Home / Economy / Industry
Vietnam PM demands no power price hike by year-end
Linh Pham 10:50, 2020/11/05
The move is aimed to keep inflation below 3% this year.

Vietnam’s Prime Minister Nguyen Xuan Phuc has asked the industry ministry to keep electricity prices stable throughout the year-end with an aim to keep inflation below 3%.

 Average retail power prices in Vietnam in 2005-2019 (blue shows retail price in Vietnam dong (VND/kWh) while orange shows retail price in US dollar). Source: EVN 

The Ministry of Industry and Trade (MOIT) needs to direct Vietnam Electricity (EVN) for the good implementation of the prime minister’s request.

Vietnam’s electricity prices have been kept unchanged from March 20, 2019. The last power price hike of 8.36% raised the average household retail power price to VND1,864/kWh (8 US cent/kWh).

The PM has also asked ministries and localities to check the supply and demand for essential goods and the prices to apply price stabilization measures when needed, getting ready for the supply of essential goods for people in the central region (where severe floods have swept), and the supply of goods in high demand on the occasion of Christmas, New Year, and Tet holiday.

 Vietnam's Doing Business 2020 Getting Electricity Score. Source: World Bank

In his analyses after the latest power price hike, Dr. Le Thai Ha from RMIT University Vietnam said the average household retail power price in Vietnam (VND1,864/kWh or 8 US cents/kWh) is comparatively lower than that of regional countries namely Indonesia (11 US cents/kWh), Thailand (12 US cents/kWh), the Philippines (15.6 US cents/kWh), Singapore (19.6 US cents/kWh) and Malaysia (9.3 US cents/kWh).

The retail power price in Vietnam is calculated based on production cost (75%-80% of total retail price), transmission cost (7%), distribution cost (10%), and additional charges (3%-8%).

Electricity prices are decided either by the MOIT if the hike is less than 5% and the prime minister when it surpasses that threshold.

In the World Bank’s Doing Business 2020 Indicators, Vietnam has shown pretty good performance in terms of Getting Electricity that measures procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs.

RELATED NEWS
TAG: power price hike inflation EVN
Other news
09:38, 2021/38/27
Indian supply recovery may hamper growth of Vietnam shrimp exports in 2021
Vietnam’s shrimp exports will be the main growth engine of the seafood sector this year.
10:21, 2021/21/25
Vietnam recruitment demand surges in 1H 2021
Strongest recruitment plans for the next three to six months are seen in manufacturing and processing and construction sectors.
16:52, 2021/52/24
Innovation identified as strongest growth engine for Vietnam: Expert
The Vietnamese government would continue to put up efforts in revising and improving regulatory framework in order to accommodate fast changes in the field of technology.
15:09, 2021/09/24
Vietnam Railways urged to complete auxiliary facilities of North-South railway route
The upgrade of the North-South railway, a core part of national transport system, is expected to improve the performance of Vietnam railway industry.
08:32, 2021/32/24
More than 50% of workers optimistic about Vietnam’s economic prospects
Optimism about economic growth, however, is inversely proportional to respondents’ working position.
10:39, 2021/39/23
Vietnam imposes anti-dumping and countervailing duties on Thai sugar
The move will ensure a fair and competitive environment for Vietnam's sugar industry.