This article was uploaded by Ms. Jisung from KOTRA Hanoi Trade Center and is not for commercial purposes, but for the benefit of companies operating factories in Vietnam.
* Author: Hong Phuong La
Source: Compilation of Decision No. 1622/QD-TTg, MPDI, MONRE, FiinGroup, VARS, KOTRA Hanoi Trade Office
Source: https://me2.do/58NT3PhH
Perceived abundance of water resources, but actual availability is low
Various challenges such as lack of infrastructure related to the water sector, including water supply, sewerage, and water treatment
Be careful when entering government projects, incentives, or investments
The state of water resources in Vietnam
Vietnam is recognized as a water-rich country due to its high average annual rainfall and river flows, but the actual amount of water available is low. According to Vietnam's Ministry of Natural Resources and Environment, the country's total potential groundwater resources are approximately 91 billion cubic meters per year, but only about 22 billion cubic meters per year are available.
In addition, Vietnam has recently been facing issues such as drought and saltwater intrusion due to climate change, and in April of this year, the government declared a state of emergency due to freshwater shortages caused by drought and salinization.
Vietnam's Ministry of Natural Resources and Environment forecasts that by 2030, the country's water demand will reach about 122.47 billion cubic meters per year, including both domestic and industrial consumption.
<Water demand in Vietnam
| Region | 2022 | By 2030 | By 2050 | ||||||
| (billion cubic meters per year) | (billion cubic meters per year) | (billion cubic meters per year) | |||||||
| Yearly | Dry season | Rainy season | Yearly | Dry season | Rainy season | Yearly | Dry season | Rainy season | |
| Vietnam | 117.81 | 77.93 | 39.88 | 122.47 | 80.50 | 41.97 | 131.72 | 86.18 | 45.54 |
[Source: Decision No. 1622/QD-TTg].
Domestic and industrial water demand for domestic and industrial use
Demand for domestic water in Vietnam is steadily increasing due to population growth, urbanization, and expanding water supply coverage. According to a February 2024 report by financial information provider Finn Group, ‘Water Supply in Vietnam: High Growth Potential for Water Demand,’ the country's water penetration rate is expected to increase from 53.21 TP3T in 2021 to 67.31 TP3T in 2025.
Vietnam is also experiencing an increase in industrial water demand due to the development of industrial parks in response to large-scale FDI inflows. According to the Vietnam Association of REALTORS (VARS), as of 2023, Vietnam has 414 industrial parks totaling 217,000 ha, with an average occupancy rate of over 701 TP3T for all industrial parks. In particular, the occupancy rate of Tier-1 industrial parks in the northern and southern regions will reach 811 TP3T and 921 TP3T, respectively. As the occupancy rate of industrial parks rises, the demand for industrial water is expected to increase.
State of the water and wastewater industry in Vietnam
“Vietnam currently has about 80 wastewater treatment projects with a capacity of more than 2 million cubic meters per day, but the wastewater collection rate is only 601 TP3T and the treatment rate is only 171 TP3T,” an official from the Vietnam Water Supply and Sewage Association (VWSA) told KOTRA's Hanoi office, adding that the country's drainage infrastructure, domestic and industrial wastewater treatment, and related industries, including clean water security, require a massive investment of at least $9 billion by 2030.
In fact, major cities such as Hanoi and Ho Chi Minh City are experiencing annual flooding and other drainage problems, and are in urgent need of infrastructure improvements, which will increase demand for the water, sewerage, and water treatment industries.
Competitive Trends
Currently, most of Vietnam's major water and wastewater enterprises are managed by state-owned enterprises after being built with ODA funds or state budget through public investment projects. Foreign companies are few and far between due to complex administrative procedures, low profit margins, and lack of networking with local companies.
<Major water treatment supplier in Vietnam
| 年數 | Company name | Processing capacity (m3/day) | Processing types | Major processing facility locations | Website |
| 1 | Hanoi Sewerage and Drainage Company | 280.5 | Domestic Wastewater | Hanoi | thoatnuochanoi.vn |
| 2 | Phu Dien Construction Investment and Trading Joint Stock Company | 388.0 | Domestic Wastewater | Hanoi, Ho Chi Minh City, Bac Ninh, etc. | phudiengroup.vn |
| 3 | VSIP | 53.0 | Industrial wastewater | VSIP Bac Ninh Industrial Park | www.vsip.com.vn |
| 4 | Becamex IDC | 66.0 | Industrial wastewater | Industrial Park in Binh Duong | becamex.com.vn |
| 5 | Sonadezi Service Joint Stock Company | 54.5 | Domestic and industrial wastewater | Industrial park in Dong Nai, Ba Ria-Vung Tau | news.sonadezi-sdv.com.vn |
[Source: KOTRA Hanoi Trade Center Compilation].
