Tap water price range in Vietnam 2023

Tap water price range in Vietnam 2023 (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Tap water pricing principles in Vietnam

 Tap water pricing principles according to Article 2 of Circular 44/2021/TT-BTC are as follows:

- Tap water prices should be calculated accurately and fully take into account all reasonable and legitimate production cost factors arising in the process of abstraction, production, distribution and consumption, and in a profitable manner;

Should vary according to water quality, economic - technical norms, tap water supply and demand relationship, natural conditions, local and regional socio-economic development conditions, income of local people likely to change over time;

Should balance lawful rights and interests of tap water suppliers with those of water consumers; should allow for consumers’ economical use of water;

Should encourage water suppliers to improve their consumer service quality, reduce costs, reduce loss and wastage of tap water, and meet customer needs; should help attract investments in the production and distribution of tap water.

- The average retail prices of tap water decided by the People's Committees of provinces or centrally-affiliated city (hereinafter referred to as provincial People's Committees) must be aligned with the tap water price range specified in Section 2.

At peculiar areas (e.g., saltwater flooded areas, coasts zones, those areas facing difficulty in water production), in case where, due to the high costs incurred from production, trading and supply of tap water in these areas:

The average retail prices of water suppliers whose tap water price plans are reviewed by Departments of Finance are higher than the maximum prices in the price range shown in Section 2, the provincial People's Committees shall, based on the actual situation, demand for tap water and local people's income, decide the tap water selling prices accordingly.

2. Tap water price range in Vietnam 2023

Tap water price range in 2023 according to Article 3 of Circular 44/2021/TT-BTC are as follows:

- The tap water price range is shown as follows:

- The aforesaid price range is inclusive of the value-added tax and is applied to the average tap water selling prices decided by provincial People's Committees.

3. Regulations on tap water price adjustments in Vietnam

According to Article 4 of Circular 44/2021/TT-BTC, tap water price adjustments are as follows:

- Annually, tap water suppliers shall actively assess the implementation of tap water price plans and review tap water prices in the subsequent year.

If there is any fluctuation in production and trading cost factors that results in any increase or decrease in the subsequent-year tap water prices, tap water suppliers shall prepare the tap water price plan dossier for submission to Departments of Finance in order for them to review them before being presented to provincial People’s Committees to seek their decision on approval of appropriate adjustments.

- After completing the evaluation process, if a tap water supplier expects that the production cost per 01 m3 of tap water in the coming year would be increased to the one it can financially balance out, it shall submit a written request for the stabilization of tap water price to the Department of Finance that then reports on such request to the provincial People’s Committee (for its information only).

4. Prohibited acts in water supply activities in Vietnam

Prohibited acts in water supply activities under Article 10 of Decree 117/2007/ND-CP include:

- Destroying water supply works, equipment.

- Violating the regulations on protection of safety areas of underground water wells, surface water sources in service of water supply.

- Violating regulations on protection of safety corridors of crude water pipelines, clean water-conducting pipelines, technical facilities and water supply networks.

- Obstructing the examination and inspection of water supply activities.

- Stealing water.

- Polluting unused clean water.

- Supplying untruthful information, thus affecting the lawful rights and interests of other organizations or individuals in water supply activities.

- Abusing positions and powers to trouble or harass other organizations or individuals in water supply activities.

- Supplying water by water supply units for daily-life activities, which is not up to the technical standards promulgated by competent state bodies.

- Dispersing toxic substances and contagious diseases.

- Other acts in violation of legal provisions on water supply.

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