The Ministry of Industry and Trade (MoIT) is currently appraising theElectricity of Vietnam (EVN)’s proposal to adjust the price of powerand will submit a report to the Prime Minister within March, saidMinister-Chairman of the Government Office Nguyen Van Nen.
Nen said at the monthly Government press conference on March 2 thatthe adjustments, with rises of between 7-10 percent, are within theretail price frame for electricity and falls within the MoIT’s authorityto decide.
MoIT Deputy Minister Do Thang Haiexplained that the increase is necessary to match real costs in linewith the market mechanism.
He clarified that thefalling price of oil has little effect on electricity price asoil-fuelled plants produce only 0.55 percent of power generation.Meanwhile, a 22 percent increase was seen in the price of coal from thelast price adjustment in August 1, 2013, he said, noting thatcoal-fuelled plants generate 32.37 percent of the electricity output. Headded that the price of gas has also been hiked several times.
Responding to concerns of deflation after the consumer price index(CPI) continued to decrease, even during the Lunar New Year festival(Tet) in February, Nen attributed the situation to decreased fuel pricesaffecting transportation prices.
Domesticproduction still rose last month with continued growth in purchasingpower, he noted, adding that total retail and service revenue in thefirst two months of this year rose by 11.4 percent from 6.2 percent inthe same period last year.
According to the Ministryof Planning and Investment, price stability was ensured thanks toefforts of the government in fixing market prices before and after theTet festival.
The industrial production indexincreased 12 percent in the first two months of the year on a yearlybasis. Power production rose 13.3 percent, processing and manufacturing12.9 percent, and mining 9 percent.
Total exports inJanuary and February combined reached over 23 billion USD, a surge of8.6 percent annually, while imports hit 23.07 billion USD, up 16.3percent.
Foreign direct investment disbursement hit1.2 billion USD, a rise of 7.1 percent compared to the same period lastyear, mostly in processing and manufacturing sectors. As many as 148 newprojects were licensed and additional capital was injected into 58ongoing projects.
Nen also revealed that theGovernment will continue focusing on stabilising the macro-economy aswell as seeking measures to remove difficulties for business whileimproving the investment environment and enhancing nationalcompetitiveness.-VNA
Nen said at the monthly Government press conference on March 2 thatthe adjustments, with rises of between 7-10 percent, are within theretail price frame for electricity and falls within the MoIT’s authorityto decide.
MoIT Deputy Minister Do Thang Haiexplained that the increase is necessary to match real costs in linewith the market mechanism.
He clarified that thefalling price of oil has little effect on electricity price asoil-fuelled plants produce only 0.55 percent of power generation.Meanwhile, a 22 percent increase was seen in the price of coal from thelast price adjustment in August 1, 2013, he said, noting thatcoal-fuelled plants generate 32.37 percent of the electricity output. Headded that the price of gas has also been hiked several times.
Responding to concerns of deflation after the consumer price index(CPI) continued to decrease, even during the Lunar New Year festival(Tet) in February, Nen attributed the situation to decreased fuel pricesaffecting transportation prices.
Domesticproduction still rose last month with continued growth in purchasingpower, he noted, adding that total retail and service revenue in thefirst two months of this year rose by 11.4 percent from 6.2 percent inthe same period last year.
According to the Ministryof Planning and Investment, price stability was ensured thanks toefforts of the government in fixing market prices before and after theTet festival.
The industrial production indexincreased 12 percent in the first two months of the year on a yearlybasis. Power production rose 13.3 percent, processing and manufacturing12.9 percent, and mining 9 percent.
Total exports inJanuary and February combined reached over 23 billion USD, a surge of8.6 percent annually, while imports hit 23.07 billion USD, up 16.3percent.
Foreign direct investment disbursement hit1.2 billion USD, a rise of 7.1 percent compared to the same period lastyear, mostly in processing and manufacturing sectors. As many as 148 newprojects were licensed and additional capital was injected into 58ongoing projects.
Nen also revealed that theGovernment will continue focusing on stabilising the macro-economy aswell as seeking measures to remove difficulties for business whileimproving the investment environment and enhancing nationalcompetitiveness.-VNA
