environment & water technologies vietnam market study
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Environment & Water Technologies
Vietnam Market Study
MARCH 2020
© Copyright EU Gateway | Business Avenues
The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu.
Environment & Water Technologies – Vietnam Market Study - Page 3 of 166
EU Business Avenues in South East Asia
Central Management Unit
Vietnam Market Study
March 2020
Submitted to the European Commission on 16 April 2020
Environment & Water Technologies – Vietnam Market Study - Page 4 of 166
Table of contents
LIST OF FIGURES ...................................................................................................................................................... 6
LIST OF TABLES ........................................................................................................................................................ 7
TABLE OF ABBREVIATIONS .................................................................................................................................... 8
1. EXECUTIVE SUMMARY ...................................................................................................................................... 11
2. WHAT ARE THE CHARACTERISTICS OF VIETNAM? ..................................................................................... 18
2.1 POLITICAL OVERVIEW ............................................................................................................................. 19
2.2 ECONOMIC OVERVIEW ............................................................................................................................ 20
2.3 TRADE OVERVIEW ............................................................................................................................... 22
2.4 MARKET ACCESS ............................................................................................................................... 25
2.5 BUSINESS AND COMPETITIVE ENVIRONMENT ........................................................................................... 25
3. MARKET OVERVIEW & EU ENTRY OPPORTUNITIES IN VIETNAM............................................................... 27
3.1 THE ENVIRONMENTAL & WATER TECHNOLOGIES SECTOR ....................................................................... 27
3.1.1 Market Overview ............................................................................................................................ 27
3.1.2 Key Government Agencies .............................................................................................................. 34
3.1.3 Key Associations ........................................................................................................................... 34
3.1.4 Entry Strategies ............................................................................................................................. 35
3.1.5 Challenges & Entry Barriers .......................................................................................................... 37
3.2 FRESH WATER SUPPLY .......................................................................................................................... 39
3.2.1 Market Overview ............................................................................................................................ 39
3.2.2 EU Entry Opportunities .................................................................................................................. 46
3.3 WASTEWATER TREATMENT .................................................................................................................... 53
3.3.1 Market Overview ............................................................................................................................ 53
3.3.2 EU Entry Opportunities .................................................................................................................. 65
3.4 WATER SOLUTIONS ............................................................................................................................... 72
3.4.1 Market Overview ............................................................................................................................ 72
3.4.2 EU Entry Opportunities .................................................................................................................. 76
3.5 AIR POLLUTION CONTROL ...................................................................................................................... 79
3.5.1 Market Overview ............................................................................................................................ 79
3.5.2 EU Entry Opportunities .................................................................................................................. 84
3.6 WASTE MANAGEMENT ........................................................................................................................... 88
3.6.1 Market Overview ............................................................................................................................ 88
3.6.2 EU Entry Opportunities .................................................................................................................. 92
Environment & Water Technologies – Vietnam Market Study - Page 5 of 166
3.7 RECYCLING ............................................................................................................................... 98
3.7.1 Market Overview ............................................................................................................................ 98
3.7.2 EU Entry Opportunities ................................................................................................................ 103
3.8 SOIL PREVENTION ............................................................................................................................. 106
3.8.1 Market Overview .......................................................................................................................... 106
3.8.2 EU Entry Opportunities ................................................................................................................ 110
3.9 NOISE PROTECTION ............................................................................................................................. 114
3.9.1 Market Overview .......................................................................................................................... 114
3.9.2 EU Entry Opportunities ................................................................................................................ 116
4. REGULATIONS .................................................................................................................................................. 119
4.1 GENERAL IMPORT PROCEDURES .......................................................................................................... 119
4.2 GOVERNMENT TENDERS ....................................................................................................................... 120
4.3 ENVIRONMENTAL PROTECTION REGULATIONS....................................................................................... 124
4.4 WATER POLLUTION REGULATIONS ....................................................................................................... 126
4.5 AIR POLLUTION REGULATIONS ............................................................................................................. 129
4.6 SOLID WASTE MANAGEMENT ............................................................................................................... 132
4.7 HAZARDOUS / TOXIC WASTE MANAGEMENT REGULATIONS ................................................................... 135
4.8 SOIL POLLUTION REGULATIONS ........................................................................................................... 136
4.9 NOISE POLLUTION REGULATIONS ......................................................................................................... 138
5. ANNEX ............................................................................................................................................................... 140
5.1 LIST OF USEFUL CONTACTS ................................................................................................................. 140
5.2 STARTING A BUSINESS IN VIETNAM ....................................................................................................... 142
5.3 INTERNATIONAL FINANCIAL SOURCES FOR CLIMATE CHANGE MITIGATION IN VIETNAM ........................... 145
5.4 USEFUL STATISTICS ............................................................................................................................. 152
6. BIBLIOGRAPHY ................................................................................................................................................ 159
Environment & Water Technologies – Vietnam Market Study - Page 6 of 166
List of Figures
Figure 1: Map of Vietnam in South East Asia ......................................................................................... 18 Figure 2: EU – Vietnam: Trade in Goods, Trade in Services, and FDI. Unit: EUR billions ....................... 24 Figure 3: Frequency of natural disasters from 1980 to 2016 per 1,000 km2 ............................................ 27 Figure 4: The Mekong Delta ................................................................................................................... 28 Figure 5: The main river basins in Vietnam ............................................................................................. 39 Figure 6: Water security in Vietnam ........................................................................................................ 40 Figure 7: Yellow water found in a well in Quang Ninh Province, due to alum contamination ................... 41 Figure 8: Hanoi's water cycle and existing production and distribution companies .................................. 44 Figure 9: Flooding in Ho Chi Minh City is a regular occurrence .............................................................. 49 Figure 10: Underground flood control lakes in Ho Chi Minh City ............................................................. 49 Figure 11: Van Don Island in the Bai Tu Long archipelago ..................................................................... 50 Figure 12: Technical details of the project .............................................................................................. 51 Figure 13: Urban wastewater and septage management in Vietnam ...................................................... 53 Figure 14: Typical combined sewer and drainage system in the cities of Vietnam .................................. 55 Figure 15: Treatment lake of Binh Hung Hoa domestic wastewater treatment plant ............................... 62 Figure 16: The Vietnam-Germany water sector forum ............................................................................ 63 Figure 17: Cruise boats on Ha Long Bay ................................................................................................ 66 Figure 18: A sewer discharging household wastewater into Kim Nguu River .......................................... 67 Figure 19: QTSC's Smart Water Management System ........................................................................... 75 Figure 20: Location map of devices ........................................................................................................ 75 Figure 21: Water leakage monitoring ...................................................................................................... 75 Figure 22: Vietnam's annual mean PM2.5 readings, 2016-2019 ............................................................. 79 Figure 23: Most polluted cities in Vietnam, 2019 ..................................................................................... 80 Figure 24: Air pollution in Hanoi .............................................................................................................. 80 Figure 25: Air purifiers sold at Ho Chi Minh City ..................................................................................... 85 Figure 26: Overloaded landfill in Hai Phong ............................................................................................ 88 Figure 27: Burning of plastic waste at a landfill site on Binh Ba Island .................................................... 89 Figure 28: Hydrolysed robot arms move waste into incinerators ............................................................. 92 Figure 29: Plastic waste is dumped into the ocean in central Vietnam .................................................... 99 Figure 30: Air conditioner parts being collected at Nhat Tao market. .................................................... 100 Figure 31: Televisions being disassembled for parts at Nhat Tao ......................................................... 104 Figure 32: Soil remediation to detect unexploded ordinance and dioxin in Danang, Vietnam ................ 108 Figure 33: Noisy streets in a Vietnamese city ....................................................................................... 114 Figure 34: A conference room designed by Saint-Gobain ..................................................................... 118
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List of Tables
Table 1: Vietnam – Key statistics ............................................................................................................ 18 Table 2: Ease of doing business in Vietnam ........................................................................................... 26 Table 3: Industrial wastewater produced for selected cities and provinces ............................................. 57 Table 4: Sewerage and centralised wastewater treatment systems in Vietnam, 2018 ............................ 60 Table 5: Limit values of environmental parameters and pollutant concentration in industrial wastewater .... 127 Table 6: Limit values of dust and inorganic substances in industrial emission, Unit: mg/Nm3 ............... 130 Table 7: Limit values of organic substances in industrial emission, Unit: mg/Nm3 ................................. 130 Table 8: Limit values of pollutant parameters in leachate ..................................................................... 132 Table 9: Basic technical parameters of domestic solid waste incinerator .............................................. 133 Table 10: Maximum allowed noise level (by equivalent sound level), dBA ............................................ 139 Table 11: Maximum allowed value of vibration acceleration for construction activities .......................... 139 Table 12: Maximum allowed value of vibration acceleration for production, trade and service activities139 Table 13: UNFCC Financial Mechanism Funds .................................................................................... 145 Table 14: Non-UNFCC Financial Mechanism Funds (Multilateral Funds) ............................................. 147 Table 15: Non-UNFCC Financial Mechanism Funds (Bilateral Funds) ................................................. 148 Table 16: Domestic financial resources ................................................................................................ 149 Table 17: NDC Partnership Funds ........................................................................................................ 151 Table 18: Imports of machinery and apparatus for filtering or purifying water ....................................... 152 Table 19: Exports of machinery and apparatus for filtering or purifying water ....................................... 152 Table 20: Imports of parts of machinery and apparatus for filtering or purifying liquids or gases ........... 153 Table 21: Exports of parts of machinery and apparatus for filtering or purifying liquids or gases .......... 153 Table 22: Imports of instruments and apparatus for measuring or checking the flow or level of
liquids (excluding meters and regulators) ............................................................................. 154 Table 23: Exports of instruments and apparatus for measuring or checking the flow or level of
liquids (excluding meters and regulators) ............................................................................. 154 Table 24: Imports of gas or smoke analysis apparatus ......................................................................... 155 Table 25: Exports of gas or smoke analysis apparatus ......................................................................... 155 Table 26: Imports of instruments and apparatus for measuring or checking the flow, level,
pressure or other variables of liquids or gases ...................................................................... 156 Table 27: Exports of instruments and apparatus for measuring or checking the flow, level,
pressure or other variables of liquids or gases ...................................................................... 156 Table 28: Imports of instruments and apparatus for measuring or checking pressure of liquids
or gases (excluding regulators) ............................................................................................. 157 Table 29: Exports of instruments and apparatus for measuring or checking pressure of liquids
or gases (excluding regulators) ............................................................................................. 157 Table 30: Imports of instruments or apparatus for measuring or checking variables of liquids
or gases ............................................................................................................................... 158 Table 31: Exports of instruments or apparatus for measuring or checking variables of liquids
or gases ............................................................................................................................... 158
Environment & Water Technologies – Vietnam Market Study - Page 8 of 166
Table of Abbreviations
ACEF Asian Clean Energy Fund
ACIAR Australian Centre for International Agricultural Research
ADB Asian Development Bank
ADB CMI Future Carbon Fund under the Carbon Market Initiative
ACE 2.0 Actions for Cool Earth 2.0
AMS Automatic Monitoring Station
AQI Air Quality Index
AQMS Air Quality Monitoring System
BCDA Bases Conversion and Development Authority
BOD Biological Oxygen Demand
BOI Board of Investments
BOT Build-Operate-Transfer
BSWM The Bureau of Soil and Water Management
CAGR Compound Annual Growth Rate
CBIT Capacity Building Initiative for Transparency
CDM Clean Development Mechanism
CER Certified Emission Reduction
CEFPF Clean Energy Financing Partnership Facility
CETP Centralised Effluent Treatment Plant
CF Carbon Fund
CFC chlorofluorocarbon
CIT Corporate Income Tax
CPTPP Progressive Agreement for Trans-Pacific Partnership
CTF Clean Technology Fund
DENR Department of Environment and Natural Resources
DNI Direct Normal Irradiance
DONRE Department of Natural Resources and Environment
DOST Department of Science and Technology
DPWH Department of Public Works and Highways
DRRM Disaster Risk Reduction and Management
DTI Department of Trade and Industry
EE Energy Efficiency
EIA Environmental Impact Assessment
EMB Environmental Management Bureau
EPI Environmental Performance Index
EVFTA European Union − Vietnam Free Trade Agreement
FCPF Forest Carbon Partnership Facility
FDI Foreign Direct Investment
FIE Foreign Invested Enterprises
FIT Feed-in-tariff
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GCF Green Climate Fund
GCPF Global Climate Partnership Fund
GEEREF Global Energy Efficiency Renewable Energy Fund
GEF/SCCF Global Environment Facility Special Climate Change Fund
GEF-SGP Global Environment Facility Small Grants Programme
GGS Green Growth Strategy
GGSF Green Growth Strategy Facility
GEF/TF Global Environment Facility Trust Fund
GIF Green Investment Facility
GVC Global Value Chains
IMF International Monetary Fund
IZ Industrial Zone
JCM Joint Crediting Mechanism
J-FSF Japan’s fast start finance
JICA Japan International Cooperation Agency
LDN Land Degradation Neutrality
LGU Local Government Units
MICCA Mitigation of Climate Change in Agriculture
MOARD Ministry of Agriculture and Rural Development
MOC Ministry of Construction
MOET Ministry of Education and Training
MOF Ministry of Finance
MOH Ministry of Health
MOHA Ministry of Home Affairs
MOIC Ministry of Information and Communication
MOIT Ministry of Industry and Trade
MONRE Ministry of Natural Resources and Environment
MOPI Ministry of Planning and Investment
MOST Ministry of Science and Technology
MOT Ministry of Transport
MRF Materials Recovery Facilities
MSW Municipal Solid Waste
NCCS National Climate Change Strategy
NICFI Norway’s International Climate and Forest Initiative
NRW Non-Revenue Water
NSWMC National Solid Waste Management Commission
NTP-RCC National Target Programme to Respond to Climate Change
O&M Operation and Maintenance
ODA Official development assistance
ODS Ozone Depleting Substances
OEC The Observatory of Economic Complexity
PC People’s Committee
PCA Partnership and Cooperation
Environment & Water Technologies – Vietnam Market Study - Page 10 of 166
PCI Provincial Competitiveness Index
PM Particulate Matter
PMR Partnership for Market Readiness
PPP Private Public Partnership
PRO Packaging Recycling Organisation Vietnam
QCVN Vietnam Environmental Technical Regulation
RE Renewable Energy
REDD+ Reducing Emissions from Deforestation and Degradation
RF Readiness Fund
SALT Sloping Agricultural Land Technology
SCADA Supervisory Control and Data Acquisition
SEPF Sustainable Energy Promotion Fund
SERC South East River Cluster
SLF Sanitary Landfills
SP-RCC Support Programme to Respond to Climate Change
SLM Sustainable Land Management
TCVN Vietnam Environmental Standard
UK-ICF UK's International Climate Fund
ULABs Lead-Acid Batteries
UNICEF The United Nations Children's Fund
UNDP United Nations Development Program
UNFCC United Nations Framework Convention on Climate Change
URENCO Urban Environment Company
USAID United States Agency for International Development
VACNE Vietnamese Association for Conservation of Nature and Environment
VBCSD Business Council for Sustainable Development in Vietnam
VCCE Vietnam Centre for Circular Economy
VEA Vietnam Environment Administration
VEPF Vietnam Environmental Protection Fund
VER Verifiable Emissions Reduction
VGGS Vietnam Green Growth Strategy
VND Vietnam Dong
VPA Vietnam Plastics Association
VWSA Vietnam Water Supply and Sewerage Association
WB World Bank
WHO World Health Organisation
Environment & Water Technologies – Vietnam Market Study - Page 11 of 166
1. Executive Summary
Vietnam is consistently ranked as one of the region’s most attractive destinations by foreign
companies looking to both outsource activities from their Global Value Chains (GVCs) and
services, and tap into a growing Vietnamese market with higher grade technologies and services.
In 2019, Vietnam’s GDP growth rate was 7.02%, making it one of the top growth performers in
the region and the world. Vietnam’s development builds upon socio-political and macro-economic
stability, as well as effective inflation control and improvements in the quality of growth.
The spending power of its large population of 97 million has made it an attractive market to foreign
investors. The country attracted more than US$ 19 billion (EUR 17.2 billion) in foreign direct
investment (FDI) in 2018, the highest in a decade.
Two new-generation Free Trade Agreements (FTAs) signed in 2019 will help Vietnam’s further
integrate into regional and global supply chains, expand its exports markets, and offer even more
potential to investors. Furthermore, with a young population that is continually improving their
knowledge and skills, Vietnam has great potential to advance to the next level in the GVCs.
Fresh Water Supply
Although Vietnam has made significant improvements in the provision of water supply, sanitation,
and hygiene services to the population, substantial numbers of people still lack access to basic
services. Despite the plentiful surface and ground water resources in Vietnam, there are often
serious local water shortages due to uneven rainfall distribution, a prolonged dry season and an
insufficient physical infrastructure. Access to a piped water supply also varies dramatically
between urban and rural areas of Vietnam. Tap water is not safe to drink as it contains harmful
contaminants.
The national programme to ensure water supply and prevent water loss in the 2018 – 2025 period
has been implemented to promote investment into modern and energy-saving water treatment
technology, which has led to a growing demand of innovative water treatment and distribution
technologies, as well as flood mitigation measures, among others.
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Wastewater Treatment
Wastewater treatment is a challenge in Vietnam. The country’s sewerage system is over three
decades old, and consists of a combined sewerage and drainage system, which collects both
rainwater and wastewater via pipeline collection networks or drainage canals. According to the
World Bank, only 60% of households in Vietnam are connected to public water systems, and only
10% of collected wastewater is treated. Approximately 90% of wastewater from urban households
in Vietnam is directly released to the environment, after undergoing only primary treatment in
septic tanks, which does not satisfy the effluent standards.
Treatment of industrial wastewater is also a growing problem in Vietnam. All industrial zones and
industrial facilities outside such zones are required to be connected to an on-site or central
wastewater treatment facility. However, suitable technologies for treatment of specific type of
pollution in industrial wastewater are lacking in many cases. The country lacks competitive solutions
to satisfy the growing demand for wastewater treatment across the Vietnamese industries, offering
opportunities for European companies with the appropriate expertise and technologies.
Water Solutions
As the Vietnamese water supply and wastewater treatment sectors develop, there is growing
demand for smart solution providers in the sector. The Vietnamese government plans to leverage
on new technologies to provide smarter and sustainable living for its citizens. Increasingly, smart
water solutions are being applied across multiple projects, such as smart water quality
management, smart water meters for both domestic and non-domestic users, as well as smart
flooding monitoring systems.
A prime example of its use of smart water management technology can be found in Da Nang city,
the third largest city in Vietnam. Ensuring access to high quality water for more than one million
citizens, tourists, and industry is vital to Da Nang’s sustained growth. To keep up with increased
demand, Da Nang Water Company (DAWACO), the city’s water utility provider, implemented a
programme of modernisation of its water treatment facility, and implemented the use of IBM
Smarter Cities technology for real-time analysis and monitoring of the city’s water supply.
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DAWACO can now measure water turbidity, salinity, conductivity, pH and chlorine levels in real
time, as well as receive alerts and notifications when readings stray from norms or when analysis
indicates that water quality has changed.
Air Pollution Control
In 2019, Vietnam was ranked by IQAir as having the second most air polluted country in South
East Asia, with an annual mean PM2.5 reading of 34.1 µg/m. The country’s economic losses
associated with ambient air pollution each year is estimated at US$ 10.8 billion to US$ 13.2 billion
(EUR 9.8 billion to EUR 12 billion), roughly equivalent to about 5% of the country’s GDP. Hanoi
in particular experienced a number of air pollution spells in 2019, which were especially alarming
during the months of November and December 2019.
Rapid development and urbanisation in Vietnam pose severe challenges to managing its air
pollution. A major cause for air pollution is industry, and high consumption of coal and oil.
Vietnam’s high dependence on coal-fired plants for electricity has led to deteriorating air quality
in its cities. This has prompted a growing demand for air monitoring and purification technologies
Waste Management
In 2019, Vietnam produced 70,000 tonnes of solid waste per day, with urban areas accounting for a
larger share of 38,000 tonnes per day. Approximately 85% of the waste in urban areas is collected.
Rural areas produce about 32,000 tonnes of solid waste a day, and the collection rate is only about
40-55% in rural areas. Approximately, 63% of the total waste collected ends up in landfills, which
contaminates the ground and surface water, increases pollutants, and affects public health.
As landfill space runs out, the Vietnamese government is seeking long-term solutions for solid
waste management in the country. It believes that waste-to-energy technologies are a feasible
solution for the solid waste crisis in Vietnam’s major cities, and is encouraging localities to build
waste-to-energy plants to help realise the country's target of reducing the rate of burying solid
waste at landfills to 30% by 2025. In the long term, intensive waste-to-energy technologies such
as pyrolysis and gasification are planned to be implemented by the Government.
Environment & Water Technologies – Vietnam Market Study - Page 14 of 166
Recycling
Vietnam recycles less than 10% of total waste, while it is projected that the amount of waste will
double in the next 15 years. Most of the recycling businesses in the country are either family
businesses or small-scale enterprises.
Although Vietnam has been listed as one of the top five countries contributing to unmanaged
plastic waste entering the ocean, plastics recycling occurs on a very small scale in the country,
and is largely dependent on informal and unofficial waste collectors. It should be noted that until
recently, most of the plastic material recycled in Vietnam was imported from other countries such
as China. In an effort to avoid a dramatic increase of global waste streams to the country,
the Vietnamese government banned the import of material for recycling in 2018, an act that has
boosted demand for recyclable domestic plastic waste. This has led to a growing demand in
Vietnam for enhanced recycling technologies.
E-waste is one of the fastest-growing waste streams in Vietnam, with the country grappling with
how to manage the e-waste that is illegally shipped to the country, as well as the growing amount
that is generated domestically.
Soil Prevention
Land degradation is occurring in many major areas in Vietnam, especially in key areas such as
the Mekong Delta, a fertile region that produces around 70% of Vietnam’s agricultural products
including 55% of its rice and 70% of its aquaculture. Key issues include soil erosion, saline water
intrusions, as well as contamination due to discharge of untreated waste, wastewater and
chemical fertilisers and toxic chemicals. Vietnam has recently set the national voluntary LDN
(Land Degradation Neutrality) targets, established a baseline, and formulated associated
measures to achieve LDN targets. It has the strong support of various international organisations
such as USAID, ACIAR, and JICA, as well as NGOs and development organisations, who
undertake studies, oversee projects, extend funding as well as introduce the relevant
technologies to the country to address its needs. European companies can choose to approach
the soil prevention market in Vietnam through new soil protection technologies and solutions.
Environment & Water Technologies – Vietnam Market Study - Page 15 of 166
Noise Protection
Noise pollution, particularly in the bigger cities, has become a serious issue in Vietnam. According
to a 2017 study conducted by the Institute of Occupational Health and the Environment, at least
15 million out of the 52 million workforce face noise pollution every day. While there are
regulations in place governing safe noise levels, there is limited enforcement. Various surveys in
Hanoi and Ho Chi Minh City have found noise levels to consistently exceed safe levels, both
during the day and night. Noise emissions from construction activities, factories, traffic, shops,
bars and restaurants as well as neighbourhood activities have negatively impacted the quality of
life in cities, which is leading to a growing demand for noise monitoring and abatement measures
in the country.
Opportunities
Vietnam’s rapid industrialisation and urbanisation over the past few decades have resulted in a
number of significant environmental challenges, some of which include water pollution,
groundwater contamination, poor sanitation, growing solid waste quantities, deforestation and soil
degradation, air pollution, as well as a degraded environment in big cities.
The Vietnamese government has realised the urgent need to promote a shift towards a more
sustainable industrial development pathway, and to strike a better balance between sustainable
development and environmental protection. It has been active in its response to these
environmental threats, and has implemented a range of related projects, in addition to
strengthening its regulatory framework.
This represents major opportunities for European businesses that have innovative and cost-
effective Environment & Water Technologies relevant to the Vietnamese market.
European countries enjoy a good reputation in Vietnam, and the reputation for reliability and high-
quality work often precedes European companies and providers. Germany appears in the list of
top 10 supplying countries in most product categories relevant to environmental and water
Environment & Water Technologies – Vietnam Market Study - Page 16 of 166
solutions. European companies will encounter strong competition from Asian countries like China
Japan, and Korea and to a lesser extent from the US.
Sector-Specific Opportunities in Water and Wastewater Treatment
About 8.5 million urban citizens in Vietnam lack access to clean water, and in rural areas about
41 million dwellers do not have clean water supply. Within 25 years the urban population is
expected to require twice the daily water supply that current systems can provide. In the two
largest cities, Hanoi and Ho Chi Minh City, existing wastewater treatment plants can process only
around 20% of total discharge. The government aims to improve this number to 70-80% by 2025.
There are market opportunities for treatment facilities, service reservoirs and pumping stations,
as well as equipment such as pumps, pipes, valves, motors, water treatment chemicals, water
tanks, filtration systems and monitoring equipment, along with IT services for process optimisation
and energy savings in the country.
European companies with expertise in areas such as co-treatment of iron, manganese, ammonium
and arsenic in groundwater; removal of organic matters from surface water; and sustainable urban
drainage and rainwater harvesting should also have market openings in Vietnam.
Sector-Specific Opportunities in Waste Management and Recycling
Up to 70% of domestic solid waste in Vietnam is buried in 660 landfills, but many landfills do not
meet environmental requirements, polluting the environment. Of these 660 waste disposal sites
across the country, only 30% can be classified as engineered landfills with daily coverage of
waste. Most of the landfills have no compactor, landfill gas collection, leachate treatment or
environmental monitoring system and are poorly managed.
Authorities in Hanoi and Ho Chi Minh City are now focusing on waste-to-energy technologies to
deal with growing volumes of waste generation in cities. This offers significant opportunities in the
short to medium term for European companies with technologies suitable for processing unsorted
waste in a tropical climate.
