At a glance
- From 1 November 2026, Vietnam’s household electricity tariff has five tiers instead of six, and the average retail price fell 2%. The tariff runs through the end of March 2027.
- Households using up to 900 kWh a month (over 98% of residential customers) should pay less. Those above that level (about 1.77%) may pay more.
- The tier thresholds are 100, 200, 400 and 700 kWh, with prices of 1,901 to 3,844 dong per kWh before VAT.
- Households are not charged by time of day. If you rent, check how your lease passes electricity costs on to you.
What changed: six tiers became five
If you pay your own electricity bill in Vietnam, the rules changed on 1 November 2026. The household tariff was cut from six tiers to five. At the same time, the average retail electricity price fell 2% to 2,159.9 dong per kWh (excluding VAT). The new tariff is set to apply until the end of March 2027.
The change follows Decision 2892 of the Ministry of Industry and Trade. Vietnam Electricity (EVN) explained it at a press conference on 4 November.
The headline “2% cut” is easy to misread. It does not mean every household’s bill falls by 2%. The tier structure changed too, so your result depends on how many kWh you use in a month.
The new tiers and unit prices
The five tiers are 1-100 kWh, 101-200 kWh, 201-400 kWh, 401-700 kWh and 701 kWh or more. Prices run from 1,901 dong per kWh in the first tier to 3,844 dong in the top tier, both before VAT. The top price is more than double the lowest.
Compared with the old six-tier table, the early tiers were merged and consumption above 400 kWh was split into two tiers. The billing method is the same as before: it is progressive. Each tier’s price applies only to the kWh that fall inside that tier. The top price is not applied to your whole consumption.
Sample bills by monthly usage
All amounts below exclude VAT. They are the examples given in the reports, not my own calculations.
| Monthly usage | Result under the new tariff |
|---|---|
| 300 kWh | 708,400 dong (190,100 + 228,900 + 289,400) |
| 400 kWh | 997,800 dong, down 76,700 dong (about 7%) from before |
| 450 kWh | About 1.17 million dong (only the last 50 kWh is priced at the fourth tier) |
| 800 kWh | Down 39,500 dong from before |
| 900 kWh | Down 1,100 dong from before |
| 1,000 kWh | About 3.18 million dong, up 37,300 dong (about 1.2%) |
| 2,000 kWh | Up 421,300 dong (about 6.4%) |
The 300 kWh case shows how tiered billing works. The first 100 kWh costs 190,100 dong, the next 100 kWh costs 228,900 dong, and the last 100 kWh costs 289,400 dong.
The break-even point is around 900 kWh a month
EVN puts the break-even point between the old and new tariffs at about 903 kWh a month. Below that, the new tariff is cheaper. Above it, the new tariff costs more.
According to EVN’s calculations, once both changes are combined, households using up to 900 kWh pay less, by as much as 77,900 dong a month. That group is more than 98.2% of residential customers. Households using more than 900 kWh (about 1.77%) may see higher bills.
Above 700 kWh, the unit price is 3,844 dong. That is 384 dong (more than 11%) higher than the top price in the old table. Crossing 700 kWh does not make your total bill rise immediately, though. You still benefit from the lower prices in the earlier tiers, which is why the total at 800 kWh is still lower than before.
What this means for expat households
Usage varies widely by housing type. The sources do not give average consumption for foreign households, so the only reliable check is the kWh figure on your own recent bills.
- Typical apartments and condos: If you use around 400 kWh, your bill should go down under the new tariff.
- Large houses, villas with pools, or homes running air conditioning all day: If you use more than 900 kWh, your bill may rise. At 1,000 kWh the increase is modest (37,300 dong), but at 2,000 kWh it is 421,300 dong.
- Homes that charge an electric vehicle: Home charging adds to your monthly kWh and could push you into a higher tier. Whether any separate charge applies depends on your arrangement [needs verification].
Time-of-day pricing does not apply to households
The peak and off-peak hours also changed on 1 November. Peak is 17:30-22:30, off-peak is 0:00-6:00, and Sundays have no peak or off-peak periods. EVN said ordinary households are not charged by time of day. They continue to pay under the tiered tariff based on monthly usage only. Shifting your usage to night hours will not change a household bill.
The time-of-day change applies to production and business customers. If you run a business, check which contract category you are on. Tourist accommodation is priced at the same level as production electricity at the matching voltage and time slot, which is 1,814-3,586 dong per kWh. Electric vehicle charging has its own price table (1,534-4,212 dong per kWh). That is the price at which electricity is sold to charging stations, not the final fee drivers pay.
Practical checklist
- Check kWh on your last three bills. Whether you stay under 900 kWh is the key question.
- Read the electricity clause in your lease. Whether your landlord passes on actual cost or charges a fixed rate per kWh affects how much of this cut reaches you. This is a matter for your individual contract, so ask your landlord or building management [needs verification].
- Separate VAT-inclusive from VAT-exclusive figures. Every amount in the reports excludes VAT. Your actual bill adds VAT, so do not compare it directly with the figures above.
- Watch for changes after March 2027. The tariff is reported to apply until the end of March 2027. Check for new announcements after that [needs verification].
Summary
EVN says the new structure supports low and medium users and encourages heavy users to save electricity. Most families are likely to see a small decrease. Large homes using more than 900 kWh a month may pay more. Start by checking your own usage, then review separately how your lease settles electricity costs. This article is general information, not tax or legal advice.
Frequently asked questions
Electricity prices fell 2%. Will my bill fall by 2%?
Not necessarily. The average price cut and the new tier structure apply together, so the change depends on usage. A household using 400 kWh pays about 7% less, while one using 900 kWh saves only 1,100 dong, and above about 900 kWh the bill may rise.
Can I lower my home bill by running the air conditioner at off-peak hours?
No. Households are not charged by time of day. The peak (17:30-22:30) and off-peak (0:00-6:00) periods apply to production and business customers. Home bills depend only on monthly usage under the tiered tariff.
Can I compare the amounts in the news reports directly with my bill?
No. All amounts in the reports exclude VAT, while your actual bill adds VAT. Compare on the same basis.
Sources
- Vì sao giá điện giảm nhưng có nhà vẫn trả nhiều tiền hơn?
- Giá điện sinh hoạt theo 5 bậc, cao nhất 3.844 đồng một kWh
This article summarises publicly available reports and is not legal, tax or investment advice. Check with the relevant authorities or a qualified adviser before making important decisions.