For many countries in the world, the shift from water supply management (WSM) to water demand management (WDM) plays an important role in management of water resources which was already increasingly scarce. Fresh water is increasingly scarce. Urban water demand management has proven to be a very effective management measure in the context of many urban water supply problems. The paper proposes an economic analysis approach to the urban water supply management in six steps adapted to Vietnamese conditions. After analyzing the application of the economic analysis process to urban water demand management in Hanoi urban area. This paper analyzes and synthesizes research scenarios with WDM scenarios and baseline scenarios in which WDM scenario solutions include: increasing water prices; Promote anti-leakage leaks. The paper analyzes the benefits and costs of WDM implementation compared to the failure to implement this method of management in urban Hanoi for the period 2010-2025. The types of benefits and costs assessed include (1) savings in operating costs of water supply; (2) direct use of water; (3) reduce electricity costs for water supply and wastewater treatment, (4) waste water treatment costs, (5) increase indirect use values by reducing the amount of water taken from the biomass Thai; (6) reduction of greenhouse gas emissions, (7) cost of water price increase program, (8) management cost of water loss. Incorporating all benefits and costs in the period 2010-2025, the study calculated the net present value of the WDM solution implemented in the inner districts of Hanoi is 205,943.45. Based on that analysis, a number of WDM oriented solutions are proposed in urban Hanoi.
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