CIRCULAR JOINT CIRCULAR

Guidelines on principles and methods for determining and authority to decide the price of clean water consumption in urban areas, industrial zones, and rural areas decide the consumption price of clean water in urban areas, industrial zones, and rural areas

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Pursuant to Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance; Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing some articles of Decree No. 170/2003/NĐ-CP;

Pursuant to Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water; Decree No. 124/2011/NĐ-CP dated December 28, 2011 of the Government amending and supplementing some articles of Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Decree No. 75/2009/NĐ-CP dated September 10, 2009 of the Government amending Article 3 of Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 2147/QĐ-TTg dated November 24, 2010 of the Prime Minister approving the National Program to reduce water loss and revenue loss from clean water until 2025.

The Minister of Finance; the Minister of Construction; the Minister of Agriculture and Rural Development hereby promulgates this Circular guiding the principles, methods for determining and the authority to decide the price of clean water consumption in urban areas, industrial zones, and rural areas as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the principles and methods for determining the price of clean water consumption and the authority to decide the price of clean water consumption to serve as a basis for organizations with the authority under the law and this Circular to establish, submit, review, approve pricing plans, and decide on the price of clean water consumption implemented in urban areas, industrial zones, and rural areas.

Article 2. Applicability

This Circular applies to organizations with the authority to establish, submit, review pricing plans, and decide on the price of clean water consumption according to the law and this Circular; water supply units providing water services in wholesale and retail sectors, and customers using clean water.

Chapter II

PRINCIPLES FOR DETERMINING THE PRICE OF CLEAN WATER CONSUMPTION

Article 3. Principles for determining the price of clean water consumption clean

1. The price of clean water consumption must be calculated accurately and fully covering reasonable production costs, total cost throughout the production, distribution, and consumption processes (including connection maintenance costs) to enable water supply units to maintain and develop based on technical standards, economic norms issued by competent authorities under the law, and reasonable profit margins for commercial water volumes carried out by organizations and individuals implementing part or all of the activities of extracting, producing, transmitting, wholesaling, and retailing clean water (referred to as water supply units) according to the Pricing Regulation issued by the State and guidelines provided in this Circular; it should be consistent with the supply and demand relationship for clean water and the socio-economic development conditions of the country, region, and people's income at each period; ensuring the rights and legitimate interests of water supply units and water users; encouraging water supply units to improve service quality and strive to reduce costs, reduce water loss and revenue loss, meet customer needs, while encouraging customers to use water efficiently and encouraging investors to invest in clean water production, supply, and consumption activities.

2. The price of clean water consumption for water supply units shall not differentiate by economic components; nor shall it differentiate between domestic and foreign users, but it shall be determined separately for different purposes such as: water for residential use (taking into account support policies for households using water in ethnic minority and mountainous regions, coastal and island areas, border regions according to current criteria set by the State); water for administrative agencies and public institutions; for production, business, and services, consistent with the characteristics of water consumption, water sources, and water production conditions in each region, locality, and area.

3. The price of clean water consumption shall be determined according to the principles for setting prices specified in Clause 1 of this Article in accordance with the principles, methods for determining prices, within the price range or limit set by the State; however, it must be consistent with the water quality according to the current technical standards published or issued by competent authorities under the law.

4. In cases where the price of clean water consumption decided (or approved) by the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) is lower than the clean water pricing plan established by water supply units and reviewed by the Department of Finance according to the above principles of accurate and full calculation, then annually the Provincial People's Committee must consider and provide subsidies from the local budget or have a reasonable support mechanism in accordance with its authority and legal regulations to ensure that clean water production and supply units can cover their costs, operate normally, except for clean water produced from clean water projects invested in under the BOT model.

Article 4. Principles for Adjusting Prices

Annually, when factors constituting production costs for clean water calculated according to the principles stipulated in Article 3 and the methods for determining total production costs specified in Article 5 of this Circular change, or when there is a technological change in water treatment, quality standards for services, or changes in state policies related to increasing (or decreasing) the cost of clean water consumption, then the competent authority deciding (or approving) the price of water as prescribed in this Circular must consider adjusting the price range (or specific consumption price) accordingly.

