Nuclear Manufacturing Mystery: Which ASEAN Nation Will Dominate?
Countries in the Association of Southeast Asian Nations (ASEAN) are now at a critical crossroads. On one hand, it faces an energy demand expected to grow more than twofold by 2050, driven by economic and population growth. On the other hand, it is bound by urgent decarbonization commitments targeted to be achieved no later than 2060 through net zero emissions (NZE) target. Unfortunately, in meeting this surge in energy demand, fossil fuels are projected to remain the dominant source of energy supply, with carbon emissions that harm the climate. However, in recent years, governments in the region have sought to transition to clean energy to strengthen energy security and reduce exposure to the dynamic global energy market. Since 2019, these efforts have created more than 85,000 jobs, with the economic benefits of the energy transition projected to reach USD 5.3 trillion and 66 million new jobs by 2050.
Renewable energy sources such as solar and wind have become important candidates for ASEAN’s clean energy transition initiatives, but their intermittency and dependence on location make these energy sources less efficient in the long term. Amid this dilemma, ASEAN member states have begun exploring the potential implementation of nuclear power plants (NPPs) through the adoption of Small Modular Reactor (SMR) technology, which has emerged as a key technological solution capable of serving as baseload energy and offering clean, stable, and flexible power. However, the biggest business opportunity for ASEAN lies not only in the adoption of SMRs, but also in mastering their manufacturing supply chain. Becoming the regional “SMR factory” is a multibillion-dollar industrial opportunity that promises technological advancement, high-value job creation, and energy self-reliance. Today, various ASEAN countries, such as Indonesia, the Philippines, Vietnam, Malaysia, Thailand, and Singapore, are preparing their future nuclear energy programs. Various constructive efforts are also being carried out, ranging from securing government and public support, strengthening nuclear regulatory institutions, preparing the future workforce, and planning infrastructure and supply chains. As a strategic region with unique and continuously evolving strengths, can ASEAN become a successful SMR factory in the future?
The SMR Revolution: Capturing ASEAN’s Untapped High-Value Energy Market
For decades, nuclear energy has been synonymous with massive gigawatt-scale projects that are expensive and require more than a decade of construction. This model has proven difficult to implement in many developing countries. However, as technology evolves, nuclear innovations have also become advanced, accompanied by improved safety system designs, marked by the emergence of Generation III+ and IV nuclear reactors, such as SMRs.
For newcomer countries seeking to develop nuclear energy, SMRs offer many benefits, such as lower initial capital investment, greater scalability, location flexibility for sites unable to accommodate larger conventional reactors, and higher safety features. SMRs also have two transformative advantages: smaller size and modular design. SMRs produce up to 300 MWe of power, suitable for smaller grids or remote or geographically dispersed locations where large-scale reactors are impractical. Meanwhile, with their modular design, the main components of SMRs can be mass-produced in factories and assembled on-site, resulting in fast construction times. The “factory-built” characteristic shifts nuclear energy from mega construction projects to precision manufacturing processes, drastically reducing upfront costs, accelerating construction schedules, and improving quality control. SMRs can also be integrated with renewable and other energy sources to optimize resources, enhance efficiency, diversify end-use energy products, and increase grid stability and security, with several advanced designs capable of producing high-temperature process heat for both electricity generation and desalination.
For ASEAN, this is a golden opportunity. With a combined population of nearly 700 million people and being one of the fastest-growing economic blocs in the world, energy demand is enormous. The question is no longer who will use SMRs, but who will produce and export them. Certainly, the country that succeeds in building the first regional SMR factory will gain significant economic, technological, and geopolitical advantages for decades ahead.
Critical Success Factors for Building a Regional SMR Industrial Base
In assessing the feasibility of an ASEAN country becoming a future SMR manufacturing hub, we must look beyond energy policy, requiring an evaluation of its heavy industrial foundations through several crucial pillars:
Government Support: This includes political commitment, institutional reinforcement, national policies, and financial support for nuclear technology and manufacturing industry development. This goes beyond rhetoric and must include fiscal incentives, financing, industrial roadmaps, and investment facilitation.
