Frequent power cuts hamper industrial production

17 Jul '08

2 min read

Frequent power outage in production units has severely affected the output of various enterprises and has nearly damaged the installed machineries and goods at central province businesses.

As a matter of fact, the State monopoly power supplier EVN, recently made a announcement to companies in all the provinces of the country which said that power supplies would be cut by between 1,500-2,500 megawatts daily due to breakdowns at several power plants including Ca Mau 1, Uong Bi and Phu My 2.

Some of the enterprises have even complained that due to the outages there is distruption in productions schedules and in order to make deliveries on time, they have to transport their goods by air instead of sea.

Quite obviously, this additional cost is only shrinking the profit margins of the exporters. Besides, damage caused to machines and other manufacturing equipments is also an additional expense to the companies.

Industrial sources informed Fibre2fashion that power cuts at a garment plant in Nguyen Duy street of Ho Chi Minh City leads to a halt in production almost every day. The firm has also complained that the frequent power cuts in electricity supply is not made in accordance to the announcement and schedule amnnounced by EVN.

While power cuts were scheduled only for Saturdays, the company witnessed a shortage on Monday, Wednesday and Thursday as well. As a consequence, the firm is on the verge of loosing an export order worth US $500,000 because of untimely deliveries.

If the present situation continues, the entire production chain of various industries including garment and textile is likely to collapse. The People's Committee of Quang Nam Province has also urged the Electric Company in the region to provide stable supply of power to the industrial and economic zones in the area.

Fibre2fashion News Desk - Vietnam

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