Foreign businesses in Vietnam fear power shortage redux: Reports

Media reports maintained this while adding this recommendation was made at a recent event (annual Vietnam Business Forum - VBF 2024) by many foreign investors’ associations in which Prime Minister Pham Minh Chinh also took part to interact with the FDI enterprises.

Highlighting businesses cannot make production plans and forecast delivery dates referring to power cuts occurring in the North in the second half of May and early June 2023, representatives of the Japan Business Association (JCCI) claimed such incidents hamper immensely the production cycle and delivery dates even as the chairman of the Korean Business Association (Kocham) in Vietnam on his part opined that electricity for production is a condition for FDI enterprises, including Korean companies, so as to maintain stable operations. 

He proposed that the government need to have a plan to ensure electric supply for industrial parks during this year’s summer season even as according to calculations by the World Bank (WB), Vietnam lost about $1.4 billion last year due to electricity shortage, equivalent to 0.3 per cent of the GDP. 

Representatives of associations said that electricity shortages will affect new investment decisions in Vietnam.

Fibre2Fashion News Desk (DR)