Infrastructure & Supply Chain: SMR manufacturing requires various nuclear-grade components with precision standards and heavy logistics. In addition, adequate access to electricity grids, ports, and industrial zones is needed to establish a stable and sustainable supply chain.
Skilled Workforce: This concerns the skills and availability of engineers (mechanical, civil, metallurgy, nuclear), certified technicians, and vocational programs to support a high-tech manufacturing ecosystem. A competitive skilled workforce must be supported by capable universities and research centers.
Regulatory Framework: This is a non-negotiable pillar in the nuclear industry, where a country must have an independent, competent, and internationally respected nuclear regulatory body. Regulatory stability is essential for long-term investment.
Public Acceptance: An SMR factory is a long-term industrial asset. Social stability through public acceptance and trust in nuclear energy is crucial to avoid project delays and ensure a safe investment climate.
Regional Readiness Scan: Evaluating Six ASEAN Nuclear Aspirants
Leading nuclear-developing countries such as the United States, Canada, the United Kingdom, France, and South Korea are currently active in the SMR sector, whether as producers, developers, or early adopters. The economic prospects for SMR-producing countries are strong and continue to grow. With many countries committing to adopting nuclear energy through SMRs, the global SMR market is projected to reach up to USD 300 billion per year by 2040. Certainly, as newcomer countries seeking to adopt nuclear energy, ASEAN member states also have the potential to become future SMR factories.
Indonesia
Indonesia has a long history of nuclear R&D from the National Nuclear Energy Agency (BATAN) to becoming the National Research and Innovation Agency (BRIN) and a well-established regulator through the Nuclear Energy Regulatory Agency (BAPETEN) that has overseen the operation of three research reactors and the use of nuclear material and radioactive sources for various purposes. To date, the government has included nuclear energy in the Electricity Supply Business Plan (RUPTL) 2025-2034 and the National Electricity General Plan (RUKN) 2025-2060, targeting the operation of two 250 MW nuclear power plant units in Sumatra and Kalimantan no later than 2034. Government support is also demonstrated through the updated National Energy Policy (KEN), which establishes stages for nuclear energy in the national energy mix. However, the government has not yet formally declared a “go nuclear” policy, and a Nuclear Energy Program Implementation Organization (NEPIO) as the implementing body to accelerate NPP development has not been established. On the other hand, Indonesia’s infrastructure quality still varies due to uneven development. However, industrial sectors such as automotive, electronics, and raw materials utilizing natural resources like nickel and copper are currently growing. In terms of workforce readiness, Indonesia has several universities offering nuclear engineering education to prepare a skilled nuclear workforce for the future. The government also provides scholarship schemes for students pursuing nuclear engineering research and studies. Nevertheless, public acceptance of nuclear energy in Indonesia remains polarized. Academic and industrial groups strongly support it, but resistance persists among the public caused by the Fukushima accident.
The Philippines
The Philippines has become one of the countries in the region with significant progress in its nuclear program, setting ambitious targets for nuclear power development through 2050, including 1,200 MW by 2032 and up to 4,800 MW by 2050 through SMRs and large-scale NPPs. The government has strengthened its regulatory foundation through the establishment of the independent regulator PhilATOM and various supporting policies aligned with IAEA standards. To attract private investment, the Philippines launched the NPP Pioneer scheme offering major incentives such as priority dispatch, EPNS certification, and exemption from auction mechanisms. Capacity-building programs and increased public support also strengthen the country’s readiness toward the operation of its first NPP in 2032. With this momentum and its position as a member of the IAEA Board of Governors for 2025–2027, the Philippines has the potential to become a new nuclear leader in ASEAN. The Philippines also has an active nuclear research institution through the Philippine Nuclear Research Institute (PNRI). The country also conducts civil nuclear cooperation with other states, such as the U.S. through the 123 Agreement for cooperation on peaceful nuclear activities. In the Philippines, the electronics industry currently dominates with semiconductor and electronics manufacturing services focused on assembly, testing, and packaging. The Philippines also has a large manufacturing workforce and GDP contribution. Historically, the Philippines successfully built ASEAN’s first NPP, the 621 MW Bataan Nuclear Power Plant (BNPP), although the process halted in 1984. Overall, the Philippines is relatively strong as a potential SMR manufacturing base in ASEAN, supported by its growing industrial potential and government support.
