The government requested to completely resolve the power shortage in June.

The Capital Management Committee, the Ministry of Industry and Trade , PVN, and EVN are required to speed up the progress of power plants, 500 kV transmission projects, and mobilize more rooftop solar power.

In the announcement of the Government Standing Committee's conclusion on solutions to stabilize the macro economy and control inflation, the Government requested the State Capital Management Committee at Enterprises to direct the Vietnam Oil and Gas Group (PVN) and the Vietnam Electricity Group (EVN) to completely resolve the power shortage in June.

Specifically, to have more power for the North in the long term, the Government Standing Committee assigned the Ministry of Industry and Trade to speed up the progress of the Quang Trach II power plant. This Ministry, together with the State Capital Management Committee, directed and implemented the 3,500 kV transmission line project from the Central region to the North, which has been included in the Power Plan VIII.

As an immediate solution, the Government requires the Ministry to immediately have a mechanism to encourage investment, mobilize rooftop solar power to serve people, government agencies and direct power purchase mechanism (DDPA) in July.

Hanoi Electricity workers repair and fix problems, June 2023. Photo: EVN — Hanoi Electricity workers repair and fix problems, June 2023. Photo: *EVN*

Since the end of May, the North has been experiencing power shortages due to the skyrocketing demand during the hot season. Hydropower, one of the two main sources of power supply for the North, has been reduced in mobilization due to drought. On June 14, the water level of hydropower reservoirs in the North had increased by 3-10 m compared to the end of last week, but some power plants were operating at low capacity or at a moderate level to ensure electricity supply and store more water for the upcoming heat wave.

The Ministry of Industry and Trade said that the coal supply for electricity production is sufficient, but due to the need to mobilize large and continuous capacity, some generators still have problems. Of which, the capacity of coal-fired thermal power plants with long-term problems is about 2,100 MW, and short-term problems is 910 MW.

Also in this conclusion, the Government Standing Committee requested the State Bank to immediately take measures to reduce interest rates, including lowering the operating interest rate in June. Commercial banks should cut costs to lower deposit and lending interest rates, in order to support businesses and people to restore production and business and promote growth.

Since the beginning of the year, the monetary authority has adjusted the operating interest rate three times, reducing the ceiling on deposit interest rates. Most recently, on May 23, the operating interest rate (re-discount, re-capitalization, rediscount...) was reduced by 0.5% per year and the ceiling on deposits under 6 months was lowered to 5% per year.

The allocation of credit limits should be calculated reasonably this year and announced in June so that banks can proactively expand credit from now until the end of the year. This is to overcome the situation of low credit growth in the first 5 months of the year.

"The State Bank needs to have solutions to remove credit difficulties for businesses and real estate projects, especially for feasible projects and capable units," the Government Standing Committee stated.

The credit packages of VND40,000 billion and VND120,000 billion need to have more flexible, feasible and reasonable lending conditions. Particularly for the aquaculture sector, the State Bank has been assigned to propose a credit package of VND10,000 billion to support this sector.

Slow value added tax (VAT) refund is one of the problems recently raised by businesses. In the concluding announcement, the Government requested the Ministry of Finance to speed up the tax refund and soon submit to the Government a Decree to reduce 50% of registration fees for domestically produced and assembled cars until the end of 2013. This is also one of the policies to stimulate domestic consumption.

The Ministry of Planning and Investment reviews legal problems, reviews and reduces business conditions for enterprises and promotes rapid disbursement of public capital.

The Ministry of Construction directly works with localities and businesses to remove difficulties and speed up the progress of real estate projects.

Mr. Minh

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