2020 resolution fails to realise shift to market based electricity pricing

A government resolution issued in 2020 declared that electricity pricing needed to be transparent and determined by market rules, however, there is still a huge mismatch between input costs and retail prices, Vietnam Net is reporting

Key takeaways:

  • Before this year electricity prices has not increased since 2019;
  • Several provinces recorded decreases in electricity production and distribution of up 25 percent in the first 9 months of this year;
  • The Ministry of Industry and Trade (MOIT) estimates the cost of producing electricity is VND 2,098 per kwh. This is VND 178 per kwh higher than the average electricity retail price.
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