Vietnam
In preparing its nuclear program, Vietnam has shown significant progress in the region, particularly with the introduction of the 4,000 MW Ninh Thuan NPP project targeted for 2035. The government strongly supports these efforts to meet long-term national energy needs. This commitment is reinforced by the development of competent infrastructure, including regulatory enhancement, a Technical Support Organization (TSO), and workforce capacity through the Da Lat Research Reactor and a new science and technology nuclear research center equipped with a 10–15 MW reactor currently under feasibility studies and site surveys. International nuclear cooperation is also strong, including with Russia. The government is also preparing relocation plans for communities living in the prospective Ninh Thuan NPP area. Industrially, Vietnam is highly experienced as a global manufacturing hub with solid logistics infrastructure, evident from the growth of its electronics and high-tech manufacturing sectors driven by global companies. Vietnam has a highly disciplined and skilled workforce in assembly and precision manufacturing within the electronics industry. To meet future nuclear workforce needs, Vietnam is preparing various programs such as short-term intensive training and internships on specialized skills in plant management and operation. Initiatives to improve public trust are continuously implemented to highlight the benefits of nuclear energy, such as combating climate change and driving economic development, while addressing public concerns through transparent communication and education.
Malaysia
Malaysia has experienced significant development in its nuclear energy program. After announcing and integrating nuclear energy into the 13th Malaysia Plan (RMK13) 2026–2030, the government has provided concrete support by allocating RM 28.6 million (around USD 6.8 million) for nuclear energy development programs in 2026. The government has also appointed MyPOWER Corporation, an agency under the Ministry of Energy Transition and Water Transformation (PETRA), as the NEPIO responsible for building Malaysia’s nuclear infrastructure and governance in compliance with IAEA standards. The Department of Atomic Energy Malaysia, as the national authority, ensures that these instruments are effectively implemented. Regarding national development, Malaysia has excellent port, road, and industrial infrastructure, with growing automotive and electronics industries supported by a significant manufacturing workforce and GDP contribution. As a country renewing its nuclear commitment, Malaysia continues to enhance public participation and support through outreach and education.
Thailand
Thailand has included nuclear energy in the Power Development Plan (PDP) 2024 with a target of operating two SMR units in 2037, each with a capacity of around 300 MW. Although in the national energy plan, nuclear has not yet become a top priority and is often hindered by political instability. Nevertheless, through the Electricity Generating Authority of Thailand (EGAT), Thailand has explored SMR options through cooperation with Korea Hydro & Nuclear Power (KHNP) for future projects. In terms of infrastructure, Thailand is quite strong, with the Eastern Economic Corridor (EEC) serving as evidence of Thailand’s ability to manage world-class logistics and heavy industries, including the automotive, electronics, steel, and cement industries. The automotive manufacturing base provides a large pool of skilled technicians and engineers in complex manufacturing processes. Thailand also has the Thailand Institute of Nuclear Technology (TINT) as its nuclear R&D organization and the Office of Atoms for Peace (OAP) as the regulatory authority overseeing the nuclear-related manufacturing industry. However, public acceptance remains a major issue due to strong anti-nuclear sentiment following the Fukushima 2011 incident.
Singapura
As a developed country in ASEAN, Singapore has begun initiatives to explore the feasibility of using nuclear energy for electricity generation. Although the government has no current plans to build an NPP in the country, it is undertaking various collaborations, such as with the U.S., to study aspects of nuclear energy and advanced reactor technologies, including SMRs. However, with limited land availability, it is almost certain that Singapore will not be the physical site of an SMR factory in the future. Nonetheless, with its highly qualified human resources and advancement in the economy, research, and education, Singapore will play a crucial role as the “brain” of the nuclear ecosystem in the region, serving as a hub for finance, law, insurance, and R&D for all SMR programs in ASEAN.
