Under Decision No. 24/2011/QD-TTg on adjusting electricity price to mechanism will be valid from and on June 01. In responding to Binh Duong Newspaper interviews, enterprises support the decision as a necessary step; however difficulties are all ahead due to unstable input price.

 Leave it all to the market

 Mr. Do Hai Trieu, who is head of Rang Dong Joint Stock Company in Dong An Industrial Park, asserts that the electricity price will increase on such adjustment; however, the moves are indispensible and righteous to ensure market transparency. Thus, his enterprise will support the move.

 Others are expecting for electricity price to decline after a while of openings of healthy competition which may, then, promote more production of electricity.

 “Competition will make things better leading to a better mechanism. In the market with competition, electricity suppliers should see through how to reduce wastefullness,” said Mr. Le Manh Hoach – General Director of Thai Binh Shoes Group. Mr. Le Hong Thang, who is General Director of Duc Thanh Woodwork Joint Stock Company shares the same idea and claims to support the upcoming decision.

 To actively restrain

 Electricity price hikes will influence input costs of enterprises especially producers. Product costing will be painful for some enterprises to match the market price. Increasing prices of products is not a solution that enterprises choose for themselves in the face of inflation which is causing problems in releasing products. As for enterprises fail to calculate input prices when electricity price increases, their revenue will suffer to maintain competitiveness of their products.

 Assessing the circumstances, Mr. Nguyen Ba Hoat – Deputy Director of Viglacera expects that the electricity prices will be on increase without any decrease. Therefore, enterprises should be well-prepared for price adjustment.

 Reported by Thanh Son – Translated by Vi Bao