (HVDC) technology, critical for integrating renewables and stabilizing Vietnam's grid. KEPCO's HVDC systems (e.g., the UAE's 500 kV transmission lines) reduce energy loss by 20–30% compared to AC grids.
2. Nuclear Collaboration: KEPCO's February 2025 meeting with Vietnam's Ministry of Industry and Trade (MoIT) emphasized joint ventures in reactor construction, fuel supply, and workforce training. Vietnam aims to localize 30–40% of nuclear supply chains by 2030, creating opportunities for Korean firms like KEPCO Nuclear Fuel and Doosan Enerbility.

Investment Opportunities: Where to Play

1. Nuclear Tech Exports:
2. KEPCO (KRX: 010780) and its subsidiaries are prime candidates for investors seeking exposure to Vietnam's nuclear buildout.

3. Doosan Enerbility (KRX: 047050), a leader in reactor components, could benefit from supply contracts.

4. Grid Infrastructure:

5. HVDC projects will dominate Vietnam's grid modernization. Investors can track KEPCO's HVDC joint ventures (e.g., KAPES with GE Vernova) for scalability.

6. Vietnamese state-owned enterprises like EVN (listed on HOSE) may see valuation uplifts as they secure foreign partnerships.

7. Long-Term Energy Security Plays:

8. Vietnam's $18–20 billion annual investment in energy infrastructure through 2030 ensures sustained demand for engineering and tech services.
9. Small Modular Reactors (SMRs)—already under exploration by Vietnam—could open new markets for firms like NuScale Power (backed by KEPCO).

Risks and Considerations

• Funding Challenges: Vietnam's ambitious targets require $136 billion by 2030—a gap foreign investors must fill.
• Regulatory Delays: Vietnam's revised Atomic Energy Law and MOIT decrees must clarify ownership caps and safety standards.
• Public Acceptance: Post-Fukushima concerns linger; transparency in safety protocols will be critical to sustained support.

Conclusion: A Pivotal Moment for Asian Energy

The South Korea-Vietnam nuclear partnership is more than a bilateral deal—it's a blueprint for Asia's energy transition. Investors ignoring this collaboration risk missing a multi-decade growth cycle in nuclear infrastructure and grid modernization.

Actionable Recommendation:
- Buy KEPCO (010780) for its leading role in HVDC and nuclear tech transfer.
- Consider Vietnam's EVN (HOSE: POW) as a play on domestic grid expansion.
- Monitor KEPCO's Q2 2025 earnings for updates on Vietnam project milestones.

This underappreciated alliance offers a rare blend of policy support, technological edge, and scalable returns—ideal for investors seeking to profit from Asia's clean energy future.

Vietnam's demand is projected to grow from 300 TWh (2020) to 1,200 TWh (2045), underscoring the urgency for infrastructure investment.