Local retail electricity price will be adjusted under a market mechanism by 2016, said Minister of Industry and Trade Vu Huy Hoang.

Hoang said that power supply has been better since 2011, with preventive capacity meeting 25-30 percent of the country's total demand.

He noted that power price has to follow a market-based mechanism under the Government's supervision to ensure profits. Vietnam will implement a price roadmap transparently to make investors feel safe about investing in the sector.

However, most businesses, especially FDI firms, expressed their concern about power shortage in the southern region.

A Vietnam Business Forum (VBF)'s report revealed that FDI companies have not been worrying about increasing power prices as much as about unstable supply. The Government can increase the electricity tariff of enterprises that consume more power while ensuring adequate supply.

Responding to this situation, the minister remarked that it would require the Electricity of Vietnam (EVN) to ensure capital for a proper power transmission system.

"We have asked the EVN to implement nine supplemental power projects to supply electricity to the southern region, following a forecast of power shortage in 2017-18," he added.-VNA