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Electricity in Vietnam still being sold below cost price

Electricity Vietnam (EVN) has said it expects to record a pre-tax loss of about US$698.6 million in 2023, VN Express is reporting. The size of this loss has been attributed to the state electricity provider continuing to sell electricity at below cost price.

Key points

  • It currently costs EVN 2,092.78 VND per kWh to produce electricity; but
  • The average retail price is 1,950.32 VND per kWh; therefore
  • EVN loses 142.5 VND per kWh sold.

Note that, electricity prices are set by the state, with EVN able to increase prices by 3 percent, the Ministry of Industry and Trade up to 10 percent, with a price rise of more than 10 percent needing the approval of the Prime Minister.

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