<Major water and wastewater supply company in Vietnam
| 年數 | Company name | Supply capacity (㎥/day) | Operational highlights | Website |
| 1 | Saigon Water Corporation (SAWACO) | 2,400,000 | Operates 8 water purification plants in Ho Chi Minh City | https://sawaco.com.vn/ |
| 2 | Hanoi Water Limited Company (HAWACO) | 600,000 | Operates 12 water treatment plants in Hanoi, including 7 in the city center and 3 in the outskirts | http://portal.hawacom.vn/ |
| 3 | DNP Water (Dong Nai Plastic JSC) | 1,000,000 | Operates 11 water treatment plants in 11 provinces in Vietnam | https://dnpcorp.vn/nganh-nuoc/ |
| 4 | Binh Duong Water-Environment Corporation JSC (BIWASE) | 760,000 | Operates 9 water purification plants in Binh Duong, Binh Phuc, Can Tho, Long An, and Quang Binh provinces | https://biwase.com.vn/ |
| 5 | Song Duong River Company | 300,000 | Outside of Hanoi and in Bac Ninh and Hung Yen provinces | http://sdwtp.vn/ |
[Source: KOTRA Hanoi Trade Center Compilation].
Related policies and organizations
Vietnam has national technical regulations on industrial and domestic wastewater (QCVN40:2011/BTNMT, QCVN 14:2008/BTNMT), so enterprises should take note of these regulations. In addition, the Law on Environmental Protection (Law No. 72/2020/QH14) and its Decree (Decree No. 08/2022/ND-CP), as amended in 2020, are relevant for water treatment investments in industrial parks.
Vietnam's Ministry of Natural Resources and Environment is currently developing draft implementing rules for investment activities under the public private partnership (PPP) model in the drainage, wastewater, and waste treatment sectors, and the Minister of Natural Resources and Environment has stated that the implementing rules will be developed and published by the end of 2024.
Meanwhile, ministries and agencies involved in the management and regulation of water resources in Vietnam include.
<Vietnam's main water management and regulatory agency
| 年數 | Organization name | Responsible roles | Website |
| 1 | Ministry of Natural Resources and Environment (MONRE) | Responsible for the overall management of natural resources and the environment, including water resourcesCreate policies, strategies, and plans for sustainable water management and environmental protection | https://www.monre.gov.vn/ |
| 2 | Ministry of Agriculture and Rural Development (MARD) | Oversee water resources management in agriculture, irrigation, and rural development; involved in developing and managing irrigation systems and securing water supplies for agricultural activities | https://www.mard.gov.vn/ |
| 3 | Ministry of Construction (MOC) | Responsible for municipal water supply and wastewater treatmentEstablish policies, standards, and regulations for water systems and sanitation infrastructure in urban areas | https://moc.gov.vn/ |
| 4 | Ministry of Industry and Trade (MOIT) | Involved in the management of industrial water resources and the development and regulation of hydropower projects; oversight of electricity markets, including power generation and distribution | https://moit.gov.vn/ |
| 5 | Vietnam Water Supply and Sewerage Association (VWSA) | Supporting water and wastewater sector developmentTechnical and training support on water management best practices | https://vwsa.org.vn/ |
| 6 | Vietnam National Mekong Committee (VNMC) | Managing water resources in the Mekong River Basin in partnership with the Mekong River Commission (MRC), working with neighboring countries to ensure sustainable use and development of the basin's water resources | https://vnmc.gov.vn/ |
| 7 | National Center for Water Resources Planning and Investigation (NAWAPI) | Conduct research, planning, and investigations related to water resources; provide information for water management and policy formulation | https://nawapi.gov.vn/ |
| 8 | Vietnamese Academy for Water Resources (VAWR) | Conduct research and provide scientific and technical support for water management, irrigation, and hydropower | https://www.vawr.org.vn/ |
| 9 | Vietnam Association for Safe Water and Environment (AWATEN) | Ensuring safe water and a clean environment in Vietnam | http://awaten.org.vn/ |
| 10 | Ho Chi Minh City Water and Environment Association (HAWE) | Focused on addressing water and environmental issues in Ho Chi Minh City | https://www.hawe.com.vn/ |
[Source: KOTRA Hanoi Trade Center Compilation].
