Vietnam Cuts Retail Power Price 2% and Zeroes Gasoline Tax From November 1

Overview

Vietnam cut the average retail electricity price by 2% to VND 2,159.9037/kWh excluding VAT, effective November 1, 2026, and simultaneously reduced the special consumption tax on gasoline to 0% through March 31, 2027. The twin moves, announced by Tập đoàn Điện lực Việt Nam (EVN) and the Government on the evening of October 31, reset the revenue base for power generators such as PV Power (POW, HOSE) and shift the tax wedge across the fuel chain covering PLX, GAS and BSR.

Key Facts

• Average retail electricity price set at VND 2,159.9037/kWh excluding VAT, a 2% reduction, effective November 1, 2026.
• Ministry of Industry and Trade issued Decision No. 2892/QĐ-BCT dated October 31, 2026, setting retail tariffs by customer group from November 1, 2026.
• The adjustment follows Government Notice No. 557/TB-VPCP dated October 27, 2026, recording conclusions by Deputy Prime Minister Nguyễn Văn Thắng on gasoline and power price scenarios.
• Legal basis includes Decree No. 72/2025/NĐ-CP and amending Decree No. 278/2026/NĐ-CP on the retail price adjustment mechanism.
• Government Resolution No. 45/2026 sets the special consumption tax on all gasoline grades at 0%, effective November 1, 2026 through March 31, 2027.
• The tax measure rests on National Assembly Resolution No. 19/2026/QH16 covering environmental protection tax, VAT and special consumption tax on gasoline, oil and jet fuel.
• POW closed at VND 12,200 on October 31, 2026; PLX at VND 34,000, GAS at VND 78,000 and BSR at VND 27,600.

What Happened

EVN said in its October 31 announcement that it had reviewed and recalculated costs to deliver the reduction, describing the move as a contribution to macroeconomic stability and social welfare support for households and businesses. The new average tariff applies from November 1, 2026, with customer-group schedules issued separately by the Ministry of Industry and Trade under Decision No. 2892/QĐ-BCT. The mechanism follows Decree No. 72/2025/NĐ-CP and its amendment, Decree No. 278/2026/NĐ-CP, together with the retail tariff structure set by Prime Ministerial Decision No. 14/2025/QĐ-TTg.

Separately, the Government issued Resolution No. 45/2026 on October 31, setting the special consumption tax rate on all gasoline grades at 0% from November 1, 2026 to March 31, 2027. The resolution cites National Assembly Resolution No. 19/2026/QH16, which covers environmental protection tax, VAT and special consumption tax on gasoline, oil and jet fuel. Neither announcement disclosed the fiscal cost of the tax waiver or an estimate of EVN’s revenue impact.

Market Context

POW, listed on HOSE, closed at VND 12,200 on October 31, 2026, at the low end of its recent trading band, while fuel-linked names traded at PLX VND 34,000, GAS VND 78,000 and BSR VND 27,600. The decisions land as Vietnamese policymakers prioritise price stability into the year-end, using administered electricity tariffs and fuel taxes as disinflationary levers. For the utilities and energy complex, the immediate read-through is margin compression on the power side and a narrower tax component in pump prices on the fuel side.

Strategic Significance

The electricity cut tests the earnings resilience of POW’s generation fleet, since a lower average retail tariff feeds through the EVN-controlled payment chain that ultimately sets dispatch economics and contract pricing for independent power producers. The gasoline tax holiday is a demand-side support for PLX and GAS retail volumes, but it also removes a pricing cushion that refiners and distributors such as BSR rely on when crude moves. Together the two measures signal that the Government is willing to absorb fiscal and sector margin costs to hold inflation down, which raises the policy risk premium on regulated-utility cash flows through the first quarter of 2027.

What to Watch

• EVN’s next tariff review under Decree No. 72/2025/NĐ-CP and its amendment, including any further adjustment before mid-2027.
• POW’s fourth-quarter and full-year 2026 results, particularly realised power sale prices and dispatch volumes.
• Ministry of Finance guidance and customs implementation of the 0% special consumption tax through March 31, 2027.
• PLX, GAS and BSR fourth-quarter volume and margin disclosures for the first two months of the tax holiday.
• Any Government statement on extending or terminating Resolution No. 45/2026 before the March 31, 2027 expiry.