Water retail price will go up by 50% from July 11, under the Ministry of Finance’s Circular 88.
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The ceiling water price in urban zones would be increased to VND18,000 (US$8.6) per cubic meter while in rural areas it was increased from the current VND8,000 (US$0.38) to VND11,000 (US$5.30).
Based on the water pricing framework, municipal and provincial people's committees would decide the water prices to be applied in their localities.
Last month, the Ha Noi Water Company proposed to the municipal People's Committee to increase the water price by 35% due to a loss of VND32 billion (US$1.53 million) during the first four month of this year.
Earlier, Mr. Koos Neefjes, United Nations Development Program’s policy advisor on climate change said water in Viet Nam was extremely cheap compared to other countries.
He added that without the necessary financial resources, water companies would not be able to invest in new pipes to prevent water losses./.
Source : VGP