📘 Section 1 provides a general overview & pricing.
📊 Section 2 breaks down key power policy initiatives.
🏭 Section 3 looks at Vietnam’s power generation mix.
🧭 A floating table of contents is top-right for easy navigation.
💬 Reach out if you have any questions.
📚 Have fun!
When it comes to electricity in Vietnam, whether a company is consuming it as part of its operations or investing in generation and supply, there are a number of important nuances that foreign investors should understand.
On the user side, electricity pricing is not uniform—tariffs vary significantly by sector, voltage level, time of day, and even geographical location.
Manufacturers, service providers, and households are all billed differently, with additional complexity for those in industrial parks or using wholesale arrangements.
Meanwhile, for firms looking to generate or sell electricity—particularly in renewable energy—navigating Vietnam’s regulatory environment can be equally complex.
Licensing procedures, price frameworks, grid connection rules, and the role of EVN (Vietnam Electricity) as both buyer and system operator all demand close scrutiny.
Understanding these layered dynamics is essential for cost forecasting, risk assessment, and long-term investment planning.
Section 1: Overview & Pricing
The Ministry of Industry and Transport is the government body in charge of managing Vietnam’s electricity market and supply. It does this through the wholly state-owned power company Electricity Vietnam commonly known as EVN.
EVN generates some power, but also buys power from wholesalers, and sells electricity to consumers.
That said, the actual technical aspects of managing the supply, as in ensuring a stable supply and managing load shedding when necessary, are managed by the National Power System Dispatch Centre commonly known as the NPSDC.
This used to be a part of EVN but was spun off into its own entity reporting directly to the Ministry of Industry and Trade in response to power outages last year in Vietnam–it’s not clear how this change will prevent future blackouts.
SIDENOTE: Power Shortages in Vietnam Wreak Havoc in 2023
In 2023, power shortages were estimated to have cost Vietnam’s economy an estimated US$1.4 billion.
This was attributed to water shortages for hydropower and a lack of a sufficient supply of coal, however, underinvestment in power infrastructure also played a role.
This is in large part because EVN was selling electricity at a loss and therefore didn’t have the money to invest.
This was partly because of a jump in input prices but mostly because retail electricity prices, which are regulated by the government, were not increased in line with these increased costs.
Electricity prices in Vietnam
In May 2025, and Vietnam’s average electricity price per kWH was set at VND 2,204.07 or about US$0.084, excluding value-added tax (VAT), per Decision 599/QD-EVN.
This was an increase from an average electricity price per kWH of VND 2,103.1159 or about US$0.0836, excluding value-added tax (VAT), per Decision 2699/QD-BCT, from October 2024.
Vietnam electricity price per kwh 2025 (from May 10)
| Category | Voltage level | Normal | Off-peak | Peak |
|---|---|---|---|---|
| Manufacturing | ≥110 kV | 1,811 | 1,146 | 3,266 |
| 22–<110 kV | 1,833 | 1,190 | 3,398 | |
| 6–<22 kV | 1,899 | 1,234 | 3,508 | |
| <6 kV | 1,987 | 1,300 | 3,640 | |
| Administrative & public services | ≥6 kV (hospitals/schools) | 1,940 | – | – |
| <6 kV (hospitals/schools) | 2,072 | – | – | |
| ≥6 kV (public lighting etc.) | 2,138 | – | – | |
| <6 kV (public lighting etc.) | 2,226 | – | – | |
| Business | ≥22 kV | 2,887 | 1,609 | 5,025 |
| 6–<22 kV | 3,108 | 1,829 | 5,202 | |
| <6 kV | 3,152 | 1,918 | 5,422 | |
| Household (retail, tiered) | 0–50 kWh | 1,984 | – | – |
| 51–100 | 2,050 | – | – | |
| 101–200 | 2,380 | – | – | |
| 201–300 | 2,998 | – | – | |
| 301–400 | 3,350 | – | – | |
| 401+ | 3,460 | – | – |
SIDENOTE: How Electricity Prices are Managed in Vietnam
Retail electricity prices in Vietnam are regulated and, though permitted, price rises are not all that common.
