Politics · Vietnam Bureau
Vietnam to cut electricity prices from November, eliminate fuel tax
Vietnam's Deputy Prime Minister has directed the state-owned power utility to develop a cost-reduction plan aimed at lowering average retail electricity rates beginning November 1, 2026. The move is part of broader efforts to provide relief to households and businesses amid economic pressures.
LSN Vietnam ·
Deputy Prime Minister Nguyen Van Thang has instructed Vietnam Electricity Group (EVN) to conduct a comprehensive review of operational costs and identify efficiency improvements to support a reduction in average retail electricity tariffs. The price cuts are scheduled to take effect from November 1, 2026, and remain in place through March 31, 2027.
The initiative reflects government efforts to ease financial burdens on consumers and enterprises while maintaining social stability. Officials framed the measure as essential support for both households and the business community during an economically challenging period.
Concurrently, the government has signaled plans to eliminate excise taxes on petroleum products, further reducing costs for consumers. The measures align with recent parliamentary discussions on enhancing transparency in electricity pricing mechanisms and proposed amendments to Vietnam's Electricity Law.
The National Assembly Standing Committee has been reviewing legislative changes to the electricity sector, with Resolution No. 70 recently expanding corporate access to renewable energy sources. These policy adjustments suggest a broader shift toward making Vietnam's energy market more competitive and accessible to alternative power providers.
Photo: Overhead power lines above a street in Hanoi, Vietnam, November 2017. Ji-Elle via Wikimedia Commons (CC BY-SA 4.0).