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Hanoi will increase domestic water price |
According to the Hanoi Department of Finance’s evaluation, the increase in the price of tap water in the city basically has no impact on people's income as people pay an additional money from VND10,000 -VND26,000 a household monthly.
According to the proposal, the plan to adjust the price of domestic water is divided into many levels of use. The present retail price of the first 10 cubic meter of tap water a household monthly will surge from VND 5,973 per cubic meter to VND 7,500 per cubic meter from July 2023 and to VND8,500 per cubic meter in 2024.
The present retail price of the following 20 cubic meter of tap water a household monthly will increase from VND7,052 per cubic meter to VND8,800 per cubic meter from July 2023 and to VND9,900 per cubic meter in 2024. The highest price for tap water in 2024 will be VND27,000 per cubic meter when a household spends more than 30 per cubic meters a month.
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Based on the Department’s assessment of the actual water demand in Hanoi in the inner city, each person spends roughly 100-150 liters a day or each household will use 10-16 cubic meters a month, accordingly. They will pay extra amount of VND15,000-VND26,000 a month.
In rural areas, a person consume 50-70 water liter a day or a household will use 6-8 cubic meters a month and they must pay an additional amount of VND10,000-VND13,000 a month.
Therefore, according to the roadmap, the increase basically does not affect the income of residents in the capital city of Hanoi. If the water bill is included in the total income and expenditure of a household in urban areas in a month, it only accounts for 0.72 percent.
Moreover, the proposed adjusted domestic water price of Hanoi city is equivalent or lower than that of other provinces and cities because the price of the first 10 cubic meters of water in Hanoi is VND75,000 a household monthly while it in VND 81,000 in the Northern Province of Quang Ninh and it is VND101,500 in the Southern Province of Binh Duong.
According to the Hanoi Department of Finance, the adjustment of the price of clean water is due to the increasing demand for clean water in Hanoi following the faster urbanization rate, the mechanical population growth, and the improved living standards of the people leading to huge demand for clean water and quality while groundwater resources are declining and showing signs of pollution but the city’s state budget is very limited.