This has led to EVN selling electricity below cost price — In January of 2024, it was losing as much as VND 142.5 per kilowatt-hour sold.
Changes were made to pricing regulations in 2024 that allow for electricity prices to be reviewed quarterly (as opposed to annually as was the case in the past) and adjusted by up to 3 percent by EVN before approval is needed from the MoIT. This was detailed in Decision 5 issued back in March, 2024.
That said, Decision 24 issued in 2017, the precursor to Decision 5, already had provisions for the electricity price to be adjusted annually, however, between 2019 and November 2023 no adjustment was made.
It’s not clear why and in this context, the frequency at which power prices are reviewed does not appear to be a problem so much as a lack of will to increase prices seems to be.
For reference, the average electricity price for the world is 15 US cents per kilowatt-hour with electricity in Vietnam running at about US$0.08 per kilowatt-hour.
Section 2 : Power Policy & Legislation
This section covers key policy initiatives in Vietnam’s electricity sector.
Power development planning
The Power Development Plan 8, commonly referred to as the PDP8, was first approved in May of 2023 and then revised in April 2025. It essentially outlines goals and plans for Vietnam’s electricity sector–it’s not clear how the figures outlined in this plan have been reached.
See also: Vietnam’s Revised Power Development Plan 8 2025: What’s Changed?
Vietnam’s electricity source/targets by 2030
| Description | Original By 2030 | % | Revised By 2030 |
| Onshore wind power | 21,880 | 15% | 26,066 – 38,029 |
| Offshore wind power | 6,000 | 4% | 6,000 – 17,032 |
| Solar power | 12,836 | 9% | 46,459 – 73,416 |
| Biomass | 2,270 | 2% | 1,523 – 2,699 |
| Hydropower | 29,346 | 20% | 33,294 – 34,667 |
| Stored power (batteries) | 2,700 | 2% | 10,000 – 16,300 |
| Pumped storage hydro | — | — | 2,400 – 6,000 |
| Cogeneration | 2,700 | 2% | N/A |
| Coal | 30,127 | 20% | 31,055 |
| Converted coal (biomass/ammonia) | 0 | 0% | N/A |
| Gas (domestic) | 37,630 | 25% | 10,861 – 14,930 |
| Hydrogen-converted gas | — | — | — |
| LNG (conventional) | — | — | 22,524 |
| LNG + hydrogen mix | — | — | — |
| LNG (converted to hydrogen) | — | — | — |
| LNG + CCS | — | — | — |
| Hydrogen (dedicated) | 0 | 0% | N/A |
| Nuclear | — | — | 4,000 – 6,400 |
| Imports | 5,000 | 3% | 9,360 – 12,100 |
| Flexible sources (LNG, oil, hydrogen) | 0 | 0% | 2,000 – 3,000 |
| DPPA / new energy production | — | — | Not capacity-based |
| Exports | — | — | ~400 MW (to Cambodia) |
| Totals (domestic) | 250,489 | 100% | 183,291 – 236,363 |
Power Development Plan 8 implementation plan
This basically lists all of the power projects that need to be built in order to satisfy the goals set in the PDP8.
Note that there are no specific wind power projects listed and the goal of six megawatts by 2030 is unlikely to be reached.
In fact, many of these projects have not yet been started and given there are only about five years within which to meet these goals, many of them are looking increasingly unlikely.
See also: Vietnam’s Offshore Wind Power Holdup: Unpacked
SNAPSHOT: Power policy: El Nino sees hydropower production dip in 2024
In the first half of 2024, REE Corporation, a major hydropower producer in Vietnam recorded an 11.5 percent year-on-year fall in revenue. This decline was primarily attributed to a downturn in power production, which accounts for approximately 48.1 percent of the firm’s total revenue.
This is partly due to the El Niño phenomenon which has seen drought-conditions in parts of Vietnam, reducing water in hydropower catchments.
Additionally, a government policy prioritizing coal-fired thermal power plants to conserve water during the dry season has limited hydropower’s participation in the electricity market.
