The prospect of higher electricity bills is looming large for Vietnamese consumers as the country’s state-run power giant, Vietnam Electricity (EVN), seeks approval to incorporate its massive accumulated losses—totaling more than 44,700 billion VND—into the average retail electricity price. This controversial proposal, outlined in recent draft decrees and reports from the Ministry of Industry and Trade, has ignited debate over how best to balance the financial health of the nation’s power sector with the economic burden on households and businesses.
According to Dân trí, by the end of 2024, EVN’s parent company had racked up an accumulated loss of approximately 44,792 billion VND. That staggering figure is the result of several turbulent years, marked by global geopolitical instability and soaring energy import costs in 2022 and 2023. As the company struggled to keep up with rising expenses, its losses mounted—peaking at around 50,029 billion VND before a slight improvement in 2024.
EVN’s leadership is now asking for these losses to be officially recognized as a legitimate cost in the calculation of average retail electricity prices. In a formal petition, EVN stated, “We propose that the Minister of Industry and Trade report to the Prime Minister, seeking approval to calculate this accumulated loss as a cost permitted to be included in the average retail electricity price.” The company argues that if these losses aren’t factored into electricity pricing, the State’s investment capital in EVN will shrink, jeopardizing the preservation of public funds invested in the power sector.
The Ministry of Industry and Trade has responded by submitting a draft decree to the government, seeking to amend Decree 72/2025 on the mechanism and timing of electricity price adjustments. This draft proposes not only to allow the inclusion of EVN’s accumulated losses in electricity prices but also to account for other outstanding costs—such as production and supply expenses not fully recovered since 2022, as well as exchange rate revaluation losses from 2019 to 2023. According to Dân trí and VnExpress, these exchange rate losses alone amount to 18,032 billion VND, and when combined with other pending items, the total sum yet to be allocated into electricity prices surpasses 62,820 billion VND.
The draft decree further clarifies that EVN will develop a detailed plan to allocate these costs and submit it to the Ministry of Industry and Trade. If necessary, the Ministry will consult with the Ministry of Finance before any final decision is made. The Ministry’s rationale is clear: “The average retail electricity price needs to promptly address the utility’s need to recover sufficient costs, contributing to the preservation and development of the enterprise’s business capital.”
Despite the financial headwinds, EVN’s latest audited consolidated financial report for 2024 paints a mixed picture. The company reported consolidated revenue of 580,537 billion VND—an increase of nearly 16% from the previous year. Revenue from electricity sales alone topped 572,936 billion VND, accounting for more than 98% of the total. After-tax profit swung back into positive territory, reaching over 8,237 billion VND, a dramatic reversal from the 26,772 billion VND loss recorded in 2023. Still, by the end of 2024, EVN remained saddled with more than 38,688 billion VND in accumulated losses, underscoring the scale of the challenge.
Electricity prices for Vietnamese consumers have already been on the rise. In 2024, EVN implemented a 4.8% increase on October 11, and the most recent hike came in May 2025, raising the average retail electricity price from 2,103.11 VND to 2,204.07 VND per kilowatt-hour (excluding VAT), according to both Dân trí and VnExpress. These adjustments followed two earlier increases in 2023—3% in May and 4.5% in November—that brought the price to 1,920.3 VND and then 2,006.79 VND per kilowatt-hour (again, before VAT).
Yet, even with these price hikes, EVN has struggled to cover its production costs. The Ministry of Industry and Trade’s 2023 audit found that EVN’s total production cost exceeded 528,600 billion VND, translating to a production price of 2,088.9 VND per kilowatt-hour—a 2.79% increase from 2022. Despite higher retail prices, EVN continued to lose between 82.1 and 168.6 VND on every kilowatt-hour sold throughout 2023. As the company itself acknowledged, “Accumulated losses have led to reduced State investment capital in EVN and non-preservation of this capital.”
The current regulatory framework, established by Decree 72, allows for periodic adjustments to the average retail electricity price. The Ministry of Industry and Trade argues that recent changes have made the process more transparent and flexible, enabling quicker responses to cost fluctuations. However, officials concede that more needs to be done to ensure all reasonable and legitimate costs are reflected in electricity pricing, as mandated by the 2024 Electricity Law.
EVN’s proposal has sparked robust debate among policymakers, economists, and the public. Supporters argue that allowing the company to recover its accumulated losses through electricity prices is essential to safeguard the State’s investment and ensure the long-term viability of the national grid. They point out that underinvestment in the power sector could lead to blackouts, stunted economic growth, and even higher costs in the future if infrastructure deteriorates.
Critics, however, worry about the impact on consumers and businesses already grappling with inflation and economic uncertainty. Some argue that passing on past losses to current and future users sets a dangerous precedent and undermines the incentive for efficiency and cost control within EVN. Others question whether all of the company’s costs—particularly those related to exchange rate fluctuations and operational inefficiencies—should be borne by the public.
The Ministry of Industry and Trade has acknowledged these concerns and pledged that any final decision will be based on audited financial data and subject to consultation with the Ministry of Finance. The draft decree emphasizes the need for transparency, stating that “all reasonable and legitimate costs must be included in the calculation and adjustment of the average retail electricity price, to ensure the preservation and development of the enterprise’s business capital.”
For now, the average retail electricity price stands at 2,204.07 VND per kilowatt-hour, but that figure could rise further if EVN’s proposal is adopted. The coming months will be crucial as the government weighs the competing priorities of financial stability, public accountability, and economic fairness. One thing is clear: the outcome will have far-reaching implications for every Vietnamese household and business that relies on the national grid.
As the debate continues, all eyes are on the government’s next move—and on how the nation will balance the urgent need for investment in its power sector with the equally pressing need to protect consumers from mounting costs.