Chapter III

METHODS FOR DETERMINING THE CONSUMPTION PRICE OF CLEAN WATER

Article 5. Methods for Determining Total Production and Business Costs of Clean Water Products

1. The reasonable and valid total production costs of clean water products serving as the basis for calculating the overall cost and the price of one cubic meter (m3) of clean water must be calculated for the corresponding commercial water volume during the calculation period according to the economic and technical standards for clean water production published or issued by authorized agencies as prescribed by law (not based on the actual average production costs of water supply units in the province), including the following costs:

2. For clean water in urban areas and industrial zones (including industrial parks, export processing zones, high-tech parks, and economic zones - collectively referred to as industrial zones), the contents of each cost item are determined as follows:

a) Direct material costs include expenses for raw materials, fuels, and power directly used in producing the product such as: expenses paid in cash for purchasing clean water, raw water (for businesses that need to purchase clean water or raw water), electricity, alum, chlorine, and other auxiliary materials used in water treatment operations.

Direct material costs are determined by multiplying the quantity of each type of material used by its corresponding unit price; wherein:

- The quantity of materials used to produce clean water shall be applied according to the economic and technical standards for clean water production published or issued by authorized agencies as prescribed by law. For materials introduced into production without economic and technical standards published or issued by authorized agencies, the Chairman of the Board of Management or General Director/Director of the water supply unit shall establish norms within the pricing plan for clean water consumption to be submitted for approval by the provincial People's Committee;

- Material prices are the actual purchase prices according to the state-regulated prices or announced prices, guidance prices at the time of calculation (for materials subject to state price regulations and management through registration, declaration, negotiation, or public information about prices) or market prices recorded on invoices from sellers at the time of calculation (for materials not included in the list of items regulated or announced by the state), plus (+) reasonable circulation costs to the place of production and supply of water (if applicable).

b) Direct labor costs include monetary expenses that water supply units must pay to workers directly involved in production such as: wages, salaries, and allowances with wage characteristics, meal allowances, social insurance, health insurance, unemployment insurance, trade union fees, and other expenses as stipulated for direct production workers, including:

- Wages and salaries are determined by multiplying the number of workdays according to the economic and technical standards for clean water production published or issued by authorized agencies as prescribed by law by the corresponding daily wage rate (the daily wage rate includes: basic salary, allowances stipulated by the state);

- Meal allowances between shifts (if applicable) for workers participating in business activities according to current state regulations;

- Social insurance, health insurance, unemployment insurance, trade union fees, and other expenses (if applicable) for direct production workers according to current state regulations.

c) Common production costs are indirect production costs (excluding direct material and direct labor costs as stipulated in points a and b of Clause 2 of this Article) incurred by production units of the enterprise, including: depreciation and repair of fixed assets; material, tools, and equipment costs for workshops; wages, allowances, and meal allowances (if applicable) for workshop staff; social insurance, health insurance, unemployment insurance, and trade union fees for workshop staff; testing and standardization costs for clean water, service procurement costs, and other monetary costs included in the cost price according to legal provisions.

The method for determining material and service costs, labor costs in common production costs applies as stipulated in points a and b of Clause 2 of this Article.

Depreciation costs for fixed assets are implemented in accordance with the Ministry of Finance's regulations on the management, use, and depreciation of fixed assets.

d) Business management costs are the total costs allocated for the management and operation machinery of the enterprise, including general costs of the entire enterprise such as depreciation, repair of fixed assets serving the management and operation within the enterprise; labor costs, wages, allowances, and mid-shift meal expenses (if any) paid to the board of directors and managerial staff in various departments; social insurance, health insurance; unemployment insurance and trade union fees of the enterprise's management machinery; office material and supply costs, taxes, fees, and service costs purchased externally for the office; other common costs for the entire enterprise such as interest expense, inventory reserve reduction, bad debt provision, hospitality, transaction costs, scientific research costs, technological innovation costs, initiative and improvement costs, environmental protection costs, education and training costs, medical expenses for the enterprise’s employees, costs related to female workers, safe water supply costs, and other management costs according to current regulations. Business management costs are allocated into product cost based on appropriate criteria for the products of the enterprise such as clean water production, construction installation, and other products of the enterprise (if any); other management costs according to current state regulations.

The method for determining material costs, service costs, labor costs, and fixed asset depreciation costs in business management costs shall be applied as prescribed in Points a, b, and c of Clause 2 of this Article.

