Author : Le Phuong Nam

Summary : Currently, 13 out of the 22 communes of Gia Lam district, representing 71% of the district’s population, have no access to piped water services. This study analyzed the factors affecting households’ decision to connect to piped water and their level of willingness to pay (WTP) for such services. Two hundred (200) household heads from the Le Chi, Van Duc and Trung Mau communes in the Gia Lam district of Hanoi City, Vietnam served as respondents in a survey conducted in 2014. The study employed three methods of analysis. Descriptive statistics was used to describe factors related to respondents’ characteristics and water problem status in the study area. The econometrics method using Logit model was employed to analyze factors affecting respondents’ decision to use piped water services. Meanwhile, the Contingent Valuation Method was used to estimate respondents’ WTP level, with a linear regression model to identify factors that affect level of WTP. The results showed that there are no existing piped water connections in the study sites. Main sources of water for drinking, cooking and bathing are rainwater, bottled water and well water, with the latter considered the most common source. However, out of the 200 households interviewed, 49% claimed scum and residues appear in well water. Moreover, thin layers of limestone were found in kettles used for boiling water. While the respondents generally regard bottled water as safe, however, its quality is still regarded unreliable because of unclear sources.This study suggests that the water company can start with an initial price of 4,300 VND/m3. In addition, water company can structure their water price schemes based on the level of household income or communes. Moreover, the orientation programs should be also organized to increase people’s understanding and appreciation of the importance and economical value of using piped water and increase their level of WTP.