US signs nuclear technology deal with Vietnam
John Kerry says agreement will allow US firms to invest in energy market in Vietnam, where annual growth is at 5%
theguardian.com, Thursday 10 October 2013 12.31 BST
John Kerry (left) talks to Vietnam's prime minister, Nguyen Tan Dung (right), at the 8th East Asia Summit in Bandar Seri Begawan, Brunei. Photograph: Ahim Rani/Reuters
The United States and Vietnam have signed a pact allowing the transfer of nuclear technology to the south-east Asian country, opening the way for US investment in the burgeoning industry.
US secretary of state John Kerry said the US-Vietnam Civil Nuclear Co-operation Agreement would allow US firms to tap Vietnam's future nuclear power market, although the state department said the deal would not allow Vietnam to enrich or reprocess US-origin nuclear materials.
The deal will be submitted to Barack Obama for his review before it is sent to Congress for approval by the end of the year, a US official said.
The US has moved to improve economic and security ties with Vietnam, part of its strategic rebalancing towards Asia that some see as a policy to counter China's rising clout. China's assertive claims over the South China sea have raised tensions with Vietnam, as well as other south-east Asian nations.
Vietnam's poor human rights record is a major obstacle to closer ties and US labour and human rights groups have urged Obama to suspend free-trade negotiations with Vietnam because of its treatment of workers and government critics.
Analysts say a sharp increase in the past few years in arrests and convictions of government detractors, in particular bloggers, could complicate the nuclear deal as Congress needs to be convinced Vietnam is changing.
Vietnam is working with Russia to build its first nuclear plant in 2014 for completion in 2020 in the south-central province of Ninh Thuan. Demand for energy has grown rapidly in response to economic growth of around 5% a year.
It has also signed an agreement with a Japanese consortium to develop a second nuclear power plant in the same province, with two reactors to become operational in 2024-2025. Vietnam has the second-largest market after China for nuclear power in east Asia, which was expected to grow to $50bn (£31bn) by 2030, according to Kerry.
US signs nuclear technology deal with Vietnam | Environment | theguardian.com