Ministry mulls hiking electricity tariffs by 8%-9% in Q1

The Ministry of Trade and Industry has submitted a plan for government approval on raising retail electricity prices by 8%-9% within the first quarter of this year.

The price hike is aimed at easing power shortages that often occur in Vietnam during dry seasons, said deputy trade and industry minister Bui Xuan Khu.

"We have taken into account all the related factors, including inflation and GDP, before compiling the plan on raising prices," Khu told Dow Jones Newswires.

Khu said it's not clear if the government will approve the plan.

"In the face of the economic slowdown and falling crude oil prices, the government may not approve it soon," he said.

Vietnam last raised retail electricity prices by 7.6% in January 2007 to an average of 862 dong (5 cents) per kilowatt-hour.