A water meter records household water usage in Vientiane.

Vientiane to raise tap water prices amid cost surge

Vientiane authorities will raise tap water prices in stages from 2025 to 2027 to reflect rising production costs and help its water supply enterprise recover from years of financial losses.
The Vientiane People’s Council approved the price hike during its 9th Ordinary Session, after hearing that current prices, unchanged since 2014, are no longer sustainable.
Head of the Vientiane Department of Public Works and Transport, Mr Bounyavath Nilaxay, representing the board of directors of the Vientiane Water Supply Enterprise, said the price rise is essential to offset growing operational costs and keep services running.
“The cost of producing tap water has long exceeded the billing price,” he said.
He pointed out that while the monthly minimum wage has risen from 950,000 kip in 2014 to 2.5 million kip in 2025, water prices have stayed the same. This mismatch, he said, has left the enterprise short on funds, hampering efforts to improve infrastructure and ensure a steady supply.
Mr Bounyavath added that the cost of electricity, fuel, chemicals, equipment and raw materials has continued to climb, with currency exchange rate fluctuations putting further pressure on the company’s balance sheet.
The average price per cubic metre has increased from 2,326 kip in 2024 to 2,509 kip in the first quarter of 2025. Prices will then rise every quarter, tailored to consumption levels and customer categories.
For households, the new rates in 2025 are Q1: 2,479 kip per cubic metre;  Q2: 2,603 kip; Q3: 2,733 kip; and Q4: 2,870 kip.
Consumption will be divided into four brackets: 0–10, 11–30, 31–50, and over 50 cubic metres per month.
For government bodies, embassies and international organisations, rates will rise from 2,440 kip per cubic metre in 2024 to Q1 2027: 2,896 kip; Q2 2027: 3,041 kip; Q3 2027: 3,826 kip; Q4 2027: 4,017 kip.
For the business and commercial sector, including hotels, restaurants, water factories and ice producers, prices will increase from 2,971 kip in 2024 to Q1 2025: 3,620 kip; Q2 2025: 3,801 kip; Q3 2025: 3,991 kip; Q4 2025: 4,190 kip.
Businesses will be charged based on consumption ranges of 0–30, 31–60, and over 60 cubic metres per month.
The gradual price rise aims to soften the impact on consumers while putting the water enterprise on a more sustainable financial path.
However, some members of the Vientiane People’s Council expressed concern about the timing, saying the move could add pressure to families already coping with rising electricity costs.
Ms Valy Vetsaphong, a member of the Council, said people are still unhappy about the recent energy price hike by Electricite du Laos, and introducing another utility price rise now could worsen public sentiment.
Electricite du Laos recently also adjusted electricity prices to address its own operational liquidity issues, affecting all sectors across the country.
At the latest session of the National Assembly, lawmakers urged the relevant sectors to reconsider the electricity rate adjustment to ease the strain on the general public.
Water supply officials believe that with the new pricing structure, the enterprise could reach a break-even point by the fourth quarter of 2025, helping to secure the future of essential services in the capital.

By Phonepaseuth Volakhoun
 (Latest Update July 14, 2025)