Vietnam Electricity Pricing 2026: Impact on Manufacturers

Effective 10 May 2025, the average retail electricity tariff in Vietnam was adjusted to VND 2,204.0655/kWh (up 4.8%). For the 2025–2026 period, the tariff adjustment mechanism has been further refined under Decree 72/2025/ND-CP and Decree 278/2026/ND-CP, with the detailed tariff schedule set out in Decision 14/2025/QD-TTg. For manufacturers — where electricity is a major cost component — understanding the new pricing framework is essential for production planning and cost control.

1. The electricity pricing legal framework

Three core instruments every business should track:

Current average tariff: VND 2,204.0655/kWh, applicable from 10 May 2025 (up 4.8%).
Adjustment mechanism (Decrees 72/2025/ND-CP and 278/2026/ND-CP): when input costs fluctuate, the tariff is adjusted downward if the decrease reaches 1% or more, and upward if the increase reaches 2% or more; adjustments occur at minimum every 3 months.
Detailed tariff schedule (Decision 14/2025/QD-TTg): tariffs are differentiated by voltage level and by time of use — peak, normal, and off-peak hours.

Important note: businesses should verify the latest pricing decision of the Ministry of Industry and Trade before citing any specific figure in their calculations, as the detailed tariff tables may be updated from time to time.

2. Impact on manufacturing businesses

Production costs: electricity is a major input; every adjustment of the average tariff directly affects unit cost and margins, particularly in power-intensive industries such as metallurgy, cement, and processing.
Time-of-use structure: production during peak hours bears significantly higher tariffs than off-peak hours — a lever for optimizing production schedules.
Financial planning: the minimum 3-month adjustment cycle gives businesses a predictable window for tariff changes, but no firm conclusion should be drawn about whether tariffs will rise or fall in 2026, as this depends on actual input cost movements.

3. What manufacturers should do

Review the applicable voltage level: check the tariff schedule in Decision 14/2025/QD-TTg to confirm the correct tariff for your voltage level.
Shift load to off-peak hours: schedule shifts and run power-intensive equipment during off-peak windows to benefit from lower tariffs.
Review power purchase contracts: examine pricing clauses, tariff adjustment mechanisms, and buyer rights when tariffs change.
Track the adjustment cycle: monitor the latest Ministry of Industry and Trade pricing decision at each adjustment window (minimum every 3 months) to update cost forecasts promptly.

4. Frequently asked questions

Will electricity tariffs keep rising in 2026?

This cannot be asserted in advance. Tariffs are adjusted under the mechanism in Decrees 72/2025/ND-CP and 278/2026/ND-CP, depending on actual input cost movements (downward adjustment from a 1% decrease, upward from a 2% increase).

What is the benefit of producing during off-peak hours?

Under Decision 14/2025/QD-TTg, off-peak tariffs are significantly lower than peak-hour tariffs. Shifting load to off-peak hours is the most direct way to cut electricity cost per unit of output.

Which documents should be checked before calculating electricity costs?

The latest pricing decision of the Ministry of Industry and Trade and Decision 14/2025/QD-TTg (tariff schedule by voltage level and time of use).

Cited legal instruments

Decree 72/2025/ND-CP
Decree 278/2026/ND-CP
Decision 14/2025/QD-TTg

Legal notice

The legal content of this article is reviewed by the FLAW AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.

Need advice on energy costs and factory compliance? Contact FLAT Law Firm for support.