Vietnam Electricity (EVN) is seeking permission from the government to recoup VND 44.79 trillion or US$1.72 billion in accumulated losses by raising electricity tariffs, VietnamNet has reported → view source.
Key details:
- The losses were accrued during 2022–2023 when input costs jumped significantly but regulated electricity prices were not changed at all.
- Vietnam’s current framework under Decree 72 requires annual retail price adjustments but does not allow full recovery of past costs.
- EVN is pushing for amendments to permit uncompensated costs, audited expenses since 2022, and exchange rate losses to be rolled into electricity prices.
- The Ministry of Industry and Trade argues this will align retail tariffs with the Electricity Law, which mandates that prices reflect input costs and preserve state capital.
Of note, Vietnam’s approach is less automatic than other ASEAN peers.
Indonesia’s PLN is protected by state subsidies that cover losses from below-cost tariffs.
Thailand uses a fuel tariff surcharge, calculated every four months, to recover generation and forex costs, while Malaysia employs a six-month Imbalance Cost Pass-Through to adjust for fuel price swings.
The Philippines goes further with automatic monthly pass-throughs of fuel and forex costs, giving utilities strong cost recovery capabilities.
That is to say, Thailand, Malaysia, and the Philippines use formula-based mechanisms that spread costs more evenly over time.
Vietnam’s approach, however, whereby EVN must get permission from the government, risks sudden tariff shocks when recovery is finally permitted.
For investors, this signals continued regulatory risk in Vietnam’s power sector, especially for energy-intensive industries reliant on predictable electricity costs.
See also: Electricity in Vietnam 2025: Pricing, Supply & Sources