Environment & Water Technologies – Vietnam Market Study - Page 17 of 166
Domestic generation of plastics waste also poses a challenge in the country. The problem has
been compounded by exports of plastic waste from developed countries, following China’s ban
on plastic waste imports. This has led to a growing demand in Vietnam for enhanced recycling
technologies, for example, technology which can recycle previously used PET plastics of any
quality back to high-quality plastic that can be used for food or drink packaging, including material
that would previously have been sent to incineration or landfill.
Vietnam generates around 90,000 tons of e-waste annually. Processing is limited to preliminary
treatment for extracting metals that are usually sent to China for refining, while leftover material
tends to be incinerated or dumped in landfills. Rising awareness of the importance of proper
disposal of e-waste would generate opportunities for European providers of equipment for
dismantling e-waste in conjunction with hydrometallurgical treatment to recover precious metals.
Sector-Specific Opportunities in Air Pollution
There is a growing demand for air purifiers in the country, fuelled by rising concerns over air
pollution and increasing incidents of respiratory diseases due to degrading air quality.
Both Ho Chi Minh City and Hanoi are looking to improve air quality monitoring. Hanoi plans to
install an additional 95 air monitoring stations to improve air quality, while Ho Chi Minh City is
planning to set up a comprehensive environmental monitoring system valued at VND 495 billion
(EUR 19.2 million), which will monitor the quality of the air, surface water and groundwater and
land subsidence.
Demand is also expected for industrial emission monitoring and treatment systems. According to
draft Environmental Protection Law of Vietnam which is currently being reviewed and revised,
production facilities and businesses that produce large emissions will be required to have air
quality management that includes point source registration, emissions inventory and installation
of continuous emission monitoring systems. Industrial parks will also have to install emission
treatment systems.
Environment & Water Technologies – Vietnam Market Study - Page 18 of 166
2. What are the characteristics of Vietnam?
Vietnam in Numbers (2019)
GDP (US$ Billion, 2018) 240
GDP Growth Rate (2019) 7.02%
GDP Per Capita (US$) (2018) 2,587
GDP Composition by Agriculture
13.96%
GDP Composition by Industry and Construction
34.49%
GDP Composition by Services 41.64%
Total Imports (US$ Billion) 253.51
Total Exports (US$ Billion) 263.45
Total Population (Jan 14th 2020) 96,910,312
Urban Population (2018) 35.9%
Literacy Rate (2015) 97.3%
Total Area (sq. km) 331,210
Land Area (sq. km) 310,070
Water Area (sq. km) 21,140
Currency Vietnamese Dong (VND)
Average Annual Exchange Rate per US dollar (2019)
VND 23,227.3
Official Language Vietnamese
Table 1: Vietnam – Key statistics Source: Central Intelligence Agency – The World Factbook; OFX, World Bank, United Nation, General Statistics Office of Vietnam
Figure 1: Map of Vietnam in South East Asia
Vietnam is bordered by China to the north,
and Laos and Cambodia to the west. The total
area of Vietnam is over 331,210 km2, and its
geography includes both mountainous regions
and plains.
Vietnam’s population, estimated to be about 97
million as of January 2020, is spread throughout
the country. With a median age of 30,
it represents a huge pool of both potential
customers and employees for many investors.
Hanoi in the north is the capital of Vietnam, while
Ho Chi Minh City is the largest commercial city in
the south. Da Nang, in central Vietnam, is the
third largest city and an important seaport.
Environment & Water Technologies – Vietnam Market Study - Page 19 of 166
2.1 Political Overview
Vietnam is officially a one party Socialist Republic where the President is the head of state and
the Prime minister the head of the government in a system led by the Communist Party of
Vietnam. Executive power is exercised by the government and the president of Vietnam.
The legislature is vested in the National Assembly of Vietnam, while the judiciary is nominally
independent of the executive. The President is elected by the National Assembly for a five-year
term and acts as the commander-in-chief of the Forces and Chairman of the Council for Defence
and Security. The government – the main executive state power of Vietnam – is headed by the
prime minister. Currently, the serving president is Nguyen Phu Trong, while the prime minister is
Nguyen Xuan Phuc.
The executive branch is responsible for the implementation of political, economic, cultural, social,
national defence, security and external activities of the state. The National Assembly is a
unicameral legislative body and has 500 members, elected by popular vote to serve four-year
terms. The Communist Party has overarching power and is represented by the General
Secretariat in charge of holding party unity and ideals.1
The direction of the Party and the Government is decided at the National Congress, held every
fifth year. During these meetings, a Central Committee is elected by the National Assembly. From
this selection of delegates, state, government, and party leaders are internally elected.
The Vietnamese constitution and legislation provide for regular elections for the office of the
President of the Socialist Republic, the National Assembly and the People’s Council. National
elections are governed based on democratic centralisation.
Local government is divided into provincial, district, commune, and village municipalities, all of
which are centrally controlled by the national government. Governing actions are implemented
through levels of People’s Committees with heads and deputies leading each municipality. Socio-
1 CIA World Factbook, 2015
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economic development plans, policies, initiatives, and budgets are distinctly created and
implemented by each municipality, provided that they align with national strategies.
The Constitution guarantees all citizens fundamental rights such as freedom of speech, press,
assembly, demonstration, association, belief, religion and non-belief, equal rights between man
and woman, the right to education and health care, the right and duty to labour, the right to build
homes, and freedom to do business.
Vietnam has exerted efforts to improve people's living conditions. In addition to the Constitution,
Vietnam has issued 90 laws and ordinances. The legal system has been improved to ensure
rights to freedom and development to every Vietnamese citizen in all civil domains, politics,
economy, culture and society.
2.2 Economic Overview
Over the past quarter of a century, changes in Vietnam have been one of the world’s great
development success stories. Vietnam is a densely populated, rapidly developing country of
97 million that has been transitioning from a mainly agrarian, centrally planned economy to a
market-driven manufacturing and service-based economy. Its economic reforms in 1986 triggered
the country’s transformation from a war torn country to one that is experiencing unprecedented
growth. In 2018, Vietnam’s GDP was estimated at US$ 240 billion (EUR 217.5 billion), and per
capita GNI at US$ 2,360 (EUR 2,138)2.
Since the 1980s, Vietnam’s growth has been particularly driven by a demographic dividend,
powered by its youthful population coming of age. Despite overall population growth between 1%
and 1.5%, from 2000 to 2010, the country’s labour force population expanded at an average
annual growth rate of 2.8%.3 Currently, labour costs in Vietnam are 50% of those in China and
around 40% of those reported in Thailand and the Philippines. With the country’s workforce
growing annually, Vietnamese workers are young, inexpensive, and increasingly highly skilled.
2 https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?locations=VN 3 Breu, M., Dobbs, R., Remes, J., Skiing, D., Kim, J. 2012, Sustaining Vietnam’s Growth: The productivity Challenge, McKinsey Global
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Additionally, urbanisation has increased tremendously during the past few years. In 2017,
the share of urban population rose to 35.21% of total population.4
Since its economic reforms, Vietnam has continued to promote a capitalist economy within the
context of a one-party political system. This strategy maintains state-owned enterprises,
specifically regarding natural resources, energy, land, and utilities to operate alongside private
enterprise, in order to effectively manage an expanding liberal economy.
Vietnamese openness to international markets was spearheaded by Vietnam’s membership in
the World Trade Organisation in January 2007, which has promoted more competitive, export-
driven industries. Openness to capitalist globalisation and rising per capita income has also
created a burgeoning domestic consumer economy with spending patterns approaching western
tastes and standards of living.
The current make-up of Vietnam’s economy has seen agriculture's share of economic output
continue to shrink from about 18.38% in 2010 to less than 14.68% in 2018. Industry's share of
GDP increased from 32.13% to more than 34.23% in the same period. Vietnam’s economy has
observed the increase of services’ share from 36.94% to 41.12% in the same period.5
Approximately 34.4% of the Vietnamese population works in the service sector, while an
estimated 25.8% works in the industrial sector.6
One of the first Global Value Chain (GVC) activities Vietnam attracted following its economic
reforms included captive electronics assembly plants established primarily by a small number of
Korean, Taiwanese and Japanese firms in the early 1990s. The country’s integration into
electronic GVCs however, has increased rapidly since 2006, when the world’s largest semi-
conductor producer, Intel, set up a US$ 300 million (EUR 272 million) testing and assembly plant
(which was later augmented to a US$ 1 billion or EUR 0.9 billion investment) in Ho Chi Minh City.7
4 www.statista.com/statistics/444882/urbanization-in-vietnam/ 5 www.statista.com/statistics/444611/vietnam-gdp-distribution-across-economic-sectors/ 6 www.statista.com/statistics/454920/employment-by-economic-sector-in-vietnam/ 7Athukorala, P. and Kohpaiboon, A. (2013), ‘Global Production Sharing.’
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GVC activities also lie in wood products and automotive goods. Additionally, the outsourcing of
software development services is emerging as a sub-sector that shows particular promise.
The Vietnamese economy grew by 7.02% in 2019, exceeding the National Assembly's target from
6.6% to 6.8% and making it one of the fastest growing markets in the world. The government has
sought to open the country to trade and investment – which are the key drivers of the economy.
It is projected to maintain good growth in 2020 in terms of industrial production, private
consumption and exports, with GDP growth forecasted to reach 7% per year from 2021 to 2025.
According to the General Statistics Office of Vietnam, manufacturing and services were the main
drivers of economic growth in 2019, with an increase of 11.29% in manufacturing, 9.12% in
transportation and storage, 8.82% in wholesale and retail, and 8.62% in finance, banking and
insurance. Industry and construction grew by 8.90%, contributing 50.4% to general growth.
FDI into Vietnam rose 6.7% to US$ 20.38 billion (EUR 18.47 billion) in 2019, up from
US$ 19.10 billion (EUR 17.3 billion) in 2018. With the pledges of new projects, increased capital
infusions and equity stake acquisitions, FDI is expected to increase 7.2% to US$ 38.02 billion
(EUR 34.46 billion) in 2020, in which the manufacturing and processing industry are set to receive
the largest amount of investment (64.6% of total pledges) followed by real estate (10.2%)8.
The implementation of FTAs such as the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP) effective on 14 January 2019, and the European Union − Vietnam
Free Trade Agreement (EVFTA) signed on 30 June 2019 will have a profound and broad impact
on the Vietnamese economy from 2021 – 2025.
2.3 Trade Overview
Vietnam is one of the most open economies to international trade in Asia. Vietnam is among the
world's largest rice exporters, but also exports textiles, clothing and footwear, technology products
and crude oil. Imports include tool machinery, refined oil and steel. Vietnam recorded a trade
8 Trading Economics
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surplus of US$ 11.12 billion (EUR 10 billion) in 2019, expanding from a surplus of US$ 6.8 billion
(EUR 6.2 billion) in 2018. Exports in 2019 rose 8.4% to US$ 264.2 billion (EUR 239.4 billion),
while imports rose 6.8% to US$ 253.1 billion (EUR 229 billion).9 Vietnam’s main trading partners
are the U.S., China, Japan, and South Korea. South East Asian markets are also among the top
10 suppliers, namely Thailand, Malaysia, Singapore and Indonesia.
According to the General Statistics Office of Vietnam, in 2019, exports of services were estimated
at US$ 16.6 billion (EUR 15 billion), up 12.6% compared to 2018, while imports of services
reached US$ 19.1 billion (EUR 17.3 billion), up by 2.9% over 2018.
The commercial dimension of bilateral relations between the EU and Vietnam are currently
governed by the EU-Vietnam Framework Agreement on Partnership and Cooperation (PCA) that
entered into force in October 2016. Vietnam currently enjoys trade preferences with the EU under
the Generalised Scheme of Preferences.
The EU and Vietnam have also signed a Trade Agreement and an Investment Protection
Agreement on 30 June 2019. On 12 February 2020, the European Parliament ratified the EVFTA
and the EU-Vietnam Investment Protection Agreement (EVIPA). The next step before the
agreements can come into force is the ratification of the agreement by the National Assembly of
Vietnam, which is expected in May 2020.10
Once in force, the agreements will provide opportunities to increase trade and support jobs and
growth on both sides, through:
◼ Eliminating 99% of all tariffs
◼ Reducing regulatory barriers and overlapping red tape
◼ Ensuring protection of geographical indications
◼ Opening up services and public procurement markets
◼ Ensuring the enforceability of the agreed rules
9 www.reuters.com/article/us-vietnam-economy-trade/vietnam-2019-trade-surplus-11-12-billion-beating-9-94-billion-forecast-customs-
idUSKBN1ZC0SO 10 https://www.vietnam-briefing.com/news/vietnam-eu-trade-evfta-ratified-eu.html/
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Figure 2: EU – Vietnam: Trade in Goods, Trade in Services, and FDI. Unit: EUR billions Source: European Commission
Vietnam is the EU's 16th largest trade in goods partner and the EU's second largest trading partner
in South East Asia. Key European exports to Vietnam include high tech products, including
electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products.
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With a total foreign direct investment stock of EUR 6.1 billion in 2017, the EU is one of the largest
foreign investors in Vietnam. The largest sector of investment by the EU is industrial processing
and manufacturing.11
2.4 Market Access
Vietnam is moving away from a strictly controlled economy to one that is more open and liberal.
In the past few years, a growing number of businesses have relocated their operations from China
to Vietnam in an attempt to escape rising costs and an increasingly complex regulatory
environment. With Vietnam’s recent CPTPP ratification, and the signing of the EU-Vietnam FTA,
the country is steadily becoming more open to international trade and investment.
The Vietnamese government offers extremely competitive financial incentives to businesses
seeking to set up operations in the country, in addition to a zero percent withholding tax on
dividends remitted overseas and a low corporate income tax (CIT) rate of only 20%.
A foreign entity may establish its presence in Vietnam as a limited liability company (LLC) with
one or more members, a joint-stock company (JSC), a partnership, or a business cooperation
contract. Depending on the size and the sector of investment, different licensing and registration
procedures will be applied, namely investment registration and investment evaluation. Other
facilities for business and investment in Vietnam include a branch office and a representative
office. Foreign investors may also buy an interest in an existing domestic enterprise, subject in
some cases to ownership limitations which vary depending on the relevant industry sector.
2.5 Business and Competitive Environment
The Vietnamese government is taking action to improve its business environment, such as
reforming its financial sector, streamlining business regulations, and developing a workforce that
is skilled and competitive.
11 https://ec.europa.eu/trade/policy/countries-and-regions/countries/vietnam/
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Vietnam is ranked in the 70th place in the World Bank’s Doing Business report for 2020. Although
the country fell one spot from its position last year, its overall score improved by 1.44 points, with
a total of 69.8 points in the latest rankings. It showed greatest improvement in rankings in the
following areas of assessment – getting credit; paying taxes, and resolving insolvency.
Ease of Doing Business in Vietnam 2020 Rank
2019 Rank
2018 Rank
Change in Rank (2019-2020)
Overall Rank 70 69 68 + 1
Starting a business 115 104 123 + 11
Dealing with construction permits 25 21 20 + 4
Getting electricity 27 27 64 No change
Registering property 64 60 63 + 4
Getting credit 25 32 29 - 7
Protecting minority investors 97 89 81 + 8
Paying taxes 109 131 86 - 22
Trading across borders 104 100 94 + 4
Enforcing contracts 68 62 66 + 6
Resolving insolvency 122 133 129 - 11
Table 2: Ease of doing business in Vietnam Source: World Bank
Most foreign invested enterprises (FIEs) in Vietnam remain confident about the business
environment due to three reform efforts: reduction in cumbersome regulations, signs of decreased
corruption and infrastructure enhancement.
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3. Market Overview & EU Entry Opportunities in Vietnam
3.1 The Environmental & Water Technologies Sector
3.1.1 Market Overview
Vietnam is facing significant environmental challenges as a result of its rapid economic
development, industrialisation and urbanisation. According to the United Nations Development
Programme (UNDP), one of the most pressing threats facing Vietnam in the next couple of
decades is climate change. Vietnam is ranked sixth in the 2020 Global Climate Risk Index’s list
of countries most affected by extreme weather events. According to the report, the country
experienced 226 such events between 1999 and 2018, resulting in losses of about 0.47% of GDP
and 286 deaths.12
Figure 3: Frequency of natural disasters from 1980 to 2016 per 1,000 km2 Source: IMF
Vietnam’s geography leaves it vulnerable to calamites and exposes it to impacts of rising sea
levels and storms. Most of its 1,800-mile coastline faces the East Sea, which tropical storms and
12 https://germanwatch.org/sites/germanwatch.org/files/20-2-01e%20Global%20Climate%20Risk%20Index%202020_14.pdf
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typhoons traverse every year. Vietnam’s mountains in the north are prone to landslides and flash
flooding, while the flat Mekong Delta in the South, a fertile region that produces around 70% of
Vietnam’s agricultural products including 55% of its rice and 70% of its aquaculture, is among the
most vulnerable regions in the world to rising sea levels.
Figure 4: The Mekong Delta Source: World Wide Fund for Nature
In addition to the naturally caused environmental challenges, the rapid industrialisation of Vietnam
since the late 1980s has heavily relied on intensive and unsustainable exploitation of forests,
fisheries and other renewable and non-renewable natural resources. The country’s stock of
natural capital has declined as mineral and nonmineral resources were depleted. In addition,
the country’s agriculture and industry have greatly contributed to the degradation of its natural
capital and its extensive use of fertilisers largely contributes to land and water pollution.
A 2018 International Monetary Fund (IMF) report highlights that Vietnam is among the top ten
countries affected by air pollution. In large cities and industrial zones, levels of fine particulate
matter are above safe levels, comparable to that of China. Electricity production from coal fired
plants is a major contributor to air pollution, with a quarter of the domestic supply produced from
Environment & Water Technologies – Vietnam Market Study - Page 29 of 166
coal. According to the report, greenhouse gas emissions in Vietnam are expected to double
between 2010 and 2020, and triple by 2030.13
Vietnam recognises the challenges it faces, and has proactively developed national, sub-national
and sectoral policies and programmes that aim to address climate vulnerability and promote a
low carbon, green growth development path.
The core climate change policies in Vietnam comprise the National Climate Change Strategy
(NCCS) and Green Growth Strategy (VGGS), as well as their related Action Plans. These policies
are supported by programmes that focus on climate change and green growth. For example,
the National Target Programme to Respond to Climate Change (NTP-RCC) and the Support
Programme to Respond to Climate Change (SP-RCC) as well as a host of related strategies
focused on renewable energy, energy efficiency, disaster risk reduction and management
(DRRM), Reducing Emissions from Deforestation and Degradation (REDD+), and science and
technological development.
Details of some of the key environmental laws and policies to address environmental issues in
the country are as follows:
◼ The NCCS was approved in December 201114, with objectives to (i) mobilise national
resources to design and implement actions both for adaptation to climate change impacts
and mitigation of greenhouse gas (GHG) emissions and for ensuring the safety and security
of the people’s lives and assets; (ii) achieving the established sustainable development
goals; (iii) strengthening adaptive capacity of the human and natural systems; (iv) moving
towards the low-carbon economy; (v) protecting people’s lives and enhancing well-being;
(vi) ensuring national security and sustainable development in climate change context;
and (vii) actively contributing to the international community’s effort to protect the global
climate system. This strategy is the backbone of the country’s Nationally Determined
13 www.imf.org/en/News/Articles/2018/01/09/NA010918-For-Vietnam-greener-growth-can-reduce-climate-change-risks 14 https://unfccc.int/sites/default/files/resource/97620135_Viet%20Nam-BUR2-1-Viet%20Nam%20-%20BUR2.pdf
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Contribution (NDC) to the Paris Agreement, which estimates that the cost of adaptation will
exceed 3% to 5% of Vietnam’s GDP by 2030,15 requiring international support and financing.
◼ The National Green Growth Strategy was also approved by the Prime Minister in 2012.
The strategy sets out objectives towards a green economy, energy efficiency, GHG
reduction and improvement of living standards. It includes the target to reduce the intensity
of GHG emissions by 8-10% (as compared to the 2010 level) between 2011 and 2020;
and reduce GHG emissions by at least 1.5%-2% a year until 2030.16 It focuses on improving
energy efficiency, changing the fuel structure in industry and transportation, increasing the
proportion of new and renewable energy sources, and the development of organic
agriculture.
◼ The National Action Plan on Climate Change Period 2012 – 202017 was issued in 2012.
The Action Plan sets out its objectives and lists 65 programmes, projects and proposals,
the timeline for their implementation and the agencies responsible for their implementation.
The plan outlines a number of priority actions, including upgrading hydro-meteorological
forecasting and early warning systems; restructuring agricultural systems towards more
climate-resilient crops and animal husbandry, guaranteeing food and income security;
modernising farming practices, applying more water and energy-efficient techniques and
integrated farming systems; and sustainable management of water resources, with repair
and improvement of dams, reservoirs and irrigation systems. Progress has been made in
some areas. For example, in 2015 the Ministry of Agriculture and Rural Development
(MARD) promulgated the Action Plan for the Development of Advanced and Water Saving
Irrigation for Upland Crops to Assist Water Resources Sector Restructuring. The Green
Climate Fund under the United Nations Framework Convention on Climate Change and the
Asian Development Bank are financing projects with horizons stretching up to 2026, which
support this action plan.18
15 http://www.currenthistory.com/McElwee-CH2017.pdf 16 http://www.mrcmekong.org/assets/Publications/Events/2nd-CCAI-Forum/5-4-Viet-Nam.pdf 17 http://hethongphapluatvietnam.com/decision-no-1474-qd-ttg-of-october-5-2012-on-issuance-of-national-action-plan-on-climate-change-period-
2012-2020.html 18 https://www.greenclimate.fund/sites/default/files/document/gcf-b25-02-add02.pdf
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◼ In 2012, the National Strategy on Environment Protection to 2020 With Vision to 203019 was
also approved. It focuses on preventing and controlling sources of environment pollution;
improving and recovering environment in polluted and degraded regions; enhancing the
supplies of clean water and environment hygiene services; exploiting and using natural
resources effectively and sustainably; preserving nature and biodiversity; and nurturing
capability of responding to climate change and mitigating GHG emissions..
◼ In 2016, Vietnam ratified the 2016 Paris Agreement, and committed to reducing greenhouse
gas emissions by at least 8% by 2030 and to achieving the United Nations Sustainable
Development Goals by 2030.
The Vietnamese Ministry of Natural Resources and Environment (MONRE) has also asked local
authorities in Vietnam to ensure that at least 1% of the local budget go towards environmental
protection and remediation projects. MONRE estimates that the spending on environmental
protection in 2018 amounted to VND 2.38 trillion (EUR 92.5 million).20
According to the Vietnam Institute of Meteorology, Hydrology and Climate Change, there are three
categories of international financial sources for climate change mitigation in the country namely
the non-UNFCC and bilateral funds and initiatives, UNFCC financial mechanism funds and the
non-UNFCC and multilateral funds, as indicated in Annex 5.3.
Environmental & Water Technology Trends
Vietnam is dependent on Official Development Assistance (ODA) funding to address
environmental concerns in the country. As the country’s capacity to produce environmental and
water technology solutions and equipment are limited, it usually partners with foreign technology
providers and consultants. As such, most of the environmental technologies and solutions for
projects under ODA funding are imported. Some of these are water meters, valves, motors, water
treatment chemicals, water filtration systems as well as water control and monitoring equipment.
19 www.env.go.jp/air/tech/ine/asia/vietnam/files/law/QD1216-English.pdf 20 https://english.vietnamnet.vn/fms/environment/188530/ministry-seeks-higher-budget-for-environmental-protection.html
Environment & Water Technologies – Vietnam Market Study - Page 32 of 166
The country seeks both low and high-tech solutions to address its pressing environmental issues.
It is worth noting that Vietnam leans towards reliable, cost-effective and sustainable technologies
or methods. It also worth mentioning that Vietnam is actively seeking technologies from Europe
and looking to learn from European experience and expertise.
For example, in June 2019, the Hanns Seidel Foundation (HSF), a German party-associated and
taxpayer-money funded political research foundation, organised a study visit21 involving
representatives from the Vietnamese Ministry of Industry and Trade and the Ministry of Natural
Resources and Environment to learn from European experience in promoting circular economy
in a 5-day programme in Helsinki (Finland), Potsdam and Berlin (Germany). The delegates
participated in the World Circular Economy Forum in Finland and had several meetings with
government institutions and research institutes in Germany. In July 2018, members of the
Vietnamese General Confederation of Labour (VGCL) – an umbrella organisation for all
Vietnamese trade unions – went to Germany and visited science and technology park Adlershof,
Siemens Gas Turbine Plant and energy self-sufficient village Feldheim and also learnt about the
work of German trade unions in promoting green growth.22
The country’s imports of water and environmental equipment are on an upward trend in the past
five years. Among the equipment that registered the highest imports are those that are used in
filtering or purifying liquids or gas as well as those that are used for measuring or checking the
flow or pressure of liquids or gas.
China, Japan, South Korea, the U.S. and Germany are among the major suppliers of
environmental equipment in Vietnam. Other European countries such as France, Spain, Sweden,
Italy, Czech Republic, the Netherlands, and Belgium are also sources of environmental and water
equipment in the country.
The major players in the water and environment sector are the national and local governments,
water companies, as well as companies in the industrial and agriculture sectors. Large
21 https://southeastasia.hss.de/news/detail/vietnam-learns-from-european-experience-in-promoting-circular-economy-news4999/ 22 www.fes-vietnam.org/post/vietnamese-trade-unionists-on-study-tour-on-green-growth/
Environment & Water Technologies – Vietnam Market Study - Page 33 of 166
Vietnamese companies involved in property development and food processing can also be
targets for foreign suppliers of environmental and water technologies.
A number of prospective buyers are available across water and wastewater treatment, air and
soil pollution control and solid waste management sub-sectors:
◼ Water and Wastewater Treatment Equipment: Potential buyers include SAWACO and
HAWACO which are the major state-run companies involved in the production and
distribution of water in Hanoi and Ho Chi Minh City. Manufacturing & industrial plants,
agriculture companies and those involved in developing real estate properties are also
prospective buyers of water and wastewater equipment in Vietnam.
