What are irrigation products and services? Classification of irrigation products or services in Vietnam

What are irrigation products and services? Classification of irrigation products or services in Vietnam (Internet image)

1. What are irrigation products and services?

 Irrigation product or service is defined as a product or service that is created as a result of operation or exploitation of an irrigation project.

In which, exploitation, operation or utilization of an irrigation project is defined as operation or utilization of potentials or advantages of an irrigation project for socio-economic development and environmental protection purposes.

(Clause 13, 14, Article 2 of Law on Irrigation 2017)

2. Classification of irrigation products or services in Vietnam

- Irrigation products or services shall include public irrigation products or utilities and other products or services.

- Public irrigation products or utilities shall include the following activities:

+ Crop irrigation and supply of water for the salt, aquaculture and livestock production industry;

+ Drainage of water for agricultural production, rural and metropolitan areas, except for urban areas;

+ Flood proofing, escape and prevention, high tide control, saltwater intrusion prevention, saltwater pushback, water desalinization, counter-acidification and freshwater protection.

- Other irrigation products or services shall include the following activities:

+ Supply of water for domestic and industrial consumption purposes;

+ Drainage of water for industrial parks, export processing zones, economic zones and high technology parks;

+ Electricity generation;

+ Business, tourism and other recreational and entertainment activities;

+ Reservoir aquaculture;

- Transportation.

- The Government shall make a decision on supplementary types of public irrigation products and utilities, and other products and services, where relevant to socio-economic situations over time periods.

(Article 30 of the Law on Irrigation 2017)

3. Contracts for supply of irrigation products or services in Vietnam

- Contract for supply of irrigation products or services refers to a fixed-term civil agreement expressed in writing, including the following main contents:

+ Contracting parties;

+ Purposes of irrigation products or services;

+ Standards, quantity and quality of irrigation products and services;

+ Rights and obligations of contracting parties;

+ Duration, location and method of execution of contracts;

+ Contract value, method and duration of payment;

+ Contract termination terms and conditions;

+ Liabilities for breach of contract;

+ Methods of dispute resolution.

- Based on agreed supply capability, purposes of and demands for these products and services, the supplier and consumer of irrigation products and services shall conclude and execute contracts in accordance with applicable laws.

(Article 32 of the Law on Irrigation 2017)

4. Rules and bases for valuing irrigation products or services in Vietnam

- The Government shall determine value of irrigation product or service.

- Valuation of irrigation product or service shall be carried out in accordance with price laws and the following provisions:

+ Price of irrigation product or service shall be composed of operation and maintenance cost, amortization cost, other reasonable actual costs and profit relevant to the market price.

Over periods of time, depending on socio-economic situations, the Minister of Finance shall decide the amortization cost charged for state-funded irrigation projects;

+ Price of irrigation product or service shall be adjusted promptly when factors in price formation are changed.

- Bases for valuation of irrigation products or services shall include:

+ Cost and quality of irrigation product or service; profit level; schedule of adjustment in price of irrigation product or service approved by competent regulatory authorities;

+ Capability of making payment by irrigation product or service consumers;

+ Capability of supplying irrigation products or services;

+ Features and types of irrigation project;

+ Socio-economic norms for management, operation, maintenance and investment in development of irrigation projects, adopted by competent regulatory authorities.

(Article 34 of the Law on Irrigation 2017)

Diem My

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