Concerns arise as electricity and gasoline prices rise.

(Baonghean) - With gasoline prices increasing by 1,610 VND/liter from March 11th, followed by a 7.5% increase in electricity prices from March 16th, production and business activities as well as people's lives will be affected. Below are some opinions recorded by reporters from Baonghean Newspaper.

Mr. Luu Van Hong - Director of Luu Hong Co., Ltd. - Cau Giat Town, Quynh Luu District:

Our company specializes in manufacturing wheel rims for automobiles and agricultural machinery. Due to the nature of our mechanical engineering industry, we utilize large-engine machinery and high-powered welding equipment. Therefore, our product costs are heavily dependent on electricity prices (accounting for approximately 10%). Each increase in electricity prices significantly impacts our product costs and profits. Given the current difficulties and intense competition from Chinese goods within the domestic mechanical engineering industry, the 7.5% increase in electricity prices will inevitably lead to a corresponding increase in product costs. This creates even greater challenges for our business in terms of production and operations.

Workers at the production workshop of Luu Hong Co., Ltd.

Given this situation, we are exploring options to increase production during off-peak hours and reduce production costs. However, these proposed solutions all have limitations. Implementing them would disrupt production schedules, create difficulties for workers, and increase product prices, which may not even fully offset the increase in electricity prices. Furthermore, rising fuel prices further increase production costs, putting businesses at a significant disadvantage…

Mr. Hoang Xuan Tru - Director of Hoa Bien Hotel - Dien Thanh Resort, Dien Chau:

Our hotel currently has 50 rooms, each equipped with electrical appliances such as light bulbs, air conditioners, televisions, and refrigerators. Electricity consumption is very high, resulting in significant electricity costs, ranging from 17% to 25% of the room rate. The hotel pays over 30 million VND in taxes annually, in addition to other expenses such as staff salaries and maintenance. With electricity prices increasing by 7.5%, we plan to switch all our lighting systems to energy-efficient compact fluorescent bulbs. However, this will significantly impact the hotel's aesthetics. Raising room rates to compensate for the electricity cost would greatly reduce our competitiveness and negatively affect our business operations. Therefore, this is a major headache not only for our hotel but also for many businesses and families.

THANH QUYNH

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Mr. Nguyen Cong Hoa - Deputy General Director of VICEM Hoang Mai Cement Joint Stock Company:

Due to the nature of cement production, the clinker kilns must operate continuously, and the company's average monthly electricity consumption is approximately 12 million kWh. A 7.5% increase in electricity prices would result in an additional cost of around 1 billion VND per month; this would significantly increase the production cost of clinker and cement. Currently, the cement market is facing difficulties, and further increases in product prices would negatively impact the company's production and business operations.

To cope with the current trend of rising electricity prices, the company is focusing on a series of comprehensive solutions to save electricity, such as: increasing the power factor of machinery and equipment; excluding the use of some unnecessary equipment during peak hours; replacing light bulbs with energy-saving ones; and strengthening the management of electricity usage… In the near future, the company will research and implement a waste gas thermal power project using the heat recovery method in clinker kilns…

Mr. Tran Quoc Tuan - Head of Operations Department, Hoang Thi Loan Knitting Joint Stock Company:

From the beginning of 2015 until now, our company has produced over 3,000 tons of yarn, with monthly electricity costs of 5.5 billion VND. Therefore, electricity saving is a top priority for the company. We have recently invested nearly 1 billion VND to install over 2,000 energy-saving LED lights to replace fluorescent bulbs; and we are using high-power equipment and machinery efficiently, avoiding peak hours.

Produced by Hoang Thi Loan Knitting Joint Stock Company. Photo: Mai Hoa

Recently, due to difficulties in the consumer market, businesses have had to find various solutions to ensure their products are sold at competitive prices and of good quality. Meanwhile, raw material prices have continuously increased, and especially electricity prices have impacted production and business operations. Furthermore, with a 7.5% increase in electricity prices, the company will incur an additional electricity cost of approximately 420 million VND per month, which will ultimately increase product costs.

Vinh Hoang

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Ms. Nguyen Thi Huong (Hamlet 2, Dien Thanh Commune, Dien Chau District): Over the past period, all members of my family have been conscious of saving electricity, always turning off appliances when not in use, so on average, my family only consumes about 100,000 VND worth of electricity per month. The electricity price increase decided by the government will affect the lives of us people, whose income depends solely on potatoes and rice...

Ms. Phan Thi Son (Hamlet 5, Thanh My Commune, Thanh Chuong District): My family lives near the commune center, but the electricity here is very weak, especially during peak hours from 5 pm to 8 pm. Normally, we have to cook rice in an electric rice cooker before 4 pm; after that time, the electricity is very weak, and the rice doesn't cook properly. My two children have to study after 8 pm because there isn't enough light, and I'm very worried about the impact on their eyesight. As for using more energy-consuming appliances like water pumps or washing machines, I usually have to use them at 5 or 6 am or late at night. Now that electricity prices have increased, and the power grid infrastructure hasn't been improved, it's having a huge impact on our lives.

Phuong Thao

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