Vietnam's electricity prices rise 4.8%, marking 4th hike since 2023

Vietnam Electricity (EVN) announced on Friday the increase of the average retail electricity price by 4.8 percent starting Saturday, bringing the new rate to VND2,204.06 (US$0.085) per kWh and marking the fourth hike since early 2023.

This increase represents an adjustment of VND100.95 ($0.004) per kWh from the previous rate of VND2,103.11 ($0.081) per kWh, which was set on October 11, 2024.

Since the beginning of 2023, EVN has raised electricity prices four times, with respective increases of 3 percent, 4.5 percent, 4.8 percent, and 4.8 percent in this latest adjustment.

As a result, electricity prices have risen by more than 17 percent cumulatively over this period.

The latest price hike is designed to ensure that poor households and social policy beneficiaries are affected minimally, according to Vo Quang Lam, deputy general director of EVN, as reported by VTC News.

According to the General Statistics Office of Vietnam, the new average electricity price is expected to raise the consumer price index (CPI) by approximately 0.09 percent in 2025.

The price increase comes as EVN has incurred significant cumulative losses from electricity production and trading.

Last year, the company achieved financial balance and profitability in this sector, but it recorded a combined loss of over VND70 trillion ($2.7 billion) over the two previous years.

EVN noted that two price increases in 2023 were insufficient to cover rising production costs.

Alongside the price hike, the Ministry of Industry and Trade has issued a decision regulating specific retail electricity prices for different customer categories.

Under the new rule, electricity prices will be reviewed for adjustment every three months when input costs increase by 2 percent or more.

This year, Vietnam's electricity demand is expected to rise by 12.2 percent, equivalent to an additional 33.6 billion kWh compared to 2024, according to EVN.

Most of this increased demand will be met by high-cost energy sources, such as coal- and gas-fired power plants, which are expected to supply 75 percent of the total.

In contrast, lower-cost hydropower is projected to contribute only 25 percent.

Vinh Tho - Ngoc An / Tuoi Tre News

(2025/05/12-10:55)