On October 11, 2024, Vietnam's average electricity retail price was increased by 4.8%, bringing it to VNĐ2,103.11 (approximately US$0.085) per kWh. This increase marks a cumulative rise of 12% over the past two years, following previous hikes of 3% on May 4, 2023, and 4.5% on November 9, 2023. The state-owned Electricity of Vietnam (EVN) reported a staggering loss of over VNĐ21 trillion (around US$485 million) in 2023, attributed to escalating generation costs. As a result of this price increase, approximately 547,000 business customers will incur an average additional cost of VNĐ247,000 per month, while 1.912 million manufacturing customers will face an extra VNĐ499,000. Furthermore, 17.41 million households using 200 kWh or less will see an increase of VNĐ13,000 in their monthly bills. This decision aligns with the Politburo’s Resolution No 55-NQ/TW and Prime Minister’s Decision No 05/2024/QĐ-TTg, which aim to reform electricity pricing to ensure sustainability and attract investment. Industry experts have emphasized the necessity for these reforms, with Nguyễn Xuân Nam, EVN's deputy director, and Trần Việt Hoà from the Electricity Regulatory Authority highlighting the importance of the price increase. However, manufacturers such as Bùi Thanh Luân and Nguyễn Đức Thắng have expressed concerns regarding the rising production costs and the impact on their competitiveness in the market. In conjunction with these developments, Vietnam's Ministry of Industry and Trade is also implementing the direct power purchase agreement (DPPA) mechanism, allowing businesses to buy electricity directly from renewable energy producers, which is expected to enhance competition in the electricity market. Large customers, defined as those consuming over 500,000 kWh per month, represent a significant portion of Vietnam's electricity consumption, accounting for 30%. A survey indicated that around 20 large companies are interested in the DPPA, with a total demand nearing 1,000 MW. The United States Mission to Vietnam has commended the government for approving the DPPA, indicating ongoing support for the initiative. [a0aef9bd][030ff774]