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Vietnam says companies not reporting shortages due to China power crunch

Vietnam says companies not reporting shortages due to China power crunch

FILE PHOTO: A molten salt solar tower stands behind electricity pylons at a power station near Dunhuang, Gansu province, China April 13, 2021. Picture taken April 13, 2021. REUTERS/Carlos Garcia Rawlins

HANOI : Vietnam said on Friday companies had not so far reported problems obtaining raw materials or other inputs amid a prolonged energy crunch in neighbouring China, which supplies materials and equipment for the Southeast Asian country's booming manufacturing sector.

China is grappling with electricity shortages amid tight coal supplies, tougher emission standards and strong manufacturing demand.

"Companies in Vietnam haven't reported any issues of material shortages," the Ministry of Industry and Trade said on Friday.

But the ministry said demand for imported materials by manufacturers in Vietnam had fallen sharply after coronavirus lockdowns in key industrial provinces over recent months.

The lockdowns have also forced companies in labour-intensive businesses, including suppliers for brands like Nike and Adidas, to suspend operations.

China is Vietnam's largest trading partner and is the key supplier of materials for industries such as the garment and footwear sector.

Vietnam's imports from China in the first eight months of this year rose 47per cent from a year earlier to US$72 billion, according to Vietnam's customs data.

(Editing by Ed Davies)

Source: Reuters

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