Hanoi to Raise Tap Water Prices by 19% Starting October

Vietnam Clean Water Investment and Construction Corporation (VIWACO) will raise running water prices for households in the capital city of Hanoi by 19% to VND6,869 (30 US cent) per cubic meter (cu.m) starting this October. The rate will be applied for first 10 cubic meters and the following blocks of every 10 cubic meters will be charged between 12% and 15%, state media reported Monday, quoting VIWACO’s statement. Prices of tap water supplied to state agencies, production and service establishments will be marketed from VND11,448 to VND25,378/cu.m. The water aforementioned prices will include 5% of value added tax and 10% of environmental fees. The hike will be ascribed to higher investment, production cost and expenses. Nguyen Anh Viet, director of VIWACO, said that the hike would enable the company to better service to customers. Earlier this month, the Ministry of Finance has issued a document to collect ideas from other agencies to raise tax on water which is expected to vary between 2% and 5% from early 2016. Local experts said that the underground water resource of Hanoi falls by average 2%-3% annually. Hanoi falls short of between 40,000 cu.m and 60,000 cu.m per day in the summer season following rising demand. (Tuoi Tre – Youth Sept 28 p8)