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Vietnamese officials have asked manufacturers, including iPhone maker Foxconn, to voluntarily cut power consumption by 30%. .
The Vietnamese government made a similar request to Foxconn and other companies in June 2023, when drought in the country led to a reduction in hydroelectric power generation. It was also a moment when companies like Foxconn were expanding their capacity as part of Apple's supplier pullout from China. This expansion continues, as does the strain on Vietnam's infrastructure.
Electricity demand has led to blackouts in 2023 and now an official request to cut power consumption, according to Reuters. Unidentified sources reportedly said several manufacturers have been asked to reduce power consumption, although only Foxconn was named.
Sources say the government framed its request as an “incentive.” They also say there has been no impact on production so far.
In May and June 2023, power outages are estimated to have caused $1.4 billion in lost production. The country's government has committed to preventing similar blackouts and has reportedly asked coal-fired power plants to defer maintenance until after the region's hottest months.
Following the 2023 blackouts, Foxconn was reported to have begun building its own generators.
Although the relocation of suppliers to Vietnam has created additional stress on the electricity supply, similar situations have been observed in China. In 2022, the government gave priority to household electricity supplies, and certain industrial customers were given periods when they were required to stop production.
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