Factors Affecting the Households’ Willingness-to-Pay for Wastewater Treatment in Agro-Food Processing Craft Villages, Nhue-Day River Basin, Vietnam

Abstract

Industrialization is a major strategy of Vietnam for the development of the countryside. One such program is the promotion of craft villages that have been successful in increasing income levels that are 5 times more than those villages mainly engaged in agricultural production. However, while such programs have brought prosperity to these villages, they have ignored the adverse effects on the environment brought about by the wastewaters from the processing plants. Would these households involved in agro-food processing be willing to pay for the establishment of a wastewater plant to address the environmental problems? What factors would influence their willingness to pay? The results of the study among the selected households in Nhue-Day River Basin, Vietnam involved in agro-processing showed that the major factors affecting their willingness to pay for the establishment of a wastewater treatment plant are their level of education, quantity of households’ untreated wastewater, presence of young children who are more vulnerable to the adverse effects of pollution, experience of family members getting sick, households’ awareness of benefits from treated wastewater, capacity to pay, access to credit and membership in craft village’s Association. The study recommended that decisions on addressing environmental issues should be participatory to be able to take into consideration the socio-economic conditions of the stakeholders.