One of the issues of interest to the foreign business community at the annual Conference of the Prime Minister meeting with the FDI business community and the Vietnam Business Forum is related to the issue of electricity supply.
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| Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan (far left) responds to business opinions |
Specifically, Mr. Hong Sun, Chairman of the Korean Business Association in Vietnam, said: From June to July 2023, many areas in Northern Vietnam experienced power outages due to power shortages and in some industrial zones, power outages were also announced with a frequency of about 1-2 times/week.
Mr. Hong Sun shared: "The Vietnamese government is also aware that such power shortages are a major obstacle to attracting foreign investment and improving the competitiveness of Vietnamese enterprises and has made many efforts to propose solutions, however, this is a problem that is difficult to solve in a short time ."
According to Mr. Hong Sun, Korean enterprises want to invest in Vietnam, especially high-tech enterprises such as semiconductors. However, they also pointed out that the electricity shortage is one of the factors that makes them hesitate in making investment decisions.
In particular, according to the chairman of the Korean Business Association, Korean companies are currently very interested in industries that use a lot of technology, in line with the environmentally friendly trend such as rooftop solar power, however, they are hesitant to invest due to unstable electricity supply and unclear related legal regulations.
On that basis, Mr. Hong Sun recommended 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.
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| Deputy Minister of Industry and Trade affirms that there will be no power shortage in 2024 |
Mr. Joseph Uddo - Chairman of AmCham Hanoi - representative of the American Chamber of Commerce in Vietnam (AmCham) said: One of the key needs of all businesses and any investors in the future is the stability of energy supply and the ability to access renewable energy immediately. Maintaining operational energy systems is an essential goal of good energy governance and providing investors with access to renewable energy, helping the country have a more competitive advantage.
According to the representative of AmCham Hanoi: The dynamics of electricity supply and demand are complex and a collaborative approach between the public and private sectors is essential to develop sustainable, reliable and affordable electricity. Vietnam can attract global finance thanks to an effective energy management system.
“We encourage continued dialogue between the Ministry of Industry and Trade, Vietnam Electricity, and private sector stakeholders to develop viable short- and long-term solutions for Vietnam to meet its energy security needs, including accelerating approvals of natural gas projects,” AmCham added.
In response to investors' recommendations on electricity supply, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said: The Prime Minister has issued Directive No. 05/CT-TTg regarding electricity balance, ensuring no shortage of electricity in any situation. The Ministry of Industry and Trade is working with the electricity industry to carry out this task.
“We can affirm and commit that power shortages will not occur in 2024 and the following years,” Deputy Minister Nguyen Sinh Nhat Tan affirmed, adding that not only will we provide stable power, but we will also improve the quality of power sources.
To ensure a stable power supply, according to the Deputy Minister of Industry and Trade, the Prime Minister is also interested in developing the 500KV line 3 to bring electricity to the North and synchronize the transmission system. This demonstrates the Prime Minister's attention and close direction, making efforts to ensure there is no power shortage.
At the event, Deputy Minister Nguyen Sinh Nhat Tan also informed about the contents related to the Power Plan VIII. Accordingly, the Ministry of Industry and Trade has completed the implementation plan, and the Government is expected to approve the plan to implement the Power Plan VIII this week. In addition, the Ministry of Industry and Trade is also implementing technological solutions to harmoniously develop new energy sources, renewable energy, and increase the ability to integrate renewable energy into the power system to ensure stable power generation.
Regarding the issue of power supply, speaking at the Conference, Prime Minister Pham Minh Chinh pledged that there would be no power shortages, so investors could rest assured. However, the Prime Minister also encouraged investors to develop in the direction of green growth.
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