Procedures for calculation of fee for water resource exploitation right in Vietnam from July 1, 2024

Procedures for calculation of fee for water resource exploitation right in Vietnam from July 1, 2024 (Image from the Internet)

Regarding this matter, LawNet answers as follows:

On May 16, 2024, the Government of Vietnam promulgated Decree 54/2024/ND-CP on groundwater drilling practicing, water resource-related declaration, registration, licensing and services and fees for water resource exploitation right.

Procedures for calculation of fee for water resource exploitation right in Vietnam from July 1, 2024

Article 51 of Decree 54/2024/ND-CP stipulates the procedures for calculation of fee for water resource exploitation right in Vietnam from July 1, 2024, as follows:

(1) Procedures for receiving, appraising and approving fee for water resource exploitation right with regard to a structure that has been put into operation:

- The application for calculation of fee for water resource exploitation rights includes a Declaration Form for calculation of fee for water resource exploitation rights according to Form 57 in the appendix attached to Decree 54/2024/ND-CP, along with documents to substantiate the information provided in the Declaration Form;

- The receipt and appraisal of the application for calculation of fee for water resource exploitation rights are undertaken simultaneously with the receipt and appraisal of the application for requesting the issuance, extension, modification of the water resource exploitation license;

- For projects that have been issued a water resource license for domestic use and have not had the fees for water resource exploitation rights approved by a competent state authority before July 1, 2024, the procedures for calculation of fee for water resource exploitation rights follow the provisions at points b, c, and d clause 2 Article 51 of Decree 54/2024/ND-CP.

The implementation of submitting the application for calculation of fee for water resource exploitation rights is to commence from July 1, 2025.

(2) Procedures for receiving, appraising and approving fee for water resource exploitation right with regard to a structure that has not yet been put into operation at the time of issuance of the water resource exploitation permit:

- Within 30 days from the project’s operational start, the license holder must submit the application for calculation of fee for water resource exploitation rights;

- The application for calculation of fee for water resource exploitation rights is regulated at point a clause 1 Article 51 of Decree 54/2024/ND-CP;

- The license holder must submit one set of the application directly to the One-Stop-Shop office or via postal or telecommunication services or by authorization as per the law or online at the public service portal of the application-receiving agency; if the application is invalid, within 5 working days, the receiving agency shall return the application and clearly state the reasons in writing.

If the application is valid, the receiving agency shall forward it to the appraisal agency as stipulated in clause 3 Article 50 of Decree 54/2024/ND-CP for appraisal;

- Within 21 days from receiving the application as per point b of this clause, the appraisal agency is responsible for organizing the appraisal of the application for computing exploitation fees; if necessary, an Appraisal Council may be established to appraise the application for calculation of fee for water resource exploitation rights.

If conditions are met, the appraisal agency shall submit it for approval by the competent state authority; if conditions are not met, the appraisal agency shall return the application to the license holder, clearly stating the reasons in writing; for cases requiring amendments or completion, the appraisal agency shall send a written notification to the license holder detailing the required content to supplement and complete the application. The time for supplements and completion is not counted in the application appraisal period. The appraisal time after supplements is 15 days.

(3) For projects where fees for water resource exploitation rights have been approved and only the license holder's name changes (reissue) without any changes in the bases for calculation of fee as per the previously approved decision, there is no need to adjust the Approved Decision on fees.

The reissued license must clearly stipulate that the new license holder is responsible for fulfilling financial obligations, including the fees for water resource exploitation rights as previously approved.

More details can be found in Decree 54/2024/ND-CP, which comes into force in Vietnam from July 1, 2024.

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