News about EVN

Households and businesses may receive electricity price cuts for 5 months starting November 1. On October 27, Deputy Prime Minister Nguyễn Văn Thắng asked Tập đoàn Điện lực Việt Nam (EVN) to urgently review and cut costs, prepare a plan to lower average retail electricity prices, and review a proposal to set the special consumption tax on gasoline to 0%. According to the Statistics Office (Cục Thống kê), residential electricity accounts for about 4.8% of the CPI basket, so a price cut could help ease inflation pressure and support growth. In the first 8 months of 2026, EVN reported profit of over 12,000 billion VND and had cleared its accumulated losses under consolidated financial statements by the end of June, which provides room to cut prices. The Ministry of Industry and Trade has asked EVN to finalize the plan and will give its opinion, and if the matter exceeds its authority, it will report to the Government.

EVN reported that its 2025 electricity production and business cost averaged about 2,092.7 VND per kWh, roughly 5% below the average retail price of 2,204.07 VND per kWh (excluding VAT) applied since May 10, 2025. Power generation made up nearly 83% of the total cost of 601,680 billion VND, though the article notes the gap does not directly reflect actual profit per kWh because the retail price applies from May while costs are calculated for the full year. EVN has cleared its accumulated losses on a consolidated basis after losing about 50,029 billion VND in 2022-2023, but the parent company still had accumulated losses of about 5,611 billion VND. In the first eight months, revenue exceeded 482,000 billion VND and estimated profit reached 12,215 billion VND, and the group expects a full-year profit above 13,500 billion VND. At the September government meeting, Prime Minister Lê Minh Hưng directed that electricity prices not be raised in the final months of 2026.

The Ministry of Industry and Trade proposes separating the National Power Transmission Corporation (EVNNPT) from EVN soon to ensure grid independence and a competitive electricity market, while the Ministry of Finance favours a cautious approach to preserve financial capacity and investment funding. Mr. Nguyen Anh Tuan, a former director of the Renewable Energy Centre under the Ministry of Industry and Trade, says separation is not urgent because transmission is a natural monopoly, and that calculating transmission costs correctly is more important, since current charges are averaged and do not reflect location or distance. He warns that premature separation, without adequate capital and coordination mechanisms, could affect major power projects, including the adjusted Power Development Plan VIII. The Science Council of the Vietnam Energy Journal argues that restructuring needs a suitable roadmap, a clear split between business and public-service duties, and should avoid mechanical division that weakens EVN.