Research and analysis of correlation among cost efficient variables constituting the irrigation service price in Vietnam

Since Law on Hydraulic Work being effected, the orientation of irrigation and drainage service management of Vietnam are shifted from fee to pricing mechanisms in which the water users have to pay water tariff for service providers. Its main target is to enhance responsibilities and attention of service providers and users in improving of irrigation water provision and use efficiency. Besides assessing the irrigation and drainage performance by technical aspects, irrigation cost effectiveness per a service unit are also paid attention. With objectives of suitable use and effective distribution of funds among cost factors, the research initially assesses and identifies the rate of cost distribution and correlation between cost factors constituting price of irrigation service provided to users in Vietnam. The research results reported correlation between cost rates per an area unit or a cubic meter of each factor at significant levels upper 95% (P>0.05) and 99% (P>0.01) such as variables of labor wage (x2), regular repairs (x7), materials (x6) have tight correlation with the total cost (x1) at over 70%; between pair correlation between variables of labor wage (x2) and management cost (x8), other operating costs (x4), electricity (x5) are tight at over 85%; and variable of regular repairs (x7) are not correlation with other operating costs ((x4), electricity (x5), management costs (x8) and other costs (x9). Thus, the cost management policies assessment for irrigation management enterprises are recommendation.

1. Introduction

2. Sustainably financing irrigation and drainage in Vietnam and its efficiency

3. Characteristics of costs in irrigation service provision and study methods

4. Data analysis and discussion

5. Conclusion and implication

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Đinh Văn Đạo
Institute for Water resources Economics and Management

International conference water resources research on water resources security,
disaster prevention and climate change adaptation