Monday , July 15 2024

Production back on track as power shortages ease

After factory hours in Vietnam’s northern region were cut to save power during the heatwave last week, producers are now allowed to resume normal operations as power shortages begin to ease.

All manufacturers at industrial parks are now allowed to operate from midnight until 5 p.m. daily, Bloomberg quoted Dao Xuan Cuong, chairman of the management board of industrial zones in Bac Giang Province, where Apple suppliers and Samsung have plants.

Factories were ordered to curtail production between 5 p.m. to 7:45 a.m. to save power as intense heatwaves brought overwhelming demand to dwindling supply.

Cuong added that the policy applied to every province, but each locality might employ a different solution depending on its priorities.

Recent load shedding due to declining water levels at hydropower plants has laid a heavy burden onto businesses in Vietnam this year amid economic difficulties.

Many companies have complained that they had to shut down production and missed order deadlines due to power outages, some of which were up to 24 hours long.

Foreign enterprises are among those suffering from the electricity shortages. The Korean Business Association in Vietnam, which represents 10,000 companies, has petitioned Prime Minister Pham Minh Chinh to take remedial measures.

The daily electricity shortfall is currently 30.9 million kilowatt-hours on average and rises as high as 50.8 million kilowatt-hours on some days, according to the Ministry of Industry and Trade.

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