đ) Sales costs are all costs related to the sale of products and services, including: investment costs for integrated systems including water meters and other auxiliary equipment from the third-level distribution network to the point of connection with customers using water, except where otherwise agreed by the parties; wages, wage allowances, mid-shift meal expenses (if any); social insurance; health insurance, unemployment insurance, trade union fees, and other costs according to current regulations for sales personnel; advertising costs; external service costs, maintenance connection costs, and other costs according to current state regulations. The method for determining each item of sales costs shall be applied as prescribed in Points a, b, c, and d of Clause 2 of this Article.

Maintenance connection costs are costs for managing and maintaining existing connections (including cases where customers are not using water) and will be used during the planned water supply period to ensure water service quality according to customer needs. Maintenance connection costs are specified by the People's Committee of the province at a certain percentage of the total production cost, ensuring alignment with local actual water usage conditions.

3. For rural clean water, the contents of the cost items are determined as follows:

a) Direct material costs include costs of raw materials, fuels, and power directly used in the production of products such as: clean water, raw water (for units that need to purchase clean water or raw water), electricity, alum, chlorine, and other materials used in water treatment processes.

Direct material costs are determined by multiplying the quantity of each type of material used by its corresponding unit price; wherein:

- The quantity of main materials used to produce clean water is applied according to technical and economic standards for clean water production issued by authorized agencies under the law.

- Material prices are the actual purchase prices according to state-set prices or announced prices, price guidance at the time of calculation (for materials still subject to state pricing and price management through registration, declaration, negotiation, and public information about prices) or market prices recorded on invoices provided by sellers at the time of calculation (for materials not included in the state's price announcement or guidance list), plus (+) reasonable circulation costs to the place of production and water supply (if any).

b) Direct labor costs

- If water supply projects are funded by state budget sources and directly managed and operated by enterprises or public service units established according to state regulations to operate clean water businesses in rural areas, direct labor costs are determined according to the method for calculating direct labor costs for producing clean water in urban and industrial zones, specifically:

+ Labor costs and wages are calculated by multiplying the number of workdays according to the technical and economic standards for clean water production issued by authorized agencies under the law with the corresponding daily wage rate (the daily wage rate includes basic salary and wage allowances stipulated by the state suitable for the type of enterprise and public service unit);

+ Mid-shift meal expenses (if any) for employees involved in the business operations of the enterprise are implemented according to current state regulations;

+ Social insurance, health insurance, unemployment insurance, trade union fees, and other costs for direct production workers are implemented according to current state regulations.

- If water supply projects are handed over by the state to cooperatives, community groups, or individuals for management and operation, or if water supply projects are self-funded by cooperatives, community groups, or individuals for operating clean water businesses, direct labor costs are calculated based on the results of discussions and agreements reached at the cooperative member assembly or based on agreements between the community water users and the water supply unit, equivalent to the average wage level of production and business sectors providing goods and services in the local area, and consistent with current state regulations.

c) Common production costs (if incurred) are calculated similarly to the common costs for producing and operating clean water in urban and industrial zones.

d) Business management costs or water supply unit management costs (if incurred): shall be calculated in accordance with the method for calculating business management costs for the production and operation of clean water in cities and industrial zones.

đ) Sales expenses (if incurred): shall be calculated in accordance with the method for calculating sales expenses for the production and operation of clean water in cities and industrial zones.

4. When determining the total production and business costs, the water supply unit must accurately calculate all reasonable and legitimate costs; exclude costs that cannot be included in the total production and business costs as prescribed in the Pricing Regulation for Goods, Commodities, and Services issued by the Ministry of Finance and other relevant laws. Common costs not solely serving the production and operation of clean water but related to multiple areas of activity within the water supply unit, and costs that need to be allocated during the calculation period, shall be implemented according to accounting laws and other relevant laws and regulations stipulated in this Circular.

Article 6. Method for Determining the Average Consumption Price of Clean Water (Retail Price) l) Average

1. The full cost of 01 cubic meter of clean water serving as the basis for calculating the average price of clean water is determined by the following formula:

Where:

a) Z_tb is the full cost of 01 cubic meter of clean water on average (unit of measurement: VND/cubic meter)³  is the total reasonable and legitimate production and business costs corresponding to the commercial water volume (unit of measurement: VND) determined in accordance with the guidance provided in Article 5, Chapter III of this Circular.³).

c) C_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} is the commercial water volume, determined as follows:

c) SLtp is the commercial water volume, determined as follows:

SLtp = SLsx – KLhh

Where:

SLtp: is the commercial water volume (unit of measurement: cubic meters/year);

SLsx: is the production water volume.