Strategic Differentiation: Identifying the Region’s True SMR Front-Runner
A comparative analysis shows that among the six countries, three main contenders emerge as potential SMR manufacturing hubs: Indonesia, the Philippines, and Vietnam. However, two of them face significant limitations that prevent them from taking the lead. Singapore is a special case. It will undoubtedly serve as the “brain” of the region through its strengths in finance, legal infrastructure, and R&D, but its land constraints make it impossible to become the physical “muscle” or host large-scale manufacturing. Thailand and Malaysia possess strong industrial bases (automotive, electronics), but their political foundations are not yet strong enough. Without firm and urgent government commitment, investors will not risk placing billion-dollar SMR factories there.
Indonesia has two major advantages: a mature regulatory body and a massive domestic market. Yet the country appears internally undecided. The absence of a definitive NEPIO and an ambiguous “go nuclear” stance send mixed signals. Combined with polarized public acceptance, Indonesia is poised to become the largest SMR market in the future, but not an efficient SMR manufacturing hub. On the other hand, the Philippines has demonstrated exceptional political will, positioning itself as a top candidate for early adoption and as a key market. However, maintaining and consolidating public trust in nuclear energy remains a major challenge.
Why Vietnam Is Poised to Lead ASEAN’s SMR Manufacturing Future
Vietnam emerges as the most promising country for hosting an SMR manufacturing hub in ASEAN, backed by a combination of regulatory readiness, political commitment, industrial capacity, and growing public support. Vietnam demonstrates long-term dedication and highly developed infrastructure. The government has consistently supported the Ninh Thuan NPP project as the foundation of its national nuclear program, while strengthening institutional infrastructure. This stability, backed by globally recognized industrial capabilities and strong international partnerships, positions Vietnam as the top contender to become both an early adopter and a leading producer of SMR components in the region. Vietnam’s advantage is not based on rhetoric, but on a proven and undeniable track record. Here’s why:
Manufacturing Capability: This is the decisive factor. To build factories, a country must have experience building factories. Vietnam has already proven itself as a global manufacturing powerhouse. It hosts major operations for Samsung, LG, Intel, and other global giants. Its workforce is disciplined, skilled in precision assembly, and supported by world-class logistics infrastructure. Transitioning these capabilities to SMR component manufacturing is a logical progression, not a theoretical leap.
Political Stability & Long-Term Commitment: SMR investors must bet on a 30-50 year horizon. Vietnam offers the political stability that Thailand lacks, and consistent governmental commitment (evident from the sustained focus on Ninh Thuan). For investors, this level of predictability is invaluable.
A Pro-Investment Ecosystem: Vietnam has demonstrated its ability to attract massive foreign direct investment. Its ecosystem, competitive labor costs, favorable tax policies, and extensive free trade agreements, is already primed to absorb SMR manufacturing.
Strategic Pathways to Secure ASEAN’s SMR Industrial Leadership
Vietnam’s leadership does not imply exclusivity; it implies centrality. In this model, other ASEAN countries can play crucial complementary roles. The Philippines will serve as the primary partner and flagship customer. Its strong political momentum will become an important market proof point, supported by supply chains anchored in Vietnam. Singapore will act as the financier and R&D certification hub, providing funding and quality assurance for components manufactured in Vietnam. Indonesia and Malaysia will become second-phase expansion markets and potential locations for Tier-2 component manufacturing, feeding into Vietnam’s main SMR hub. The new era of nuclear energy in ASEAN is not only about building NPPs, but also about building a supply chain. However, Vietnam’s opportunity to take the lead must be supported by risk mitigation, particularly regarding funding constraints, an evolving regulatory framework, and reliance on foreign vendors.
This regional collaboration will create fantastic future economic opportunities without question. It will be a regional strategy further strengthened at the 10th edition of the Asia Nuclear Business Platform (ANBP) 2025, to be held on December 9-11, 2025 in Jakarta, Indonesia. This event will serve as a vital forum bringing together policymakers, global stakeholders, and industry leaders to shape the next phase of ASEAN’s nuclear trajectory. With the National Energy Council of Indonesia (Dewan Energi Nasional, DEN) as the host, this forum will strengthen ASEAN’s nuclear energy commitment by directing the region’s sustainable nuclear energy programs to achieve energy security with significant economic benefits.