◼ Air Pollution Control Equipment: Companies that have production facilities for cement,
chemicals, fertilisers and petroleum products are potential buyers of air pollution equipment
as the government aims to reduce nitrogen oxides, sulphur oxides and particulate matter
emitted by these businesses. Companies operating in industrial zones are also potential
buyers of air pollution equipment as they are required by the Government to install
emissions treatment systems. Home air purifiers are also in demand in the country. with
households buying it for personal use in their homes.
◼ Soil Protection Equipment: Large agriculture companies are one of the main prospective
buyers of soil protection equipment in Vietnam. As a major agricultural producer,
the agriculture sector in Vietnam needs equipment that can address major issues such as
soil erosion and technologies that can improve soil conditions in the country. Additionally,
the government as well as local government agencies can also be potential buyers of soil
protection equipment.
◼ Solid Waste Management Solutions: Prospective buyers are local government units and
the private sector, for example, companies that are involved in solid waste collection,
separation, transportation and treatment. A niche market will also be the local environmental
service companies and research institutions that are responsible for undertaking
environmental impact assessment to selling pollution equipment control.
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3.1.2 Key Government Agencies
Ministry of Natural Resources and Environment (MONRE): MONRE is a government ministry
in Vietnam responsible for land, water resources, mineral resources, geology, environment,
hydrometeorology, climate change, surveying and mapping, and management of the islands and
the sea. Another mandate of MONRE is to coordinate with ministries, ministerial committees and
government agencies in providing guidance for implementation of resource use and
environmental protection in the areas managed by these ministries and agencies. MONRE is also
responsible for the National Inventory on Greenhouse Gas Emissions and is the focal point of the
implementation of the National Target Programme to Respond to Climate Change.
Vietnam Environment Administration (VEA): VEA was established according to the Decision
No. 132/2008/QĐ-TTg of the Prime Minister. VEA is a government agency under MONRE tasked
to provide information on environmental protection, and to increase publicity and transparency of
administrative procedures related to environmental licensing. VEA provides the latest information
on environmental protection policies, regulations and activities of the Party, State, ministries and
branches of Vietnam.
3.1.3 Key Associations
Vietnamese Association for Conservation of Nature and Environment
(VACNE) is a non-governmental organisation focused on protecting the natural
resources and environment of Vietnam. VACNE works to raise awareness and
promote education on the conservation of natural resources and environmental
protection amongst the general public. The Association seeks to mobilise
community members to protest actions that violate environmental protection laws. VACNE
encourages community members to participate in the development and implementation of
policies, legislation, and measures relating to environmental protection and conservation. It also
provides government agencies and businesses with consulting services, professional reviews and
social appraisals.
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Vietnam Water Supply and Sewerage Association (VWSA) is
focused on private sector actors, as a voluntary association that includes
around 300 members in the water sector. Individuals and organisations
work in different aspects of the sector, including management, consultancy, research, training,
construction, operation, as well as the exploitation, manufacture and trading of material and
equipment. VWSA is a vehicle for its members to participate in policy development and in the
improvement of the water and sanitation sector in Vietnam.
Vietnam Plastics Association (VPA) is a voluntary and non-governmental organisation of
enterprises and research institutes with over 800 members in the plastics and rubber industries.
Founded in 1990, the purpose of VPA is to link, cooperate and mutually support members in terms
of research, production, sales and service, among others.
3.1.4 Entry Strategies
There are several options for European companies to enter the Vietnamese Environment & Water
Technologies market. Licensing, franchising, strategic alliances and partnerships for export
distribution and project development via joint venture, distributors/agents, wholly owned
subsidiaries and specialised tradeshows are among the available options.
European companies that want to enter the Vietnamese market must be persistent and consistent
with face-to-face meetings to engage the local businesses. The Vietnamese culture puts a great
emphasis on building relationships before making any business transactions.
Joint venture and distribution channels
Appointing an agent or distributor is the most common channel for market entry in Vietnam.
Agents and distributors can provide immediate access to prospective buyers in the market. They
will also have the knowledge on regulatory requirements needed to bring the equipment or
technology into the market. Agents or distributors offer a low-cost market entry to European
companies that prefer a more flexible and contractual mode of entry. However, it is advised for
European companies to perform due diligence on potential agents/distributors to ensure that they
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are legitimate and have the permits, facilities, workforce and capital needed to act as
agent/distributor. Basic information about enterprises can be purchased from the National
Business Registration Portal – https://dichvuthongtin.dkkd.gov.vn/inf/default.aspx – at the cost of
VND 150,000 (EUR 5.80) per company.
When collaborating with distributors/agents, local partners typically handle all aspects of
importation, including registration, obtaining a license and getting customs clearance for products.
They also help facilitate the products’ entry into the market and assume responsibility for
advertising and promotion through sales and dealer networks.
In Vietnam, European companies may need to consider having more than one distributor. One
distributor may target the northern part of the country which is where the government ministries
and regulatory agencies are concentrated. Then the other distributor can target the south part of
the country which is the dominant industry hub.
Another option for European companies to establish presence in Vietnam is via a joint venture with
a local company. The primary benefit of a joint venture lies in its ability to grant an investor deeper
access to the market. For foreign investors entering the market for the first time, local partners can
provide greater access to suppliers, customers, and sometimes improve a foreign brand’s
reputation within the domestic market. However, European companies that want to enter the
Vietnam market via joint venture must be aware of the time that is needed to negotiate over stakes,
leadership and structure of the joint venture, which can potentially prolong the process of entering
the market, in addition to the capital required in setting up a joint venture business in Vietnam.
Collaboration with local research institutes and environmental service companies
European companies seeking to enter the Vietnam market may opt to collaborate with local
research institutes and environmental service companies in Vietnam. These institutions are part
state-owned enterprises, part academic institutions and part government ministries. They are
responsible for undertaking environmental impact assessments, environmental monitoring and
the sales of pollution control equipment. European companies may consider collaborating with
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these institutions to introduce environmental technologies that can be used in Vietnam as well as
to better understand the requirements of the country.
Trade Shows
Given the importance of partnerships and distributors for entering the market, specialised
tradeshows and exhibitions often serve as a springboard for interested international companies
to build business relationships. Some of the upcoming tradeshows that European companies may
consider attending include:
Clean Water Vietnam 2020 is an international exhibition & conference on clean
water and environmental protection. It offers a platform for industry players and
professionals to meet face-to-face, expand businesses and forge their linkages
with existing and new customers from all over the world. Taking place at the
Saigon Exhibition and Convention Center, Ho Chi Minh City, Vietnam, between 17-18 June 2020,
the event will bring together 120 exhibitors from 30 countries.
VietWater 2020 is Vietnam’s leading international water supply,
sanitation, industrial wastewater treatment and purification event.
The event will take place between 11-13 November 2020 at the
Saigon Exhibition and Convention Center, Ho Chi Minh City,
Vietnam. This year’s event is expected to welcome 11,000 trade visitors and more than 400
exhibitors from over 38 countries. VietWater will bring together hundreds of buyers consisting of
high-level managers and engineers who are representatives of companies in all segments of the
water and wastewater industries.
3.1.5 Challenges & Entry Barriers
Doing business in Vietnam does come with some challenges. Bureaucracy, corruption and lack
of transparency of regulations are still common in Vietnam. Vietnam’s overlapping jurisdiction of
ministries also results in the lack of consistency in policies as well as the lack of corporate financial
transparency, which can prove to be challenging.
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Though reform for Vietnam’s complicated tax system is underway, there are still about 10
corporate tax payments that must be made every year. Other taxes also include VAT and social
insurance. Furthermore, all reporting and filing paperwork, including licenses, must be written in
Vietnamese language. For documents that are in English or other languages, they must be
translated into Vietnamese through certified translations at court in the home country. In addition,
the certified translated documents must then be validated by a Vietnamese embassy.
European-branded products are perceived to be of high and superior quality in Vietnam and
European water and environment technologies are among the preferred options in Vietnam.
However, it is to be noted that the market is very price sensitive. Therefore, European companies
need to apply a more flexible payment options to potential distributors and customers in Vietnam
to compete effectively with suppliers from other countries.
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3.2 Fresh Water Supply
3.2.1 Market Overview
Vietnam has a dense and complex river network, with
most of the large river systems being linked.
The country’s river system comprises of approximately
2,360 rivers which exceed a length of 41,900
kilometres. It has sixteen main river basins, of which
nine are key, making up 90% of the total river basin
area in the country. These river basins are as follows:
Red, Thai Binh, Bang Giang-Ky Cung, Ma, Ca La, Thu
Bon, Ba, Dong Nai, and Mekong River Basins.
The Mekong River has a catchment area of
800,000 km2 spread across six countries. The total
water available to Vietnam from this river is more than
500 billion cubic metres per year, which is 57% of
Vietnam’s water resource. Meanwhile, the Red and
Thai Binh rivers have a combined catchment area of
155,000 km2 and deliver 137 billion cubic meters of
water to Vietnam each year.
Two-thirds of water resources in Vietnam flow in from neighbouring countries upstream.
Consequently, Vietnam ranks low in the region for internal renewable water resources, having 4,200
m³ per person against an average of 4,900 m³ in South East Asia. The country’s water resources are
also highly seasonal, with precipitation and runoff concentrated in a short rainy season, followed by
a long, hot, dry season. Thus, rivers are in flood during the rainy season, but flows are low in the dry
season. In addition, rainfall and water resources are unevenly distributed across the country.23
23 www.wepa-db.net/policies/state/vietnam/surface.htm
Figure 5: The main river basins in Vietnam Source: Water Global Practice
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About 8.5 million urban citizens in Vietnam lack access to clean water, and in rural areas, about
41 million dwellers do not have clean water supply. According to a 2019 World Bank report called
‘Vietnam: Toward a Safe, Clean, and Resilient Water System’,24 water outages in Vietnam
expanded nearly threefold between 2009 and 2015, and within 25 years the urban population is
expected to require twice the daily water supply that current systems can provide.
Figure 6: Water security in Vietnam Source: World Bank
A 2017 report by the US-based 2030 Water Resources Group highlights the challenges that
Vietnam will face. Under a business-as-usual scenario, the report projects a 32% increase in
water demand by 2030 during the dry season. This will lead to all but five river basins facing water
stress by 2030 – with the most severe stress in the key economic basin. As measured by a
24 http://documents.worldbank.org/curated/en/589341559130979599/pdf/Vietnam-Toward-a-Safe-Clean-and-Resilient-Water-System.pdf
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common metric of water stress, the Water Exploitation Index (the ratio of water withdrawals to
water availability) in key river basins are already fast approaching unsustainable levels.
The World Bank reports that Vietnam produces US$ 2.37 (EUR 2.15) of GDP from each cubic
metre of water, which is below the global average of US$ 19.42 (EUR 17.60). Vietnam has
invested heavily in a vast irrigation infrastructure, but underinvestment in operation and
maintenance (O&M) has contributed to deteriorating water service and a loss of productivity.
There are also growing concerns in the country on issues such as water resource depletion, water
pollution, as well as misuse and mismanagement of water assets.
Figure 7: Yellow water found in a well in Quang Ninh Province, due to alum contamination Source: Viet Nam News
The bulk of public spending in agriculture has been on water infrastructure for rice cultivation,
endowing Vietnam with a vast irrigation network and dam schemes for dry season cultivation and
extensive flood defence systems for wet season cultivation. The irrigation system is degraded,
meeting only about 50% to 60% of its design capacity. Countrywide, only 26% of canal lengths
are fully functional, and about 1,500 small and medium-size dams and reservoirs need to be
rehabilitated and modernised.25 With growing cities, rapid industrialisation, and an expanding
agriculture sector, the demand for water will continue to climb.
25 http://documents.worldbank.org/curated/en/589341559130979599/pdf/Vietnam-Toward-a-Safe-Clean-and-Resilient-Water-System.pdf
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Vietnam has over 500 urban water supply systems with a total capacity of 8.7 million m3 per day,
70% of which are able to supply water around-the-clock while the remaining can provide water
for 8 to 20 hours per day. Notably, the rate of water loss in Vietnam remains high, at an average
of 22.5%.26
Piped water still only reaches 10% of rural households and 60% of urban households. Most
Vietnamese receive water from a tap in the yard, or from a public tap in the village from where
they have to carry the water to their home. The government targets that by 2025, water supply
services will be provided to 100% of urban areas, with an average 120 litres/person/day.27 In
addition to ongoing government efforts to improve access to water, Vietnamese companies,
particularly those that use large volumes of water, have also stepped up to offer support. In 2019,
Heineken Vietnam held the official ground-breaking ceremony for a water station valued at VND
400 million (EUR 15,551) in Quang Nam province, where it has a brewery. This is the 25th water
supply project of the company in Vietnam. The project provides a water station and a 1,000-metre
distribution pipeline system to help residents in the area easily access a safe and reliable water
source for daily use.
In August 2016, the government of Vietnam initiated a national programme for the period 2016-
2025 through Decision No.1566/QD-TTg to ensure safe water supply.28 The programme, which
is being implemented in urban centres and concentrated rural residential areas all over the
country, aims to manage risks and remedy incidents which might occur to water sources, water
treatment facilities and water conduction and distribution systems. The programme also targets
uninterrupted and adequate supply of up-to-standard water at appropriate pressure for improving
the quality of life and protecting people’s health.
The programme set a target that by 2020, at least 90% of residents will have access to clean and
hygienic water, while the safe water supply system will cover approximately 45% of urban areas
and 35% of rural areas. The rate of untreated urban residential wastewater discharged into the
26 https://english.vov.vn/society/smart-water-management-helps-promote-sustainable-development-380867.vov 27 Decision No. 1929/QD-TTg 28 http://vietnamlawmagazine.vn/clean-water-to-be-supplied-to-every-home-by-2025-5495.html
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environment will be reduced to 80-85%. By 2025, the safe water supply system will cover 50% of
rural areas and the rate of untreated urban residential wastewater discharged into the
environment will decrease to 70%. In a June 2019 report29, the World Health Organisation
reported that it has supported the Ministry of Construction in designing and implementing the safe
water supply plan. The plans had been deployed in 43 provinces and cities.
Hanoi
Hanoi receives 80% of its water from groundwater, which contains 5 to 10 times higher levels of
ammonium than the allowed standard. While ammonium in drinking water is not a direct health
risk, it can compromise disinfection efficiency and can cause failure of some filters.30 There have
also been cases wherein the water supply in Hanoi was contaminated with styrene. As such,
people had to buy bottled water for drinking, cooking, and even brushing their teeth.
Hanoi develops water supply through master planning, agreed upon by Hanoi People's
Committee and approved by the Prime Minister. The planning, building, operation and
maintenance of piped water supply systems in Hanoi results from a joint effort between urban-
and rural-related ministries. Urban planning authorities design and construct water treatment
plants through the approval of the central government, and the operation and maintenance of
these systems is largely subject to the efforts of state programmes that encourage rural
households to connect to the piped water distribution network in urbanising villages.
Four enterprises, namely Ha Dong, Son Tay, HAWACO and VIWASUPCO are responsible for
producing potable water in Hanoi. To keep up with the demand for water, the first three companies
extract approximately 700,000 m3/day of groundwater; while VIWASUPCO extracts
approximately 300,000 m3/day of surface water.
29 http://documents.worldbank.org/curated/en/589341559130979599/pdf/Vietnam-Toward-a-Safe-Clean-and-Resilient-Water-System.pdf 30 www.waterworld.com/wastewater/treatment/article/16201180/vietnam-matching-mobile-phone-access-to-water-and-sanitation
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Figure 8: Hanoi's water cycle and existing production and distribution companies Source: ScienceDirect
The companies responsible for the distribution of potable water in Hanoi are: Ha Dong
Waterworks, Son Tay Waterworks, VIWACO and HAWACO. The largest water enterprise in
Hanoi, in terms of water supply and distribution, is HAWACO, which supplies almost three
quarters of the total water supply (with 1,708 km of distribution lines, in comparison to 217,171,
and 627 km of distribution lines from VIWACO, Son Tay Company, and Ha Dong Company,
respectively).31
31 www.sciencedirect.com/science/article/pii/S0197397515303453
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Ho Chi Minh City
Ho Chi Minh City receives 93% of its drinking water from two treatment plants on the Dong Nai
and Sai Gon Rivers. The Dong Nai has ample water resources during the rainy season, but during
the dry season, there is insufficient supply due to competition with water for agriculture.
They city has made concerted efforts to provide fresh water to its population of around 9 million;
however, the quality of water supply resources has declined due to high levels of pollution in the
Sai Gon and Dong Nai Rivers, which have high levels of salt as well as untreated wastewater
from daily activities and manufacturing companies.
The Saigon Water Supply Company (SAWACO) is responsible for exploitation, purification and
distribution of water in Ho Chi Minh City. SAWACO can provide around 2.1 million m3/ day from
seven water treatment plants. About 1.5 and 0.5 million m3/day of this total are pumped from
surface water of Dong Nai and Sai Gon Rivers, respectively; and an additional 0.1 million m3/day
extracted from groundwater.
Distributed by pipelines for a cumulated length of 5,460 km, the network supplies water to about
85% of the city’s population. According to SAWACO, water leakage on the distribution network is
estimated to reach a loss of nearly 34% of the total water supply. While domestic water is
guaranteed for urban dwellers, only 20% of suburban dwellers have access to it.
Local Players
VUCICO is the representative in Vietnam of the world leading technology and equipment
corporations from Israel, USA, Canada, EU, Japan, ASEAN, etc. in the field of water supply and
drainage, environmental treatment, HVAC (heating, ventilation and air conditioning), firefighting,
energy, industry, agriculture. Vucico was certified ISO 9001: 2008 by TÜV SÜD Germany for
Quality Management Systems. Over the past 15 years, VUCICO has implemented projects to
provide equipment and solutions for equipment technology, installation management and
operation guidance for World Bank, ADB, AFD projects (French Development Agency –
Government of France), JICA and partners in the provinces and the cities of Vietnam.
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Tesco Environment Solution Vietnam Company Limited (TESCO ESVN) implements design,
construction, maintenance and management of wastewater treatment systems in Vietnam. It also
provides water purification and production services for households, factories and industrial parts
in Vietnam. The company is part of Japan-based Tesco Co Ltd which offers waste treatment,
water and wastewater treatment, total building management, and engineering, construction and
consulting services.
Yokogawa Vietnam Company Limited provides water loss management solutions to minimise
losses from the water distribution network, thus reducing non-revenue water. It also offers water
treatment, water pipeline and wastewater treatment services. The company is headquartered in
Hanoi, and has branch offices in Ho Chi Minh City and Vung Tau. Yokogawa Vietnam is part of
leading industrial automation, and test and measurement solutions provider Yokogawa Electric
from Japan.
Huynh Chau Co Ltd is a leading water pump manufacturer in Vietnam. Its products include
rocket pumps and submersible electric pumps used for industrial, agricultural and residential
purposes. Its advanced production line and testing equipment are imported from Europe.
The company has about 60 distributors throughout Vietnam and over 7,500 stores.
3.2.2 EU Entry Opportunities
Opportunities for European companies exist across various areas, including:
◼ Water treatment and distribution technologies
◼ Flood mitigation measures
Water treatment and distribution technologies
The need for the development and improvement of the water supply sector in Vietnam is
significant. According to the Vietnam Association of Water Supply and Sewerage (VWSA),
the investments in water supply in urban areas in the country was only around US$ 110 million
(EUR 99.7 million) in the last five years. There is a need to apply new technologies in water
Environment & Water Technologies – Vietnam Market Study - Page 47 of 166
treatment, distribution, leakage control as well as IT services for process optimisation and energy
savings in the country.
In addition, the VWSA has identified various requirements across Vietnam’s water and
wastewater sectors – these represent opportunities for European companies with the relevant
expertise and equipment:
◼ Co-treatment of iron, manganese, ammonium and arsenic in groundwater
◼ Upgrading of existing water treatment plants with cost effective technologies
◼ Removal of organic matters from surface water
◼ Sustainable urban drainage and rainwater harvesting
Vietnam aims to provide 90% of the urban population with access to safe drinking water and to
collect and treat 100% of the urban wastewater by 2020. As the country works towards achieving
these goals, there will be a growing demand for source works, the development of treatment
facilities, service reservoirs and pumping stations, as well as equipment such as pumps, pipes,
valves, motors, water treatment chemicals, water tanks, filtration systems and monitoring
equipment, among others.
Various projects have been implemented in the country, highlighting the growing demand:
◼ In 2019, SAWACO brought in U.S. water solutions company Xylem to work on the
expansion of the Tan Hiep Water Treatment Plant. The plant, which draws water from the
Sai Gon River, plays a crucial part in delivering clean water to the residents of Ho Chi Minh
City. The expansion project was designed to increase the productivity of the plant, enabling
it to produce 300,000 m3 of drinking water a day. The solution provided by Xylem combines
a Wedeco SMOevo ozone system with Effizon evo 2G electrode technology. This system
was chosen because it offers a customised, reliable, cost-effective and sustainable
treatment method that will reduce the reliance of the Tan Hiep Water Treatment Plant 2 on
chlorine technology and traditional filtration. As part of its ongoing relationship with
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SAWACO, Xylem is providing continuous support through regular on-the-ground training
sessions for service engineers and staff.
◼ The WaterworX project has commenced in Vietnam, which aims to orient the water supply to
be adaptable to the effects of climate change in the south west of Mekong River Delta to
secure water supply services. WaterworX is a public-private collaboration (2017-2030)
between ten Dutch water companies and the Netherlands’ Ministry of Foreign Affairs to
increase sustainable access to drinking water to 10 million people in Africa, Asia and Latin
America by 2030.
◼ In 2018, Hanoi received an atmospheric water generator that produces water from the air.
The generator, called GEN-350, is a technological innovation of Watergen, an Israeli
company that serves as a global leader in producing fresh drinking water. The GEN-350
went through three successful pilots with Vietnam’s Ministry of Public Security, each at a
separate region of the country with distinct weather conditions. The purpose of testing the
GEN-350 in three separate locations in Vietnam was to measure the quality of the water
produced by the machine in various weather conditions. SGS, an accredited inspection
laboratory in Vietnam, has already carried out two tests of the GEN-350 and found the water
to be of good quality for drinking.
Flood mitigation measures
In 2015, the Steering Centre of the Urban Flood Control Programme in Ho Chi Minh City
announced plans to build 103 small and big rainwater harvest tanks and underground flood control
lakes to mitigate overflowing of the city's major waterways and rivers during rainy seasons and
tide intrusions.32 However, progress on implementation has been slow and as of October 2019,
the Department of Architecture and Planning was still assessing the 103-reservoir plan before
submitting for approval.33
32 https://english.vietnamnet.vn/fms/society/142018/hcm-city-needs-regional-urban-visions-to-tackle-flooding.html 33 https://sggpnews.org.vn/hochiminhcity/hcmc-plans-to-build-103-reservoirs-to-mitigate-flooding-during-rain-season-83913.html
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Figure 9: Flooding in Ho Chi Minh City is a regular occurrence Source: VnExpress
Figure 10: Underground flood control lakes in Ho Chi Minh City Source: VnExpress
To date, the city has built three flood-control reservoirs for evaluation, including one in Lakeview
City in District 2, a smart underground reservoir in Vo Van Ngan Street in Thu Duc District,
and one in Khanh Hoi in District 4. Water in these three reservoirs are used to water trees, fight
fire and supplement underground water to alleviate groundwater-related subsidence.
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The underground flood control water reservoir in Thu Duc District, which can store 180 m3 of
water, was built using Japanese cross-wave technology, which can be applied to small and
narrow sites. Construction was undertaken by Japanese firm Sekisui Company and its
Vietnamese partner, VMC Group. The structure uses cross-wave modules that are made of
polypropylene, a durable and eco-friendly plastic.34
European Companies
Rädlinger Primus Line GmbH
Rädlinger is a German manufacturer of Primus Line, a new technology of flexible high-pressure
pipes for the transport of gases and liquids in large diameters. Primus Line finds its use in the
renovation of high-pressure pipes, in a bypass-pipe during maintenance and in many other fields
of application.
In September 2019, it was contracted by Quang Ninh Water Company (QUAWACO) to
rehabilitate a 20-year-old corroded steel water main located under a bridge, at Van Don Island.
Figure 11: Van Don Island in the Bai Tu Long archipelago Source: Rädlinger Primus Line
The goal of the works was to increase the life span of the pipes and secure the water supply to
the island. Due to the need for a quick solution, Rädlinger installed the Primus Line system within
34 https://english.thesaigontimes.vn/60634/hcmc-plans-to-develop-underground-anti-flood-reservoirs.html
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3 weeks, which helped to extend the asset’s lifespan by 50 years. This was the first time that the
Primus Line system has been deployed in Vietnam.
Figure 12: Technical details of the project Source: Rädlinger Primus Line
Grundfos
Grundfos is a Danish multinational group manufacturing and supplying pumps for water supply
and sewerage and has been present in Vietnam for many years. Grundfos Group in 2009 founded
a 100% owned commercial company in Vietnam, whose main offices are located in Ho Chi Minh
city and Hanoi. Along with pumps of many types, Grundfos Vietnam also provides comprehensive
services including selling pumps, providing quotations, technical criteria, project development,
technical support and technical training. Many water supply companies in the country are
customers of Grundfos.
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Tapflo Group
The Tapflo Group is an independent, family owned, Swedish manufacturer and global supplier of
air operated diaphragm pumps, centrifugal pumps and other industrial process equipment. Tapflo
has offices in 24 countries, and a network of independent distributors in more than 50 countries
worldwide. In Vietnam, Tapflo Group has appointed Anh Phuong Equipment Company Ltd as its
distributor for its pumps. Among the customers of the Anh Phuong Equipment Company in
Vietnam are the Masan Group, Vinamilk, and Mondelez International.
KSB Group
KSB Group, which is based in Germany, is one of the leading producers of pumps, valves and
related service offerings. KSB Vietnam Co Ltd is the Vietnamese subsidiary of KSB.
The company, which has a sales office in Ho Chi Minh City and Hanoi, provides its customers in
Vietnam high quality pumps and valves manufactured in its global production locations.
