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Vietnam’s constant power cuts have hit industrial parks in the northern region of Bac Ninh and Bac Giang where a concentrated number of global manufacturers such as Foxconn Samsung, Canon and Luxshare are based among others. A rise in consumption coupled with the current heatwave has drained the power supply system. 

The recurring and unannounced power cuts lead EuroCham - which represents European companies in the country, to urge the industry and trade ministry to act promptly to address the situation. Currently, local officials are discussing possible measures alongside the Electricity of Vietnam (EVN) to come up with possible solutions to mitigate the impact. 

“If the problem is not dealt with on time the country’s reputation as a global manufacturing centre could come under scrutiny”, added Jean-Jacques Bouflet, deputy chairman of EuroCham Vietnam. 

For now, EVN’s northern unit has cut power supply to Canon’s factory from 8.00 am local time on Monday until 5.00 am on Tuesday while several villages in the region are looking at partial or full power supply cuts. Besides, the nation has been turning off streetlights and manufacturers have been limiting operations to keep the power system running. It is being reported that more than 11,000 companies have agreed to cut consumption where possible. 

If this situation pertains, efforts to prevent an economic decline due to the frail export sector could be hindered. 

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