| On 1 July 2018, the Law on Hydraulic Structures in Vietnam officially took effect. The law is expected to create a radical change in its water policy toward the irrigation sector, of which, the shift from “water fees” to “water prices” is considered as an important step for sustainable development of the sector as well as its related services. The main aim of the policy is create a ground for developing market mechanism in the provision and consumption of water products and services from the hydraulic structures. Nevertheless, over more than one year of implementing the new policy, many issues persist and the outcomes in practice are not achieved as expected. This study discusses the current issues facing the Vietnamese irrigation sector and preventing the application of the new policy for the irrigation sector then it reviews insights from the literature on neoclassical economics, new institutional economics, and political sciences to draw recommendations for policy changes to promote the implementation of irrigation water pricing policy in Vietnam in terms of efficiency and sustainability. The paper may provide lessons for policy reforms in other developing countries with the same context. |