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3.3 Wastewater Treatment
3.3.1 Market Overview
Vietnam has 43 wastewater treatment plants, with a total capacity of 926,000 m3 per day. Hanoi
has six operational plants that treat a total of 276,300 m3 of wastewater per day, amounting to
about 22% of its daily discharges. Meanwhile, Ho Chi Minh City has three operational plants and
other local facilities that treat a total of 370,624 m3 of wastewater per day, or about 21.2% of its
total daily discharge.35
Approximately 90% of urban households in Vietnam have septic tanks receiving wastewater,
and 70% to 80% of urban households have access to piped drainage and sewerage systems.
According to a report by Arcowa, only 17% of urban wastewater is safely treated and only 4% of
septage is collected and safely treated in Vietnam.36
Figure 13: Urban wastewater and septage management in Vietnam Source: Arcowa
35 https://e.vnexpress.net/news/news/vietnam-dumps-almost-all-urban-wastewater-untreated-into-the-environment-3993043.html 36 http://seaknowledgebank.net/sites/default/files/wastewater-management-and-resource-recovery-in-VietNam.pdf
Environment & Water Technologies – Vietnam Market Study - Page 54 of 166
The annual production of household water accounts for about 30% of all wastewater discharge
and this is expected to increase in the coming years due to the country’s rapid urbanisation. A
2018 water pollution survey by the state-funded Centre of Environment and Community Research
revealed that 90% of wastewater from urban households in Vietnam is directly released to the
environment without treatment. The majority of wastewater only receives primary treatment in
septic tanks where solids and organics are reduced through settling and anaerobic processes
before it is discharged through the sewer system into the environment.37
In urban areas, the conventional septic tank is the most common on-site wastewater treatment
facility. The average investment cost for construction of a septic tank and household connection
to the city sewer is EUR 225 per household. This cost does not include the fee for septic tank
emptying, which is estimated to be EUR 30 to EUR 46 per household every five years.38 The
system has a limited treatment performance, and cannot provide the treatment required to reach
national effluent standards to avoid water pollution. A majority of household septic tanks in
Vietnam are only used to treat blackwater, while greywater from kitchens, bathrooms, washing
machines, for example, is not treated in septic tanks and is usually discharged directly to canals
or the sewer system.
In urban areas, the septic tank plays an important pre-treatment role for locations having
combined sewers. However, septage (sludge) deposited in septic tanks is not removed regularly.
In addition, the illegal dumping of sludge removed from septic tanks is a very common practice in
all cities in Vietnam.
The amount of sludge generated from urban sewer lines and canals in Vietnam is estimated to
be between 4.7 and 11.7 million m3 per year. Meanwhile, the amount of faecal sludge generated
from septic tanks in Vietnam is estimated to be between 1.3 and 2.2 million m3 per year, with
Hanoi, Hai Phong, and Ho Chi Minh City generating 280,000, 166,500 and 894,000 m3 per year,
respectively. The method mostly adopted for the safe treatment and disposal of sludge is drying
37 https://saigoneer.com/saigon-environment/13336-most-of-vietnam-s-untreated-wastewater-is-released-directly-into-the-environment-report 38 http://seaknowledgebank.net/sites/default/files/wastewater-management-and-resource-recovery-in-VietNam.pdf
Environment & Water Technologies – Vietnam Market Study - Page 55 of 166
and dumping at landfills. However, increasingly a number of cities are facing difficulties in
allocating space for sludge disposal.
Most drainage and sewerage systems in large cities of Vietnam were constructed over three
decades ago and more than 90% of wastewater is conveyed by use of combined sewer systems,
primarily serving as storm-water drainage. Some newly developed urban areas have introduced
separate sewer and drainage systems; however, as most urban wastewater is untreated, both
stormwater and domestic wastewater are finally discharged together into nearby water
environments such as rivers, lakes and canals. These sewerage systems are normally managed
by province or state-owned companies.
Figure 14: Typical combined sewer and drainage system in the cities of Vietnam Source: Water Environment Partnership in Asia
The combined sewerage system, in which wastewater and city drainage water are combined,
is the main method for sewage collection in Vietnam. It is preferred due to a lower investment
cost as it can be implemented with far fewer pipelines creating less construction impact in
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residential neighbourhoods. Furthermore, a combined sewerage system generally utilises the
existing drainage system as secondary sewers for collecting wastewater from the household.
Thus, new wastewater treatment projects have to accept the existing combined sewerage system.
The alternative to combined sewerage systems is the construction and use of a separate
sewerage system. In Vietnam, the use of separate sewerage system is only seen in very few
projects such as in Da Lat, Buon Ma Thuot, and Binh Duong. The wastewater influent to the
wastewater treatment plant in these projects shows a significantly higher Biological Oxygen
Demand (BOD) concentration compared to combined sewerage systems.
Industrial water and wastewater treatment
According to a report by Ken Research, the industrial water and wastewater treatment industry in
Vietnam registered a positive five-year CAGR from 2012-2017 and it is projected to grow by 3%
CAGR between 2017 and 2022.39 The growth was mainly driven by rapid industrialisation, strict
implementation of regulatory norms and scarcity of water promoting the industries to use recycled
water. The rise in manufacturing industries has also promoted the development of water
treatment industry which is largely dominated by domestic companies or joint venture of domestic
companies with foreign players.40
The food processing sector is the largest user of water treatment facilities, as the sector is
registering strong growth, estimated to expand by more than 10% annually between 2015 and
202041, which is expected to continue given the increase in the demand for processed food.
As indicated in the table below, Ho Chi Minh City and Binh Duong (the province just north of the
city) in southern Vietnam have a very high volume of installed water treatment facilities as they
are among the most industrialised provinces in Vietnam. This is followed by the northern city of
Hanoi, and province of Bac Ninh (which lies to the east of the capital).
39 https://vietnaminsider.vn/industrial-water-and-waste-water-treatment-market-in-vietnam-expected-to-reach-usd-227-million-by-2022-ken-
research/ 40 www.kenresearch.com/blog/2018/05/vietnam-industrial-water-and-wastewater-treatment-market-is-driven-by-construction-of-new-water-
treatment-facilities-in-manufacturing-units-and-cetps-in-industrial-clusters-ken-research/ 41 https://vietnamnet.vn/en/business/trade-deals-trigger-foreign-investments-in-vietnam-s-food-sector-594851.html
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Province Number of Industrial Zones Total Area (ha) Wastewater (m3/day)
Ho Chi Minh city (HCMC) 22 7,673 193,760
Binh Duong 28 16,336 136,700
Hanoi 14 3,450 75,000
Bac Ninh 15 6,690 65,000
Ba Ria – Vung Tau 11 7,511 42,560
Nghe An 5 1,185 26,578
Ninh Binh 7 1,472 13,000
Dong Thap 3 803 12,477
Khanh Hoa 5 887 10
Thanh Hoa 9 5,383 2,800
Total 119 51,440 577,875
Table 3: Industrial wastewater produced for selected cities and provinces Source: Arcowa
Between 2005 and 2017, the percentage of industrial zones (IZs) with centralised effluent
treatment plants (CETPs) has increased from 30% to 86%. However, the coverage varies
significantly between provinces. In several provinces, all IZs have WWTPs, including in HCMC,
Binh Duong, Dong Nai, and Ninh Binh. In other provinces, a much lower percentage of IZs have
WWTPs, such as in Hau Giang (20%) and Bac Ninh (50%). Technologies applied for wastewater
treatment in industries vary depending on the type of wastewater, development status of the
production technology, and required treatment/recovery levels. Below are the conventional
wastewater treatment steps used in Vietnam:
◼ Bar screens
◼ Equalisation tanks
◼ Fine screens
◼ pH adjustment
◼ Coagulation & flocculation
◼ Primary clarifiers
◼ Nutrients addition (if required)
◼ Activated sludge process
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◼ Conventional activated sludge, sequencing batch reactor and oxidation ditch
◼ Secondary clarifier (for CAS and OD)
◼ Pressure sand/activated carbon filters
◼ Chlorine disinfection
◼ Automatic Monitoring Station (AMS) for stations with capacity more than 1,000 m3/d
All industrial zones and industrial facilities outside such zones must be connected to an on-site or
central wastewater treatment facility. However, suitable technologies for treatment of specific
types of pollution in industrial wastewater are lacking in many cases, especially in on-site
treatment stations of tenants. At present, some of the industrial WWTPs are operating under
capacity and some are not capable of meeting the required quality of the effluent.
According to a 2018 report42 authored by Arcowa, a Swiss water resources advisory firm, there
is a wide range of wastewater treatment technologies applied in urban wastewater systems in
Vietnam. Sequence Batch Reactor (SBR) is becoming the most common technology due to its
ability to remove nitrogen (N) and Phosphorus (P) and its limited footprint. Low-cost technologies
like waste stabilisation ponds can be applied only in cases where sufficient land is available and
reserved.
Currently, sludge drying and dumping at landfills is the most common approach to sludge
treatment in Vietnam. This despite the fact that sludge contains significant amounts of nutrients
that can be used in agricultural production. Recovering nutrients from wastewater and sludge is
often not a focus of wastewater and sludge projects at present.
Several industries in Vietnam recover methane biogas from their treated biological solid waste
and wastewater effluent. With the decommissioning of septic tanks and expansion of direct
connections to urban sewerage systems, there is a significant potential to expand the biogas
production form wastewater and sludge treatment.
42 http://seaknowledgebank.net/sites/default/files/wastewater-management-and-resource-recovery-in-VietNam.pdf
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There are 28 major cities and provinces in Vietnam with high population densities that have
centralised wastewater treatment systems either in place or under construction. It is estimated
that 60% of the urban population is connected to these treatment facilities through their
connection to a sewerage system or septage collection system.43
Some of the treatment systems in place are as follows:
City/Province
Population Estimated
Wastewater Produced Estimated
m3/day
Treatment Capacity
Total m3/day
Treatment Capacity
Used m3/day
Treatment Capacity
Under Construction
m3/day
Sewerage System
Treatment System
Ho Chi Minh City
8,992,000 908,192 446,000 211,000 730,000 CSS SBR / OD / A20 (AS) / Ponds
Hanoi 7,588,000 766,388 304,300 181,500 360,000 CSS SBR / CAS/ AO A2O (AS)
Thanh Hoa 3,496,000 353,096 4,000 500 15,000 CSS Stab. Pond, WSP + CW
Nghe An 3,037,000 306,737 25,000 10,000 7,500 CSS/SSS SBR
Ha Nam 2,233,000 225,533 2,500 2,000 6,500 CSS CAS
An Giang 2,155,000 217,655 5,000 200 CSS SBR
Binh Dinh 1,962,000 198,162 14,000 10,000 8,000 CSS CEPT + TF, OD
Binh Duong 1,887,000 190,587 37,500
27,500
CSS SBR
Hai Duong 1,748,000 176,548 0 0 13,500 CSS SBR
Bac Giang 1,593,000 160,893 10,000 8,000 CSS OD
Can Tho 1,520,000 153,520 32,000 5,000 CSS TF
Quang Nam 1,472,000 148,672 0 0 7,000 SSS CAS
Soc Trang 1,302,000 131,502 17,570 5,000 CSS Prim. Sed.
Quang Ninh 1,199,000 121,099 10,500 11,000 CSS SBR
Bac Ninh 1,131,000 114,231 37,500 27,500 CSS SBR
Ba Ria– Vung Tau
1,073,000 108,373 0 0 12,000 CSS OD
Vinh Phuc 1,021,000 103,121 0 0 5,000 CSS CAS
Da Nang 952,000 96,152 120,377 73,947 40,000 CSS Ana. Pond w/float cover/OD
43 http://seaknowledgebank.net/sites/default/files/wastewater-management-and-resource-recovery-in-VietNam.pdf
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City/Province
Population Estimated
Wastewater Produced Estimated
m3/day
Treatment Capacity
Total m3/day
Treatment Capacity
Used m3/day
Treatment Capacity
Under Construction
m3/day
Sewerage System
Treatment System
Phu Yen 883,200 89,203 4,000 500 CSS Stab. Pond (FP, MP)
Quang Binh 863,400 87,203 8,570 5,000 CSS Aerated lagoon
Hai Phong 842,000 85,042 0 0 36,000 CSS CAS
Ninh Thuan 587,400 59,327 5,000 2,000 CSS/SSS Aerated lagoon
Nha Trang 420,521 42,473 0 0 40,000 CSS OD
Vung Tau 327,000 33,027 22,000 5,000 CSS OD
Thai Nguyen 317,580 32,076 0 0 10,000 CSS OD
Hue 287,217 29,009 0 0 17,100 CSS CAS
Da Lat 197,000 19,897 7,400 6,000 SSS Imhoff tank + Trick. Filt.
Tra Vinh 131,360 13,267 18,135 5,000 CSS Prim. Sed
Table 4: Sewerage and centralised wastewater treatment systems in Vietnam, 2018
Source: Arcowa
In addition to industries located inside Industrial Zones (IZs) and Industrial Clusters (ICs), there
are individual industries located outside these areas that often cause pollution through discharge
of untreated wastewater. These are mostly SMEs with varying types of activities who cannot
afford to build their own wastewater treatment facility. As a result, they discharge untreated or
inadequately treated wastewater into the environment. Some of the most polluting industries in
Vietnam include paper and pulp mill, mining, food processing, beverage, textile and dyeing,
leather, wood product processing, steel, chemicals, construction materials, and petrochemicals.
Wastewater reuse in agriculture is a traditional practice in Vietnam. The farmers pump water from
downstream canals to irrigate their vegetable and rice fields as well as to water their fishponds.
Through using nutrient-rich wastewater, farmers can save money by avoiding or reducing the
purchase of fertilisers or fish pellets. However, untreated wastewater contaminates irrigated
vegetables and fish cultivations. So far, there is no clear guidance given to farmers in relation to
safe wastewater reuse.
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The Vietnam Association of Water Supply and Sewerage has listed the following wastewater
management technologies that the country needs:44
◼ Appropriate wastewater treatment technologies dealing with low C/N ratio in the incoming
wastewater flow
◼ Technologies for the treatment of sludge generated from combined sewerage and drainage
systems
◼ Faecal sludge treatment technologies
◼ Technologies to remove organic matter from surface water
◼ Equipment to control incoming wastewater flow features for common effluent treatment
plants (CETPs)
◼ Technologies for decentralised wastewater treatment with small foot-print reactors and
shallow zone reactors
◼ Technologies for flow rate and concentration equalisation allowing stable incoming
wastewater features at wastewater treatment plants
◼ Technologies to improve treatment performance of existing biological CETPs receiving non-
degradable substances in incoming flows
◼ Technologies for co-treatment of iron, manganese, ammonium and arsenic in groundwater
◼ Technologies know-how for quick-start-up of biologically based wastewater treatment plant
◼ Energy efficient technologies for sludge dewatering from water treatment plants
◼ Technologies for treatment of digested sludge after anaerobic digester for resource recovery
◼ Technologies for treatment of pig farm wastewater rich in organics and nitrogen
◼ Technologies to enhance nitrification, or removal of ammonium, in wastewater treatment
systems applying natural treatment processes
44 www.wipo.int/edocs/mdocs/mdocs/en/wipo_ip_mnl_15/wipo_ip_mnl_15_t12.pdf
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Figure 15: Treatment lake of Binh Hung Hoa domestic wastewater treatment plant Source: CleanWater-Vietnam
The Ministry of Construction (MOC) is the key actor to oversee urban water supply, drainage,
wastewater and solid waste management, while MONRE oversees setting effluent standards and
supervision of environmental protection activities relevant to water, sanitation and solid waste.
In recent years, management of urban wastewater in Vietnam has improved significantly due to
the government’s strong focus on the sector, as well as financial and technical support from
international donor agencies. The urgent need to upgrade and build wastewater facilities has led
to recent increases in funding from official development assistance (ODA) sources, with more
than 40 new wastewater treatment facilities under or planned to be constructed.45 Major donors
include the World Bank, JICA and ADB which have committed billions of dollars in Vietnam’s
water and wastewater projects. It is also worth mentioning that there has been ODA from EU
countries for wastewater projects in Vietnam.
The Vietnamese government has been focusing on developing technical infrastructure systems,
particularly in relation to water supply, drainage and sewerage systems, as well as urban
wastewater treatment to meet the growing needs of the population as well as to achieve its
45 www.netherlandswaterpartnership.com/sites/nwp_corp/files/2018-11/201810-vietnam-country-update-final.pdf
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sustainable urban development target. Water projects are generally jointly funded by the
government and international organisations.
In January 2020, the Vice Chairman of the Hanoi People’s Committee called on German investors
to join the capital city’s projects on drainage, wastewater treatment and improvement of the local
environment during the Vietnam-Germany water sector forum. Hanoi has huge demand for clean
water and the city is estimated to need some 2 million m3 of clean water per day by 2020, about
3 million and 3.5 million m3 per day by 2030 and 2050, respectively.46
Figure 16: The Vietnam-Germany water sector forum Source: Vietnam Water Supply and Sewerage Association
In 2019, Aone Deutschland AG (Aone) from Germany expressed interest in joining Hanoi’s
projects on drainage and wastewater treatment by providing modern technology imported from
Germany. Aone’s project in Hanoi targets to improve the environment, terminate sludge and
groundwater pollution, while simultaneously recycling sludge into materials to manufacture power
and fertiliser, among others. Besides, the group also wants to deal with floods and urban
inundation and improve the urban landscape. Along with the projects in Hanoi, Aone also wants
to develop sewage treatment plants across Vietnam.
46 https://en.vietnamplus.vn/hanoi-calls-for-german-investments-in-drainage-wastewater-treatment/148580.vnp
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In Vietnam, there is generally sufficient capacity in engineering and construction for traditional
wastewater facilities. However, there is limited capacity in terms of design and building of
advanced wastewater treatment facilities and the application of modern resource recovery
technologies.
The equipment for wastewater treatment such as pumps, valves, and electronics are mostly
imported. There is a wide range of products from different suppliers from all over the world
available in Vietnam. Pipes are mostly made locally, though some imported brands are available
as well.47 Sludge treatment equipment is imported in most of cases from suppliers such as Andritz
(Austria), GEA (Germany), Huber (Germany), and ARK (Korea).
Local Players
SEEN Technology Joint Stock Company. Over the past 20 years, hundreds of SEEN branded
central wastewater treatment systems have been established in Vietnam, accounting for more
than half of all wastewater treatment plants in the whole country. These wastewater treatment
systems are responsible for treating wastewater for industrial plants, extremely hazardous
wastewater, domestic water and domestic wastewater for large urban areas, reaching the total
capacity of up to millions of cubic meters of treated wastewater per day.
ECOBA Vietnam Joint Stock Company is a Hanoi-headquartered engineering, construction,
and construction management company operating throughout Vietnam. It has extensive
experience as a construction manager for numerous industrial, urban, and medical wastewater
treatment plants which it also operates. It can customise the design and installation of treatment
stations based on the size and capacity of the wastewater treatment plants.
Green Eye Environment (GREE) is involved in consulting, designing, construction and
installation of water and wastewater treatment plants in Vietnam. It is also involved in air pollution
treatment, plumbing design, waste treatment facilities, in addition to supplying machines,
equipment, and chemicals to clean and protect the environment. It is an environmental expert
47 http://seaknowledgebank.net/sites/default/files/wastewater-management-and-resource-recovery-in-VietNam.pdf
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group in Vietnam trained and instructed by the REFINE programme of the Wageningen University
located in the Netherlands, a renowned environmental university.
3.3.2 EU Entry Opportunities
Opportunities for European companies exist in various areas, including the following:
◼ Wastewater treatment infrastructure and technologies
◼ Industrial wastewater treatment
◼ Remediation and restoration of polluted rivers
◼ Consulting services
Wastewater treatment infrastructure and technologies
Vietnam has ambitious goals in terms of its urban water infrastructure. The “Orientation for
Development of Water Supply in Vietnam’s Urban Centres and Industrial Parks Leading to 2025,
and Vision for 2050”, issued in 200948, aims to equip most cities with centralised municipal
wastewater treatment and collection systems for 70% to 80% of municipal wastewater to be
treated adequately by 2025. In the short term, the government is hoping to improve the capacity
of WWTPs to 50% of the released wastewater.49 According to a 2019 report by the Ministry of
Construction, nearly 90% of Vietnam's urban sewage is discharged untreated directly into its
rivers and streams.50 Furthermore, urban centres like Ho Chi Minh City and Hanoi are pushing to
upgrade their wastewater infrastructure.
Ho Chi Minh City is in the process of building and upgrading 6,000 km of drains, 12 wastewater
treatment plants and over 5,000 kilometres of canals, all of which have a total cost of
EUR 3.75 billion, as part of its Urban Flood Control Programme.
48 http://extwprlegs1.fao.org/docs/pdf/vie94844.pdf 49 https://www.netherlandswaterpartnership.com/sites/nwp_corp/files/2018-11/201810-vietnam-country-update-final.pdf 50 https://vietnamnews.vn/environment/536807/nearly-90-of-city-sewage-ends-up-in-rivers.html
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Hanoi, on the other hand, plans to spend EUR 1.8 billion to upgrade its drainage and effluent
treatment capacity in the coming decade, using conventional improved activated sludge
wastewater treatment technology. One major project in Hanoi is the EUR 618 million Yen Xa
wastewater treatment site in Thanh Tri district, which involves the construction of a large-scale
centralised treatment system, and a wastewater collection system with a total length of
52,621 km. It is the largest project of its kind in Vietnam, with a capacity to treat 270,000 m3 of
wastewater per day collected in an area of over 4,800 hectares, covering Hanoi’s districts of Ba
Dinh, Tu Liem, Dong Da, Thanh Xuan, Hoang Mai, Ha Dong and Thanh Tri. The project is
expected to be completed in 2022.51
An example of a recent government initiative that is driving the sector is the designation of the Ha
Long Bay and Cat Ba Archipelago as special areas requiring the highest standards of wastewater
management under the Regulation for the Prevention of Pollution by Sewage from Ships.
The new regulation requires all port owners to provide wastewater treatment services for cruise
boats, and if they are unable to do so, they must sign contracts with service providers that can
provide wastewater treatment solutions.
Figure 17: Cruise boats on Ha Long Bay Source: Bookmundi
51 http://hanoitimes.vn/construction-of-hanois-wastewater-treatment-site-almost-finished-300955.html
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Industrial wastewater treatment
The number of industrial zones in Vietnam continues to rise as foreign investment pours into the
country. As of December 2018, there were 326 industrial zones set up countrywide, with 249
already in operation. Industrial parks represent an attractive market for wastewater treatment
plants since the government is pushing the industry harder on environmental compliance.
The government has launched pilot eco-industrial parks as part of its goal to create sustainable
industrial zones in the country. These were funded by the Global Environment Facility and the
Swiss State Secretariat of Economic Affairs, and saw the participation of 72 companies over three
years. According to the Department for Local and Regional Economy, wastewater in the pilot Eco-
Industrial Parks was successfully reduced by 850,000 m3 in the past three years, highlighting their
potential for more eco-industrial parks with wastewater treatment systems for highly polluting
industries.
Remediation and restoration of polluted rivers
Rivers in Hanoi have faced serious pollution for years. According to the World Bank, the To Lich,
Set, Lu, Kim Nguu and Nhue rivers have, on average, received up to 600,000 m3 of wastewater
per day.
Figure 18: A sewer discharging household wastewater into Kim Nguu River Source: Vietnam Association for Conservation of Nature and Environment
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The Vietnam Association for Urban Planning and Development wants to revive the Kim Nguu
River, which has been polluted for decades. According to the association, seven sewers
discharging household wastewater are to be found in every kilometre of the river.
Local experts have suggested building a system of underground sewers under the riverbed to
collect wastewater from households along the river. The Association has said that the public-
private partnership (PPP) model or calling for investment from the private sector are the best ways
to implement the project of cleaning the Kim Nguu River.
Consulting services
More than 2,000 projects in Vietnam are required to make Environmental Impact Assessment
(EIA) reports each year. Domestic engineering and consulting firms can perform EIAs for
developers, but foreign developers prefer to work with foreign engineering and consulting firms
because domestic firms often don’t have the expertise to perform EIAs to global standards.
Foreign environmental impact assessment capabilities will continue to be in demand in Vietnam.
European Companies
VINCI Construction
VINCI Construction, a French company, is a global player in concessions and contracting,
employing close to 211,000 people in some 100 countries. It designs, finances, builds and
operates infrastructure and facilities. The company has developed comprehensive capabilities
covering the entire water cycle, including standout expertise in areas such as drinking water
pumping and supply, wastewater treatment and discharge, rainwater management and dam
design, construction and maintenance.
In 2019, a consortium consisting of VINCI Construction (50% share and lead contractor) and
Acciona Agua S.A. (50%), the subsidiary of Spanish infrastructure firm Acciona, that is focused
on the integrated water cycle, managing the design, construction and operation of potable water
treatment, wastewater treatment, tertiary treatment and reverse osmosis desalination plants, won
Environment & Water Technologies – Vietnam Market Study - Page 69 of 166
the contract for the design-build portion of phase 1 for the Nhieu Loc-Thi Nghe wastewater
treatment plant, in Ho Chi Minh City.
The design-build portion of the contract is set to take five years for completion, including the
starting-up process and acceptance of works. The project also calls for operating and maintaining
the facility for a five-year period. This wastewater treatment plant project, which is financed by the
World Bank, is worth EUR 200 million (EUR 170 million for the design-build portion and
EUR 30 million for operation and maintenance). With a peak capacity of 34,000 m3/hr, it will
include a pumping station, biological treatment, disinfection, sludge treatment, odour treatment
as well as connection to the city’s sewage system. The plant, which will treat wastewater from the
Nhieu Loc-Thi Nghe Basin, will be an essential part of Ho Chi Minh City’s second environmental
plan and will benefit more than a million residents.52
This new contract bolsters VINCI Construction’s presence in Vietnam where the company is
currently carrying out a design-build project for a 10-kilometre treated-water transfer pipeline that
will supply drinking water to the centre of Ho Chi Minh City. VINCI Construction has provided
support to Vietnam on numerous sanitation projects in the cities of Thai Nguyen and Hoi An in
2016, Vung Tau in 2013, and Ha Dong in 2008.
