Vietnam increases electricity prices by over 8 pct; likely to boost inflation

Vietnam has raised its retail electricity price by 8.36 per cent to an average of 1,864.4 dong ($0.0804) per kilowatt hour, state media reported on Wednesday. The electricity price hike took effect on Wednesday, Voice of Vietnam radio reported, citing a source with the Ministry of Industry and Trade. Another source with the ministry said that the ministry will officially announce the hike in electricity price later in the day.

Vietnam has increased retail electricity prices after a gap of 2 years. An increase in electricity prices may put upward pressure on inflation, but may also help the Southeast Asian country attract more private investment in developing power plants.