News briefing
  • Vietnamese officials admitted on the 5th of this month that due to the persistent heatwave, Vietnam's power supply has reached its maximum capacity, necessitating the implementation of localized power outages or load shedding during peak electricity demand periods. This situation has affected industrial zones in the northern provinces of Bac Ninh and Bac Giang.
     
Impact analysis
  • Vietnam is a popular investment destination in Southeast Asia, outside of mainland China. Major electronics manufacturers such as Foxconn, Samsung (SEMCO), and Luxshare Precision have a production stronghold in this region. Although the proportion of their production capacity in Vietnam is not high compared to other regions, this phenomenon reflects that under the impact of extreme climate conditions, energy supply issues have become challenges that businesses must face. The power shortage incidents have also raised concerns about whether the energy supply in these emerging investment destinations, including Vietnam, Thailand, India, and others, can support the entry of more companies or capacityexpansions. This is a deeper and fundamental issue that needs to be addressed.
  • In terms of Vietnam's energy policy, the Prime Minister approved the eighth edition of the "Power Development Plan" (PDP 8) in May this year. It is projected that the total installed capacity of power plants will reach 145,930 MW by 2030, almost doubling from 76,620 MW in 2021. Renewable energy is prioritized for development, with a targeted share of 42.4% in the installed capacity by 2030. Although it is still challenging to assess whether this data will be able to keep up with the increasing demand for electricity in the future, Vietnam's proactive approach to energy policy development among Southeast Asian countries is evident. At least in terms of planning, the local government's positive attitude contributes to the overall competitiveness of the environment.