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Economic Assessment of Sanitation Interventions in Vietnam - WSP

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<strong>Economic</strong> <strong>Assessment</strong> <strong>of</strong> <strong>Sanitation</strong> <strong>Interventions</strong> <strong>in</strong> <strong>Vietnam</strong> | Costs <strong>of</strong> Improved <strong>Sanitation</strong> and Hygienecosts recovery. The strategy to mobilize resources <strong>in</strong> this caseis enacted through foreign loans, grants, and other f<strong>in</strong>ancial<strong>in</strong>itiatives to attract private sector participation.6.4 SANITATION OPTIONS BY ASSETQUINTILEThe choice <strong>of</strong> sanitation option by households, and theprice paid, is expected to vary by wealth qu<strong>in</strong>tile. The decisionto improve sanitation is <strong>in</strong>fluenced partly by the <strong>in</strong>itial<strong>in</strong>vestment cost, and also the recurrent costs. Householdswith lower cash <strong>in</strong>come will be more sensitive to hygieneand sanitation costs.Accord<strong>in</strong>g to the Prime M<strong>in</strong>ister’s decision No. 170/2005/QD-TTg dated 8th July 2005, for the period 2006 – 2010urban households with an average monthly <strong>in</strong>come <strong>of</strong> belowoVND260,000 per person are classified as ‘poor’, and belowVND200,000 per person for rural households. Manyexperts claim these figures do not reflect the real povertysituation. The current poverty standard (for the period <strong>of</strong>2011 – 2015) is below VND450,000 per person per month<strong>in</strong> urban areas, and below VND350,000 per person permonth <strong>in</strong> rural areas. Households <strong>in</strong> Ho Chi M<strong>in</strong>h Citywith an average <strong>in</strong>come <strong>of</strong> VND12,000,000 per person peryear are considered ‘poor’ dur<strong>in</strong>g the period 2009 to 2015.FIGURE 47: PROPORTION OF RURAL HOUSEHOLDS SELECTING DIFFERENT SANITATION OPTIONS, BY ASSET QUINTILEBiogas dig.DVCLWWMSeptic tankPit latr<strong>in</strong>eODR4R3R2R9R7R5R4R3R7R9R7R5R4R3R2R9R7R5R4R3R2R9R5R3R20 10 20 30 40 50 60 70 80 90 100Percentage1st qu<strong>in</strong>tile (poorest) 2nd qu<strong>in</strong>tile 3rd qu<strong>in</strong>tile 4th qu<strong>in</strong>tile 5th qu<strong>in</strong>tile (richest)www.wsp.org85

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