Vietnam's Electricity Prices Rise by 4.5%

Vietnam has witnessed a 4.5% rise in power prices, reaching over VND2,000 (8.2 U.S. cents) per kWh, effective from Thursday. This marks the second price increase this year, with average power prices climbing from VND1,920.37 to VND2,006.79 per kWh within just six months. The state-owned Vietnam Electricity (EVN) made this announcement.

Nguyen Quoc Dung, the head of EVN’s business department, stated that the government will continue to provide financial support to those in need, offering 30 kWh worth of power usage per month. Nguyen Dinh Phuoc, EVN’s head accountant, emphasized that even after the increase, domestic power prices remain lower than industrial rates. He also mentioned that the 4.5% increase was proposed by EVN to ensure social security and meet socio-economic criteria.

This price adjustment is projected to generate an additional VND3.2 trillion (US$131.39 million) in revenue for EVN by the end of the year. EVN cited several factors contributing to its increased costs, including a 17 billion kWh drop in hydropower production and high fuel prices. Production costs account for 83% of energy pricing, according to EVN. The company further revealed that, based on current fuel prices, each kWh of energy produced costs around VND2,098.

Last year, EVN reported losses exceeding VND26 trillion. In a recent report by the Ministry of Planning and Investment, EVN’s losses have increased by an additional VND28 trillion in the span of eight months.