Foreign businesses hesitate to invest because of concerns about power shortages.

Speaking to Prime Minister Pham Minh Chinh at the annual Vietnam Business Forum (VBF) on the morning of March 19th, Mr. Hong Sun, Chairman of the Korean Chamber of Commerce (KoCham) in Vietnam, reiterated the situation from June to July 2023, when many areas in northern Vietnam experienced power outages due to electricity shortages. Some industrial zones also implemented pre-announced power cuts with a frequency of about 1-2 times per week.

Doanh nghiệp ngoại chần chừ đầu tư vì lo thiếu điện- Ảnh 1. — Mr. Hong Sun, Chairman of the Korean Chamber of Commerce (KoCham) in Vietnam

"The Vietnamese government is also aware that such power shortages are a major obstacle to attracting foreign investment and enhancing the competitiveness of Vietnamese businesses, and has made many efforts to find solutions. However, this is a problem that is difficult to solve in the short term," Mr. Hong Sun stated.

Notably, the Chairman of KoCham said that Korean enterprises want to invest in Vietnam, especially high-tech enterprises such as semiconductors. However, the electricity shortage is one of the factors that makes them hesitate in making investment decisions.

Korean companies are now very interested in technology-intensive industries that are in line with the eco-friendly trend, such as rooftop solar power. However, they are also hesitant to invest due to unstable electricity supply and unclear related legal regulations.

Therefore, KoCham recommends that the Vietnamese Government have a plan to provide uninterrupted electricity in industrial zones so that foreign-invested enterprises, including Korean enterprises, can maintain stable production activities.

Similarly, Mr. Joseph Uddo, Chairman of AmCham Hanoi - representative of the American Chamber of Commerce in Vietnam (AmCham), said that one of the main needs of all businesses is the stability of energy supply and immediate access to renewable energy.

AmCham representatives said they encourage continued dialogue between the Ministry of Industry and Trade, Vietnam Electricity (EVN) and private sector stakeholders to develop viable short- and long-term solutions for Vietnam to meet its energy security needs, including promoting approval of natural gas projects.

In response to investors' petitions on electricity supply, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the Prime Minister has issued Directive No. 05/CT-TTg regarding electricity balance, ensuring no electricity shortage in any situation.

"The Ministry of Industry and Trade is working with the electricity sector to carry out this task. We can confirm and commit that power shortages will not occur in 2024 and the following years ," Mr. Nhat Tan affirmed, adding that he will not only provide stable power but also improve the quality of power sources.

Doanh nghiệp ngoại chần chừ đầu tư vì lo thiếu điện- Ảnh 2. — AmCham Hanoi Chairman, Mr. Joseph Uddo

To ensure a stable power supply, the Prime Minister also paid attention to developing the 500KV line 3 to bring electricity to the North and synchronize the transmission system. This shows the Prime Minister's attention and close direction, making efforts to ensure there is no power shortage.

The Deputy Minister of Industry and Trade provided additional information related to Power Plan 8. Accordingly, the Ministry of Industry and Trade has completed the implementation plan, and the Government is expected to approve the implementation plan for Power Plan 8 this week.

In addition, the Ministry of Industry and Trade also implements technological solutions to harmoniously develop new energy sources and renewable energy, increasing the ability to integrate renewable energy into the power system to ensure stable power generation.

Regarding the issue of power supply, Prime Minister Pham Minh Chinh pledged to investors that there will be no power shortages and that investments will be made in the direction of green growth.

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