Electricity cuts are hitting Vietnam due to a heatwave restricting available power. The manufacturing hub has failed to upgrade its grid , a crucial step to fulfill demand and lure companies varying from China and other places. This is a very stringent issue in South Korean companies operating in Vietnam. The businesses in Europe have been pressurizing the government to rectify the power crisis. Tackling with power shortages needs more precise efforts to make sure a wonderful decision-making process for electricity market changes,” said Ms Trang Nguyen, who is the head of the South-east Asia team at Australia’s non-profit Climateworks Centre.
Coal-fired plants were counted for about 60 per cent of electricity output in the previous week. May imports of coal, at 4.5 million tonnes, were at peak since June 2020, according to Refinitiv data. But even coal is reducing as approximately 25 per cent of capacity at such plants has been considered for mending, the Industry Ministry said. Shortage of rain has hit output of hydropower, the second source of power, with some northern provinces getting just about a fifth of 2022’s figure, weather information reveals. Water levels in almost all parts of northern hydropower plants are extremely low for them to be running at more than a quarter of the designed ability , the Industry Ministry has explained.