Vietnam Calls for Investment for Water Supply and Drainage Projects

May 2024

Experts estimate that Vietnam will need to invest USD 20-30 billion in water supply and drainage to ensure universal access to clean water. The Ministry of Natural Resources and Environment (MNRE) projects that water demand will reach about 122.47 billion cubic meters annually by 2030.

Urban expansion, untreated industrial wastewater discharge, and agricultural use of fertilizers and pesticides are putting significant pressure on river basins, impacting clean water sources, especially in large cities. Moreover, the use of water in agriculture, combined with the presence of thousands of irrigation and hydroelectric dams, poses risks to water source security.

By 2024, the MNRE will maintain and operate an online system for monitoring water consumption and exploitation for approximately 600 projects. They have also promoted the use of digital maps for drought warning and forecasting.

The country has 750 clean water treatment facilities with a combined capacity exceeding 1 million cubic meters per day, serving 92% of urban residents. The country also hosts nearly 410 industrial parks that handle and treat wastewater, with a capacity of 400,000 cubic meters per day. There are 71 drainage and wastewater treatment enterprises operating 82 treatment plants, though these plants operate at only 700,000 cubic meters per day despite a design capacity of 1 million cubic meters per day. The real wastewater collection rate is about 60%, with a treatment rate of only 17%.

Vietnam still relies heavily on ODA capital and that the water sector is not attractive to private investors due to low profits despite societal benefits. Achieving 100% clean water access by 2030 would require an investment of about USD 9 billion, which is challenging given the limited investment resources. In addition, Vietnam’s water industry will need to raise USD 20-30 billion over the next decade to meet all water supply and drainage needs, including clean water supply projects and domestic and industrial wastewater treatment.

(Source: Vietnam Plus)

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