State utility Vietnam Electricity’s (EVN) profit of nearly $2billion in 2025 has raised debate over whether this could lead to a reduction in electricity prices.
Commenting on EVN’s financial performance, Ha Dang Son, director of the Center for Energy and Green Growth Research, told VietNamNet that the outcome should be considered alongside earlier years when the utility recorded heavy losses driven by high fuel costs.
He said that periods of loss during times of expensive fuel are naturally followed by improved results when input costs ease, especially as EVN works to balance previous financial shortfalls.
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Lower fuel costs, strong hydropower boost EVN profits
Son added that evaluating profitability also requires a closer look at the electricity generation structure in 2025, as the mix of power sources strongly influences procurement costs.
He said that lower generation costs would directly translate into higher earnings for EVN.
A comparison with the 2023 and 2024 generation mix would therefore give a clearer assessment of the situation.
Son said 2025 benefited from several favorable factors, including a decline in coal and gas prices compared with previous years.
In addition, strong rainfall boosted hydropower output, allowing higher production at relatively low cost and significantly improving overall financial performance, he said.
Son said that while the nearly five-percent increase in average retail electricity prices contributed to earnings, the main drivers were cheaper fuel inputs and increased hydropower generation.
Looking ahead to 2026, he said that global liquefied natural gas (LNG) prices have remained relatively stable despite geopolitical tensions, supported by strong supply, particularly from the United States.
However, Son said that Asian markets still face supply constraints due to reliance on long-term contracts with Middle Eastern suppliers.
He identified supply availability, rather than price spikes, as the key risk during the summer peak demand period, while noting that LNG shipments continue to arrive at Thi Vai Port to supply gas-fired power plants.
Price cuts unlikely amid costly energy transition
Responding to calls for lower electricity prices following EVN’s strong profits, Son said the issue is more complicated than it appears.
He said any price reduction would require revisiting existing power purchase agreements, while the country is also transitioning toward a pricing system that better reflects actual costs and gradually removes cross-subsidies.
Son added that the nation is preparing for major investments in LNG power, offshore wind and nuclear energy, all of which involve high capital costs and typically produce more expensive electricity than hydropower.
He also said that EVN is still working to recover accumulated losses from previous years.
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Geoffrey H. Latayan 
Andre Alfonso R. Gutierrez 
Newsjustnews writers