Vietnam GDP Will Be Slashed by 0.07 per cent with Power Price Hikes This Year

The government of Vietnam has just approved hiking 8.92 per cent on average retail power prices to VND948.5 of each kilowatt per hour effective from March 1, which will slash the country’s GDP by 0.05 per cent to 0.07 per cent this year, the Ministry of Industry and Trade was quoted as saying.

 

The MOIT calculated that if prices of electricity rise less than 10 per cent, the country’s GDP will be cut by 0.05 per cent to 0.07 per cent and inflation will be pushed up 0.25 per cent and 0.3 per cent this year, Deputy Minister of Industry and Trade Do Huu Hao said.

 

Industrial sectors including paper suppliers, with electricity bills accounting for 40 per cent to 50 per cent of values of products will see their production costs rise by an additional 3 per cent to 4 per cent, Deputy Minister Hao added.

 

The MOIT forecast that with the price hikes, the country will unlikely avoid shortfall of power this year. The total power output is predicted to hit 86.6 billion kWh of electricity. (Young People)