Vietnamese Officials Urge Foxconn and Other Manufacturers to Cut Power Usage

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Foxconn
Foxconn

According to sources familiar with the matter, Vietnamese officials have requested Apple supplier Foxconn, along with other manufacturers, to voluntarily reduce power consumption by 30% at their assembly plants in the northern region.

This request comes as a precautionary measure to prevent a recurrence of electricity outages experienced last summer, which resulted in over a billion dollars in lost output.

The request to Foxconn is described as an encouragement rather than a mandatory requirement, and it has not impacted production, as per one of the sources.

Vietnam has been increasingly attracting multinational companies, with some diversifying their manufacturing base from China. Apple, for instance, has expanded its supplier network in Vietnam, signaling its commitment to the country.

However, Vietnam’s energy infrastructure faced challenges during a heatwave last year, leading to power shortages and significant economic losses. To prevent similar incidents, the government has pledged to ensure uninterrupted power supply, including delaying maintenance at coal-fired power plants to meet higher demand during peak months.

While specific details about the duration and extent of the power reduction request were not disclosed, it appears to be part of broader efforts to manage energy consumption and avoid shortages nationwide. Despite less challenging weather conditions this year, authorities remain vigilant and have implemented measures to conserve energy and secure adequate coal supplies.

The Ministry of Industry and Trade and state-owned power provider Vietnam Electricity (EVN) have not commented on the matter, but it is evident that ensuring stable power supply is crucial for sustaining Vietnam’s economic growth and attracting foreign investment, particularly in energy-intensive industries like semiconductor manufacturing.

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