Organica Water
Organica Water is a Hungarian provider of innovative solutions for the treatment and recycling of
wastewater. Organica Water’s portfolio of solutions for wastewater treatment covers the full value
chain, from design to facility construction (leveraging the Organica food chain reactor solution)
and operations management, which is focused on its digital services offering.
Organica Water recently announced that it was tapped by Vietnam-based conglomerate
VinGroup to build an innovative 38,000 m3/day (10 MGD) wastewater treatment facility in Hanoi
which will be called Vincity Ocean Park. As part of this cooperation, Organica Water will also be
providing digital operation and maintenance services for these facilities in addition to its waste
52 www.vinci.com/vinci.nsf/en/press-releases/pages/20190429-0800.htm
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management solutions. This is Organica Water’s first project in Vietnam and its 15th project in the
ASEAN region over the past 4 years.
Tilia
Tilia is a service, co-development and consulting company, founded in 2009 by a group of French
and German leaders, which focuses on the energy, water and sanitation, the circular economy,
new mobility and the smart city sectors. It is present in more than 20 countries, and has built up
a team of more than 150 employees.
Since 2015, Tilia has supported Vietnamese waste water municipal companies in optimising their
operation, notably by enhancing the quality of sludge treatment and disposal and reducing the
costs while making use of the nutrients contained in the sludge.
After conducting tests and analysis to ensure that the sludge does not contain hazardous
substances, it then undertakes conversion and hygienisation of organic materials into a soil
enhancer and fertiliser on the basis of anaerobic conditions. It is also working on the energy
efficiency enhancement of several wastewater treatment plants in Vietnam.
Royal HaskoningDHV
Royal HaskoningDHV is an international engineering consultancy firm with headquarters in the
Netherlands and offices in 30 countries, employing around 6,000 professionals worldwide. With
projects in some 150 countries, the company is active in aviation, buildings, energy, industry,
infrastructure, maritime, mining, rural and urban development and water sectors. It helps
countries, organisations, companies and communities to become resilient to adverse
environmental conditions. In South East Asia, the company has offices in Singapore, Thailand,
Cambodia, Indonesia, Vietnam and the Philippines.
In 2017, The Ba Ria Vung Tau Urban Sewerage and Development Company (BUSADCO)
awarded a EUR 9.5 million contract to Royal HaskoningDHV to implement a complete wastewater
solution for the Phu My New Urban Area near HCMC. The sewage plant will use Royal
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HaskoningDHV's Carrousel® technology for the biological treatment of municipal and industrial
wastewater, with a treatment capacity of almost 30,000 m3/day. The Dutch Government is
financing the project as part of its Facility for Infrastructure Development (ORIO programme) in
developing countries.
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3.4 Water Solutions
3.4.1 Market Overview
Since 2000, the total capacity of water plants in Vietnam increased from 2.4 million m3/day to
about 9 million m3/day (nearly 3.5 times higher), while the proportion of urban population provided
with clean water increased about 2.1 times from 40% to 86%. The rate of water loss and revenue
decreased by 13% to about 21.5%.53 As the Vietnamese water supply and wastewater treatment
sectors develop, there is growing demand for smart solution providers in the sector.
The Vietnamese government plans to leverage on new technologies to provide smarter and
sustainable living for its citizens. Increasingly, smart water solutions are being applied across
multiple projects, some of which include the following:
◼ A new residential and business district valued at US$ 4.2 billion (EUR 3.8 billion) is being
planned by Vietnamese developer BRG Group in collaboration with Japanese finance
company Sumitomo. The district, which will be located on the outskirts of Hanoi, will feature
smart city elements including a smart monitoring and warning systems to track water quality.
◼ In 2019, SAWACO undertook a major renovation of Ho Chi Minh City’s water distribution
network and implemented smart technologies from Swiss company ABB to support a goal of
reducing water leakage from 30% to 10% by 2020. The ABB technology can help detect
leaks and monitor and control the network in real time.
◼ In 2018, the Korea Water Resources Corporation, or K-water, announced a successful pilot
project of smart water management customised for Vietnam that was carried out together
with Korean companies and Vietnam’s National Centre for Water Resources Planning and
Investigation. Under the project, K-water installed smart monitoring equipment at three sites
in Hanoi, that can monitor the temperature, levels and quality of underground water in real
time. The system allows prompt measures to be taken when contaminants are detected.
53 www.moitruongvadothi.vn/khoa-hoc-cong-nghe/nghien-cuu-trao-doi/quan-ly-va-cap-nuoc-viet-nam-theo-huong-phat-trien-ben-vung-
a45884.html
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◼ In 2016, the Swedish Embassy in Hanoi ran the first Smart Water Innovation Contest, with
the aim of inspiring Vietnamese university students to think innovatively about how to tackle
water-related problems. The top prize for this contest went to three students from Ho Chi
Minh City University of Technology who developed a GPS-based crowdsourcing app to
report water leakages with only a tap on the smartphone screen which is even quicker and
easier than sending an email.
Trade Statistics
A key category of imports includes products classified under HS Code 9026, which includes
instruments and apparatus for measuring or checking the flow, level, pressure or other variables
of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), as
indicated in Table 26. Imports under this category have grown rapidly at a cumulative annual
growth rate (CAGR) of 14.9% between 2014 and 2018.
A key sub-category is HS code 902680 representing instruments or apparatus for measuring or
checking variables of liquids or gases, whose imports were valued at US$ 64.4 million during 2018.
This is followed by HS code 902620 representing instruments and apparatus for measuring or
checking pressure of liquids or gases. Imports under HS code 902620 reached US$ 44.1 million
in 2018.
The total value of imports under HS code 9026 was US$ 198.3 million in 2018. In 2018, South Korea,
China and Japan were the three largest suppliers contributing 20.9%, 15.7% and 15.5% of total
imports respectively. Germany was the fourth largest source at 14.9% of total imports of products
under this category, while France provided US$ 7.6 million of imports, or 3.8% of the total.
Vietnam’s imports of machinery and apparatus for filtering or purifying water, recorded under HS
Code 842121, grew at a CAGR of 11.5% during the five years between 2014 and 2018, reaching
a value of approximately US$ 98.4 million in 2018, as indicated in Table 18. In 2018, the key
suppliers were China and South Korea, followed by Germany which accounted for
US$ 19.2 million, or 19.5% of total imports.
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For HS Code 842199, which covers parts of machinery and apparatus for filtering or purifying
liquids or gases, Vietnam’s imports were valued at US$ 108.4 million in 2018, as indicated in
Table 20. China, US and South Korea are key suppliers. Germany and Spain are the two
European countries among the top 10.
Local Players
Established since 1994, Sannam Industrial Equipment JSC (Sannam Industry) is a member of
Sannam Group, and has over 20 years of experience in project consultancy and international
technology transfer. Sannam currently provides consultancy, design, manufacturing and
technology transfer in areas such as wastewater treatment, water monitoring, electro-plating
plants, painting and coating lines. To complement its capabilities in the design of wastewater
treatment systems, it signed an agreement with Dutch company Optiqua Technologies in 2016 to
bring real-time water contamination detection and quality monitoring to Vietnam.
Mimosatek is a Vietnamese company that has created an online system for precision irrigation
that smallholder farmers can easily use to manage irrigation levels, saving both crops and water.
The MimosaTEK system works by placing sensors in farmers’ greenhouses or fields, which
measure environmental factors such as soil moisture, precipitation, air temperature, and wind
speed. The sensors measure factors in real time and then recommend an irrigation schedule for
the farmers. Farmers can read these recommendations through an app in their smartphones and
plan their water use accordingly.
Quang Trung Software City Development Company Limited (QTSC) manages a business
park in Ho Chi Minh City that hosts approximately 120 technology companies from around the
world. Since 2017, QTSC has deployed a smart solution in the management and supply of clean
water for customers in the park. Its technological solution monitors the water usage, records the
monthly water consumption, stores the data and exports the billings directly to customers via text
message, email, mobile application, hard copy or website.
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Figure 19: QTSC's Smart Water Management System
Figure 20: Location map of devices
Figure 21: Water leakage monitoring Source: QTSC
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3.4.2 EU Entry Opportunities
European companies that have the relevant expertise can take advantage of the growing market
for smart technology in Vietnam’s water sector. There are opportunities in various areas, such as:
◼ Smart water quality management
◼ Smart water meters for domestic/non-domestic water users
◼ Smart flood monitoring systems
Smart water quality management
According to the World Bank, water pollution is now one of Vietnam’s greatest development
challenges and constitutes a massive cost to the economy. The country has a number of
environmental hotspots such as industrial zones, large cities, and environmentally sensitive
ecological regions, where monitoring of water resources is necessary. Following the stricter
enforcement of water quality regulations by the Vietnamese government, water treatment
companies throughout Vietnam are now seeking water monitoring equipment to enable them to
meet these requirements. This presents a strong opportunity for water treatment manufacturers
to provide equipment to help the government meet their aims.
Smart water meters for domestic/non-domestic water users
Currently, manual water meter reading is still widely used in Vietnam. Vietnam’s utility meter
readers have been reading meters without an automatic handheld radio device for about a
decade; manually keying each serial code into the device to record the data. The country wants
to install water meters with automatic meter reading technology. Some projects have already
been implemented in the country. Thu Duc Waseco JSC has begun to adopt advanced
technologies in their operation. It has signed an agreement with Singapore-based Rynan
Technologies Vietnam for a pilot project to install a smart water supply network in Thu Duc district
of Ho Chi Minh City. Under the pilot project, locally made smart water meters will be installed in
90 percent of the households it covers.
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Smart flood monitoring system
The Vietnamese government is responding to increased flooding and rising seas by modernising
the country’s water-level monitoring systems. The Vietnam Inland Waterway Administration
(VIWA) is employing the use of sensors to modernise water level monitoring, tidal measurements
or flood warning systems. VIWA is implementing a network of forty water-level stations to
automate its inland waterways management system in Vietnam. The country’s extensive network
of rivers and canals offer opportunities to European companies with expertise in this area.
European Companies
ABB Group
Swiss engineering firm ABB operates in the fields of robotics, power and automation technology.
It has been cooperating with utility Saigon Water Supply Corporation (SAWACO) to reduce daily
water loss by 500,000 m3 with a strategic control and monitoring system known as the ABB Ability
Symphony Plus. The overall aim is to increase efficiency, reduce water leakage, prevent
disruptions and ensure everyone has access to clean water in Ho Chi Minh City.
SAWACO is deploying ABB’s digital control and monitoring technologies together with Israeli
company TaKaDu’s Integrated Event Management Solution as part of its restoration of Ho Chi
Minh City’s water distribution network.
The ABB solution - ABB Ability™ Symphony® Plus SCADA - will monitor and control the entire
water distribution system. It will integrate TaKaDu’s Event Management Solution, which detects,
analyses and manages network events and incidents such as leaks, bursts, faulty assets,
telemetry and data issues and operational failures.
ABB’s solutions will enable SAWACO to monitor the network conditions digitally through multiple
data collection points, such as sensors and meters, and offer insights to reduce non-revenue
water. SAWACO will then be able to increase the amount of water delivered to the city’s industries
and eight million residents. The companies estimated that SAWACO will hit 50 million m³/year of
Environment & Water Technologies – Vietnam Market Study - Page 78 of 166
water savings, while production cost savings could be higher than US$ 10 million (EUR 9 million)
a year.
Optiqua
Optiqua Technologies, a subsidiary of Dutch optical sensor company Optisense B.V., is a
provider of innovative tools for both online and sample based water quality monitoring.
The company develops and produces innovative optical biosensor technology for the real-time
detection of contaminants in water.
Optiqua is collaborating with Sannam Industry to bring its intelligent water quality monitoring
solutions, EventLab and MiniLab, to Vietnam’s market. Both products provide unique benefits
over traditional sensor technologies and are based on Optiqua’s patented and awarded optical
sensor platform.
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3.5 Air Pollution Control
3.5.1 Market Overview
In 2019, Vietnam was ranked as the second most air polluted country in South East Asia, with an
annual mean PM2.5 reading of 34.1 µg/m³, according to the 2019 World Air Quality Report by
IQAir. Research done by Vietnamese experts showed that Vietnam suffers between
US$ 10.8 billion to US$ 13.2 billion (EUR 9.8 billion to EUR 12 billion) worth of economic losses
associated with ambient air pollution each year, equivalent to about 5% of the country’s GDP.54
Figure 22: Vietnam's annual mean PM2.5 readings, 2016-2019 Source: IQAir
Rapid development and urbanisation in Vietnam pose severe challenges to managing its air
pollution. The country has weak emission standards for power plants, vehicles and industries.
In addition, its coal consumption tripled and oil consumption increased by 70% over the past
decade 55 due to its reliance on coal-fired plants for electricity generation.
54 www.iqair.com/world-most-polluted-cities?page=2&perPage=50&cities= 55 www.vietnam-briefing.com/news/air-pollution-vietnam-affects-business-environment.html/
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Figure 23: Most polluted cities in Vietnam, 2019 Source: IQAir
After Jakarta, Hanoi is the second most polluted city in South East Asia for PM2.5 pollution, with
the city overtaking Beijing in the ranking of most polluted global capital cities in 2019. Air pollution
in Hanoi is due to many factors such as rise in construction work, traffic, heavy industries that
include cement, steel and coal, as well as agricultural burning by farmers. MONRE has stated
that Hanoi has more than four million vehicles, which account for 85% of carbon dioxide emissions
in the city. It is noteworthy that air quality became a much more prevalent issue in Vietnam
following periods of extreme pollution in Hanoi between November and December 2019.
Figure 24: Air pollution in Hanoi Source: Vietnam.Net Bridge
The World Health Organisation (WHO) has stated that six out of the ten diseases with the highest
mortality rates in Vietnam are related to air pollution, which has since been called a “silent killer”
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in the country. The number of deaths caused by air pollution is four times higher than of those
caused by traffic accidents, which is about 11,000 per year. It is expected that the annual number
of deaths due to air pollution will rise to over 100,000 by 2035. On average, each Vietnamese
spends more than VND1,500 (EUR 0.06) on treating respiratory diseases caused by air pollution
every day. In total, they spend nearly VND 2 trillion (EUR 77.8 million) on treatment, according to
MONRE.
In June 2016, the Government of Vietnam approved the national action plan on the management
of air quality by 2020 with a vision extending to 2025, which aims to control sources of emissions,
improve the air environment, and ensure a healthy environment for all people. Under the plan,
dust, sulphur dioxide (SO2) and nitrite (NOx) arising from cement production facilities, electricity
and chemical production, in addition to fertiliser and petroleum production, should be reduced by
20%. At the same time, these agents arising from other production facilities and transport vehicles
are expected to be cut down by 10%. The plan includes activities such as completion of legal
documents and technical guidelines relating to air quality management; strengthening the
organisation of air quality management as well as preventive measures; and minimising
emissions.56
In December 2019, the government issued57 the first Vietnamese public advisory on air pollution,
which outlined a 14-step guideline58 for reducing exposure. Guidelines include close supervision
of air quality from the official media of the Ministry of Natural Resources and Environment, wearing
masks, improving personal hygiene, and staying indoors on days with high air pollution levels.
In November 2019, the government issued technical guidance59 on calculation and publication of
Vietnam's air quality index (VN_AQI). In the manual, two types of AQI are calculated: AQI day,
the value representing the air quality in one day; and AQI representing air quality for 1 hour.
56 https://en.nhandan.com.vn/scitech/environment/item/4352302-national-action-plan-on-air-quality-management-approved.html 57 https://e.vnexpress.net/news/news/health-ministry-issues-first-public-advisory-on-air-pollution-4028017.html 58 https://moh.gov.vn/thong-cao-bao-chi/-/asset_publisher/kp1jYbzNp2X6/content/huong-dan-du-phong-bao-ve-suc-khoe-cong-ong-truoc-tac-
ong-cua-o-nhiem-khong-khi?inheritRedirect=false&redirect=https%3A%2F%2Fmoh.gov.vn%3A443%2Fthong-cao-bao-chi%3Fp_p_id%3D101_INSTANCE_kp1jYbzNp2X6%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Drow-0-column-2%26p_p_col_count%3D1
59 http://cem.gov.vn/tin-tuc-moi-truong/tong-cuc-moi-truong-ban-hanh-huong-dan-ky-thuat-tinh-toan-va-cong-bo-chi-so-chat-luong-khong-khi-viet-nam
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The index is presented in six value ranges, representing air quality from good to dangerous.
Sulphur dioxide, carbon monoxide, nitrous oxide, ozone, PM10 (particulate matter 10
micrometres or less in diameter) and PM2.5 (particulate matter 2.5 micrometres or less in
diameter) are taken into account for calculating VN_AQI. Information about VN_AQI is to be
published to the community through newspapers, radio, television, electronic message boards,
websites and mobile apps.
Non-governmental organisations (NGOs) have also been proactive in addressing the country’s
air pollution woes and offering data-based approaches to improve environmental quality and
governance in Vietnam. These include Vietnam-based Green Innovation and Development
Centre (GreenID) and the Centre of Live and Learn for Environment and Community (Live &
Learn), an Australian NGO.
The following are examples of some technologies that have been implemented in Vietnam in
recent years to address air pollution in the country:
◼ For the purpose of improving the quality of air for Hanoi, Hanoi People's Committee, Hanoi
Department of Natural Resources and Environment (Hanoi DONRE) and Hanoi
Environmental Protection Agency (Hanoi EPA) have gradually deployed a network of air
monitoring stations in the city. In July 2019, French environmental instrumentation provider,
ENVEA installed Hanoi’s 11th air quality monitoring station at the French Embassy.60 Earlier,
ENVEA installed ten air quality monitoring stations in the city, including two reference
pollution monitoring stations measuring the gases Ozone (O3), Carbon Monoxide (CO),
Sulphur Dioxide (SO2), Nitrogen Oxides (NO, NO2, NOx), Particulate Matter (PM 2.5 and
PM 10), as well as eight sensor-based microstations to measure NO2, CO and particulates.
All the stations are equipped with data acquisition & handling systems and the measured
parameters are automatically transmitted to a central server. This was funded by AirParif,
a French non-profit organisation that monitors air quality and contributed to the assessment
60 https://www.envea.global/hanois-11th-air-quality-monitoring-station-installed-at-french-embassy/
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of health risks and environmental impact of air pollutants. Hanoi plans to install an additional
95 air monitoring stations by 2020 to help improve air quality.61
◼ In Ho Chi Minh City, three new air quality monitors have been installed with funding from the
United States Consulate and UNICEF Vietnam. Ho Chi Minh City currently has 30 air quality
monitors installed. By 2030, the city plans to install 16 more air monitoring stations at major
intersections, residential areas and industrial parks.
◼ FAirNet, a sensor network for air pollution monitoring, has been developed by FIMO Centre,
the University of Engineering and Technology, and Vietnam National University Hanoi.
The FAirKit device measures up to six basic air quality parameters (PM2.5, PM10, CO, NO2,
SO2, and O3) and relative humidity and temperature using low-cost sensors. To enhance
accuracy, it is equipped with a calibration algorithm. It offers a server for data storage and
processing activities, and has both a website and mobile application to display information of
air pollution measured by FAirKit devices in real time.
Trade Statistics
Vietnam’s imports of gas or smoke analysis apparatus, recorded under HS Code 902710, were
valued at approximately US$ 29.4 million (EUR 26 million) in 2018, as indicated in Table 24.
In 2018, key suppliers of such apparatus were Germany, US, and the United Kingdom.
Local Players
D&L Technology Integration and Consulting JSC provides IT solutions and services. It has
developed the PAM Air app that provides real-time ambient air quality information and air pollution
warnings in Vietnam. PAM Air’s system consists of three components: outdoor air monitoring
devices that transmit data using 3G networks and Wi-Fi; a website that consolidates data from
these monitoring devices in map form, and provides real-time ambient air quality data, 24-hour
air quality trends, and a mobile application that personalises this data based on the user’s
location. All of the data is stored and managed by PAM Air’s back-end platform. Apart from the
61 https://en.nhandan.org.vn/scitech/item/7699902-hanoi%E2%80%99s-11th-air-monitoring-station-installed-at-french-embassy.html
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data obtained from stations installed and operated by PAM Air, the website also provides data
from a variety of locations throughout Vietnam.
HIFILL Holding Company specialises in manufacturing and supplying air filters for the
automobile industry. The company has built a team of qualified staff as well as professional
employees that are trained following Korean standard. With a capacity of more than 500,000 units
per month, HIFILL filters are distributed nationwide through 2 main agents in Ho Chi Minh City
and Hanoi, together with a sales team in the Central and Tay Nguyen area. Additionally,
the company’s products are also available in Laos, Cambodia, Myanmar and Pakistan.
3.5.2 EU Entry Opportunities
Opportunities for European companies exist across various areas. Some of the notable entry
points are:
◼ Air pollution masks
◼ Air purification technology
◼ Air quality monitoring equipment
Air pollution masks
Due to the escalating air pollution in Vietnam, there is a rising demand for air pollution masks in
the country. E-commerce platform Shopee stated in October 2019 that its sales of air pollution
masks have increased five times, with sales averaging 3,000 to 5,000 units per day.62 Among the
popular premium air pollution masks in Vietnam are Cambridge masks and Vogmask.
Furthermore, the government has also advised its citizens particularly those in Hanoi and Ho Chi
Minh City to wear air pollution masks when going outdoors.
62 https://vietnamnews.vn/economy/536220/hanoians-seek-solutions-to-air-quality-nightmare.html
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Air purification technology
The Vietnamese air purifiers market is projected to reach US$ 46 million (EUR 41.7 million) by
2023, from US$ 18.4 million (EUR 16.7 million) in 2017, fuelled by rising concerns over air
pollution and increasing incidents of respiratory diseases due to degrading air quality. 63
In particular, electronics stores in Hanoi are seeing an increase in the number of people buying
air purifiers. Popular brands of air purifying products include Sharp, Electrolux, Panasonic,
Coway, Daikin and Tiross, which range between VND 1 million (EUR 38.88) and VND 10 million
(EUR 388.78) in price. It is worth noting that some air purifiers sold in Vietnam come with added
features such as aromatherapy essential oil spray and mosquito killing functions.
Figure 25: Air purifiers sold at Ho Chi Minh City Source: VN Express International
Air quality monitoring equipment
The Vietnamese government has a relatively small air quality monitoring network, covering only
Hanoi and Ho Chi Minh City. However, numerous independently operated PM2.5 sensors were
brought online by individuals and local organisations in 2019, which currently outnumber
governmental monitoring stations. With the tripling of the number of live PM2.5 monitoring stations
in the country, and the publication of real-time data, air quality has become a national talking
63 www.techsciresearch.com/report/vietnam-air-purifiers-market/3759.html
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point. This has prompted the government to put more resources into air quality monitoring
equipment.
According to the Department of Natural Resources and Environment's (DNRE) Centre for
Environmental Monitoring, HCMC will become the first city in Vietnam to set up a comprehensive
environmental monitoring system valued at VND 495 billion (EUR 19.2 million). The automatic
system will monitor the quality of the air, surface water and groundwater and land subsidence.
The data collected will be sent to the central system for analysis by the DNRE and issuance of
public warnings. By 2030, the city plans to install 16 more air monitoring stations at major
intersections, residential areas and industrial parks.
In 2019, Hanoi agreed to receive 18 air quality sensing devices offered by the German
Development Cooperation Organisation (GIZ) as part of efforts to improve its air quality. Air quality
data collected by the sensors will be made public at this website: http://moitruongthudo.vn. In
addition, it will be available on apps in smartphones, screens at state agencies and in public
places in the Hoan Kiem district, where it will be installed.
In addition, according to draft Environmental Protection Law of Vietnam which is currently being
reviewed and revised, production facilities and businesses that produce large emissions will be
required to have air quality management that include point source registration, emissions
inventory and installation of continuous emission monitoring systems. Industrial parks will also
have to install emission treatment systems. This is expected to increase the opportunities for EU
providers of air quality management products and solutions.
European Companies
Gasmet Technologies Oy
Founded in 1990 and based in Helsinki, Finland, Gasmet is a leading supplier of FTIR (Fourier
Transform Infrared spectroscopy) gas analysis solutions for both continuous emission and
mercury monitoring systems and portable gas analysers. The company has supplied more than
4,000 analysers worldwide for on-site and industrial applications, in approximately 80 countries.
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With more than 100 employees globally, Gasmet had a turnover in 2018 of more than
EUR 21 million. In December 2019, the company was acquired by Nederman, a Swedish
provider of industrial air filtration solutions.
Gasmet operates in Vietnam through two distributors, Viet An Environment Technology Joint
Stock Company, based in Ho Chi Minh City and Hanoi-based TN Technology Viet Nam Co., Ltd.
Environment S.A Group (ENVEA)
ENVEA is a French manufacturer of cutting-edge high-precision monitoring systems as well as
environmental data processing and reporting solutions. It has R&D and manufacturing centres in
France, Germany, and United Kingdom, together with turnkey manufacturing centres in the U.S.,
Italy, China, and India. In Vietnam, it is represented by Vietnam Trading and Automation Solution
Limited Company (VATCOM CO LTD), which distributes ENVEA’s continuous emission
monitoring systems and dust monitors in the Vietnam market. The company has installed 10 air
monitoring stations in Hanoi.
OPSIS AB
OPSIS AB is a Swedish company which develops, manufactures and markets systems for gas
analysis and process control. It provides systems for ambient air quality monitoring (AQM) and
continuous emissions monitoring (CEM) / process control. It has established a network of
subsidiary companies, distributors and other representatives around the world. OPSIS operates
in Vietnam through a local distributor, Thanh Thien Technology JSC - TTT, located in Ho Chi Minh
City.
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3.6 Waste Management
3.6.1 Market Overview
In 2019, Ministry of Natural Resources and Environment (MONRE) reported that Vietnam
produces 70,000 tonnes of solid waste per day, with urban areas accounting for a larger share of
38,000 tonnes per day. About 54-77% of urban solid waste contain organic substances, and about
8-18% contain plastics and metal.64 Approximately 85% of the waste in urban areas is collected.