See also: REE Corporation: Vietnam Stock Overview
Vietnam’s Just Energy Transition Partnership agreement
The JETP was signed by the G7 and a handful of other nations and Vietnam in December 2022. The agreement is for US$15.5 billion in funding for Vietnam’s green transition from both public and private partners.
It has, however, run into challenges with a Politico article back in December basically saying that there was no buy-in for the current JETP roadmap on the Vietnam side from key stakeholders.
See also: Rethinking Financing Vietnam’s Clean Energy Transition
Policy outlook
Direct Purchase Power Agreements–DPPAs
Vietnam issued a decree on Direct Power Purchase Agreements on July 3, 2024, clearing the way for businesses to buy power directly from power generators. The decree was a long time coming and has been touted as a critical component to developing Vietnam’s electricity network.
Per the decree, high volume power users will negotiate directly with power generators on supply and price. They will then be able to transfer power either through private lines or through the public grid. On the latter, agreements will need to include a payment for using public infrastructure to the state power provider EVN.
At the time of writing this legislation was only days old and therefore there will still be some time until it is clear how the decree will function in practice.
See also: Vietnam’s New Direct Power Purchases Decree: Unpacked
Electricity pricing
The state power provider EVN has floated the idea of charging a subscription fee on top of metered electricity prices to cover the additional infrastructure costs for some customers–for example, a factory using huge amounts of power might require its own substation and high-voltage power lines, and the subscription fee would be used to cover these expenses.
Section 3: Power Generation in Vietnam
Vietnam’s energy mix is relatively diverse, however, it does tend to lean most heavily on coal and hydro.
This section we break down the different power generation methods and how the apply in the Vietnamese context.
Solar power in Vietnam
Vietnam’s solar power industry has experienced rapid growth in recent years, driven by favourable government policies and increasing demand for renewable energy.
With abundant solar potential due to its geographical location, the country has become a significant player in the Southeast Asian renewable energy market.
The introduction of attractive feed-in tariffs in 2017 spurred a surge in solar installations, leading to a dramatic increase in capacity and investment.
As a result, Vietnam now boasts one of the highest installed solar capacities in the region, contributing to its goal of transitioning to a more sustainable energy mix.
See also: Vietnam’s Solar Power Industry: Overview
Rooftop Solar in Vietnam
In 2017, to encourage renewable energy, the government implemented a mechanism to buy excess rooftop solar power at a preferential feed-in tariff price of 9.35 cents per kilowatt hour. This policy led to a significant increase in investments in rooftop solar power systems.
This policy, however, ended in late 2020 due to concerns about uncontrolled growth of rooftop solar power sources. This rapid expansion caused challenges in managing the national power grid and since the beginning of 2021, the signing of rooftop solar power purchase and sale contracts has been halted.
That said, rooftop solar power is currently back in the spotlight with a push for new regulations. Of note, the Ministry had been pushing for no feed-in tariffs on rooftop solar.
The government, however, rejected this proposal.
The MoIT then suggested feed-in tariffs of about 2.6 cents per kilowatt-hour but limited to ten percent of the installation’s capacity. It has since been suggested by the Deputy Prime Minister that this should be lifted to 20 percent.
As of July, 2024, it’s not clear what might happen next.
Wind power in Vietnam
Vietnam’s wind power industry has emerged as a key component of the country’s renewable energy strategy, driven by favourable natural conditions and government incentives.
With over 3,000 kilometres of coastline and high wind speeds, Vietnam has significant potential for both onshore and offshore wind energy development.
In recent years, the government has introduced policies such as attractive feed-in tariffs and streamlined licensing procedures to encourage investment in wind power projects.
As a result, the industry has seen rapid growth, with several large-scale wind farms coming online and many more in the pipeline, positioning Vietnam as one of the leading wind power markets in Southeast Asia.
See also: Vietnam’s Wind Power Industry: Overview
Offshore wind power in Vietnam
The Power Development Plan 8 approved last year, was embedded with a target of six gigawatts of offshore wind power by 2030. The implementation plan for the PDP8 released earlier this year, however, did not list a single offshore wind power project with Vietnam’s six gigawatt goal looking increasingly unattainable.
