Vietnam feels impact of Russia-Ukraine war in energy prices, defence industry

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Vietnam's state utility EVN says it could run out of cash by May unless it raises electricity prices.

, but it is feeling the effects of the conflict, particularly in energy prices and its defence industry.

"I estimate that the increase should be at least 15 per cent in order to support the financial situation of the electricity industry,” said Mr Nguyen Tien Thoa. “It is the market rule. But it should be a true market where there is competition, it should not be a market with solely state utility EVN,” he said.Small businesses in Hanoi's Old Quarter are already feeling the pinch, as prices of raw materials spiral. A kilogramme of coal now costs 50 per cent more, compared to two years ago, and blacksmiths are feeling the heat.

“Vietnam’s planning took place when Russia was the obvious source for everything,” said Emeritus Professor of Politics Carlyle Thayer, from the University of New South Wales Canberra.

 

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