Rural areas produce about 32,000 tonnes of solid waste a day, and the collection rate is only
about 40-55% in rural areas. Rural waste is a growing problem in the country, with large quantities
of waste (including pesticide containers) illegally dumped, resulting in serious environmental
problems in rural areas.
Figure 26: Overloaded landfill in Hai Phong Source: World Bank
Meanwhile, the volume of industrial solid waste discharged by factories in Vietnam is now
8.1 million tonnes per year, excluding 17 million tonnes of ash, slag, and gypsum discharged
annually by thermal power plants, and chemical and fertiliser production plants.
64 www.vir.com.vn/tidying-up-one-bottle-at-a-time-68103.html
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Up to 70% of domestic solid waste in Vietnam is buried, but many landfills do not meet
environmental requirements, polluting the environment. There are 660 landfills in Vietnam
receiving some 20,200 tonnes of waste daily. Of these 660 waste disposal sites across the
country, only 30% can be classified as engineered landfills with daily coverage of waste. Only 9%
of the landfills have weighing scales and only 36% have a bottom lining. Most of landfills have no
compactor, landfill gas collection, leachate treatment or environmental monitoring system and are
poorly managed, mostly due to lack of funding. Many of Vietnam’s landfills have become
unsustainable as they lead to leakage of hazardous elements and wastewater into the
environment.
Burying, burning, and turning waste into fertiliser are the most common ways used to handle solid
waste in Vietnam. There are only 44 facilities turning solid waste into fertiliser in the country, 23 of
which have a capacity of 100 to 500 tonnes a day. There are also 208 facilities using burning
technology, 72 of which have a capacity of 5 to 10 tonnes a day. About 63% of collected waste
(approximately 14,000 tonnes per day) goes to landfills and 22% goes to various treatment
facilities, with 14% incinerated, 10% recycled, and 4% composted.
Figure 27: Burning of plastic waste at a landfill site on Binh Ba Island Source: VN Express International
The main government agencies relating to waste and hazardous waste management are MONRE
and MOC, which each have related mandates on waste and hazardous management regulation
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and legislation; monitoring and enforcement; planning and capacity; as well as providing technical
inputs and guidelines on waste management through the different stages from generation to final
disposal.
At the local city level, the counterparts that are directly responsible are the representative offices
of MONRE (i.e., Departments of Natural Resources and Environment – DONREs) and MOC (i.e.,
Department of Construction – DOCs). The city’s Urban Environment Companies (URENCOs) are
also engaged, given their operations within the cities and the related landfills.
The country’s growing population and rapidly developing economy has put the spotlight on how
it disposes of its waste and whether it can generate enough energy to cope with demand.
Waste-to-energy from municipal waste
Municipal Solid Waste (MSW) in the country is mostly collected unsorted from households in
general. The current situation of saturating landfills has increased the demand for applying more
efficient solutions to convert MSW to energy as much as possible, instead of massive landfilling.
Ho Chi Minh City generates around 10,000 tonnes of MSW per day while Hanoi produces 6 to
7 tonnes of MSW per day. The local governments of these cities are actively looking for
competitive solutions, such as waste-to-energy plants, to partly replace landfills.
The Vietnamese government is interested in long-term solutions for solid waste management in
the country. According to the government, source separation of domestic waste, considered the
best waste management approach, has not been implemented successfully nationwide, so
mixed-waste incineration without solid-waste segregation will be the appropriate technology for
urban solid waste in Vietnam.
The government has implemented numerous policies for domestic as well as foreign firms
involved in waste-to-energy projects. The major regulations are:
◼ Decision 31 - stipulates the supporting mechanism or development of power generation
projects using solid waste;
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◼ Circular 32 – deals with the development of grid-tied generation projects using solid wastes
and provides a model electricity sale contract for projects using solid wastes in Vietnam; and
◼ Decree 118 – deals with investment incentives and schemes in various sectors including
construction of concentrated solid waste treatment zones and collection, treatment,
recycling, and reuse of waste.
Vietnam’s need for waste-to-energy facilities is attracting the attention of foreign companies, who
are building presence in the country. For example, Japan-based industrial technology firm Hitachi
Zosen Corporation has opened a branch in Hanoi as it aims to further expand its waste to energy
operations in the country. Hitachi Zosen has a track record of delivering chemical plants,
and hydraulic gates and steel pipes for hydroelectric facilities in Vietnam. The new branch will
undertake sales and procurement support activities for waste to energy plants as well as other
products, and sales activities for the company’s operation and maintenance (O&M) business.
Meanwhile, Australia’s Trisun Energy is another firm showing interest in this field, having set a
major investment target of building up to 20 power-generating waste treatment plants in Vietnam
over the next 5 to 10 years. The company, founded in 2011, is currently completing a
comprehensive study of a waste-to-power plant in Ho Chi Minh City. According to Trisun, the plant
will be capable of burning up to 3,000 tonnes of garbage per day, or more than 40% of the city’s
waste.
Local Players
Vietstar Environmental Joint Stock Company operates in the field of handling, disposal and
recycling of hazardous waste. It operates a centralised waste treatment facility with a capacity of
20,000 tonnes per year and is equipped with technologies such as a hazardous waste incinerator,
water treatment systems, solvent recovery systems, oil recovery systems and plastic waste
recycling system. In 2018, it began construction of the first waste-to-energy project in the Tay Bac
solid waste treatment complex valued at US$ 400 million (EUR 362.5 million), wherein the first
phase of the project will have a capacity of 2,000 tonnes per day.
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Tam Sinh Nghia Investment - Development Joint-Stock Company is a pioneer in treating solid
waste in Vietnam. It is involved in waste treatment, plastic recycling, and composting activities.
It operates both waste treatment and recycling plants in Vietnam. Some of the technologies that
it uses include automatic sorting systems, composting tunnels, continuous extrusion and
pressurised extrusion with blended additives for plastic recycling, and waste incinerators.
Figure 28: Hydrolysed robot arms move waste into incinerators Source: Tam Sinh Nghia
3.6.2 EU Entry Opportunities
Vietnam’s waste management sub-sector offers opportunities for European companies across
various areas. European countries enjoy a good reputation in Vietnam, and the reputation for
reliability and high-quality work often precedes European companies and providers. On the other
hand, competition is strong, particularly from countries like Japan, Taiwan and Korea.
Some of the notable entry points are:
◼ Solid waste management technologies
◼ Waste-to-energy technologies
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Solid waste management technologies
Although key cities in Vietnam have a number of low-cost incinerators, each with a processing
capability of 200 tonnes, this fails to address the growing amount of MSW discharged every day.
As Vietnamese firms lack technical expertise on waste treatment, the cities needs to import
advanced technologies to deal with the huge amount of daily garbage, presenting opportunities
to European companies that can provide the following products and services:
◼ Waste collection and transport equipment
◼ Waste sorting equipment and technologies
◼ Municipal waste incineration technologies
◼ Landfill technologies
European companies should consider the components of MSW, and offer appropriate
technologies.
Waste-to-energy technologies
The Vietnamese government believes that waste-to-energy technologies are a feasible solution
for the solid waste crisis in Vietnam’s major cities. MONRE is encouraging localities to build
waste-to-energy plants to help realise the country's target of reducing the rate of burying solid
waste at landfills to 30% by 2025. In the long term, it plans to implement intensive waste-to-energy
technologies such as pyrolysis and gasification.
Some recent developments highlighting the opportunity in the sector include the following:
◼ Ho Chi Minh City is planning to use waste-to-energy technology to reduce waste disposal in
landfills. As of 2019, the city generated around 9,000 tonnes of solid waste daily, of which
72.5% is buried and the rest is burnt, recycled or used to produce fertilisers.65 The city
targets to reduce the landfill rate to 50% by 2020 and 20% by 2025. It has prepared
65 https://en.vietnamplus.vn/work-starts-on-2000-tonne-wastetoenergy-plant-in-hcm-city/162187.vnp
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72,500 square metres of land for building waste-to-energy plants at the existing Tay Bac
solid waste treatment complex in Cu Chi district and has been calling for investment in new
plants, providing incentives like waivers of land rent for 11 years or a 70% discount on it,
interest-free loans and waivers of import tax on equipment. Construction on three plants has
started:
▪ In November 2018, TASCO Joint Stock Company reportedly started construction on a
US$ 43 million (EUR 39 million) waste-to-energy plant to handle 500 tonnes of waste a
day. The facility was scheduled to begin operations after 24 months of construction and
its capacity could be increased if required. However, media reports in late 2019 stated
that construction was yet to be kickstarted. In September 2019, Malaysia-based
electrical power technology company, Pestech International Bhd, through its wholly-
owned subsidiary Pestech Power Sdn Bhd (PPW) signed a memorandum of
understanding with TASCO Cu Chi Environmental Ltd (TCC) to explore opportunities
for collaboration.66 Pestech said the parties were keen to engage Pestech's unnamed
Finnish technology partner for the project. Depending on positive outcome of due
diligence processes, PPW would lead and undertake electrification and automation
works, creating a transmission line and conducting substation works, apart from the
operation and maintenance services required for the energy project.
▪ In August 2019, Vietstar Joint Stock Company started work on a US$ 400 million
(EUR 360 million) waste-to-energy plant at the Tay Bac solid waste treatment
complex.67 The plant is slated for completion in 2020 and has been designed for a daily
processing capacity of 2,000 tonnes of waste in its first phase of operation, which will
double to 4,000 tonnes in the second phase by 2021. The plant uses technology from
German waste management company, MARTIN. The closed system is entirely
automated, does not emit odours or require trash to be sorted at source.
66 https://www.theedgemarkets.com/article/pestech-inks-agreement-enter-vietnam-wastetoenergy-project 67 https://en.nhandan.org.vn/scitech/item/7861802-work-begins-on-us$400-million-waste-to-energy-plant-in-ho-chi-minh-city.html
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▪ In October 2019, Tam Sinh Nghia Company kicked off construction of a US$ 215 million
(EUR 193 million) waste-to-energy plant which can process 2,000 tonnes of waste per
day and has a generation capacity of 40 MW.68 The company plans to increase the
plant’s daily waste processing capacity to 5,000 tonnes of waste after the first phase
enters stable operations. The scheduled construction time is 18 months with an
additional 4 months for trial and adjustment. This plant is also using technology from
German company, MARTIN.
◼ Hanoi, which generates around 6,000 tons of waste per day is also exploring such projects:
▪ At the end of 2017, Hanoi city authorities approved a US$ 301 million waste-to-energy
plant with Thien Y Environment Energy Joint Stock Company as the investor.
Construction is being undertaken by a Chinese contractor. The plant will have a
processing capacity of 4,000 tons of waste per day. It is said to use advanced European
waste-to-energy technology with an estimated amount of electricity obtained from the
plant at approximately 75 MW per hour. As of December 2019, US$ 155 million
(EUR 139 million) had been invested to complete 35% of the project.69
▪ Indovin Power LLC, a subsidiary of Indonesian company, PT Nusantara Daya Nugraha
and Vietnamese company, N&G Group Joint Stock Company signed an agreement in
July 2018 to build a pilot waste-to-energy plant in Son Tay and Ba Vi district of Hanoi,
with an investment of US$ 70 million (EUR 63 million).70 The groundbreaking ceremony
for this project was held in November 2019.71
◼ The city of Danang recently announced plans to build its first waste-to-energy project valued
at VND 2.3 trillion (EUR 89.4 million) at the Khanh Son dump. The project will utilise the first
phase of an already established garbage recycling plant to process some 1,000 tonnes of
trash daily into electricity commencing in 2022. The waste-to-energy power project comes
after Danang city and the Asia Development Bank (ADB) signed an agreement last year to
develop a new landfill and waste treatment facility using a public-private partnership (PPP)
68 https://en.nhandan.org.vn/scitech/item/8025202-work-commences-on-second-waste-to-energy-plant-in-ho-chi-minh-city.html 69 http://hanoitimes.vn/vietnams-largest-waste-to-energy-plant-to-be-put-into-operation-in-2020-300577.html 70 www.ngcorp.com.vn/en/Company-News/n-group-and-indovin-power-llc-signed-joint-partnership-agreement.html 71 www.indovin.vn/groundbreaking.html
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model. The project will see the private sector design, build, finance, operate, and maintain
the waste disposal and treatment facilities.
◼ In February 2018, ADB and China Everbright International Limited signed a US$ 100 million
(EUR 90.6 million) loan agreement to construct waste-to-energy plants in Mekong Delta,
which will not only treat solid wastes but also supply electricity to the national grid. It is the
first public-private partnership project in the sector.
◼ In April 2017, Vietnam’s first industrial waste-to-energy plant was set up in Hanoi, with
equipment from Japan’s Hitachi Zosen Corporation. It can process 75 tonnes of waste per
day and generate 1.93 MW of energy. A total of US$ 29 million (EUR 26.3 million) was
invested in the project, with US$ 22.5 million (EUR 20.4 million) being non-refundable aid
from Japan’s New Energy and Industrial Technology Development Organisation (NEDO),
a governmental organisation that focuses on research and development of industrial
technology in new energy solutions.
European Companies
MARTIN GmbH
This company, which has its headquarters in Munich, Germany, specialises in planning and
implementation of waste-to-energy plants. It is a general contractor, consortium partner, supplier
of components or engineering partner – in the field of combusting problematic fuels such as low
grade coal and waste. The company also has expertise in heat recovery boilers, of flue gas
cleaning systems and also of other essential components and systems. Over 780 lines for
combusting waste have been equipped with MARTIN grates worldwide. Japanese company
Sumiju Environmental Engineering Inc., a part of Sumitomo Heavy Industries is MARTIN's licence
holder for the MARTIN horizontal grate technology in most of Asia, including Vietnam.
According to media reports, MARTIN is the provider of technology for two waste-to-energy plants
under construction at the Tay Bac Solid Waste Treatment Complex in Cu Chi district, Ho Chi Minh
City, by Vietstar Joint Stock Company and Tam Sinh Nghia Investment Development Joint Stock
Company.
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Watrec Ltd
Watrec Ltd. is a Finnish company established in 2003, specialised in biogas technology and
consultancy services for environmental and energy related issues. It offers an economical and
efficient way to produce renewable energy and fertilisers from waste.
In May 2019, Watrec was awarded a project related to a large scale waste-to-energy project in
Ho Chi Minh City, for Vietnamese company Waste to Energy Vietnam Co (WE Viet Co), that will
be able to treat 500 tonnes of waste daily. As part of the project, municipal solid waste will be
separated to individual fractions, and the organic fraction will be delivered to the biogas process,
while the rest of the waste will be transferred to the incineration process.
We Viet Co stated that the long experience of building reliable plants and providing a
comprehensive service were key factors that led to their selection of Watrec for the project.
EQTEC
Irish Industrial scale gasification firm EQTEC PLC, is a clean energy project developer and
operator. The company's principal activities include identifying, developing, building, owning and
operating power plants in the United Kingdom and Ireland using clean energy technologies.
In 2018, EQTEC signed an MoU with Indonesian conglomerate CITRA for a 12 MW waste-to-
energy plant in Hanoi. The scope of deal will see EQTEC supply two complete gasification lines
with 4.5 tonnes per hour and four GE Jenbacher syngas engines, as well as ancillary equipment,
and commissioning and start-up services. CITRA considers EQTEC as the exclusive technology
supplier for the gasification plant for the 12 months from the date of the MoU.
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3.7 Recycling
3.7.1 Market Overview
Vietnam produces more than 27.8 million tonnes of waste per year. The main sources of waste
generation are municipal, agricultural and industrial waste. Hanoi has the highest recycling rate
compared to any other Asian city, with about 20% of the municipal waste recycled.
The waste-pickers play a key role in the waste management system as they sort out waste at
source, classify it and then sell to recycling companies. Most of the recycling businesses in
Vietnam are either informal family businesses or small-scale enterprises. Recycling activities are
also practiced at a household level as people attempt to sell or also give away recyclable metal
cans or paper to iron dealers or waste-pickers.
Recycling is considered an urgent requirement in the waste management in Vietnam as an
effective option to reduce waste going into landfills. In Vietnam, the “National Strategy of
Integrated Solid Waste Management up to 2025, with a Vision towards 2050” provides a
framework for building a circular economy focusing on complete waste collection by 2025. Under
this framework, all types of solid waste generated are to be collected, reused, recycled and
thoroughly treated with technology that is advanced, environmentally friendly and suited to the
local conditions of each province, so as to reduce landfill waste. However, a key issue is that
while the law covers waste management sufficiently, enforcement is left to local administrations,
leading to uneven efficiency of waste management and recycling in different locales.
Plastic waste
Vietnam is one of the five worst polluters of ocean plastic waste, with 13 million tonnes of waste
released to the ocean annually. As many as 1,000 plastic bags are used each minute in the
country. On average, each Vietnamese household uses 35 plastic bags every week, which means
that the country consumes 938 million plastic bags weekly. Most of these plastic bags used in
domestic households usually end up being buried in garbage dumps, with only 27% of treated
and recycled.
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Recycling activities for this type of domestic waste occur on a very small scale, and largely
depend on informal and unofficial waste collectors. Vietnam also has nearly 3,000 craft villages
which manufacture handicrafts from recycled discarded plastic and other waste materials.
The villages buy plastic from local depots or waste pickers and process it into new products.
Figure 29: Plastic waste is dumped into the ocean in central Vietnam Source: Vietnam Net Bridge
MONRE estimates that about 80 tonnes of plastic waste and bags are thrown away every day in
Hanoi and Ho Chi Minh City, while a study conducted by the Ministry of Construction concluded
that plastic accounts for 12–16% of all waste in garbage dumps in Saigon, Hanoi, Bac Ninh
Province and Hue.
In addition, ever since China imposed a ban on plastic waste imports, countries like the U.S.
switched to exporting its plastic waste to South East Asian countries, including Vietnam.
The country imported 165 million pounds of scrap plastic from the U.S. in 2018, making it the sixth
largest importer of U.S. plastic throughout the year. However, in 2019, the Vietnamese
government announced its plan to phase out scrap plastic imports by 2025.
The government has been making increasing efforts to combat the plastic waste epidemic, with
Prime Minister Nguyen Xuan Phuc launching a campaign in June 2019 targeting zero disposable
plastic use in urban shops, markets and supermarkets by 2021, and nationwide by 2025.
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E-waste
The electronics industry is one of the most developed sectors in Vietnam’s economy, with high
merchandise export and import values. The Vietnamese government has undertaken a number
of initiatives to stimulate the electronics industry and attract foreign investment. Alongside robust
growth in the sector, the country is facing an increasingly high volume of e-waste.
It was reported that on average, one Vietnamese releases a kilogram of e-waste a year, totalling
up to a yearly 90,000 tons of e-waste for the country. The generation of e-waste in Vietnam is
projected to reach 3.7 kg per capita in 2020, compared to 1.9 kg per capita in 201472. In fact,
e-waste is one of the fastest-growing waste streams in Vietnam, driven by rising electronic
consumerism. The shortened lifespan of consumer electronics and appliances has also
contributed to the accelerated rate of e-waste growth.
In reality, the majority of electronics, once discarded, are not recycled properly. According to the
Vietnam Association for Conservation of Nature and Environment, recycling of e-waste in Vietnam
just means dissembling, classifying the waste and splitting metals, and should be considered
preliminary treatment. Preliminarily treated metals are usually sent to China for refining, while
leftover material tends to be incinerated or dumped in landfills.
Figure 30: Air conditioner parts being collected at Nhat Tao market. Source: Alberto Prieto / Saigoneer
72 Tran, C.D.; Salhofer, S.P. Analysis of recycling structures for e-waste in Vietnam. J. Mater. Cycles Waste Manag. 2016, 20, 1–17
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Vietnam is one of the top destinations for illicit dumping of electronic garbage, mostly in the form
of household appliances. The huge amount of e-waste illegally shipped to Vietnam ends up being
littered or recycled under hazardous conditions. In Vietnam, there is little management to stop the
entry of illegal e-waste to the country, and there are no regulations over domestic electronic
discarding and recycling.
Electronics producers, Hewlett-Packard (HP) and Apple initiated a programme called Vietnam
Recycles in April 2015, in a bid to build up awareness of e-waste collection and recycling.73 It is
a free take-back programme for used or defective electronic products with an aim to ensure their
safe and environmentally sound recycling. As of 2019, the programme was still in a pilot phase,
with e-waste being collected from consumers in Ho Chi Minh City and Hanoi.74
Some initiatives in the recycling sector
Zero Waste to Nature
The Zero Waste to Nature initiative was officially launched in Ho Chi Minh City in 2018.
The initiative has four key goals: (1) Address issues arising from plastic waste; (2) build a road
map to form and promote sustainable business models; (3) develop a cyclical-oriented value
chain; (4) offer policy recommendations to facilitate the rollout of the circular economy in Vietnam.
In the first phase, the core activity is segregating plastic waste at source, and is being
implemented by Unilever Vietnam in cooperation with CITENCO Urban Environment Company.
The initiative involves three multinationals, Unilever Vietnam Limited, Coca Cola Vietnam Co., Ltd
and Dow Chemical Vietnam Co., Ltd., and will run for five years, from 2018 - 2022.
Based on the experience of implementing this initiative in the plastics industry, the programme
will be replicated with the participation of other large firms in aluminium, steel, cement, glass,
wood, agricultural products and animal husbandry, gradually establishing a sustainable economic
model and building a market for recycled and reusable materials in Vietnam.
73 http://bizhub.vn/tech/consortium-launches-e-waste-recycling-programme-in-viet-nam_10600.html 74 https://vietnaminsider.vn/saigonese-exchange-e-waste-for-trees/
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Packaging Recycling Organisation Vietnam (PRO Vietnam)
A national plastic waste reduction campaign launched by MONRE involves nine companies,
namely Coca-Cola Vietnam, FrieslandCampina, La Vie, Nestlé Vietnam, NutiFood, Suntory
PepsiCo Vietnam, Tetra Pak Vietnam, TH Group, and URC Vietnam. The companies have joined
hands to launch the Packaging Recycling Organisation Vietnam (PRO Vietnam) in Ho Chi Minh
City in 2019.
PRO Vietnam marks the first time that competing businesses are collaborating in Vietnam to
collectively work on improving the environment of the country. PRO Vietnam aims to educate
consumers on recycling awareness and segregation; strengthen the existing packaging collection
ecosystem; and support recycling programmes of processors and recyclers. It will also work with
the government in the “recycle” aspect of the 3R (Reduce, Reuse, and Recycle).
Local Companies
IAVG Company Limited was established in 2008, and began business as an importer and trader,
specialising in supplying imported recyclable scrap plastics material to the local Vietnamese
reprocessing industry. In 2009, the company established its own reprocessing facility, selling the
reprocessed resin as raw material to various domestic and foreign customers. The company is a
specialist in the field of recycling; taking on an advisory role, and forming strategic partnerships
to assist other recyclers to implement new technology, techniques and developing new markets.
IAVG has built up a network of international sources of technology providers, strategic partners,
recyclers, waste management and sustainability organisations.
H&D Plastic Co., Ltd was established in 2015 with the main business of processing and recycling
plastic scraps. The company’s major items are recycled plastic resins such as LDPE, HDPE,
and PP granules. In addition, the company offers agricultural-friendly coatings and
environmentally friendly garbage bags. Its customers are enterprises producing plastic products
both locally and abroad.
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Tan Thuan Phong Co., Ltd., a company based in Hai Phong, uses technology to extract metals
such as copper, nickel, chromium, etc from industrial sludge. The remaining waste after extraction
is supplied to the cement industry as additives. Tan Thuan Phong has invested in machinery
systems and equipment to turn waste resource into inorganic salts such as CuSO4, MnSO4,
and ZnSO4 which can be used as trace minerals in the production of animal feed. Currently,
the company is able to process 10-20 tonnes of industrial waste per day.
3.7.2 EU Entry Opportunities
Although the recycling sub-sector in Vietnam remains nascent, there are emerging opportunities
to provide recycling equipment and services, transfer know-how of recycling models and
techniques, and provide technical assistance in developing recycling systems for various types of
recyclable materials.
Some of the specific opportunities include:
◼ Advanced plastics recycling technologies
◼ E-waste recycling technologies
Advanced plastics recycling technology
With currently more than 2,00075 small-scale enterprises and high industrial growth rates, plastic
recycling constitutes a very promising industry in Vietnam. Previously, most of the plastic material
recycled in Vietnam was imported from countries such as China. To avoid a dramatic increase in
the flow of waste into the country, the Vietnamese government banned the import of material for
recycling in 2018, which has boosted demand for recyclable domestic plastic waste. This has led
to a growing demand in Vietnam for enhanced recycling technologies, for example, technology
which can recycle previously used PET plastics of any quality back to high-quality plastic that can
75 www.weforum.org/agenda/2020/01/viet-nam-is-building-its-first-zero-plastic-waste-city-heres-how/
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be used for food or drink packaging, including material that would previously have been sent to
incineration or landfill.
E-waste recycling
The Vietnamese e-waste recycling system includes collectors, junk shops, dismantlers, recyclers
and exporters, as well as second-hand markets. The collection and recycling of e-waste in
Vietnam relies mainly on the informal sector.
Figure 31: Televisions being disassembled for parts at Nhat Tao Source: Alberto Prieto / Saigoneer
The country has very few certified enterprises working in e-waste treatment systems. There is a
lack of e-waste recycling technologies such as equipment for dismantling e-waste in conjunction
with hydrometallurgical treatment to recover precious metals; gravity and magnetic technology for
separating steel; and incineration plants to treat the residues. Usually, dismantling and sorting is
undertaken manually, and the output classified into categories such as PCBs, metals, plastics,
glass and residues.
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European Companies
Tetra Pak
Tetra Pak is one of three companies in the Tetra Laval Group – a private group that started in
Sweden. The other two companies are DeLaval and Sidel. Tetra Laval is headquartered in
Switzerland. The company offers packaging, filling machines and processing for dairy,
beverages, cheese, ice cream and prepared food, including distribution tools like accumulators,
cap applicators, conveyors, crate packers, film wrappers, line controllers and straw applicators.
