Vietnam to Adjust Electricity Prices Based on Actual Costs, Not Fixed Cycles

The Ministry of Industry and Trade of Vietnam has issued Official Document No. 68/2026, unifying the mechanism and timing for adjusting the average retail electricity price. This new directive shifts from fixed periodic adjustments to a system that reflects actual market realities. The core principle of the new mechanism is to calculate the average retail electricity price based on the total cost of electricity production and business operations, along with an appropriate profit margin per kilowatt-hour of commercial electricity. Price adjustments will closely follow the actual fluctuations in input parameters, ensuring that reasonable costs and suitable profits are fully reflected to preserve and develop the business capital of power enterprises. The process of adjustment is stipulated to be conducted with openness and transparency. This decision is seen as a crucial step in meeting the growing electricity demand accompanying Vietnam's economic growth and in building a sustainable power supply system. Under its one-party system, Vietnam prioritizes stable energy supply to its industries, which are the drivers of economic growth, and the optimization of electricity prices is positioned as part of this effort. Particularly in its relationship with China, economic independence and the strengthening of domestic industries are key policy objectives, with the stabilization of power infrastructure forming its foundation. The change in the electricity price adjustment mechanism is expected to enhance the operational efficiency of power businesses, encourage investment, and thereby mitigate the risk of future power shortages, supporting continued economic growth.