MPI Suggests Power Shortage Could Limit Vietnam's FDI Growth
Vietnam may fail to reach targeted US$20 billion FDI this year, as it is facing a serious shortage of electricity, Doctor Le Dang Doanh of the Ministry of Planning and Investment (MPI) said.
He added that plans for power cuts by dominant state-run utility firm Electricity of Vietnam (EVN) could dampen investment possibilities.
EVN said last month Vietnam may face a shortfall of nearly 1 billion Kwh this dry season, already it is purchasing around 2 per cent of total electricity output from China.
State-owned power firms will go public as soon as possible, to be more efficient in generating electricity and avert the shortage, Doanh added.
The lack of power will affect not only FDI, but also the nation’s targeted economic growth rate of 8.5 per cent.
He also said stabilizing the overheated stock market – whose benchmark index has soared over 1,000 points – is critical towards fulfilling the two targets. (Thanhniennews)
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