+ Production water volume of cities and industrial zones: is calculated based on the planned extraction volume of each plant in the year, consistent with the water consumption needs approved by the Provincial People's Committee (unit of measurement: cubic meters/year).

+ Production water volume of rural areas:

If water supply facilities managed and operated by enterprises or public service units established in accordance with state regulations, the production water volume is determined similarly to the production water volume of cities and industrial zones.

If water supply facilities managed and operated by cooperatives, communities, or individuals, the production water volume is the extraction volume of each unit in the year based on agreements between the water supply unit and water consumers regarding water supply needs.

- KLhh: is the volume of water lost, uncollected, abbreviated as the volume of water wasted (including natural and technical losses) between the production water volume and the commercial water volume (unit of measurement: cubic meters); the volume of water wasted is determined by multiplying the percentage rate by the production water volume. The specific water loss rate is set by the Provincial People's Committee in accordance with actual technical conditions and management levels and incorporated into the consumption price of clean water at a maximum rate not exceeding the following provisions:

+ For the entire water distribution network put into use for less than 10 years: 23%;

+ For the entire water distribution network put into use for 10 years or more: 32%;

+ In cases where the water distribution network put into use has mixed usage periods (including networks under 10 years and those over 10 years): 27%;

This loss rate must be monitored and summarized from actual production and business operations, and strict management measures must be taken to gradually reduce it to meet the water loss rates specified in Decision No. 2147/QĐ-TTg dated November 24, 2010 of the Prime Minister approving the national program to combat water loss for each stage: by 2015, the average water loss rate is 25%; by 2020: 18%; by 2025: 15%.

For water supply units with water loss rates approved by the Provincial People's Committee in their annual water consumption pricing plans after the implementation of this Circular lower than the maximum water loss rates above, the quota will be based on the water loss rate approved by the Provincial People's Committee; At the same time, to encourage water supply units to strive to reduce water loss rates, the water loss rate approved by the Provincial People's Committee will remain stable for three years.

Water supply units that achieve actual water loss reductions compared to the water loss rate approved by the Provincial People's Committee in their pricing plan will use 100% of the revenue generated from reduced water loss rates to supplement 70% into the development investment fund and basic construction capital, while the remaining 30% will be supplemented into the reward and welfare fund of the water supply unit.

2. The average consumption price of clean water (excluding VAT) is determined by the following formula:

Gttbq = Ztb + (Ztb x P)

Where:

a) Gttbq is the average consumption price of clean water (unit of measurement: VND/cubic meter).

b) Ztb is the full cost of 01 cubic meter of clean water determined in accordance with Clause 1, Article 6, Chapter III of this Circular.

c) P: is the benchmark profit margin. Based on the actual business conditions of clean water businesses and local residents' income, the Provincial People's Committee sets a reasonable benchmark profit margin in the structure of the clean water consumption price as follows:

- For water supply units that organize the entire process from production and extraction to retail sales: the benchmark profit margin is set at a minimum of 5% of the full cost.

- For water supply units that only handle the production and extraction process through wholesale water sales (or partial sales) to retail units for resale at regulated prices, both parties agree on the wholesale price. The total profit for the wholesale stage and the profit for the retail stage agreed upon by both parties should not exceed the aforementioned regulation.

The guidance on the method for calculating the average domestic water consumption price above is used to determine the average domestic water price and serve as a basis for calculating the domestic water consumption price for each purpose, ensuring that the domestic water consumption price for each purpose is consistent with the average domestic water consumption price.

Article 7. Method for Determining the Domestic Water Consumption Price for Each Purpose

1. Wholesale water price:

The wholesale water price is agreed upon between the wholesale water supply unit selling to the bulk purchasing units (water supply units selling water to another water supply unit for direct sale to end-users) and the retail water supply units (water supply units directly selling water to end-users) when conducting wholesale water sales, ensuring that both the wholesale water supply unit and the retail water supply unit can cover production and business costs and achieve reasonable profit levels without contravening the provisions of Article 6 and not exceeding the retail price set by the competent authority. In cases where an agreement cannot be reached on the price level, either one party (or both parties) has the right to request the provincial Department of Finance to organize price negotiations in accordance with the law.

2. Domestic water consumption price (excluding value-added tax) for each purpose:

a) The domestic water consumption price for household purposes is applied based on a progressive pricing mechanism, with households using less than the water usage quota being charged a lower price and vice versa. For other purposes, a single pricing mechanism is applied but with different prices according to each water usage purpose.

