Vietnam is battling electricity cuts caused by a heatwave which has revealed problems in structure and bureaucracy restricting available power to 50% of installed capacity and impeding efforts to access $15.5 billion in global climate funding.
The manufacturing hub is home to major factories operated by tech companies like Samsung and Foxconn, but it has faced challenges in upgrading its grid, a key step to satisfy demand and lure companies diversifying from China and elsewhere.
"Many factories have had to suspend production due to severe power cuts, and the cuts are regular," said Hong Sun, chairman of the Korean Chamber of Commerce in Vietnam.
"This is a very serious problem for South Korean companies operating in Vietnam."
And European businesses urged the government this month to move quickly to solve the power crisis.
"Addressing power shortages requires more concerted efforts to ensure efficient decision-making process for electricity market reforms," said Trang Nguyen, head of the Southeast Asia team at Australia's non-profit Climateworks Centre.
