ECONOMYNEXT – Vietnam Electricity (EVN) has raised tariffs by 4.8 percent from May 2025 amid high cost of renewables and imported fuels due to currency depreciation, a media report said, making it the fourth price hike since 2023.
EVN started to run losses in 2022 after a spike in global commodity prices amid Federal Reserve money printing and has been steadily raising prices.
Since early 2023, electricity prices have been increased by 3 per cent, 4.5 per cent followed by two increases of 4.8 percent.
Under Vietnam price mechanism the EVN can raise prices below 5 percent without the line ministry of cabinet approval. Price hikes between 5 and 10 must get approval of the line ministry and above 10 percent, the cabinet, Vietnam News Agency said.
“The increase is aimed at offsetting rising input costs as Việt Nam becomes increasingly dependent on high-cost power sources such as coal, liquefied natural gas and renewable energy,” the report said quoting EVN.
EVNs cheap large hydro power was now only 25 percent of output in 2025, the report said.
Volatile exchange rates, especially the depreciation against the US was driving up costs, the report said.
The Vietnam dong weakened in 2025, amid a strong economic and credit growth as the State Bank of Vietnam kept interest rates on hold. In the December quarter there was a small balance of payments deficit. The Dong fell from around 24,750 dongs to the US dollar in March 2023 to around 25,750 dong by March 2025 and to around 24,900 in May.
“The power industry faces numerous challenges in power generation, transmission, distribution, and other processes; therefore, there is a need to share in these common difficulties,” Bui Thanh Thuy – Vice President and Secretary General of the Vietnam Consumer Protection Association was quoted as saying in a statement.
“The price increase is inevitable and objective, and it is impossible to avoid raising electricity prices under the current conditions.
“In fact, according to legal regulations, electricity prices can be adjusted every three months. However, since the last price increase in October 2024, it has been more than six months since EVN has implemented another price adjustment.”
EVN raised residential, industrial and commercial tariffs. (Colombo/May22/2025)