Vietnam lowers electricity price, first time in almost 20 years

Vietnam has reduced its electricity price for the first time in almost two decades, according to state-owned power firm EVN. The new average retail price stands at VND2,159.90 per kilowatt-hour, marking a departure from the last 19 years of price stability. This adjustment, excluding the previous five rounds of reductions to aid those impacted by Covid-19, sees a 2% decrease, totaling VND2,159.90 per kilowatt-hour.

Between 2023 and 2025, electricity prices surged by 18.2% in four adjustments, with the most recent hike occurring in May 2025.

EVN explained that the reduction was a result of a comprehensive review of operations and a relentless effort to minimize costs. The goal is to support individuals and businesses, contribute to macroeconomic stabilization, and ensure social welfare. During a National Assembly session on economic and social issues on October 31, Deputy Prime Minister Nguyen Van Thang indicated that the government had instructed EVN to cut costs as much as possible, aiming for a 2% reduction in average retail electricity prices.

Thane added that the price cut, along with a plan to eliminate the special consumption tax on gasoline, would provide approximately 0.07 percentage points of additional leeway to control inflation and work towards the National Assembly's 4.5% inflation target.