Hanoi to Hike Tap Water Prices 20% Next Month

Vietnam Clean Water Investment and Construction Corporation (VIWACO) will raise the running water prices for households by 20% starting on October 1. The hike means that consumers have to pay VND6,869 (30 US cent) per cubic meter (cu.m) for the first 10 cubic meters, VIWACO said in a recent report. The following blocks of every 10 cubic meters will be charged higher by between 12 and 15%. Prices of tap water supplied to state agencies, production and service establishments will be marketed from VND11,448 to VND25,378/cu.m. The aforementioned water prices will include 5% of value added tax and 10% of environmental fees. The Hanoi Moi newspaper, the mouthpiece of Hanoi’s Party Committee, claimed that the hike would not be able to cover investment, production cost and expenses. Local experts said that the underground water resource of Hanoi falls average 2%-3% annually. Hanoi lacks between 40,000 cu.m and 60,000 cu.m of water per day in the summer reason following rising demand. Nguyen Anh Viet, director of VIWACO, said that the hike would enable the company to better service to customers. Nguyen Thi Thuy, head of the municipal People’s Committee, said that the price hike must go well with the services which were blamed to be bad over the past time. (Vov.vn Sept 14, Viwaco.vn Sept 9)