Vietnam Proposed to Raise Clean Water Prices by 17%-100%

Prices of clean water in Vietnam may rise by 17%-100% in the future under the Finance Ministry’s new draft circular. Under the draft, the water prices in special urban areas, urban areas Type 1 will rise to VND3,500-VND18,000 per cubic meters, up 17%-50% from the current VND3,000-VND12,000. For urban areas Type 2, 3, 4 and 5, the prices will increase to VND3,000-VND15,000 per cubic meters, rising 50% compared to the existing prices of VND2,000-VND10,000. The lowest prices of VND2,000-VND11,000 per cubic meters are expected to be applied on rural areas, up 100% and 37% from the current VND1,000-VND8,000. The Vietnamese government has set a goal to help 90% of its population enjoy tap water by 2020 and 100% by 2025 from the current 76%. Foreign donors from Denmark, Australia and the U.K. have also committed more supports for a national target program on rural water and environmental sanitation in Vietnam in the coming years. (dvt.vn Nov 24, Thoi Bao Kinh Te – Economic Times Nov 24 p3)