---
title: "Vietnam Electricity Price: Planned 2% Cut and Inflation"
description: The Government directed reviewing a planned Vietnam electricity price cut of 2% from November 1, 2026, easing production costs and stabilizing inflation.
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datePublished: 2026-10-31T00:00:00+07:00
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# Vietnam Electricity Price: Planned 2% Cut and Inflation

> The Government directed reviewing a planned Vietnam electricity price cut of 2% from November 1, 2026, easing production costs and stabilizing inflation.

Gini · Macro & monetary · 2026-10-31 · https://ginity.vn/en/blog/electricity-price-cut-two-percent-impact-on-costs-and-inflation

_Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_

## Key takeaways

- In a meeting on October 27, 2026, Deputy Prime Minister Nguyen Van Thang directed reviewing a planned average retail electricity price cut from November 1, 2026 to March 31, 2027.
- The current average retail electricity price stands at 2,204.0655 VND/kWh applicable from May 10, 2025 under Decision 599/QD-EVN.
- Electricity production and business costs for 2025 audited by Deloitte Vietnam reached VND 601,680.1 billion, equivalent to 2,092.70 VND/kWh announced on September 8, 2026.
- According to Tuổi Trẻ and VnExpress reports on October 31, 2026, a planned 2% power price cut is being prepared to create room for inflation control.

The Vietnamese Government issued macroeconomic policy guidance on essential energy products in late October 2026. In a meeting on October 27, 2026, Deputy Prime Minister Nguyen Van Thang instructed Vietnam Electricity (EVN) alongside relevant ministries to formulate a planned average retail electricity tariff reduction proposal from November 1, 2026 through March 31, 2027. This directive aims to reduce costs for businesses, support social welfare, and curb price level increases in the closing months of 2026.

## Directive on electricity price reduction from November 2026

At the Government Headquarters on October 27, 2026, Deputy Prime Minister Nguyen Van Thang chaired a working session regarding operating scenarios for petroleum and electricity tariffs, based on official coverage by [Báo Điện tử Chính phủ](https://baochinhphu.vn/khan-truong-xem-xet-phuong-an-giam-thue-tieu-thu-dac-biet-voi-xang-ve-0-va-giam-gia-dien-102261027183811931.htm). The meeting was attended by leaders from the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Justice, the Government Office, and the General Director of EVN.

Concluding the session on October 27, 2026, Deputy Prime Minister Nguyen Van Thang requested EVN to review, calculate, and minimize operating expenses to prepare a proposal reducing the average retail electricity tariff, effective from November 1, 2026 through March 31, 2027. The adjustment must comply with the current regulatory framework governing power retail adjustments, with EVN submitting the proposal to the Ministry of Industry and Trade for examination and formal written feedback.

Deputy Prime Minister Nguyen Van Thang also instructed the Ministry of Finance to evaluate reducing the special consumption tax rate on petroleum fuels to 0% across the identical five-month window from November 1, 2026 to March 31, 2027, according to reporting from Báo Điện tử Chính phủ on October 27, 2026. Energy policy interactions have been discussed in our review of [fuel price trends and energy costs](/en/blog/vietnam-fuel-prices-oil-gas-stocks-oct-29-2026).

During the National Assembly plenary session on October 31, 2026 as reported by [VnExpress](https://vnexpress.net/pho-thu-tuong-se-giam-2-gia-ban-le-dien-5139121.html), Deputy Prime Minister Nguyen Van Thang confirmed that the Government is directing EVN to cut average retail power prices by approximately 2% through March 31, 2027. The Deputy Prime Minister stated that cutting electricity rates alongside reducing gasoline excise taxes to 0% will create approximately 0.07% headroom to support the annual inflation target of 4.5% set by the National Assembly for 2026.

## Production and business cost structure of EVN power

The empirical basis for recalculating retail power tariffs rests upon operational cost examination results for 2025 (in a report audited by Deloitte Vietnam), as noted in an announcement published on September 8, 2026 by [EVN](https://evn.com.vn/d/vi-VN/news/Cong-bo-chi-phi-san-xuat-kinh-doanh-dien-cua-Tap-doan-Dien-luc-Viet-Nam-nam-2025-60-142-510040).

