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Vietnam could delay coal, power price rise, says report
The Industry and Trade Ministry has proposed that the government delay a plan to raise coal and electricity prices this year in order to support economic activity amid the economic downturn.
"The domestic markets continue to face numerous difficulties with buying demand remaining low and production stagnant," online newspaper VietnamNet (www.vnn.vn) quoted the ministry as saying in the proposal.
The rise in coal and electricity prices, therefore, would “intensify the pressure to increase prices of other goods, making it even more difficult to boost consumption,” the report said.
Vietnam had planned to increase retail coal and power prices by up to 20 percent in 2009 to raise funds for more power plants.
It plans to generate about 83.3 billion kilowatt-hours of power this year to support an economy targeted to grow by 6.5 percent.
The country has for many years been strained by chronic power shortages. Last week, however, Deputy Industry and Trade Minister Bui Xuan Khu said Vietnam now had more power than it needed as demand had slowed due to the economic downturn.
The government provides subsidies for power consumption, especially in rural areas.
Thanhnien, VNA
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