In Vietnam, nearly 100% of its cartons bear the Forest Stewardship Council™ (FSC™) logo
globally, marking a significant milestone in the company’s journey to promote responsible
sourcing and contributing to a low-carbon circular economy. It has a network of over 30 drop-off
stations in Hanoi and Ho Chi Minh City so that consumers can bring their used cartons for
collecting and recycling. The company aims for all packaging materials to be collected for
recycling by 2030.
SSI Schaefer
German company SSI Schaefer is a supplier of a range of storage systems for warehouses,
manufacturing plants and commercial offices, which includes a whole range of systems and
containers for the waste-handling and recycling sector. The company employs over 10,500
people with 70 subsidiaries operating around the world. It has set up a direct presence in Vietnam,
where it has a sales team of over 16 employees.
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3.8 Soil Prevention
3.8.1 Market Overview
Land degradation is occurring in many major areas in Vietnam, especially in mountainous areas
which make up around three quarters of the nation’s land area. According to a 2018 report by the
United Nations Convention to Combat Desertification (UNCCD), in 2018 Vietnam had 13,048 km2
(4%) of degraded land, 24,043 km2 (7.3%) of lands showing signs of degradation, and 67,005 km2
(20.4%) of land with threats of degradation.
Various factors are responsible for land degradation in Vietnam. Natural phenomena such as
heavy and continuous rainfall have caused soil erosion and flooding. Human activities have also
played a key role in reducing the quality of land in Vietnam. For example, mountainous tribes
have destroyed forests for cultivation, without applying solutions for improving or protecting soil,
which has reduced the fertility of the land.
Other leading causes of soil degradation in Vietnam is related to the discharge of untreated waste,
wastewater and chemical fertilisers from households, industrial factories and farms. In addition,
the country continues to grapple with residual dioxin from toxic chemicals discharged during the
Vietnam War five decades ago – this remains a key issue to this day, with 28 hotspots of high
Agent Orange concentrations in the country.
In collaboration with the UNCCD, Vietnam has set national voluntary Land Degradation Neutrality
(LDN) targets, established a baseline, and formulated associated measures to achieve LDN
which are realistic and measurable.76 The measures target the country’s agricultural and forestry
sectors, and are differentiated based on efforts using local and international resources. Local
resources will be from provincial budgets that are kept aside for protection of natural resources,
while international resources include funds and support from donor countries, international aid
agencies and NGOs, as well as development organisations.
76 https://knowledge.unccd.int/sites/default/files/ldn_targets/Viet%20Nam%20LDN%20TSP%20Country%20Report.pdf
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The Mekong Delta, which accommodates 22% of Vietnam’s population and supplies 50% of the
nation’s food, experiences river bed, bank and coastal erosion, alarming land subsidence rates,
flooding and frequently-reported excessive saline water intrusion.77
In September 2019, Reuters reported that six provinces in Vietnam’s Mekong Delta region are
facing severe erosion of the sprawling river and coastal network, with many areas requiring urgent
measures.78 The provinces Long An, An Giang, Dong Thap, Ben Tre, Soc Trang and Ca Mau,
have either declared emergencies or cordoned off long stretches of land on the Mekong’s edge
because of the erosion. Extensive sand mining of the river bed, and upstream damming has been
blamed for soil erosion.
The Mekong River Plain is becoming increasingly severe. Saline water from the sea intrudes
through the estuaries to the mainland, causing salinisation such as in Ben Tre, Tien Giang, Vinh
Long, Hau Giang. The re-salinised land occupies about 46% of the total saline land in the Mekong
River Delta. However, many medium and slightly saline land areas have become alluvial lands
through rehabilitation and proper use, such as Long An, Tien Giang, Ben Tre, Tra Vinh, Soc
Trang. Moreover, a part of land areas located near the estuaries like Cua Tieu, Cua Dai, Ham
Luong, Co Chien, Dinh An, Tranh De, etc., are affected by strong saline intrusion, leading to
increases in the medium and slightly saline land areas.
Multiple soil and water remediation projects have been undertaken by USAID since 2010 to
address dioxin contamination in Vietnam. As recently as 5 December 2019, Vietnam's Ministry of
National Defense released 37 hectares at Bien Hoa Airport to the USAID in a dioxin clean-up
drive. Around 500,000 m3 of soil contaminated with dioxin at the site will be processed with expert
assistance.
77 www.nature.com/articles/s41598-019-55018-9 78 www.reuters.com/article/us-vietnam-mekong/vietnam-says-urgent-measures-needed-to-combat-mekong-delta-erosion-idUSKBN1W918I
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Figure 32: Soil remediation to detect unexploded ordinance and dioxin in Danang, Vietnam Source: Voice of America (VOA)
Soil improvement programmes have been also been supported by the Australian Centre for
International Agricultural Research (ACIAR), which has supported research collaboration with
Vietnam in agriculture, forestry and fisheries valued at US$ 100 million (EUR 90.6 million) across
170 projects. ACIAR and its counterparts in Vietnam have developed a ten-year strategy for
research collaboration (2017 – 2027) to address the increasingly complex problems and
opportunities facing smallholder agriculture, fisheries and forestry systems in Vietnam.79
Japan International Cooperation Agency (JICA) is active in Vietnam, and undertakes surveys,
feasibility studies and demonstration projects in sectors such as water and wastewater, waste
management, agriculture and healthcare. The Japan Enterprise Proposing Programme (JEPP),
which was launched in 2012, aims to achieve mutually beneficial business coordination between
developing countries and Japanese SMEs with unique technology and know-how. JICA has
coordinated several soil improvement, conservation and remediation projects in Vietnam, as follows:
◼ Soil improvement technologies for the Mekong Delta waterway revetment construction
project, with the help of Murakami Juuki, Ltd.
◼ Slope protection products to prevent shallow landslides, with the help of Rontai Co., Ltd.
79 https://vietnam.emba
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An early warning system for landslides, with the help of Okuyama Boring Co., Ltd.Local
Players
Elcom Prime JSC is one of Vietnam's leading high-tech companies providing turnkey solutions
and technical services in telecommunications, transportation, e-government, and high-tech
agriculture. For high-tech agriculture, typical solutions and products include:
◼ Greenhouses and greenhouse supplies for high-tech farming
◼ Smart irrigation systems
◼ Open field control systems with wireless sensors of temperature, moisture, wind speed, wind
direction, solar radiation, etc.
◼ Fertigation systems
◼ Microclimate control systems
◼ Farm management and origin tracking systems
◼ Microbiological soil and plant nutrients solutions, and probiotics animal feed; etc.
Hung Viet Company manufactures coconut mat, which is made from 100% coconut, and has a
duration that ranges from 36 to 72 months. This product keeps soil, opposes soil degradation,
does not impact the development of natural plants, and it is used in sloping areas, especially
riverside and seaside.80
Nong An Phu Co. Ltd. sells vetiver grass together with other agricultural solutions such as fruit
fly control chemicals. Vetiver grass (Vetiveria zizanioides L.) has been reported to be effective in
erosion control and remediation of contaminated soils. Due to its efficiency and low-cost, vetiver
systems are more profitable than both engineering structures and other vegetative barriers.
Soils and Fertilisers Research Institute (SFRI) is a public science unit belonging to Vietnam
Academy of Agricultural Sciences (VAAS). The function of SFRI is to study and transmit
80 http://geotech.com.vn/vi/cong-nghe/Tham-chong-xoi-sinh-hoc/
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technologies on soil prevention, fertilisers, and microorganisms in Vietnam. Their product
catalogue includes compost maker, symbiotic root fungus, plant probiotics, bio-fertilisers, etc.
3.8.2 EU Entry Opportunities
European companies looking to enter the Vietnamese market should be aware that the
Vietnamese market for soil prevention is still largely within the governmental scope of work.
Large-scale projects relating to soil prevention are usually contracted through the Vietnamese
government, NGOs, international aid agencies and development agencies.
Large scale farmers in Vietnam may be willing to adopt new technologies for soil prevention, as
they may have the funds and the personnel to implement changes. However, small scale, rural
farmers may be more resistant to change and may not buy into these new techniques.
New technologies are required in various areas:
◼ Soil erosion control solutions
◼ Soil remediation technologies
▪ Saline soil remediation
▪ Remediation technologies for cleaning up contaminated sites
▪ Anti-desertification technologies
Soil erosion control solutions
A huge amount of soil is lost by erosion in Vietnam. Annually, water washes away about 250 million
tons of fertile alluvial to the sea (particularly from the Red River) with approximately 80 million
m2/year of lost alluvial. It should be noted that Vietnam prefers low-cost measures to control soil
erosion, such as the use of native vegetation cover, geotextiles, mulch and retaining walls.
Re-engineered slopes, for example dam slopes, are typically reconstructed at unnaturally steep
grades, and are subject to erosive forces after construction, until the vegetation has a chance to
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re-establish itself for effective soil-root interlock. Re-engineered slopes require mechanically
stabilised soil protection solutions, particularly in Vietnam which faces torrential rains.
Various companies have offered solutions to Vietnam, for example, Japanese companies Rontai
Co., Ltd and Okuyama Boring Co., Ltd. have undertaken projects to prevent landslides by using
slope protection solutions.
Soil remediation
Vietnam is in urgent need of soil remediation technologies to reduce salinity, prevent
desertification, and to remove toxic contaminants.
In 2016, around 160,000 hectares of land in the Mekong River Delta were affected by saltwater,
causing more than VND 5.5 trillion ($214.8 million) in losses. The problem continues to persist -
in September 2019, the Ministry of Agriculture and Rural Development (MARD) warned that
drought and saltwater intrusion would come to 13 provinces in the delta several months earlier in
2020. According to the ministry, seawater could intrude 35-110 km inland, and affect 100,000
hectares of land. Some 50,000 households would face the risk of water shortage with Long An,
Tien Giang and Ben Tre provinces expected to be the worst hit.81
In Vietnam, local desertification occurs in narrow strips of sand along the central coast, such as
from Quang Binh to Binh Thuan. According to the statistics on the maps produced by FAO and
UNESCO, Vietnam has about 462,000 hectares of coastal sand, occupying around 1.4% of the
total national natural land area. Of this, 87,800 hectares are mainly mobile sand dunes and big
sand hills. According to the Southern Institute of Water Resources Research, there are 41,000
hectares of desertified areas in Ninh Thuan Province, and 35,000 hectares in Tuy Phong District
and Bac Binh District, which are in the Binh Thuan Province.
The Vietnamese government has set the goal of completing environmental remediation of dioxin
contamination nationwide by 2030. The U.S. and Vietnamese governments identified the use of
In-Pile Thermal Desorption (IPTD, or thermal remediation) as the most effective and proven
81 https://e.vnexpress.net/news/news/early-saltwater-intrusion-threatens-yet-another-mekong-delta-crisis-4027604.html
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technology for Danang Airport during the development of an environmental assessment/
environmental impact assessment process.
In recent years, Vietnam has looked to newer technology for soil remediation. In 2018, Vietnam’s
Ministry of Defense signed a memorandum with Japanese engineering group Shimizu
Corporation regarding the application of a new soil cleaning method and the construction of a
dedicated facility at Bien Hoa Air Base near Ho Chi Minh City. Shimizu’s method involves soil
washing, which is a more cost-effective and environmentally-friendly form of soil remediation,
compared to incineration. It is expected to remove more than 90% of dioxin contaminants in soil,
thus allowing for some 70% of contaminated soil to be immediately reusable.82
European Companies
Krüger A/S
Krüger A/S is a Danish company founded in 1903 specialising in thermal in-situ remediation of
contaminated sites. Krüger has designed and executed thermal remediation projects in Denmark,
Sweden, The Netherlands, Switzerland and Vietnam. The company is a 100% subsidiary of
Veolia which has worldwide activities within water, energy and hazardous waste.
Krüger thermal remediation activities are undertaken under license of TerraTherm Inc, a U.S.
company in the thermal soil remediation sector for the last 20 years. It collaborated with
TerraTherm in the US$ 110 million (EUR 99.7 million) Danang Airport dioxin remediation project.
Eurofins Scientific is an international life sciences company which provides a range of analytical
testing services to clients across multiple industries. The Eurofins Group is a leading provider of
analytical services with an international network of more than 800 laboratories
across 47 countries in Europe, North and South America and Asia-Pacific, about 45,000 staff,
a portfolio of over 200,000 validated analytical methods, more than 400 million tests performed
82 https://saigoneer.com/vietnam-news/14488-with-tech-aid-from-japan,-vietnam-sets-to-clean-most-dioxin-tainted-site-in-country
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each year to establish the safety, identity, composition, authenticity, origin, traceability, and purity
of biological substances and products, as well as carrying out human diagnostic services.
In Vietnam, Eurofins SKHD has invested in modern laboratory facilities in Hanoi, Ho Chi Minh
City and Can Tho province, staffed with qualified technical personnel. One of the many services
it offers is environmental monitoring samples: water, air, soil, and mud.
SGS
Established in 1878, SGS transformed grain trading in Europe by offering innovative agricultural
inspection services. The company was registered in Geneva as Société Générale de Surveillance
in 1919. It has more than 94,000 employees and operates over 2,600 offices and laboratories
worldwide. SGS services provide a wide range of activities in sustainability, environment, carbon
services, energy services, soil services, water services, air, noise & vibration services,
and environmental audits.
In September 1997, SGS became the first international, independent inspection company to be
granted a 100% foreign owned company license in Vietnam. SGS Vietnam Ltd. now employs over
600 long-serving, specialised professionals based from offices in strategic locations across
Vietnam. The SGS Vietnam is able to offer a high level of expertise in inspection, certification and
testing using some of the most sophisticated laboratory equipment available in Vietnam.
Its services in Vietnam include contaminated land studies. It uses state-of-the-art equipment to
conduct manual or mechanical drilling and take soil and water samples for analysis. Its scientific
professionals use its certified laboratories and on-site mobile installations to investigate a range
of parameters to understand what pollution is present.
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3.9 Noise Protection
3.9.1 Market Overview
Noise pollution has become a serious issue in Vietnam. According to a 2017 study conducted by
the Institute of Occupational Health and the Environment, at least 15 million out of the 52 million
workforce face noise pollution every day. The Ho Chi Minh City Department of Science and
Technology reports that one out of eight workers in Vietnam suffers from total hearing loss,
and one out of four companies exceeds safe noise levels.
Vietnam’s Environment Protection Law dictates that noise in residential areas cannot exceed
70 dBA between 6 am and 9 pm, and 55 dBA from 9 pm to 6 am. The noise level limit for special
areas such as hospitals and schools is 55 dBA and 45 dBA from 6am to 9pm and 9pm to 6am,
respectively. Individual offenders could be fined between VND 1 million and VND 160 million
(EUR 39 and EUR 6,220), while companies could be fined double that amount for similar offences
and face a suspension for three months to a year.
Figure 33: Noisy streets in a Vietnamese city Source: Ideapod.com
However, there is limited enforcement of the regulations in the country. In Hanoi, a survey found
that average noise levels on 12 of the major streets and junctions were measured at between
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77.8 and 78.1 decibels during the day, while readings in the night were between 65.3 and 75.7
decibels – both exceeding safe levels.83 A survey of noise levels in Ho Chi Minh City found eight
out of 14 places tested exceeded safe noise levels.
Traffic laws, which stipulate that drivers should not use horns at night, are ignored. Many roadside
businesses, like bars, restaurants and fashion shops play music at high volumes, while bike
mechanics find it difficult to comply with noise regulations. Meanwhile, residents complain that
neighbours sing karaoke loudly late into the night. Noise is also generated incessantly from the
increasing number of factories and construction sites in Vietnam’s rapidly developing cities.
A key contributor to noise pollution in Vietnam is traffic. In 2019, there were around 7.5 million
motorbikes in Ho Chi Minh City, Vietnam's most densely populated city with a population of
13 million. Hanoi ranks second with around six million motorbikes. The sounds of motorbikes,
cars and honking, especially during rush hour, have become typical features of Vietnam’s big
cities. The Vietnamese have a habit of sounding their horns often as they drive, despite the
regulations on using the horn.
In an effort to combat noise pollution and the growing number of complaints, Ho Chi Minh City’s
municipal People’s Committee has instructed city departments and districts to provide an
emergency reporting hotline. The hotline is the latest measure taken by officials to try and solve
a seemingly unsolvable problem in the rapidly developing city.
As a sign of growing awareness of noise pollution in the country, a January 2020 article in the
Hanoi Times in relation to the building of the Nhon–Hanoi Railway Station Sky Train focused
mainly on issues related to dust and noise pollution, amid strong concerns that the project was
allowed to take place in residential areas, and at night. According to the project manager (Hyundai
E&C - Ghella Joint Venture), the project noise standard was set to a maximum of 70 decibels for
daytime and 55 decibels for night. Measurement readings were carried out several times a day
and during the night to ensure that excessive noise was not being produced. 84
83 https://e.vnexpress.net/news/news/15-million-people-being-drowned-out-by-noise-pollution-in-vietnam-study-3616666.html 84 http://hanoitimes.vn/dust-and-noise-levels-at-construction-site-of-hanois-metro-line-3-strictly-controlled-hse-manager-300681.html
Environment & Water Technologies – Vietnam Market Study - Page 116 of 166
Local Players
Remak Construction and Interior JSC is a manufacturer of thermal insulation and soundproof
materials, which claims to have about 90% local market share for acoustic products in Vietnam.
Its products have been exported to more than 20 countries in Europe, Asia Pacific, and America.
The company has partnership agreements with international brands such as SoundBox, Acoustic
Sonic, and Gillieron Scott.
Golden Bridge Co. Ltd. Founded in 2007 and based in Hanoi, Golden Bridge has been well
known as a “bridge” connecting international technology corporations with the local partners in
Vietnam in the fields of environment and meteorology. Currently, Golden Bridge is the exclusive
representative of several well-known manufacturers of noise and vibration monitoring equipment
such as Norsonic, Topsonic, Profound, IAC, IMV, AeroQual, Morehouse, MPS, Parnaisan, B&K
in Vietnam.
Tecotec Group JSC. Established in 1996, Tecotec has grown to be a leading professional
supplier of high-tech equipment in areas such as electrical measurement and calibration,
electromechanics and control, and analysis and environment, among others. The company has
a large product catalogue, with products from around the world, including many brand names
such as Aaronia, GW Instek, Hettich, HuaXin, Hilo–Test, Micran, Metrology, PDI, Raypa,
Shimadzu, Steibichler, Tokyo Keiki, Tokyo Soiki, Rion, Nagman, SAF-FRO, Kaise, and so on.
Established in 2014, Asean Soundproof Heatproof Co. Ltd. is a thermal insulation materials
supplier for civil and industrial projects, specifically they sell thermal insulation iron sheets,
insulation panels, insulating paint, foam insulation, etc.
3.9.2 EU Entry Opportunities
There are opportunities in areas such as:
◼ Noise monitoring and protection technologies
◼ Testing and consulting services
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Vietnam has one of the fastest growing economies in the world. The country’s construction
industry is booming and new infrastructure, high-rise buildings and private housing projects are
shaping the skylines of cities across the country. Many sectors, such as education, modern retail,
healthcare and hospitality, which are also seeing growth, are sensitive to noise, as excessive
noise impacts a customer or patient or student’s environment negatively.
As Vietnam starts to pay attention to noise pollution when it comes to town planning, building
construction, and urban infrastructure development, there will be a growing demand for noise
monitoring equipment, and various sound insulation materials, as part of stricter audits and noise
abatement interventions. Demand is also growing for noise testing and consulting services,
particularly for foreign multinationals with presence in the market, who are more attuned to the
importance of employee productivity and well-being.
European Companies
Delhom Acoustique Group
Delhom Acoustique was founded in 1995 in Toulouse, South of France. With presence in Europe,
Asia and Africa, it has become a pioneer in acoustic consulting for buildings, industry and
urbanism.
Today, Delhom Acoustique Group has opened a branch in Vietnam, as demand for its expertise
in South East Asia is growing. Delhom Acoustics Vietnam Company Limited is the Vietnamese
branch of Delhom Acoustique Group. Its core business is acoustic consultancy. It works with
architects, designers, clients, etc. from the beginning of a project (concept-design phase) to create
an acoustically comfortable building. Its main sectors of activity are Hotels & Resorts, Offices,
Factories & International Schools.
Compagnie de Saint-Gobain S.A.
Compagnie de Saint-Gobain is a French multinational corporation, founded in 1665 in Paris and
headquartered on the outskirts of Paris. Originally a mirror manufacturer, it now also produces a
Environment & Water Technologies – Vietnam Market Study - Page 118 of 166
variety of high performance building materials. Saint-Gobain has 180,000 employees and
operates in 67 countries.
Saint-Gobain Vietnam is a market leader in Vietnam, offering a wide range of products and
services for construction material business. The company has an entire range of high-
performance acoustic products and solutions marketed in Vietnam. Its GypWall QUIET is a series
of lightweight, non-loadbearing, acoustic stud or twin-framed separating walls, often used in
facilities such as cinemas, theatres, hotels, hospitals and schools, where a high level of sound
insulation performance is required.
Figure 34: A conference room designed by Saint-Gobain Source: Saint-Gobain
Saint-Gobain has undertaken a number of projects in Vietnam which incorporate an excellent
acoustic environment, such as Kumho Asiana Plaza, Park Hyatt Hotel, The Manor, Crown Plaza,
National Conference Center, Happy Hospital, Avalon Apartment, Keangnam Plaza, Indochina
Plaza, and Lam Dong Administrative Centre.
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4. Regulations
4.1 General Import Procedures
Vietnam, under both its WTO commitments and its domestic laws, extends import and export
activities to “all foreign individuals and enterprises (including foreign-invested enterprises).”
In effect, with import rights, a foreign-invested company: (i) can be the importer of record; and (ii)
can sell its imported products to distributors (licensed wholesalers or retailers) in Vietnam; but (iii)
with just import rights alone, it cannot sell its imported products to final consumers. Vietnam
reserves the import rights for several product categories for state-owned companies.
Companies that do not have their own import license must work through licensed traders, who
typically charge a commission of between one and two percent of the value of the invoice. Under
Vietnamese law, the importer is the consignee. Therefore, it is important to identify a reliable
importer with the ability to clear merchandise through customs quickly and efficiently. If a licensed
third-party importer is used, the importer will handle customs clearance. If a foreign-invested firm
imports products directly, it must make arrangements to handle customs clearance at the port.
Many foreign firms have complained that the administration of customs can be opaque and
inefficient. Importers have claimed that duty classifications for the same product differ from office
to office, and that even the same inspector may charge different rates for the same item at
different times. Should the importer disagree with the classification, it can be appealed before the
local Customs office, Customs Headquarters in Hanoi, or an administrative court. Companies also
complain about arbitrary fees, the expectation of undocumented facilitation payments and other
problems with the clearance process.
Customs issues will continue to play an important role, particularly with recent import licensing
hurdles including automatic import licensing rules, new country of origin rules, and more
aggressive enforcement of customs duty collections. The right to import does not include the right
to organise or participate in a goods distribution system in Vietnam.
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4.2 Government Tenders
The Vietnamese government is the leading purchaser of goods and services in Vietnam.
If provincial and municipal governments and state-owned enterprises are included, the potential
for sales to this sector is very large. Bolstering state budget allocations, Vietnam is also the
recipient of significant levels of Official Development Assistance (ODA). Infrastructure is the
principal development priority for ODA, but other key sectors include transportation,
telecommunications, energy, environmental/water, civil aviation, education, and financial
services.
Government procurement is regulated by the Law on Public Procurement, 43/2013/QH13,
approved on Oct 26, 2013, and Decree No 63/2014/ND-CP dated August 15, 2014, which
contains stipulations related to selection of contractors. Government procurement funded by ODA
loans and grants is normally governed by regulations on tendering of relevant donors in
accordance with loan agreements between the Vietnamese government and donors.
Government procurement practices can be characterised as a multi-layered decision-making
process, which, despite some recent improvements, often lacks transparency and efficiency.
Although the Ministry of Finance allocates funds, various departments within the ministry or
agency are involved in determining necessary government expenditures. Currently, ministries and
agencies have different rules on minimum values for the purchase of material or equipment, which
must be subject to competitive bidding. High value or important contracts require bid evaluation
and selection and are awarded by the Prime Minister’s office or other competent body, except for
World Bank, Asian Development Bank, UNDP, or bilateral official development assistance
projects. Some solicitations are announced officially in the Vietnamese language newspapers
such as Dau Thau, Nhan Dan, Lao Dong, and Saigon Giai Phong, and in the English language
newspapers Vietnam News and Vietnam Investment Review. EU firms may also be able to
register to obtain a consolidated listing of government or private tenders in Vietnam at Intellasia.85
85 www.dau-thau.com/
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The key to winning government contracts includes a high degree of involvement and
communication between the foreign supplier, the local distributor or representative, and relevant
government entities. Interaction should begin during the project planning stage. To secure orders
in competitive bidding, it is necessary to establish rapport and credibility, as well as to educate
the procuring entity as to how the product or service can support project needs well before the
bid is publicly announced. Although the timing for tender opening, bid closing and award
notification varies from project to project and preparation of government budgets. Experienced
foreign suppliers caution that even after awards are made, negotiations on price, specifications,
payment terms, and collateral may continue for some time.
As part of the EU-Vietnam FTA signed on 30 June 2019, the two parties have agreed on
disciplines in line with the Government Procurement Agreement (GPA) rules of the World Trade
Organisation. This is particularly valuable as Vietnam is not yet member of the GPA.
The government procurement chapter of the FTA achieves a degree of transparency and
procedural fairness comparable to other FTAs that the EU has signed with developed and more
advanced developing countries.86 Following the signatures, the agreements will now be
presented on the Vietnamese side to the National Assembly for ratification and on the EU side to
the European Parliament for its consent, as well as to the respective national parliaments of the
EU Member States in the case of the Investment Protection Agreement. The EU-Vietnam FTA is
expected to come into effect in the first half of 2020.
Upon entry into force of the Agreement, European companies will be able to bid for public
procurement contracts under the same conditions as Vietnamese companies for a number of
entities including all Vietnamese ministries at central level as well as 34 public hospitals directly
under the control of the Ministry of Health. Also, according to the agreement, 65% of duties on
EU exports to Vietnam will disappear as soon as the FTA enters into force, while the remainder
will be phased out gradually over a period of up to 10 years87.
