Methods to set up the price of irrigation products and services for agricultural production suitable with the conditions of Vietnam

Abstract

    The Law on Hydraulic Works was officially promulgated in 2017 marking an important milestone in implementing related policies of the sector, including the application of prices for irrigation products and services. On July 1, 2020, the Prime Minister issued Decision No. 33/QĐ-TTg approving the Vietnam Irrigation Strategy to 2030, vision to 2045 with the goal of developing the irrigation and drainage sector towards modernization and setting new requirements in the spirit that irrigation and drainage is an important economic sector and it is necessary to correctly and fully calculate the water price for related products and services. However, the application of pricing methods to improve the efficiency of management and exploitation of the irrigation schemes is dependent on various factors and faces with controversy. This article discusses various water pricing methods and analyzes the suitability of each method to suggest to apply in the context of modernized irrigation schemes and implemention of the irrigation water price policy in Vietnam. A number of recommendations are also given to promote the implementation of the policy on pricing of irrigation products and services in the future