DNVN - The Ministry of Industry and Trade's decision to adjust the average retail electricity price from VND2,006.79 to VND2,103.11/kWh, equivalent to an increase of 4.8% since October 11, has created more pressure on the production and business activities of enterprises.
The Ministry of Industry and Trade has just decided to adjust the average retail electricity price from VND2,006.79 to VND2,103.11/kWh (excluding VAT), equivalent to an increase of 4.8% (excluding VAT). According to calculations by the Vietnam Electricity Group (EVN), the increase in electricity price to VND2,103.11/kWh, equivalent to 4.8%, will not affect people's lives.
However, businesses say that despite proactive adaptation, this increase in electricity prices creates additional pressure on their production and business activities.
According to Mr. Bach Hong Long - Deputy General Director of Garment 10 Corporation, the adjustment to increase the average retail electricity price by 4.8% creates more pressure on the production and business activities of enterprises. To cope, enterprises are making efforts to apply measures to save electricity, optimize production and business...
The Vietnam Textile and Apparel Association said that businesses are aware that the increase in electricity prices is inevitable due to input pressure of electricity production. However, the increase at this time is also a challenge and difficulty for businesses due to great competition in the market, shortage of orders and only recovering at the end of this year.
To adapt to the increase in production costs, including electricity prices, the textile industry itself has set out solutions for development goals, in which businesses have used solar power (rooftop). Currently, some businesses such as May 10, Viet Tien... have invested in rooftop solar power to reduce difficulties in electricity costs.
From the challenge of increasing electricity prices, textile and garment enterprises must also calculate and tighten investment costs to balance prices and ensure competitiveness with enterprises in the region.
Mr. Le Mai Huu Lam - General Director of Cat Van Loi Company said that when electricity prices increase, it will have a strong impact on the production costs of enterprises. At a time when orders have not yet recovered and the market is facing many difficulties, the increase in electricity costs will cause product prices to escalate, putting enterprises in a difficult position.
Businesses are forced to compete fiercely to maintain market share. Businesses cannot easily increase prices for fear of losing customers, while production costs are increasing. Minimizing costs and optimizing production processes are mandatory options, but these are only temporary solutions. Global political tensions may push fuel prices even higher, causing input costs to continue to increase, putting additional burdens on manufacturers.
"The nearly 5% increase in electricity prices forces us to tighten spending and optimize processes. But in the long term, businesses must switch to using renewable energy to reduce dependence on fluctuating electricity prices," Mr. Lam analyzed.
Many businesses recognize that increasing electricity prices will increase costs, but depending on size and industry, the impact will be different.
Some opinions from logistics enterprises say that in the warehousing sector, electricity costs will not increase significantly, only a few million more each month. However, with equipment that uses a lot of electricity such as container cranes at seaports using 3-phase electricity, the monthly cost will increase quite a bit.
For businesses with export orders, the increase in electricity prices has caused difficulties. Although businesses have made provisions for the increase in electricity prices, it is still quite surprising when there is no exact information about the adjustment roadmap. Orders are usually negotiated for about 3-6 months, and the increase in electricity prices without warning makes it difficult to calculate costs.
Enterprises recommend that EVN needs to have a clear roadmap for price increases so that enterprises can be proactive in their production and export plans. The sudden price increase makes it very difficult for enterprises to cope.
Regarding the stock market, the analysis team of MB Securities Joint Stock Company (MBS) and Shinhan Securities Vietnam Company Limited (SSV) believes that the increase in electricity prices is a positive signal for electricity stocks because it will support the cash flow of power plants.
Meanwhile, stocks in the steel, cement, chemical, paper, etc. industries will be affected in the opposite direction. However, it should be noted that the level of stock price fluctuations depends on many other factors, in addition to electricity prices.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/dieu-chinh-gia-ban-le-dien-binh-quan-doanh-nghiep-noi-gi/20241014082012443
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