Log in
Econ

Vietnam yet to raise power prices: Deputy PM

Keeping electricity rates unchanged amid petroleum price hikes is part of Vietnam’s efforts to curb inflation and stabilize macroeconomics.

Electricity prices in Vietnam will not be raised any time soon despite higher input costs, a government official has said.

Nonetheless, it’s necessary to consider relating factors to keep the prices unchanged, Deputy Prime Minister Le Minh Khai said at a governmental meeting on prices management held on July 18.

 A Vietnam Electricity (EVN) worker in hot weather. Photo: Hoa Viet Cuong, EVNHANOI 

Electricity tariffs are facing upward pressure when input costs have skyrocketed since the beginning of the year. For example, the average price of anthracite supplied by Vietnam National Coal-Mineral Industries Holding Corp. (Vinacomin) increased by 63%. The price of imported coal doubled, to US$305 per ton while that of Brent crude oil hit $105 a barrel, nearly 2.5 times higher than before.

Keeping the power prices unchanged is part of efforts that the government has been making to curb inflation and stabilize the macroeconomics this year.

According to calculations by state sole power distributor Vietnam Electricity (EVN), the average retail price of electricity in 2022 has reached VND1,915 ($0.82) per kWh, 2.74% higher than the current average rate applied since 2019, which is VND1,844 ($0.79)/kWh.

In Vietnam, the average retail electricity tariff is adjusted when the input parameters (generation, transmission, distribution, operation) increase by 3% or more. In case the calculated selling price is 10% higher than the current rate, the Ministry of Industry and Trade (MoIT) and the Ministry of Finance shall check and report to the prime minister for a decision.

Earlier, EVN said it is not considering a power hike despite surging costs.

A few days ago, Prime Minister Pham Minh Chinh asked the country’s sole power distributor to ensure sufficient electricity for socio-economic development goals.

He required MoIT and the State Capital Investment Corporation (SCIC) to pay attention to EVN’s major projects for the national interest while asking MoIT to check power purchase agreements with Laos.

Regarding the construction of renewable energy projects, the PM asked MoIT to solve problems related to feed-in tariff (FIT) for new projects according to the market mechanism and fair competition, ensuring reasonable electricity purchase prices and encouraging the development of the power sector.

Reactions:
Share:
Trending
Most Viewed
Related news
Real estate firms sell bonds worth $402 million in May

Real estate firms sell bonds worth $402 million in May

Real estate companies have raised $862 million from bond issuance in April and May, thanks to an improved business environment and better access to funding.

Vietnam unveils new strategies to boost domestic market, aid businesses

Vietnam unveils new strategies to boost domestic market, aid businesses

As global trade uncertainties grow, Vietnam sees the domestic market not only as a key consumption driver but also a “lifeline” for businesses hit by protectionist export barriers.

Vietnam eyes US tilapia export boost as global supply falls

Vietnam eyes US tilapia export boost as global supply falls

Vietnam aims to increase tilapia output to 400,000 tons by 2030, making it the second-largest freshwater export species after pangasius.

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Many of the key Vietnamese exports, such as wood products, electronics, and textiles, that are not on the US exclusion list could face steep tariffs.

Vietnam's mobile money pilot program extended to end of 2025

Vietnam's mobile money pilot program extended to end of 2025

Mobile Money, launched by the Ministry of Science and Technology, differs from e-wallets by linking users’ payment accounts directly to mobile phone numbers.

Vietnam taps innovation, global ties to elevate national brand

Vietnam taps innovation, global ties to elevate national brand

Vietnam is intensifying efforts to enhance its national brand, leveraging innovation, global partnerships, and strategic policies to bolster its global competitiveness and market presence.

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

The government has expanded the scope and scale of the credit program for the sectors which brought about US$62.4 billion worth of exports in 2024.

Vietnamese public shows rising satisfaction in 2024 PAPI survey

Vietnamese public shows rising satisfaction in 2024 PAPI survey

The 2024 PAPI survey found increasing citizen satisfaction with governance, but highlighted persistent administrative challenges, climate vulnerability, and gaps in access to public services.