Structural problems behind Vietnam's power outages

Recently, the news of widespread power outages in Vietnam became a hot search. Even Samsung, Foxconn and other large manufacturing enterprises have to face the problem of power outages and production.

Power outages in Vietnam are not new. On May 21, Vietnamese media reported that the Vietnam Power Corporation announced that rolling blackouts would be implemented in most parts of the country, including the capital Hanoi. At the time, the Vietnamese authorities thought that the blackouts could last until the end of May, but they are still optimistic.

According to Prime Minister Pham Minh Maat, the main reasons for the power outages were a sharp increase in electricity consumption due to a heat wave, while a drought caused the water level of hydropower stations to drop, significantly reducing power generation capacity.

Vietnam's power sector is expected to require investment of about $134.7 billion between 2021 and 2030, of which $119.8 billion is for new power generation capacity and $14.9 billion is for grid infrastructure. From 2031 to 2050, Vietnam's power sector will require investments of $399.2 billion to $523.1 billion. According to the World Bank, Vietnam will need $368 billion in investment by 2040 to put the country on a path to net zero emissions.