Audit figures for 2025 published by [EVN](https://evn.com.vn/d/vi-VN/news/Cong-bo-chi-phi-san-xuat-kinh-doanh-dien-cua-Tap-doan-Dien-luc-Viet-Nam-nam-2025-60-142-510040) indicate that total commercial electricity output reached 287.51 billion kWh in 2025. Total electricity production and business costs for 2025 stood at VND 601,680.1 billion. Allocated across total commercial output, the unit cost of power production and business in 2025 was determined at 2,092.70 VND/kWh.

The table below details the operational cost structure of power production and business across supply chain stages for 2025 as disclosed by EVN:

| Supply chain stage in power operations | 2025 Actual cost (VND billion) | Unit cost (VND/kWh) | Share (Ginity calculations from EVN cost data, %) |
| :--- | :--- | :--- | :--- |
| Power generation stage | 498,362.70 | 1,733.35 | 82.83% |
| Power transmission stage | 22,141.86 | 77.01 | 3.68% |
| Power distribution and retail stage | 78,993.21 | 274.75 | 13.13% |
| Ancillary services and industry management | 1,421.37 | 4.94 | 0.24% |
| Power system dispatch and market operation | 760.95 | 2.65 | 0.13% |
| **Total** | **601,680.10** | **2,092.70** | **100.00%** |

Source: Vietnam Electricity EVN disclosure on September 8, 2026 based on the 2025 audit report by Deloitte Vietnam.

In disclosures published on September 8, 2026 by [EVN](https://evn.com.vn/d/vi-VN/news/Cong-bo-chi-phi-san-xuat-kinh-doanh-dien-cua-Tap-doan-Dien-luc-Viet-Nam-nam-2025-60-142-510040), EVN reported that VND 17,506.64 billion in cumulative costs had not yet been factored into power production costs through year-end 2025, including unpaid foreign exchange differences for power plants incurred between 2021 and 2025.

On the revenue side, under Decision 599/QD-EVN dated May 7, 2025 published by [EVN](https://www.evn.com.vn/d/vi-VN/news/Dieu-chinh-gia-ban-le-dien-binh-quan-tu-ngay-1052025-60-142-502657), the current average retail electricity price stands at 2,204.0655 VND/kWh (excluding value-added tax), effective since May 10, 2025.

Comparing the 2025 production cost of 2,092.70 VND/kWh with the prevailing retail tariff of 2,204.0655 VND/kWh reveals that unit costs were approximately 111.37 VND/kWh lower, representing a 5.32% spread, according to reporting published by [Tuổi Trẻ](https://tuoitre.vn/gia-dien-giam-2-ve-muc-2159-dong-kwh-100261028153056264.htm) on October 31, 2026.

## Legal mechanism for electricity tariff adjustments in 2026

Modifications to the average retail electricity tariff follow an established administrative mechanism codified by the Ministry of Industry and Trade in [Consolidated Document 68/2026/VBHN-BCT](https://baochinhphu.vn/bo-cong-thuong-ban-hanh-van-ban-hop-nhat-ve-co-che-dieu-chinh-gia-dien-102260717183434183.htm) on July 17, 2026.

Under statutory rules applied in 2026, decision-making authority and procedural workflows correspond to defined threshold brackets:

In the first bracket under 2026 rules, when calculated power retail tariffs decrease by less than 1% or increase by less than 2% against the prevailing tariff: EVN does not adjust rates but must submit dossiers to the Ministry of Industry and Trade for supervisory inspection, according to the statutory rules.

In the second bracket under 2026 rules, when calculated tariffs decrease by 1% or more, or increase between 2% and below 5%: EVN compiles a tariff plan and submits it to the Ministry of Industry and Trade, according to the procedural guidelines. Within 15 business days of receiving the complete dossier, the Ministry must deliver written feedback. EVN decides on the price adjustment after receiving the Ministry's official opinion, reporting the outcome within 05 business days.

In the third bracket under 2026 rules, when rate increases range from 5% to below 10%: EVN may adjust only upon obtaining formal approval from the Ministry of Industry and Trade, according to the ministerial decree. Proposed increases of 10% or greater require the Ministry to consult relevant bodies and submit reports to the Government for determination.

Under threshold rules set for 2026 in the consolidated document, the planned 2% reduction falls within the threshold of calculated decreases of 1% or greater requiring submission to the Ministry of Industry and Trade, according to official guidance.

