Flickering Electricity for Seconds Causes Businesses Millions of Dollars in Losses

Ho Chi Minh City, the economic powerhouse of Vietnam, is facing a critical juncture as its ambitious growth targets are increasingly threatened by energy supply constraints. A recent workshop, "Ensuring Energy for Ho Chi Minh City's Double-Digit Growth Target," co-organized by Nguoi Lao Dong newspaper and the Ho Chi Minh City Power Corporation (EVNHCMC), highlighted the precariousness of the city's energy situation.

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The "Achilles' heel" of the trillion-dollar economy. It can be seen that the energy problem in Ho Chi Minh City is no longer just about saving electricity in the usual way. It must be a "war" where just one electrical incident lasting seconds is enough to wipe out millions of dollars.

The city contributes over 23% of the national GDP, yet more than 70% of its electricity is sourced from the national grid. This reliance is problematic as internal substations are already operating at full capacity, and acquiring land for further electrical infrastructure development presents significant hurdles. Compounding the issue is the burgeoning demand from new industries, particularly digital and green technologies, data centers, and artificial intelligence (AI), which require vast amounts of power. These advanced sectors also demand clean and renewable energy sources, adding another layer of complexity to the city's energy strategy.

Experts emphasized the dire consequences of even momentary power fluctuations. One solar panel manufacturing company reported losses of up to $5 million in a single year due to brief electrical "flickers." This underscores the extreme sensitivity of modern industries to power stability. For high-tech sectors like semiconductors and AI, the quality of electricity must be near-perfect, characterized by stable voltage and frequency, and the capacity to scale up power supply almost instantaneously. The need for reliable, clean, and expandable energy is not just a matter of convenience but a fundamental requirement for attracting and retaining investment in these critical growth sectors.

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Just one solar panel manufacturing company in the city has calculated that a few power flickers in a year caused losses to the company's revenue of up to $5 million. This shows the great role of the electricity industry in industrial production.

The development of rooftop solar power has seen policy adjustments since 2017-2018, aiming to promote green energy. However, the sheer scale of demand, exemplified by a single AI data center project approved in Tan Phu Trung Industrial Park, which is projected to consume approximately 1,000 MW by 2030, illustrates the immense challenge ahead. Meeting these escalating demands requires a proactive and integrated approach to energy infrastructure development, prioritizing renewable sources and ensuring grid resilience to support the city's continued economic ascent.

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For the microchip industry and other high-tech industries, the quality of electricity must be stable and "clean," including stable voltage and frequency, and large capacity. It is also flexibility and scalability.