In areas where there is excess water supply capacity compared to demand, the progressive pricing mechanism for household water consumption may not be implemented, instead applying the average household water price to encourage consumers to use clean and safe water; this also facilitates the development of water distribution networks by water supply enterprises and improves production efficiency.

Based on the average domestic water consumption price determined in Article 6 of this Circular, referring to the framework of household water consumption prices set by the Ministry of Finance, and considering the structure of water consumption subjects in the locality, the specific domestic water consumption price for each purpose should be determined in accordance with the principle that the weighted average of all water prices for various purposes equals the average domestic water consumption price. (For the wholesale price of household water, the overall average price must not be lower than the minimum price and not higher than the maximum price within the framework set by the Ministry of Finance).

The formula for calculating the domestic water consumption price for each purpose is as follows:

Gttthmđ = Gttbq X Httthmđ

Where:

Gttthmđ is the domestic water consumption price for each purpose

Gttbq is the average domestic water consumption price

Httthmđ is the pricing factor according to the purpose of use, determined as follows:

 - Up to 2.5 m

- Up to 10 m³/person/month                     SH1 0.8³If usage exceeds this amount, apply the progressive pricing as follows:

- From over 2.5 m

 to 5 m³/person/month                         SH2 1.0³- From over 5 m

 to 7.5 m³/person/month                         SH3 1.2³- From over 7.5 m

/person/month                                           SH4 2.5³For residential households consuming clean water without meter installation or in rural areas where communal water tanks are used, temporarily apply a fixed charge equivalent to the usage of one person at 4 m³/month, or for areas where usage cannot be calculated per person, apply a charge for a household at 16 m³/month based on the SH2 rate.

In special cases where the local area primarily produces water for household use and the domestic water consumption price calculation does not meet the maximum pricing factor stipulated, it is permissible to adjust the pricing factor beyond the maximum limit applicable to the first SH1 segment to ensure that the average domestic water consumption price factor equals 1.

In cases where students and workers renting accommodation (with a lease term of 12 months or more) have their landlords purchase water from the water supply unit to provide for these users, four people (based on temporary residence registration certificates and rental contracts confirmed by local authorities or notarized by professional organizations) are considered as one household for water usage, allowing the water supply unit to apply the household water price to the landlord and guide the landlord to sell water to these users at the price applied to the landlord.

When urban industrial water supply units provide clean water for household use to rural farmers outside urban areas as requested by water users, the domestic water consumption price shall be negotiated based on the household water price in urban and industrial areas.

In the case where urban water supply units or industrial zone water supply units provide clean water for daily use to rural households outside urban areas upon request from water users, the consumption price of clean water shall be agreed upon based on the price of clean water for daily use in urban areas and industrial zones.

c) For subjects using clean water for other purposes such as administrative agencies, public institutions, enterprises engaged in production and business services, the consumption price of clean water shall be determined by the enterprise producing and trading in clean water according to the pricing plan approved by the People's Committee of the province but shall not exceed the maximum pricing coefficient prescribed in this Circular. Based on the table of the maximum pricing coefficients relative to the average price, the pricing coefficient shall be determined appropriately depending on the characteristics of clean water consumption and the ratio of clean water usage among different purposes in the locality.

In cases where water supply units in urban areas and industrial zones provide water supply according to the requirements of customers using water outside urban areas and industrial zones for the aforementioned purposes, the consumption price of clean water shall be calculated based on the appropriate water price for each purpose of use in urban areas and industrial zones.

In cases where a customer uses only one water meter for multiple purposes of water use as stipulated in a water usage contract, the water supply unit and the water user shall base their agreement on the actual water usage situation to determine the specific proportion of water used for each purpose to apply the appropriate water price for each purpose of use. If the water supply unit and the water user cannot agree on the specific proportion of water used for each purpose, the water price for the main purpose of use as agreed in the contract shall be applied. In cases where the main purpose of use cannot be agreed upon, the matter shall be reported to the Department of Finance to organize price negotiation in accordance with the provisions of the law.

