Vietnam power blackout eurocham companies

Vietnam Northern Provinces hit by power cuts

Officials revealed on Monday that power cuts due to increased consumption during a heatwave have affected Vietnam’s northern provinces. The region is home to major global manufacturers like Foxconn and Samsung. EuroCham, representing European companies in the country, sent a letter urging immediate action to address the emergency situation.

According to two local investment officials, some industrial parks in Bac Ninh and Bac Giang provinces are experiencing blackouts. Discussions with Electricity of Vietnam (EVN), the state utility, are underway to find solutions and mitigate the impact on businesses. They also added that more power cuts and blackouts can be expected.

These provinces house factories of prominent companies including Samsung Electronics, Foxconn, Canon Inc, and Luxshare. Jean-Jacques Bouflet, deputy chairman of EuroCham Vietnam, emphasized the urgency for the Ministry of Industry to take swift action. He explained this importance is to prevent damage to Vietnam’s reputation as a reliable global manufacturing hub. The power cuts have severely disrupted industrial activities.

EVN’s northern unit announced that they would cut power to Canon’s factory in Bac Ninh from 8:00 am local time on Monday until 5:00 am on Tuesday. Moreover, power cuts are expected in at least five industrial parks and several villages in the province during the first days of the week. The impact on other companies remains unclear, and no comments were provided by the affected companies or EVN.

Power cuts and blackouts a threat to Vietnam economic growth

These blackouts pose a threat to Vietnam’s efforts to prevent an economic slowdown amidst weak demand in key export markets. The country experienced a decline in growth, dropping to 3.3 percent in the first quarter, compared to 5.9 percent in the previous quarter. Vietnam has seen its economic growth slow down since the boom time of 2021.

To manage the situation, Vietnam has implemented power consumption measures. These measures include turning off street lights and manufacturers shifting operations to off-peak hours. More than 11,000 companies have agreed to reduce their power consumption where possible.

Deputy Minister of Industry and Trade Do Thang Hai acknowledged the power shortages during a government meeting. He stated that the difficulties would persist for households and businesses in certain locations and times.

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