The average retail electricity price in Vietnam will rise from VND 2,103.11 to VND 2,204.07 per kWh, a 4.8 percent increase from today, according to a press release from state power provider Electricity Vietnam (EVN). The move has been driven by rising input costs—notably coal, gas, oil, LNG, and the exchange rate—with low-cost hydropower only expected to supply 25 percent of total demand in 2025, the release says.
Points of note:
- CPI impact: The General Statistics Office estimates a 0.09 percent increase in Vietnam’s 2025 CPI due to this adjustment.
- Demand growth: Electricity demand is expected to rise 12.2 percent year-on-year, or +33.6 billion kWh.
- Support: Poor and policy households will continue to receive monthly subsidies for up to 30 kWh of electricity.
The price hike reflects pressure on Vietnam’s power system, which now relies heavily on costly energy sources amid high demand and exchange rate volatility. While the rise is modest, it is one more in a series of power increases over the last year or so, largely necessary because power prices did not change at all for about four years, with EVN running at a loss for some time. That is to say, power prices are now playing catch-up.