The price of electricity in Vietnam will go up by 7.5 percent on March 16 at the suggestion of the state-run Vietnam Electricity (EVN), a source from the office of the central government said Thursday.
The increase was approved by Prime Minister Nguyen Tan Dung, who chaired a meeting today in Hanoi with representatives of the Ministry of Industry and Trade and EVN to consider the proposal.
The average price of electricity in Vietnam will be VND1,622 per kWh as of March 16.
The adjustment of the electricity price is targeted at helping EVN cut losses from previous years, ensuring Gross Domestic Product (GDP) growth at 6.2 percent this year, and keeping the inflation rate at five percent.
It is estimated that EVN would suffer a loss of VND12 trillion (US$577 million) in 2015 if the electricity price were to remain unchanged.
In addition, EVN is now sustaining another loss of VND8 trillion ($384.6 million) due to exchange rate differences.
At the meeting, Prime Minister Dung also instructed EVN to improve its grid to lower the loss of electricity rate to eight percent this year. In 2014, it was 8.49 percent.