Under Decision No 154/2007/ND-CP, beneficiaries will include households and individuals who have received State land and water areas for agricultural and forestry production, aquaculture and salt-making.

Irrigation fees would still be collected in areas where demand for water exceeds available supplies, with exceptions for farmers living below the poverty line.

The waiver of irrigation fees will be paid for from the State budget. The State will recompense local irrigation units nationwide in order to help them ensure the continued operation of irrigation works.

The Government has also ordered relevant authorities to inspect irrigation systems in light of the fact that some irrigation works built at costs of billions of dong were not operating effectively.

According to the Ministry of Agriculture and Rural Development, 80 per cent of rural people earned incomes from agriculture, forestry and fisheries. Costs for production and services have been driven up by material costs, poor weather conditions, disease epidemics and infestations, inspiring the irrigation fee waiver as a form of cost relief