Apple’s Electricity Usage in Vietnam Under Scrutiny

Vietnamese officials have recently requested Apple supplier Foxconn to reduce power consumption by 30% at its assembly plants in the northern region. This move comes as a preventive measure to avoid electricity shortages similar to those experienced last year, which resulted in significant economic losses.

Here are some key points regarding this development:

– The request to cut power usage has also been extended to other manufacturers operating in the region.
– This voluntary request has not impacted production at the facilities, according to a report by Reuters.
– Vietnam is becoming an increasingly attractive destination for multinational companies looking to diversify from China amidst ongoing trade tensions.
– Apple has expanded its supplier base in Vietnam and pledged further investments in the country.
– The government is actively seeking foreign investment, particularly in energy-intensive sectors like semiconductor manufacturing.

Last year, a heatwave led to power shortages that disrupted businesses and cost an estimated $1.4 billion, equivalent to 0.3% of GDP. Prime Minister Pham Minh Chinh has reassured foreign investors that measures are being taken to prevent such occurrences in the future.

Some additional details about the situation include:

– Coal power plants have been asked to postpone maintenance activities during peak demand periods.
– Foxconn operates multiple plants in northern Vietnam, including those responsible for assembling Apple products like MacBooks and iPads.
– Local authorities and industrial parks have been urged to implement energy-saving initiatives by Bac Giang Power Company (BG PC).
– Energy-saving measures vary across different regions, with some areas implementing power reduction strategies on specific days.

As concerns over electricity supply persist, foreign chambers of commerce have called on the government to ensure a stable power grid to support continued investments, particularly in the semiconductor industry.

Stay tuned for further updates on this evolving situation as efforts are made to balance energy needs with economic growth in Vietnam.