Implications and go-to-market strategy
Vietnam is facing many challenges in the water industry, including expanding urban and industrial infrastructure such as water supply, sewerage, and water treatment, as well as addressing various water resource issues caused by climate change. This can be an opportunity for Korean companies with relevant technologies and know-how to invest and enter the market. However, although the Vietnamese government is actively seeking to attract private and foreign capital, it is necessary to prepare thoroughly for entry given the complex administrative procedures and stringent regulations.
KOTRA Hanoi Trade Center will organize the ‘2024 Southeast Asia Water Industry Trade Mission' with Korea Water Resources Corporation (K-Water) from September 22 to September 25 to actively support Korean companies to enter the water industry.
By: Hong Phuong La
Source: Compilation of Decision No. 1622/QD-TTg, MPDI, MONRE, FiinGroup, VARS, KOTRA Hanoi Trade Office
<저작권자 : ⓒ KOTRA ＆ KOTRA 해외시장뉴스>
Vietnam is currently experiencing explosive population growth and was officially listed as a country with over 100 million people last year. However, as a mostly developing market, the Southeast Asian market is often funded by ODA, and the rich urban development experience is looking to introduce water treatment EPC capabilities and advanced data-based prediction systems such as AI and deep learning.
We are looking forward to seeing the success of French SUEZ and Japanese companies in the Southeast Asian market, as well as Korean companies that can compete with them. Our ARK has a strong presence in Vietnam. Decanter centrifuge As a company with a development plant, we are looking forward to the water purification plant activities of domestic companies.
Saigon TimesJapan-Vietnam ODA water purification plant project of the
Korea, Japan, and European countries compete in the water industry as developing countries headed for urbanization as Vietnam and Thailand?
https://english.thesaigontimes.vn/vietnams-largest-wastewater-treatment-plant-inaugurated-in-hcmc
Photo: Vietnamese and Japanese delegates press the button to open the second phase of the Binh Hung wastewater treatment plant - Photo: HCMCPV.ORG.VN
HO CHI MINH CITY - Vietnam's largest wastewater treatment facility, the Binh Hung Wastewater Treatment Plant, was inaugurated this morning, August 30, in Ho Chi Minh City, with a daily treatment capacity of 469,000 cubic meters.
Vietnam's largest wastewater treatment plant opens in Ho Chi Minh City
The facility is part of the second phase of the Ho Chi Minh City Water Environment Restoration Project (VND11.3 trillion), financed by an official development assistance (ODA) loan from Japan and reciprocal capital from Vietnam.
Luong Minh Phuc, director of the Ho Chi Minh City Department of Transport, Construction and Investment Project Management (TCIP), said the second phase of the plant will treat 469,000 cubic meters of wastewater per day, 328,000 cubic meters more than the first phase.
The facility will treat wastewater from more than 2,500 hectares of land in Districts 4, 5, 6, 8, 10, 11 and Binh Chanh, helping to mitigate environmental pollution in the Tau Huu-Ben Nghe-Doite Canal basin, benefiting approximately 1.8 million people.
Ho Chi Minh City has two wastewater treatment plants: Tam Ngoc - Ben Cat (131,000 cubic meters per day) and Binh Hung Hoa (30,000 cubic meters per day).
The expansion and operation of the Binh Hung facility has increased the city's wastewater collection and treatment capacity from 20.61 TP3T to 40.81 TP3T. By 2025, this capacity will increase to 71.31 TP3T when Thu Duc City's 480,000 cubic meters/day Nhieu Loc-Thi Nghe wastewater treatment facility comes online.
European powerhouse SUEZ in Southeast Asia
How SUEZ tapped into the Southeast Asian market
- Singapore:
- Malaysia:
- Philippines:
- China:
While these projects are not formalized MOUs, they demonstrate SUEZ's continued expansion in the Southeast Asian region. SUEZ has been supporting local authorities in the region since 1953 and has chosen Singapore as its business hub in Southeast Asia since 2015, where it operates its Innovation Center and Water Technology Center..
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