On Wednesday, March 20, 2019, the Deputy MoIT, Mr. Hoang Quoc Vuong, provided more details regarding the plan, stating an electricity price of 8.36%. Therefore, the average retail price of electricity will rise from VND1,720.65/kWh to over VND1,864/kWh.
At the beginning of March, 2019, the Ministry of Industry and Trade (MoIT) announced information on the plan to increase electricity prices after more than a year without price adjustment.
Ministry of Industry and Trade said that it has coordinated with the General Department of Statistics, Ministry of Planning and Investment to assess the impact of electricity price adjustment plans on consumer price index, production price index and growth of gross domestic product. Specifically, plans to adjust electricity prices increase CPI in the range of 0.26-0.31%, increasing PPI in the range of 0.15-0.19%, reducing GDP in the range of 0.22 – 0.25%.
After the news released on Wednesday’s afternoon, utilities stocks received a good sentiment and increased strongly. In particular, three of the biggest utilities stocks on HoSE are POW, PPC and NT2 increased 1.9%, 6.8% and 3.3% respectively on Wednesday.
If you would like to understand the impact of electricity price increase and get a deeper analysis of these stocks, please feel free to contact us to speak with our analyst.