Dakwaco uses free state infrastructure to invest in business, water prices still increase sharply

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Dak Lak - In Buon Ma Thuot City, there is a paradox about businesses using free water pipeline infrastructure invested by the State for business and profit.

State-owned investment, businesses use it for free

According to the Department of Construction of Dak Lak province, by the end of 2024, the entire Buon Ma Thuot city will have more than 853km of water pipes used and operated by Dak Lak Water Supply Joint Stock Company (Dakwaco).

Among these, there are many kilometers of pipelines invested by the State in infrastructure, while Dakwaco is used completely free of charge to provide domestic water for people.

For example, in 2019, the domestic water supply system in residential group 7, Tan Lap ward was invested by the State with about 2.3 billion VND.

Recently, in the resettlement area project in village 1, Hoa Thang commune (Buon Ma Thuot city), there is also a domestic water supply system with an investment of more than 2 billion VND from the State budget.

In 2024, the Buon Ma Thuot City Construction Investment Project Management Board (the investor) handed over part of this water pipeline system to Dakwaco for operation and use.

Khu dan cu to dan pho 7, duong Tran Quy Cap, phuong Tan Lap. Anh: Bao Trung
Residential area of residential group 7, Tran Quy Cap street, Tan Lap ward. Photo: Bao Trung

Not only the above cases, according to the Management Board of Buon Ma Thuot City Construction Investment Projects, over the past 5 years, this unit has repeatedly handed over the water pipeline system to Dakwaco for exploitation and use.

Meanwhile, this unit does not have to pay infrastructure rental fees or refund initial investment costs to the State. This is not in accordance with current regulations.

On the other hand, according to the 2018 equitization decision at Dak Lak Water Supply and Construction Investment Company Limited (Dakwaco) of the Dak Lak Provincial People's Committee, the State holds 36% of shares, the private sector owns more than 58%.

It is worth mentioning that although the State has invested a lot in water pipelines, by April 2025, these items have not been added to the equitization plan to increase the State's capital contribution in enterprises (still kept at 36%).

Co cau co phan hoa cua Dakwaco nam 2019. Anh: Bao Trung
Dakwaco's equitization structure in 2019. Photo: Bao Trung

Exclusive water supply, escalating prices

Currently, Dakwaco is almost a exclusive unit providing domestic water for people in Buon Ma Thuot city.

Previously, in November 2022, the Dak Lak Provincial People's Committee issued a Decision approving the roadmap to adjust retail prices of clean water provided by Dakwaco in the period of 2023 - 2025.

According to this roadmap, domestic water prices will increase by 15% in 2023; accumulated increase of 35% in 2024 and reach an increase of 60% in 2025.

According to the Dak Lak Provincial People's Committee, in 2022, each household in Buon Ma Thuot city will pay an average of VND9,300/m3 of water. By 2023, the water price will increase to 10,710 VND/m3. In 2024, the water price will increase to 12,600 VND/m3.

By March 2025, each household in the city had to pay 14,900 VND/m3 of water. In just 4 years, water prices in the city have increased by 60%.

Regarding this issue, a representative of the Vietnam Fatherland Front Committee of Dak Lak province confirmed that in 2021, the unit sent a document to the Department of Finance on the draft decision to increase water prices of the Provincial People's Committee.

In particular, the unit did not agree with the 15% increase in the selling price of clean water for domestic use compared to the current price provided by Dakwaco; at the same time, it proposed to keep the price according to the old regulations applied in 2021.

"We are responsible for monitoring and social criticism, and at the same time collecting people's comments related to water prices. However, many opinions reflecting the unit on the price increase have not been accepted or adjusted by competent authorities," said a representative of the Vietnam Fatherland Front Committee of Dak Lak province.

A representative of the Vietnam Fatherland Front Committee of Dak Lak province added that in the first months of 2025, local water prices have increased rapidly, causing much frustration among the people.

In the meeting of the Provincial People's Council for the first 6 months of 2025, the Provincial Vietnam Fatherland Front Committee will certainly give opinions on this issue, and propose that competent authorities adjust domestic water prices.

Previously, Lao Dong Newspaper reported that over the past 3 years, the price of domestic water in Buon Ma Thuot city has continuously increased, causing frustration among people.

According to the Dak Lak Provincial Department of Finance, Dakwaco currently no longer buys water from outside. Therefore, the Department of Finance proposes that Dakwaco excluding 8.3% of the price of clean water from the previously issued price structure.

However, in reality, from the beginning of 2024 until now, many households in Buon Ma Thuot city still have to pay for water at the old price, not excluding the cost of buying water outside as unreasonable.

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Domestic water prices in Dak Lak increase unusually

BẢO TRUNG |

Dak Lak - Over the past 3 years, the price of domestic water in Buon Ma Thuot city has continuously increased, causing frustration among people.

People are thirsty for clean water next to a large unused water depot

BẢO TRUNG |

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Many households in Buon Ma Thuot are upset because of continuous water outages

BẢO TRUNG |

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