For particularly difficult rural areas, ethnic minority and mountainous regions, coastal and island regions, border regions according to the current criteria set by the State, if the Provincial People's Committee approves a lower consumption price plan for clean water than the correct and comprehensive clean water price plan currently in force, in line with the payment capacity of the people, then the Provincial People's Committee shall have policies or mechanisms to adjust the price level between urban and rural water supply units within the same water supply entity (rural water supply units being dependent accounting units of urban water supply units) to ensure harmonization of urban and rural water prices. For provinces that cannot adjust the price level between urban and rural water supply units due to legal restrictions on enterprises, the Provincial People's Committee shall annually subsidize from the local budget to ensure the rights and legitimate interests of the water supply units. The mechanism, procedures, and processes for subsidies shall be specifically regulated by the Provincial People's Committee in accordance with the actual conditions of the locality but shall not contravene the current regulations on state budget management.

Chapter IV

AUTHORITY TO DETERMINE THE CONSUMPTION PRICE OF CLEAN WATER AND MANAGEMENT OF THE CONSUMPTION PRICE OF CLEAN WATER

Article 8. Rights and responsibilities of agencies and units in establishing, submitting, and reviewing pricing plans

1. The Price Management Agency under the Ministry of Finance shall cooperate with relevant agencies to establish the framework for the consumption price of clean water for daily use to be decided by the Minister of Finance.

2. Clean water supply units shall base their clean water pricing plan on the framework for the consumption price of clean water for daily use established by the Ministry of Finance; the pricing rules issued by the State; the principles and methods for determining the clean water price stipulated in this Circular, and report it to the Department of Finance for review before submitting it to the Provincial People's Committee for decision and approval, in coordination with the Department of Construction and the Department of Agriculture and Rural Development.

Article 9. Authority to Determine the Price of Clean Water

1. The Ministry of Finance shall prescribe the framework for the retail price of clean water for domestic use applicable throughout the country.

2. The People's Committee of the province shall approve the pricing plan for clean water proposed by the water supply unit, and issue specific prices for clean water for domestic use within the province in accordance with the framework set by the Ministry of Finance. In special cases such as areas with brackish water, coastal areas, or areas with difficult conditions for water production where the cost of producing and supplying clean water for domestic use exceeds the maximum price level of the framework set by the Ministry of Finance, the People's Committee of the province shall decide on the retail price of clean water for domestic use based on actual circumstances but not exceeding 50% above the maximum price level of the retail price framework for clean water for domestic use set by the Ministry of Finance.

The People's Committee of the province shall implement guidance on management authority, pricing authority, and specific water prices for self-flowing water supply facilities, small-scale water supply facilities managed by communities, and rural areas where community residents agree to invest in the production and business of water supply.

3. Water supply units shall independently determine the price of clean water for purposes other than domestic use in accordance with the approved pricing plan for clean water by the People's Committee of the province.

Chapter V

IMPLEMENTATION

Article 10. Implementation Organization

1. The Ministry of Finance shall lead and coordinate with the Ministry of Construction and the Ministry of Agriculture and Rural Development to periodically or urgently inspect the establishment and issuance of regulations on managing the retail price of clean water at local levels, and inspect the development of pricing plans; compliance with water pricing laws by water supply units as stipulated in this Circular.

2. The Department of Finance shall lead and coordinate with the Department of Construction, the Department of Agriculture and Rural Development, and relevant departments to inspect the implementation of decisions on the retail price of clean water for domestic use, inspect the establishment, decision-making, and implementation of retail prices for clean water applied to users at the local level, advise the People's Committee of the province to promptly address any arising issues; and simultaneously compile reports to the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development for monitoring and adjusting the pricing framework when necessary.

3. Water production and business units must have plans to develop water sources and distribution networks to meet consumption needs, improve water service quality; regularly monitor and inspect clean water consumption, collect water fees accurately and appropriately according to each user category; promptly take measures to address water leakage and revenue loss.

4. Depending on the actual situation of clean water production and consumption in cities, industrial zones, and rural areas during different periods, the Ministry of Finance shall cooperate with the Ministry of Construction and the Ministry of Agriculture and Rural Development to study, amend, and supplement methods for determining the retail price of clean water as appropriate.

Article 11. Effective Date

This Circular takes effect from June 29, 2012, and replaces Circular Joint No. 95/2009/TTLT-BTC-BXD-BNN dated May 19, 2009, issued by the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development guiding principles, methods for determining, and authorities for deciding the retail price of clean water in cities, industrial zones, and rural residential clusters.

During implementation, if there are difficulties or obstacles, they should be reported promptly to the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development for consideration and resolution./.