Average electricity prices were VND1,850 (8 US cents) per kWh, excluding value-added tax.

Electricity prices surge 8.36%

According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, despite the increase, Vietnam’s electricity prices are still lower than many countries in the region and the world. 

Electricity prices have been continuously increased seven times since 2010, with the latest adjustment taking place at the end of 2017.

The General Statistics Office forecasted that the hike would reduce GDP by 0.22% and increase CPI by 0.29%.

Deputy Prime Minister Vuong Dinh Hue asked the power price adjustment must be calculated based on the prices of gas and coal sold for electricity production, as well as foreign exchange rates.

Following the government’s instruction, the deferred adjustments in 2018 played a role in curbing CPI at 3.54% and increase GDP to 7.08%. However, increasing costs have greatly affected the power sector, so a price hike could not be delayed any longer, said the Ministry of Industry and Trade.