skip to Main Content

Retail electricity price increases 8.36 percent

Vietnam has raised its retail electricity prices by 8.36 percent from 1,720.65 VND (7.49 US cents) per kWh to an average of 1,864.44 VND (8.03 US cents). The price hike took effect on 20 March. This increase may put upward pressure on inflation, but may also help the Southeast Asian country attract private investment to develop the additional power plants that are needed to support its fast-growing economy, in particular renewable energy plants. The Ministry of Industry and Trade pointed out that Vietnam’s inflation this year would nevertheless be kept below 4 percent as targeted by the National Assembly. According to the Saigon Times, the price adjustment could potentially make Vietnam’s GDP growth fall by 0.22% and the CPI edge up by 0.29%. Subsequently, many households and enterprises complained about sudden and significant increases in their electricity bills for April. The MOIT countered that the surge in bills would be only partially due to the increase in electricity prices, with the unusual hot weather conditions and the resulting increase in households’ electricity consumption. Nevertheless, MOIT Minister, Tran Tuan Anh, on request of the Prime Minister, announced that his ministry will set up inspection teams at electricity companies to verify calculation methods for the price hike and to ensure strict compliance with the proper implementation of the decision.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices
Bonn and Eschborn, Germany

Friedrich-Ebert-Allee 36 + 40
53113 Bonn, Germany
T +49 228 44 60-0
F +49 228 44 60-17 66

Dag-Hammarskjöld-Weg 1 – 5
65760 Eschborn, Germany
T +49 61 96 79-0
F +49 61 96 79-11 15

E info@giz.de
I www.giz.de

Registered at

Local court (Amtsgericht) Bonn, Germany: HRB 18384
Local court (Amtsgericht) Frankfurt am Main, Germany: HRB 12394

VAT no.

DE 113891176

Chairperson of the Supervisory Board

Jochen Flasbarth, State Secretary in the Federal Ministry for Economic Cooperation and Development

Management Board

Thorsten Schäfer-Gümbel (Chair)
Ingrid-Gabriela Hoven (Vice-Chair)
Anna Sophie Herken

Unsubscribe | Here you can unsubscribe from this newsletter.

In charge of this newsletter:
Daniel Herrmann, IKI.vietnam@giz.de
IKI Interface Vietnam
GIZ Office Vietnam
Project “Support to Vietnam for the Implementation of the Paris Agreement”

Editor: Tran Xuan Quynh

Photo Credits:
GIZ, WWF, VNA, monre.gov.vn, IKI

The IKI Vietnam Newsletter is administered by the IKI interface in Vietnam hosted by GIZ. It informs regularly about news of climate change and biodiversity projects in Vietnam financed by the International Climate Initiative (IKI). The International Climate Initiative (IKI) is an important part of the German government’s international climate finance commitment. Since 2022 the IKI is implemented by the Federal Ministry for Economic Affairs and Climate Action (BMWK) in close cooperation with the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the Federal Foreign Office (AA).

https://www.international-climate-initiative.com/

Back To Top