On 9 July, the Vientiane Capital People’s Council approved a proposal to increase tap water prices, citing mounting production costs that have left the city’s water utility operating at a loss.
The approved plan calls for an adjustment to be implemented over three years from 2025 to 2028.
The decision follows a presentation by Bounyavath Nilasay, Head of the Vientiane Capital Department of Public Works and Transport, during the 9th Ordinary Session of the Vientiane People’s Council’s second legislature.
According to municipal authorities, the cost of producing tap water in Vientiane Capital now significantly exceeds the selling price due to escalating expenses for raw materials, chemicals, pipe equipment, electricity, and fuel, all compounded by currency exchange rate fluctuations.
These mounting costs have resulted in continuous financial losses for the Vientiane Capital Water Supply State Enterprise.
While water prices have remained static since 2014, the minimum wage has increased from LAK 950,000 (approx. USD 56) to LAK 2,500,000 (approx. USD 147) in 2025.
Therefore, the Vientiane Capital Water Supply State Enterprise has proposed and requested approval to adjust water usage tariffs for the period 2025-2027 as follows:

Vientiane Capital encompasses nine districts and 481 villages, with the water supply system currently reaching 344 villages, representing 71 percent coverage. The remaining 137 villages, comprising 29 percent of the total, still lack access to piped water, primarily concentrated in Pakngum and Sangthong Districts.
The city’s water infrastructure consists of six water treatment plants with a combined production capacity of 348,000 cubic meters per day, supplemented by six smaller facilities in Sangthong district producing 2,610 cubic meters per day and four small plants in Pakngum district producing 2,300 cubic meters per day.
The revenue generated from the approved price increase is expected to fund significant infrastructure improvements, including doubling the number of water treatment plants from six to twelve, upgrading aging infrastructure, and expanding access to 137 unserved villages.