Electricity Shortages Stifling Vietnam Industry

Increased power prices and abrupt electricity cuts — largely because of scarcity of water in reservoirs for hydroelectric power generation — are tormenting Vietnamese enterprises.  

The government recently raised electricity prices 15% to 6 cents per kilowatt hour, but accompanying sudden power cuts are seen as most damaging.  For example, when steel is being manufactured, a sudden power cut can freeze the process and require the manufacturer to start over.

The situation is damaging to exports and forcing Vietnam to import more electricity from China (nearly a billion kwh so far this year)  and threatens to exacerbate Vietnam’s already serious trade deficit.

More on Vietnam’s electricity challenge

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