Regulations on collection rate of charge for granting water right in Vietnam

The Government of Vietnam has just issued Decree No. 82/2017/NĐ-CP providing for calculation method and charge for granting water rights.

Decree No. 82/2017/NĐ-CP of Vietnam’s Government clearly states that organizations or individuals that are granted license to exploit and use surface water or underground water (license holder) must pay charge for granting water right in the following cases:

1- Exploitation of surface water: Exploit surface water for producing electricity; Exploit surface water to serve business activities, service provision or non-agricultural production, including water for cooling machinery and equipment, or generating steam.

2- Exploitation of underground water: Exploit underground water to serve business activities, service provision or non-agricultural production, including water for cooling machinery and equipment, or generating steam; Exploit underground water (excluding brackish water and saltwater) for aquaculture, cattle breeding, watering coffee, rubber, cashew or pepper plants and other perennial industrial crops with a scale of 20 m3/24 hours or more.

The collection rate of charge for granting water rights is determined according to the purpose of exploitation, ranging from 0.1% to 2.0%.

Specifically, collection rate of charge for granting water right for exploiting water for hydroelectric power generation is 1.0%; collection rate of charge for granting water right for exploiting water to serve business activities and service provision is 2.0%; collection rate of charge for granting water right for exploiting water to serve non-agricultural production, excluding water for cooling machinery and equipment, or generating steam is 1.5%.

Collection rate of charge for granting water right for exploiting underground water to water coffee, rubber, cashew, tea or pepper plants and other perennial industrial crops is 0.2%.

Collection rate of charge for granting water right for exploiting underground water for aquaculture or cattle breeding is 0.1%.

Decree No. 82/2017/NĐ-CP of Vietnam’s Government takes effect from September 01, 2017.

Source: Economics and Forecasts

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