Hanoi may increase clean water prices from June

The Department of Finance proposed that Hanoi increase the price of clean water from an average of VND8,300/m3 to more than VND11,900/m3 in the last 6 months of 2023 and VND13,323/m3 in 2024.

According to the proposal for adjusting the price of clean water for daily life sent by the Department of Finance to the City People's Committee, the retail price of clean water for the first 10 m3 (household/month) will increase from VND 5,973/m3 to VND 7,500/m3 in the last 6 months of 2023 and to VND 8,500/m3 in 2024. The highest price for clean water in 2024 will be VND 27,000/m3 if using more than 30 m3/household/month.

The working group assessing the water price adjustment plan, including officials from 6 departments and branches, calculated that the actual water demand in Hanoi in the inner city is at 100-150 liters/day/person. Thus, each household will use 10-16 m3/month, equivalent to an additional cost of 15,000-26,000 VND/month. In rural areas, the usage level is 50-70 liters/day/person, a household will use 6-8 m3/month, so the additional cost they have to pay is 10,000-13,000 VND/month.

"The increase is designed in two phases, basically not affecting the income of people and users of clean water for daily life because water bills only account for 0.72% of the total monthly income and expenditure of a household in urban areas," the Department of Finance affirmed.

The expected increase in Hanoi is equal to or lower than that of other provinces and cities. Specifically, the water bill for the first 10 m3 of Hanoi residents is 75,000 VND/household, Binh Duong 101,500 VND/household, Quang Ninh 81,000 VND/household, and Dien Bien 80,000 VND/household.

Explaining the above proposal, the Appraisal Team stated that the city has not adjusted the price of clean water in the past 10 years, while the cost of water price has fluctuated. Due to the government's policy of limiting groundwater, the city has called for investment in surface water plants with higher production costs than groundwater. The requirement to improve the quality of domestic water also requires resources for investment.

In addition, the adjusted clean water price will encourage organizations and individuals to use water economically; ensure social security and create financial autonomy for water supply enterprises, ensure effective production and business activities and improve the quality of water supply services for the capital's people.

Residents of Hateco Apollo Xuan Phuong apartment building, Nam Tu Liem, use many tools to get water from a tanker truck when the Song Da water plant temporarily stops supplying water, September 2022. Photo: Pham Chieu — Residents of Hateco Apollo Xuan Phuong apartment building, Nam Tu Liem, use many tools to get water from a tanker truck when the Song Da water plant temporarily stops supplying water, September 2022. Photo: *Pham Chieu*

As of December 31, 2022, the total water supply capacity of centralized water plants in Hanoi is about 1,530,000 m3/day and night. Of which, groundwater production is 770,000 m3/day and night and surface water production is 750,000 m3/day and night. The rural water supply network has a design capacity of each station of 300-1,000 m3/day and night. The average clean water loss rate of the whole city has decreased from 24% to below 18%.

The appraisal team assessed that the capacity of the centralized water plants ensures a stable, high-quality, and safe water supply for the city. However, from 2025, if the projects do not ensure progress according to plan, it may not be possible to ensure the supply of clean water for daily life for the city.

Vo Hai

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