Accordingly, the price will stand at 1,058 VND/kWh and the retail price for production and trading services will go up by 6.3%, standing at 1,009 VND/kWh and 1,919 VND/kWh, respectively.
However, the retail power price for families using less than 50 kWh per month will remain at 600 VND/kWh as a support for low income households.
The higher rates will have no great impact on the public or the economy, Do Huu Hao, deputy minister of Industry and Trade said at a press briefing.
It will reduce the growth of the country’s gross domestic product by around 0.34% and directly push up the consumer price index by 0.16% this year, he said, adding that electricity expenditures for the production sector would grow by nearly 1%.
Deputy General Director of Electricity of Vietnam (EVN) Dinh Quang Tri said with the increase, the average electricity price in Vietnam will reach about 5.54 cents/kWh--higher than the price in Laos but lower than that of other countries in the Association of Southeast Asian Nations (ASEAN).