EuroCham proposes solutions for Vietnam’s ongoing power shortages

The European Chamber of Commerce in Vietnam has urged the Ministry of Industry and Trade to concentrate on renewable energy projects to develop a diversified energy portfolio that can withstand various climate conditions.

The measure is mentioned in a letter EuroCham sent to the ministry, proposing a series of short- and long-term measures designed to alleviate the country’s electricity shortages.

“EuroCham and the broader business community have expressed growing concerns regarding ongoing power shortages in Hanoi and northern Vietnam,” it said on its website on Friday.

“Many European companies with production and manufacturing facilities in the region, including numerous EuroCham members, have been adversely affected. Swift action is imperative to preserve Vietnam’s reputation as a dependable global supplier.”

EuroCham advocates for more communication, ensuring affected companies receive advance notice of scheduled power cuts.

“By providing specific schedules and durations of power interruptions, businesses will have the opportunity to make necessary arrangements and effectively minimize disruptions to their operations,” the chamber said.

This proactive approach will ensure that affected companies are well-informed and can prepare accordingly, mitigating the negative impact on their productivity and minimizing financial losses, said the business group, which represents European companies in the country.

Second, EuroCham strongly advocates for the prioritization of electricity production and emphasizes the need for promoting the development of additional sustainable capacities, such as solar panels, without imposing undue bureaucratic restrictions.

While these short-term measures are crucial for addressing the current power shortage, EuroCham underscored the importance of long-term solutions; therefore focus should be given to renewable energy projects.

“This approach will contribute to a sustainable future and mitigate power shortages regardless of climatic conditions.”

Vietnam's Prime Minister Pham Minh Chinh earlier this week requested urgent measures to ensure power supplies during this dry season and beyond. In a dispatch, he emphasized that the severe heat and impacts of the El Nino phenomenon have led to a surge in power demand, coupled with drought in the country causing extremely low water levels in hydropower reservoirs, thus affecting electricity supplies.