Vietnam: Water and Wastewater Treatment E-mail
Tuesday, July 21, 2009

Vietnam is facing a combination of environmental problems including air, water, and solid waste pollution. Major factors contributing to these problems include high population growth, rapid urbanization, accelerating industrialization, and the weak enforcement of the Law on Environmental Protection and Development.

The 2006 -2010 Socio-Economic Development Plan, approved by the National Assembly in June 2006, identifies environmental protection as one of the pillars of social and economic development. Water quality and wastewater treatment are stated priorities of the Vietnamese government. Municipal and industrial wastewater is the main cause of water pollution in the cities. In recent years, the government has spent an amount equivalent to 0.5% of the country's GDP each year for environmental protection activities, with plans to increase this budget to 1% of GDP by 2010, according to the National Strategy of Environmental Protection.

This report provides a market overview and trends of water supply and wastewater treatment in Vietnam, recommendations for market entry and best sales prospects for U.S. suppliers.

Vietnam: Water and Wastewater Treatment. By Ngo Thuc Anh, December 2008. U.S. Commercial Service.

The lack of clean water is one of Vietnam’s most pressing environmental concerns. At present, it is estimated that only about 60% of the Vietnamese population has access to potable water. A high rate of water loss, averaging 32%, further aggravates the problem. In order to improve upon this situation, the government has devised a water supply development plan with the objective of providing clean water for 80% of the population by the year of 2010. The government's top priority in water supply management is to control and reduce water loss (the water loss rate is expected to be 20% by 2025) and to effectively manage water distribution networks and water fee collections.

To this end, the Government uses Official Development Assistance (ODA) funding to develop water distribution networks. The ODA funds are used for three major water supply programs: (i) World Bank water supply projects for small and medium cities, (ii) Finland water supply projects for the northern mountainous areas, and (iii) AFD (Agence Francaise de Developpement) water supply projects for Mekong Delta provinces. However, it is estimated that ODA will be gradually reduced, since the GDP per capita is projected to reach $1,000 by 2010. In that context and in view of the enormous required demand, the Government strongly encourages private participation in the development of water supply facilities and has created favorable policies to entice business.

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