Regulations on price bracket of clean water for domestic use in Vietnam (latest)

Regulations on price bracket of clean water for domestic use in Vietnam (latest)
Bảo Ngọc

The Ministry of Finance of Vietnam has issued Circular 44/2021/TT-BTC dated June 18, 2021 on price brackets, principles, method of determining the price of clean water for domestic use.

According to the Circular, the price bracket for domestic clean water is regulated in Vietnam as follows:

- Special urban area, class 1 urban area:

+ Minimum price: 3,500 VND/m3

+ Maximum price: 18,000 VND/m3

- Class 2, 3, 4, 5 urban areas: 

+ Minimum price: 3,000 VND/m3

+ Maximum price: 15,000 VND/m3

- Countryside area:

+ Minimum price: 2,000 VND/m3

+ Maximum price: 11,000 VND/m3

(The above price bracket includes value-added tax, which is applicable to the average retail price of clean water decided by the Provincial People's Committee of Vietnam).

In addition, this Circular also stipulates the adjustment of clean water prices in Vietnam as follows:

- In case the cost factors of clean water production and business fluctuate, causing the price of clean water to increase or decrease in the following year, the water supply unit shall make a dossier of the clean water price plan and send it to the Department of Finance for appraisal and submission to the Provincial People's Committee of Vietnam for adjustment consideration.

- In case the price of 1 m3 of clean water in the following year fluctuates up to a level that the water supply unit can balance its finances, the water supply unit shall send an official dispatch to the Department of Finance of Vietnam to report to the Provincial People's Committee to keep the clean water price stable.

Circular 44/2021/TT-BTC takes effect from August 5, 2021, replacing Circular 88/2012/TT-BTC; Joint Circular 75/2012/TTLT-BTC-BXD-BNNPTNT.

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