Vietnam has increased electricity prices twice within a year to improve the cash flow and repay ability of Vietnam Electricity Group (EVN), which has a positive impact on the whole power sector. However, the production costs of steel and cement have risen as well.
Electricity costs account for approximately 10-15% of production costs in the steel industry. (Photo: Hoa Phat Group)
EVN raised average retail electricity prices by 4.5% to 2,066.79 VND (0.086 USD) per kWh (excluding VAT) from November 9th. It is the second adjustment this year (the prior one was a 3% increase on May 4th). According to estimates from Vietnam's MBS Securities Company, EVN's revenue might increase by 26 trillion VND (approximately USD 10.8 billion) in 2024.
