Northern Vietnam’s power supply next dry season may fall short by up to 10 percent in a worst case scenario according to the Ministry of Industry and Trade, and reported by The Saigon Times. The publication goes on to dub the power supply a ‘significant challenge’ though this may be a bit of an understatement.
For context: Vietnam’s electricity sector faces a number of challenges ranging from inadequate pricing (both retail and wholesale), to grid infrastructure, to shortages of raw materials–coal for thermal and water for hydro in the warmer months. This saw broad power cuts in northern Vietnam last summer including power to key manufacturing plants of big brands like Canon.
The Power Development Plan 8, seen as necessary in order to guide the sectors development up to 2030, was also delayed by two years which created uncertainty among investors and subsequently a reluctance to engage in big power projects. The plan was completed and confirmed back in May but it will still likely be some time before tangible outcomes are realised.