Key challenges facing the sector include a lack of a marine spatial plan and a dearth of essential legislation as well as a lack of a clear pricing framework.
See also: Vietnam’s Offshore Wind Power Holdup: Unpacked
Coal power in Vietnam
Vietnam’s coal power industry remains a dominant source of energy, accounting for nearly half of the country’s electricity generation.
The rapid economic growth and industrialisation over the past two decades have led to a significant increase in energy demand, making coal a reliable and affordable option to meet these needs.
The country has invested heavily in expanding its coal-fired power capacity, with numerous plants built in recent years and several more under construction.
The reliance on coal is largely driven by its domestic availability and established infrastructure, making it a critical component of Vietnam’s energy security and economic development.
See also: Vietnam’s Coal Power Industry: Overview
Gas power in Vietnam
Vietnam’s gas power industry is poised for significant growth as the country seeks to diversify its energy mix and reduce its reliance on coal.
With increasing energy demand driven by rapid economic development and industrialisation, natural gas is seen as a cleaner and more flexible alternative to traditional fossil fuels.
Despite its potential, however, the gas power industry faces several challenges, including high costs and complex infrastructure requirements. The development of gas-fired power plants and LNG facilities involves significant capital investment and technological expertise.
Additionally, regulatory uncertainties and delays in approving key projects have hindered the timely implementation of planned expansions. The lack of a clear pricing mechanism for gas and electricity tariffs can also complicate project financing and investment decisions.
See also: Vietnam’s Gas Power Industry: Overview
Nuclear power in Vietnam
In 2006, the Government of Vietnam announced plans to have a nuclear power plant online by 2020. This was followed a few years later by official plans for nuclear power plants in southern Vietnam in Ninh Thuan and Khanh Hoa provinces.
These were, however, shelved in 2016 in favour of gas and coal on the back of lower demand projections.
That said, the issue has come up again this year.
A visit from President of Russia, Vladimir Putin, saw Vietnam’s former communist ally pledge its support developing a local nuclear industry. Vietnam, however, though suggesting it was open to considering the possibility of developing nuclear power, was fairly non-committal.
See also: Nuclear Power in Vietnam: Unpacked
FAQ
How is electricity priced in Vietnam?
Electricity prices in Vietnam are regulated by the government and vary by sector, voltage level, time of day (normal, off-peak, peak), and geography. Businesses in industrial parks, service sectors, or using wholesale arrangements may face different pricing structures.
Who manages electricity in Vietnam?
The Ministry of Industry and Trade oversees the sector, while EVN (Electricity Vietnam) operates as the main buyer and distributor. Technical grid management is now handled by the National Power System Dispatch Centre (NPSDC), a separate agency spun off from EVN in response to power shortages.
Can foreign firms invest in electricity generation in Vietnam?
Yes, but investment is subject to complex licensing, grid connection rules, and pricing regulations. Special attention is required for renewables like solar and wind, particularly in light of Vietnam’s Power Development Plan 8 and evolving government policies.
What is Vietnam’s electricity price per kwh in 2025?
Vietnam’s electricity price per kwh in 2025 is VND 2,204.07 or about US$0.084. Note that this is an average and that prices vary by user type.
What was Vietnam’s electricity price per kwh in 2024?
Vietnam’s electricity price per kwh in 2025 was VND 2,103.1159 or about US$0.0836 (from October 2024). Note that this is an average and that prices vary by user type.
What’s next?
The electricity market and the industry more broadly, in Vietnam are complex with many moving parts. Whereas this article covers the broad strokes, businesses looking to invest in Vietnam’s electricity sector, or start a business in Vietnam, should go much deeper.
Firms should also keep in mind that Vietnam’s economy is dynamic and prone to change quickly. In this respect, Vietnam’s electricity industry watchers can best make sure they are abreast of all of the latest developments by subscribing to the-shiv.
First published May 16, 2024. Last updated June 4, 2025.