In response to the unexpected announcement made by the Vietnam Electricity (EVN) about increasing the electricity charge by five percent, effective as of December 20 2011, the president of the Vietnamese Steel Association Pham Chi Cuong has commented that the adjustment would not have any direct impact on domestic steel manufacturers.
Pham Chi Cuong said that steel producers could exempt themselves from the adjustment of electricity charge via the application of energy-saving hi-tech. He also added that the average electricity cost of Vietnamese steelmakers just accounts for 7 percent of the bloom production cost and one percent of other steel production costs. Thus, it is not expected that the adjustment would have any direct impact on the steel sector. However, Pham Chi Cuong admitted that the move might increase steelmakers' input costs.