Many FDI enterprises are concerned that electricity shortages will recur this year and asked Vietnam to have a plan to provide electricity throughout.
Sufficient electricity supply is a recommendation raised by many foreign investor associations at the conference where Prime Minister Pham Minh Chinh met with FDI enterprises, within the framework of the annual Vietnam Business Forum (VBF 2024), on the morning of April 19 .
The electricity shortage that occurred in the North in the second half of May and early June 5 has left many impacts on the production and business of many businesses. Some industrial zones at that time cut power with prior notice, with a frequency of 6-2023 times a week.
At today's conference, representatives of the Japan Business Association (JCCI) called the power outage incident in the North last year serious, affecting their production.
“Many businesses cannot make production plans and forecast delivery dates. This causes the "just in time" model - the core of the supply chain - to be greatly impacted," a JCCI representative said, adding that some member units are considering reviewing their global production system. Surname.
Mr. Hong Sun, Chairman of the Korean Business Association (Kocham) in Vietnam also said that electricity for production is an important condition for FDI enterprises, including Korean companies, to maintain stable operations.
Representative Kocham proposed that the Government have a plan to provide enough electricity for industrial parks during this year's hot season. At the same time, the Government and the Ministry of Industry and Trade need to have a mechanism to encourage companies to save and develop energy production.
Mr. Hong Sun, Chairman of Kocham in Vietnam. Image: VGP
According to calculations by the World Bank (WB) last year, Vietnam lost about 1,4 billion USD due to lack of electricity, equivalent to about 0,3% of GDP. Representatives of associations said that electricity shortages will affect new investment decisions in Vietnam. "Electricity shortage is currently a big factor that makes many Korean businesses, especially high-tech companies, hesitate to invest in Vietnam," Mr. Hong Sun said.
Mr. Joseph Uddo, Chairman of the American Chamber of Commerce (Amcham) in Hanoi, warned that many of the goals set by Vietnam are difficult to achieve without a stable, sustainable and affordable power source.
Responding to the concerns of FDI enterprises, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the agency is making efforts to provide enough and stable electricity. "We pledge that there will be no electricity shortage this year and in the following years," Mr. Tan said.
According to him, to avoid electricity shortage, Vietnam is focusing on developing sources, urgently completing the 500 kV circuit 3 line to bring electricity to the North and synchronize the transmission system.
Commenting further, Amcham representative said that cooperation between the public and private sectors is necessary to develop sustainable, affordable power sources. Vietnam can attract global financial resources thanks to its effective energy management system.
JCCI's side suggested that authorities should prioritize policies to realize large-scale renewable energy projects, especially offshore wind power and rooftop solar power.
Duc Minh
