Vietnam Electricity increases average retail price by 4.8%

State utility Vietnam Electricity (EVN) on Friday increased the average retail price by 4.8% to VND2,103.1 (8.5 U.S. cents) per kWh, not including value-added tax (VAT), with immediate effect.

In a statement on the same day, EVN said the move complies with regulations introduced by the Prime Minister and the Ministry of Industry and Trade on hiking electricity retail prices.

On Thursday, EVN reported a loss of VND34,225 billion ($1.42 billion) last year for the power business, citing that its production costs outweighed sales prices.

EVN can itself determine an increase of the average retail price by between 3% and below 5%, subject to post-check by the trade ministry and the Ministry of Finance.

The sole power distributor needs approval from the trade ministry and the prime minister for a hike of 5%-below 10% and 10% or more, respectively.

Per the updated figures, EVN will set new price ranges for different consumers.

EVN clarified the hike would leave a minimal impact on 815,000 poor households and other households subject to electricity support from the government.

From 2014, each of those households is subject to monthly support of electricity equivalent to 30 kWh per month as long as their consumption is below 50 kWh monthly.

Vietnam's latest power price hike was in November 2023 with retail electricity prices going up 4.5%.