EVN earns over $469mn in 8 months, could Vietnam power prices fall?

The group’s chairman Dang Hoang An said at a recent government meeting that the state-run utility had improved its finances after a difficult 2022-23 period through cost cuts, operational adjustments, and restructuring.

By June 30, EVN had fully erased losses accumulated from previous years.

In January-August this year, the group recorded revenue of VND482.04 trillion ($18.53 billion), equivalent to 70 percent of its full-year target.

Profit was estimated at VND12.22 trillion ($469.6 million), or 103 percent of the annual plan, while payments to the state budget reached about VND17.16 trillion ($659.8 million).

EVN is targeting a full-year profit of more than VND13.5 trillion ($519 million) and state budget contributions exceeding VND26.3 trillion ($1.01 billion).

Despite the stronger financial results, An said the utility still faces heavy pressure to secure long-term capital for power projects and expansion of the national electricity system.

EVN is also preparing a restructuring plan to streamline its operations and focus on its core businesses of power generation, transmission, distribution, and trading.

In a report on its governance and organizational structure in the first half of 2026, EVN said it had approved several electricity pricing plans for submission to the Ministry of Industry and Trade.

Electricity prices reviewed every 3 months

Under Decree 72 and its amended rules, the average retail electricity price can be reviewed every three months based on changes in generation costs, electricity output, other input expenses, and EVN’s business results.

Before the second, third, and fourth quarters, EVN must calculate actual commercial electricity output, cumulative output since the start of the year, projected demand for the remaining months, and costs not yet reflected in the current tariff.

If the calculated average retail price falls by less than one percent or rises by less than two percent from the current level, no adjustment will be made.

If it falls by at least one percent, or needs to rise by between two percent and under five percent, EVN must submit an adjustment proposal to the Ministry of Industry and Trade.

The ministry then has 15 working days to review the proposal before any change can be implemented.

Vietnam’s current average retail electricity price stands at VND2,204.0655 ($0.085) per kWh, excluding value-added tax, following an adjustment that took effect on May 10, 2025.

EVN’s return to profit does not automatically mean electricity prices will fall, as any reduction will depend on whether the calculated average retail price drops by at least one percent under the current pricing mechanism.