## Two percent cut and impact on industrial input costs

To compute the new tariff level following the reduction, the adjustment formula is expressed as follows:

$$\text{Adjusted Electricity Price} = \text{Current Retail Price} \times (1 - \text{Reduction Rate})$$

From the current EVN tariff of 2,204.0655 VND/kWh established on May 10, 2025 under Decision 599/QD-EVN, applying a planned 2% cut yields an absolute reduction of 44.0813 VND/kWh according to Ginity calculations. The new estimated retail power tariff arrives at 2,159.9842 VND/kWh (excluding value-added tax) under Ginity calculations for the November 2026 adjustment period. This estimate matches the projection reported by [Tuổi Trẻ](https://tuoitre.vn/gia-dien-giam-2-ve-muc-2159-dong-kwh-100261028153056264.htm) on October 31, 2026, which indicated that retail electricity rates are expected to fall to approximately 2,159 VND/kWh.

The chart below compares the 2025 audited unit production cost of EVN, the May 2025 retail tariff, and the 2% reduction scenario planned for November 2026, according to EVN reports and Ginity calculations:

> Chart: Cost of production versus retail power tariffs in 2025-2026. VND/kWh. 2025 Cost: 2,092.70; May 2025 Tariff: 2,204.07; 2% Cut Scenario: 2,159.98.

The planned 2% retail power price reduction alongside fuel tax relief provides an estimated 0.07% headroom to meet the 4.5% annual inflation target for 2026, according to remarks by Deputy Prime Minister Nguyen Van Thang reported by [VnExpress](https://vnexpress.net/pho-thu-tuong-se-giam-2-gia-ban-le-dien-5139121.html) on October 31, 2026. Readers can consult our guide on [reading CPI and inflation metrics](/en/blog/cpi-and-inflation-reading-the-numbers) alongside broader developments in the [Q3 2026 macroeconomic review](/en/blog/q3-2026-macroeconomic-overview-995-percent-gdp-growth).

## Sources

- Báo Điện tử Chính phủ: [Khẩn trương xem xét phương án giảm thuế tiêu thụ đặc biệt với xăng về 0% và giảm giá điện](https://baochinhphu.vn/khan-truong-xem-xet-phuong-an-giam-thue-tieu-thu-dac-biet-voi-xang-ve-0-va-giam-gia-dien-102261027183811931.htm) (27/10/2026)
- Báo Điện tử Chính phủ: [Bộ Công Thương ban hành văn bản hợp nhất về cơ chế điều chỉnh giá điện](https://baochinhphu.vn/bo-cong-thuong-ban-hanh-van-ban-hop-nhat-ve-co-che-dieu-chinh-gia-dien-102260717183434183.htm) (17/07/2026)
- Tập đoàn Điện lực Việt Nam EVN: [Công bố chi phí sản xuất kinh doanh điện của Tập đoàn Điện lực Việt Nam năm 2025](https://evn.com.vn/d/vi-VN/news/Cong-bo-chi-phi-san-xuat-kinh-doanh-dien-cua-Tap-doan-Dien-luc-Viet-Nam-nam-2025-60-142-510040) (08/09/2026)
- Tập đoàn Điện lực Việt Nam EVN: [Điều chỉnh giá bán lẻ điện bình quân từ ngày 10/5/2025](https://www.evn.com.vn/d/vi-VN/news/Dieu-chinh-gia-ban-le-dien-binh-quan-tu-ngay-1052025-60-142-502657) (09/05/2025)
- Báo Tuổi Trẻ: [Giá điện giảm 2%, dự kiến về mức 2.159 đồng/kWh](https://tuoitre.vn/gia-dien-giam-2-ve-muc-2159-dong-kwh-100261028153056264.htm) (31/10/2026)
- Báo VnExpress: [Phó thủ tướng: Sẽ giảm 2% giá bán lẻ điện](https://vnexpress.net/pho-thu-tuong-se-giam-2-gia-ban-le-dien-5139121.html) (31/10/2026)

## Frequently asked questions

### How much is the average retail electricity price planned to decrease?

In a National Assembly address on October 31, 2026, the Government stated it is directing EVN to cut retail electricity rates by approximately 2% through March 31, 2027.

### Which agency has the authority to decide retail electricity price cuts?

Under Consolidated Document 68/2026/VBHN-BCT, when calculated power tariffs decline by 1% or more, EVN prepares a dossier for Ministry of Industry and Trade review before deciding the adjustment.

### What were EVN power production and business costs in 2025?

Audited by Deloitte Vietnam and published by EVN on September 8, 2026, total power production and business costs for 2025 were VND 601,680.1 billion, or 2,092.70 VND/kWh.

---

_Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._

_Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._