86 trade.ec.europa.eu/doclib/docs/2016/june/tradoc_154622.pdf 87 www.consilium.europa.eu/en/press/press-releases/2019/06/25/eu-vietnam-council-adopts-decisions-to-sign-trade-and-investment-agreements/
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The EU-Vietnam IPA (Investment Protection Agreement) was also signed on the same day with
the EU-Vietnam FTA. The IPA establishes an Investment Tribunal and Appeal Tribunal to resolve
disputes between EU investors and Vietnamese authorities (and vice-versa).
Given its developing country status, Vietnam will benefit from differentiated treatment and/or
transitional measures in certain areas. This particularly concerns threshold values. Only those
procurement activities that are carried out by covered entities purchasing listed goods, services
or construction services of a value exceeding specified threshold values are subject to the
Agreement. For thresholds values, a transitional period of 15 years will apply across the board
with a progressive scaling-down of thresholds up to a level comparable to those offered by other
GPA members. For example, the initial threshold of 1.5 million Standard Drawing Rights (SDR)
for goods and services for procurement done by central government entities would be gradually
reduced to around EUR 160,000. Vietnam agreed to develop a central web portal for advertising
procurement contracts. The web portal should be operational at the latest 10 years after the entry
into force of the FTA. It is also of great importance for the foreign investors that summaries of
procurement notices will be available in English.
In 2016, the government of Vietnam launched a Vietnam National E-Procurement System
(VNEPS), run and managed by the Public Procurement Agency under the Ministry of Planning
and Investment, after a six-year pilot.88 It is supposed to be a common platform for publication of
all bidding invitations and bidding documents, submission of bids and announcement of winners.
The system can be accessed at: http://muasamcong.mpi.gov.vn/. The page is available only in
Vietnamese as of March 2020.
The government has set a target of 100% of information concerning the selection of contractors
and the execution of contracts to be made public on the VNEPS by 2025, while at least 70% of
bidding packages and all regular purchases should be made via the system. However, for the first
seven months of 2018, only 18% of government bidding packages were being conducted via the
platform. Several ministries, agencies and localities were not yet following the e-procurement
88 http://www.mpi.gov.vn/en/Pages/tinbai.aspx?idTin=40592&idcm=92
Environment & Water Technologies – Vietnam Market Study - Page 123 of 166
roadmap. Furthermore, an assessment by the Asian Development Bank (ADB) in 2019 found that
in many cases stakeholders were conducting paper-based procurement following traditional
procedures and practices in parallel with e-procurement. The ADB and the World Bank are
supporting the government's efforts to drive public procurement through VNEPS. In March 2019,
the two banks announced that they are going to use the VNPES to implement online bidding for
construction and goods under projects funded by the two international organisations in Vietnam.89
89 www.vir.com.vn/e-procurement-system-applied-to-banks-projects-66597.html
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4.3 Environmental Protection Regulations
The current environmental protection law No.55/2014/QH13 was promulgated in 2014 by the
National Assembly in the replacement of the environmental protection law 2005
(No.52/2005/QH11). The environmental protection law 2014 is effective from January 1st, 2015.
This law provides provisions on environmental protection activities; measures and resources used
for the purpose of environmental protection; rights, powers, duties and obligations of regulatory
bodies, agencies, organisations, households and individuals who are tasked with the
environmental protection task. This law is applied to regulatory bodies, public agencies,
organisations, family households and individuals within the territory of the Socialist Republic of
Vietnam, including mainland, islands, territorial waters and airspace.
The environmental protection concerns regulated in the environmental protection law 2014
include planning for environmental protection, environmental impact assessment, response to
climate change, environmental protection of marine, island, water, land, and air, environmental
protection in manufacturing, trading, and service, waste management, environmental monitoring,
pollution control, environmental remediation and improvement, international cooperation on
environmental protection, etc.
Along with the environmental protection law 55/2014/QH13, environmental standards (TCVN) and
environmental technical regulations (QCVN) were issued, amended and supplemented to
regulate the threshold limit value of the environmental factor suitable for use of environmental
components or maximum amount of pollutants contained in the waste ensuring that they cannot
cause environmental pollution. The environmental technical regulations must provide guidance
on standard method for sampling, measurement and analysis to determine environmental factors
for ambient environment or amount of pollutants. Decree No. 38/2015/ND-CP on management of
waste and discarded materials, amended and supplemented by Decree 40/2019 / ND-CP, is used
in company with the environmental protection law 55/2014/QH13 on the management of solid
waste, wastewater, exhaust gases and discarded materials.
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According to the Environmental Protection Law, MONRE is the main ministry that is responsible
for implementing, monitoring and assessing practices of the Environmental Protection Law.
MONRE is an agency of the Government, performing the function of state management in a
number of fields including land, water resources, mineral resources, geology, environment,
hydrometeorology, climate change, measuring and mapping, integrated management of natural
resources and environmental protection of the sea and islands, remote sensing, state
management about public services in the areas of the Ministry's management scope.
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4.4 Water Pollution Regulations
The environmental protection law (55/2014/QH13) regulated that wastewater should be collected
and treated in accordance with environmental standards. Wastewater that contains hazardous
elements beyond the permissible limits should be managed in accordance with regulations on
hazardous waste. Every urban area and concentrated residential area must have a system for
separating rainwater and wastewater.
Wastewater produced by manufacturing and business establishments must be collected and
treated in accordance with environmental standards. Waste sludge from wastewater treatment
systems should be managed in accordance with regulations of law on solid waste management
and waste sludge that contains hazardous waste beyond permissible limits should be managed
as hazardous waste. The environmental protection law also stated regulations concerning
sewage treatment systems.
A representative of discharge standards for environmental parameters and pollutant
concentration in industrial wastewater before discharging to water bodies is presented in Table 5
below:
No Parameters Unit Threshold
A B C
1 Temperature oC 40 40 45
2 pH - 6 – 9 5.5 - 9 5 – 9
3 Odor mg/l Not ill-smelling Not ill-smelling -
4 BOD5 (20oC) mg/l 30 50 100
5 COD mg/l 50 80 400
6 Suspended solid mg/l 50 100 200
Heavy metal
7 Arsenic mg/l 0.05 0.1 0.5
8 Mercury mg/l 0.005 0.01 0.01
9 Lead mg/l 0.1 0.5 1
10 Cadmium mg/l 0.001 0.01 0.5
11 Chromium (VI) mg/l 0.05 0.1 0.5
12 Chromium (III) mg/l 0.2 1 2
13 Copper mg/l 0.2 1 5
14 Zinc mg/l 1 2 5
15 Nickel mg/l 0.2 0.5 2
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No Parameters Unit Threshold
A B C
16 Manganese mg/l 0.2 1 5
17 Iron mg/l 1 5 10
18 Tin mg/l 0.2 1 5
19 Cyanide mg/l 0.05 0.1 0.2
20 Phenol mg/l 0.1 0.4 1
21 Mineral oil mg/l 5 5 10
22 Vegetable oil & animal fat mg/l 10 20 30
23 Chloride residue mg/l 1 2 2
24 PCB mg/l 0.003 0.01 0.05
25 Organic P mg/l 0.3 1 1
26 Organic Cl mg/l 0.05 0.1 0.1
27 Sulfur mg/l 0.2 0.5 1
28 Fluoride mg/l 1 2 5
29 Chloride mg/l 500 600 1000
30 Ammonia(N) mg/l 1 2 10
31 Total Nitrogen mg/l 15 30 60
32 Total Phosphorus mg/l 4 6 8
33 Coliform MPL/100ml 3000 5000 -
34 Biotest - 90% of fish population
survives after 96 hours in
100% wastewater
-
35 Total active α radiation Bq/l 0.1 0.1 -
36 Total active β radiation Bq/l 1 1 -
Table 5: Limit values of environmental parameters and pollutant concentration in industrial wastewater (TCVN 5945:2005) Notes If the final effluent has the values equal or less than values in column A, it is possible to discharge to the water using for
domestic supply.
If the final effluent has the values in between values in columns A and B, it is allowed to discharge to the water bodies serving
water transportation, irrigation, swimming, aquaculture, cultivation, etc.
If the final effluent has the values in between values in columns B and C, it is only allowed to discharge to the designated
receiving water including separate wastewater lakes, sewers connected to concentrated wastewater treatment plants, etc.
If the final effluent has the values greater than values in column C, it is not allowed to discharge to the environment.
Other environmental standards and technical regulations concerning wastewater include:
◼ QCVN 14: 2008/BTNMT National technical regulation on domestic wastewater
◼ TCVN 5945: 2005 Industrial Wastewater - Discharge standards
◼ QCVN 01-MT:2015/BTNMT National technical regulation on Effluent of Natural Rubber
Processing Industry
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◼ QCVN 11-MT:2015/BTNMT National technical regulation on Effluent of Aquatic Products
Processing Industry
◼ QCVN 12-MT:2015/BTNMT National technical regulation on Effluent of Pulp and Paper Mills
◼ QCVN 13-MT:2015/BTNMT National technical regulation on Effluent of Textile Industry
◼ QCVN 14-MT:2015/BTNMT National technical regulation on Domestic Wastewater
◼ QCVN 28:2010/BTNMT National technical regulation on Health Care Wastewater
◼ QCVN 29:2010/BTNMT National technical regulation on Effluent of Petroleum Terminal and
Stations
◼ QCVN 62-MT:2016/BTNMT National technical regulation on Effluent of Livestock
Procurement regulations for municipal water treatment plants (WTPs) and wastewater treatment
plants (WWTPs) depend on funding sources. There are projects with standard public
procurement, IFI funded projects, and bilateral donor financed projects. The procurement for
WTPs/WWTPs is decentralised to local governments. Those local entities that provide funding for
a project decide on bidders’ pre-qualification as well as on the evaluation scheme90. Provincial
governments issue additional rules governing procurement, which causes discrepancies between
provinces.
Bilateral donors have actively financed water and wastewater projects in Vietnam, usually in lower
income areas, involving small-scale facilities and networks, though a few large WTPs and
WWTPs have been financed by JICA under EPC contracts. The procurement guidelines of JICA,
for example, differ from IFI guidelines in that consultants involved in project preparation are
allowed to take part in EPC bidding. Bilateral donors frequently tie their funds, requiring a fixed
proportion of the contract value going to companies based in the donor’s country. Some donors
have provided funding through provincial authorities in the past, allowing local governments to
control procurement processes.
90 Global Water Market, 2014
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4.5 Air Pollution Regulations
It is regulated in the environmental protection law (55/2014/QH13) that (i) Any entity that produces
dust and/or exhaust gases during their business operation should take measures to control and
treat dust/exhaust gases in accordance with environmental standards; (ii) Vehicles, machinery,
equipment, constructions that produce dust and/or exhaust gases must have filters, covers, or
other parts to minimise exhaust gases and reduce dust in accordance with environmental
standards; and (iii) Dust and exhaust gases that contain hazardous elements beyond the
permissible limits shall be managed in accordance with regulations on hazardous wastes.
Typical emission standards on industrial emission for inorganic substances and dusts are
regulated in TCVN 5939:2005. The standards demonstrate limit values of dusts and inorganic
substances from industrial manufacturers, enterprises, and service activities before releasing to
the surrounding environment.
No Parameters Threshold A B
1 Fume dust 200 200
2 Silica dust 50 50
3 Ammonia and amonium species 76 50
4 Antimony and antimony compounds (as Sb) 20 10
5 Arsenic and arsenic compounds (as As) 20 10
6 Cadmium and cadmium compounds (as Cd) 20 5
7 Lead and lead compounds (as Pb) 10 5
8 CO 1000 10000
9 Chloride 32 10
10 Copper and copper compounds (as Cu) 20 10
11 Zinc and zinc compounds (as Zn) 30 30
12 HCl 200 50
13 Fluoride, HF, and inorganic compounds of Fluoride (as HF) 50 20
14 H2S 7.5 7.5
15 SO2 1500 500
16 NOx (as NO2) 1000 850
17 NOx (acid manufacturers) (as NO2) 2000 1000
18 Gaseous H2SO4 or SO3- (as SO3
-) 100 50
19 Gaseous HNO3 (acid manufacturers) (as NO2) 2000 1000
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No Parameters Threshold A B
20 Gaseous HNO3 (other sources) (as NO2) 1000 500
Table 6: Limit values of dust and inorganic substances in industrial emission, Unit: mg/Nm3
(TCVN 5939:2005)
Note:The values in column A apply for current manufacturers. The values in column B are for new-constructed manufacturers.
Industrial emission standards for organic substances are regulated in TCVN 5940:2005.
The standards show limit values of organic substances from industrial manufacturers,
enterprises, and service activities before releasing to the surrounding environment.
No Parameters CAS Chemical formula Threshold
1 Tetrabromoethane 79-27-6 CHBr2CHBr2 14
2 Acetaldehyde 75-07-0 CH3CHO 270
3 Acrolein 107-02-8 CH2=CHCHO 2.5
4 Amyl acetate 628-63-7 CH3COOC5H11 525
5 Aniline 62-53-3 C6H5NH2 19
6 Benzidine 92-87-5 NH2C6H4C6H4NH2 Not detected
7 Benzene 71-43-2 C6H6 5
8 Benzyl chloride 100-44-7 C6H5CH2Cl 5
9 1,3-Butadiene 106-99-0 C4H6 2200
10 n-Butyl acetate 123-86-4 CH3COOC4H9 950
11 Butylamine 109-73-9 CH3(CH2)2CH2NH2 15
12 Cresol 1319-77-3 CH3C6H4OH 22
13 Chlorobenzene 108-90-7 C6H5Cl 350
14 Chloroform 67-66-3 CHCl3 240
15 Β-chloroprene 126-99-8 CH2=CClCH=CH2 90
16 Chloropicrin 76-06-2 CCl3NO2 0.7
17 Cyclohexane 110-82-7 C6H12 1300
18 Cyclohexanol 108-93-0 C6H11OH 410
19 Cyclohexanone 108-94-1 C6H10O 400
20 Cyclohexane 110-83-8 C6H10 1350
Table 7: Limit values of organic substances in industrial emission, Unit: mg/Nm3 (TCVN 5940:2005).
Note: For other organic substances, please refer to TCVN 5940:2005.
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MONRE is mainly responsible for planning and implementing of national strategy on air quality
management. MONRE develops a decree on air pollution control and submit it to the Government
for consideration, instructing the People's Committees of provinces and central cities to develop
and implement the plan of air quality management, supplementing and amending environmental
technical regulations and standards related to air pollution control, formulating and promulgating
regulations on registration and inventory of industrial exhaust gas sources, and regulating of
continuously automatic monitoring of industrial emission.
The Ministry of Home Affairs (MoHA) in cooperation with MONRE study and promulgate
regulations on functions and tasks of air pollution control of other ministries and branches at all
levels. Ministry of Industry and Trade (MoIT) preside and coordinate with relevant ministries to
enhance the quality of biofuel production for gasoline engines and diesel engines of road vehicles.
The Ministry of Transport (MoT) increases pollutant control from vehicles, formulates,
promulgates and organises the implementation of national technical documents and regulations
on emissions for motorised vehicles, and coordinate with People's Committees at city and town
levels to invest in developing public transport in urban areas. Air quality and exhaust gas
management requires the participation of other ministries including the MoC (Ministry of
Construction), MoST (Ministry of Science and Technology), MoF (Ministry of Finance), MoPI
(Ministry of Planning and Investment), MoET (Ministry of Education and Training), MoIC (Ministry
of Information and Communication), MoH (Ministry of Health), and MoARD (Ministry of Agriculture
and Rural Development). Production facilities are required to strictly comply with the regulations
on air pollution control in production activities through improvement of the process, production
equipment and waste treatment equipment. Manufacturing establishments having high flow rate
industrial emission sources are required to install automatic and continuous emission monitoring
equipment, have their pollution sources registered and permitted for emitting by competent state
management agencies. 91 92
91 www.monre.gov.vn/VanBan/Lists/VanBanChiDao/Attachments/2345/985a.signed.pdf 92 https://openjicareport.jica.go.jp/pdf/1000020867_01.pdf
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4.6 Solid Waste Management
Solid waste management, which includes conventional solid wastes and hazardous wastes,
is managed by provincial and municipal administrations. Owners of manufacturing and business
establishments, organisations, households, and individuals living in the provinces or cities is
responsible for classification at source to facilitate their recycling and processing.
The conventional solid wastes are locally collected, stored, and transported with specialised
vehicles and equipment to transfer points or transfer stations and subsequently to recycling
stations or landfills. The collection, storage, and transportation are conducted by environment
authorities according to government regulations on conventional solid waste management.
Owners of manufacturing and business establishments, organisations, households,
and individuals that produce conventional solid wastes are responsible for recycling and treating
them. If conventional solid wastes cannot be recycled or treated, they shall be sent to the
organisations capable of recycling or processing such wastes.
Municipal solid waste is mainly treated by landfilling and combusting. Leachate treatment is
regulated in QCVN 25:2009/BTNMT. It regulates limits of pollutant parameters in leachate being
discharged to water bodies and is applied for organisations and individuals involved in solid waste
landfilling.
No Parameters Threshold (mg/l)
A B1 B2
1 BOD5 (20oC) 30 100 50
2 COD 50 400 300
3 Total Nitrogen 15 60 60
4 Ammonia (N) 5 25 25
Table 8: Limit values of pollutant parameters in leachate (QCVN 25:2009/BTNMT) Column A regulates the limit values before discharging to the water aiming for domestic uses. Column B1 is applied for the landfill operating before January 1st 2010 before discharging to the water that is not used for domestic activities. Column B1 is applied for the landfill operating since January 1st 2010 before discharging to the water that is not used for domestic activities.
Environment & Water Technologies – Vietnam Market Study - Page 133 of 166
National standards on solid wastes, sanitary landfill, and general requirements for environmental
protection are regulated in TCVN 6696:2009. TCXDVN 261:2001 on Solid waste landfills – Design
standard issued by Ministry of Construction regulates National Standards for designing a ground
surface of solid waste landfill sites, design solutions of the landfill sites, leachate treatment
facilities and auxiliary compartments of a landfill site.
Domestic Solid Waste Incinerator technical requirements are regulated in QCVN
61-MT:2016/BTNMT. This regulation applies to organisations, individuals producing, importing,
trading (distributing), using solid waste incinerators in the territory of Vietnam; national
management agencies on environment and related organisations and individuals.
No Parameters Unit Required values
1 Incinerator capacity kg/h ≥ 300
2 Primary combustion zone temperature oC ≥ 400
3 Secondary combustion zone temperature oC ≥ 950
4 Fire time S ≥ 2
5 Exhaust temperature (at sampling point) oC ≤ 180
6 Oxygen residue (at sampling point) % 6 – 15
7 Temperature outside of the furnace (or thermal insulation barrier) oC ≤ 60
8 Continuous operation capacity (still qualify the mechanical
durability and technical parameters)
H ≥ 72
Table 9: Basic technical parameters of domestic solid waste incinerator (QCVN 61-MT:2016/BTNMT)
Besides MONRE, there are five other ministries involved directly in solid waste management.
They are the Ministry of Health, the Ministry of Construction, the Ministry of Planning and
Investment (MPI), the Ministry of Transport (MoT), and the Ministry of Industry (MoI). Each of
them plays a key role in managing different sections of solid waste (municipal solid waste,
industrial solid waste, hazardous waste). The Ministry of Natural Resources and Environment
together with the Ministry of Construction, and the Ministry of Planning and Investment take care
Environment & Water Technologies – Vietnam Market Study - Page 134 of 166
of municipal solid waste, while industrial solid waste is handled under MONRE, MPI, MoT,
and MoI. And finally, hazardous waste is handled under MoNRE, MPI, and MoH.93
Solid waste management at local level is managed by provincial and municipal governments.
These parties include the People’s Committee (PC), the Department of Natural Resources and
Environment (DONRE), and Urban Environment Company (URENCO). The People’s Committee
takes care of administration at provincial level. PC’s responsibilities in waste management include
implementation of management regulations on environmental protection in their respective
localities, directing their functional agencies for coordinating with the functional agencies at the
central level, providing direction and consultancy for proper waste management facilities and
waste treatment projects in terms of design, construction, monitoring, etc and providing
investment and subsidies for solid waste management treatment facilities. The Department of
Natural Resources and Environment is an agency of MONRE. Thus, it is influenced by MONRE
and receives support, collaboration and guidance from it. Also, DONRE is influenced by PC, as
PC provides DONRE with support in political relations and administration. Finally, URENCO is an
agency of DONRE and PC. They are the main company that takes care of collecting, transporting,
and treating solid waste. It also takes responsibility in maintaining hygiene for public places,
lighting, and trees along the streets.
93 https://pdfs.semanticscholar.org/1f24/1d964e060464f6bf599d28e6e6e66c4c17c9.pdf
Environment & Water Technologies – Vietnam Market Study - Page 135 of 166
4.7 Hazardous / Toxic Waste Management Regulations
Ministry of Natural Resources and Environment and other involving ministries and local authorities
are responsible for hazardous waste management at all stages of collection, storage,
transportation, and treatment. All organisations, companies, contractors, and individuals
participating in any stage of hazardous waste management must be licensed by MONRE. Typical
hazardous waste treatment methods include incineration, combustion in industrial incinerators,
secure landfilling, and solidification/stabilisation. MONRE promulgated Circular 36/2015/TT-
BTNMT on management of hazardous wastes, elaborating the decree No. 38/2015/ND-CP
(amended and supplemented by Decree 40/2019/ND-CP). This Circular applies to regulatory
bodies, Vietnamese or foreign organisations and individuals (hereinafter referred to as entities)
whose activities involve hazardous wastes. A draft circular has been submitted to the Minister to
amend and supplement some articles in the Circular 36/2015/TT-BTNMT. Some regulatory
documents concerning hazardous waste management are listed below:
◼ TCVN 6706:2009 National standards on Hazardous Waste – Classification
◼ TCVN 6707:2009 National standards on Hazardous Waste – Warning Signs
◼ QCVN 02:2012/BTNMT National technical regulation on Solid Health Care Waste
Incinerators
◼ QCVN 30:2012/BTNMT National technical regulation on Industrial Waste Incinerators
◼ QCVN 07:2009/BTNMT National technical regulation on Hazardous Waste Threshold
◼ TCXDVN 320:2004 - Construction Standard on hazardous solid waste landfill design
◼ TCVN 7241-2003 - Health care solid waste incinerators - Determination method of dusts
concentration in flue gas.
Environment & Water Technologies – Vietnam Market Study - Page 136 of 166
4.8 Soil Pollution Regulations
Section 3 of the environmental protection law No.55/2014/QH13 mentioned the protection of land
environment, in which the controlling of land environmental pollution regulated the obligatory
articles towards elements that can pose a risk of polluting the land environment, the agencies in
charge of the land environmental protection, and measures to control the environmental pollution
threat. Soil quality management is elaborated and instructed in Clause 11, Article 2 of Decree
40/2019 / ND-CP and Article 14 of Decree 19/2015/NĐ-CP. Circular 30/2016/TT-BTNMT on
management improvement and remediation of residue contaminated sites details some points of
Decree No.19/2015/ND-CP. This circular elaborates criteria for classification of land
contaminated with residual contaminants, instructions on environment remediation at
contaminated sites, and inspection and verification of accomplishment of environmental
remediation of contaminated sites. Circular 60/2015/TT-BTNMT issues regulations on land
investment and assessment techniques. This Circular specifies technical specifications for land
survey and evaluation in accordance with the Land Law (45/2013/QH13), including techniques
for investigating and assessing land quality, land potential, soil pollution, and agricultural land,
and monitoring and monitoring techniques of land resources.
Some national technical regulations concerning soil pollution are listed below:
◼ QCVN 15:2008/BTNMT - National technical regulation on the pesticide residues in the soils
prescribes the maximum allowed level of residues of some plant protection chemicals in the
topsoil. This regulation is used to control and assess the level of pollution of plant protection
chemicals in the topsoil.
◼ QCVN 50:2013/BTNMT - National Technical Regulation on Hazardous Thresholds for
Sludges from Water Treatment Process prescribes the hazardous threshold of parameters
(except radioactive parameters) in sewage sludge arising from the process of wastewater
treatment, supply water treatment as a basis for delineation and management of sludge. It is
applicable to types of sludge from water treatment, with corresponding to sludge types
regulated in circular No. 12/2011/TT-BTNMT on hazardous waste management.
Environment & Water Technologies – Vietnam Market Study - Page 137 of 166
◼ QCVN 03-MT:2015/BTNMT - National technical regulation on the allowable limits of heavy
metals in the soils specifies the limit value of the total content of some heavy metals such as
Arsenic (As), Cadmium (Cd), Copper (Cu), Lead (Pb), Zinc (Zn) and Chrome (Cr) in the
topsoil according to land use purpose. This regulation does not apply to land within mines;
natural forest land; special-use forest land such as national parks, nature reserve, landscape
protection areas, and forests for research and scientific experiments.
Environment & Water Technologies – Vietnam Market Study - Page 138 of 166
4.9 Noise Pollution Regulations
Management and control of noise, vibration, light, and radiation is regulated in Section 5, Article
103 of the environmental protection law No.55/2014/QH13. This law specifies that it is obligatory
to take measures, control and manage any entities including manufacturing and business
establishments that create noise, vibration, light, and radiation. It also includes the regulations on
heavy traffics and prohibition of firecrackers. Regulations on noise pollution are also specified
elsewhere in the environmental protection law No.55/2014/QH13, generated by activities of
construction, household, and trade villages, etc. Some national standards regarding noise and
vibration include:
◼ QCVN 26:2010/BTNMT - National Technical Regulation on Noise prescribes maximum limits
of noise levels in areas where people live and work. The noise in this regulation is due to
human activities irrespective of the type of source or the location where the noise is
generated. This standard does not apply to the assessment of noise inside production,
construction, trade and service facilities. Maximum allowed noise level regulated in QCVN
26:2010/BTNMT is presented in Table 11.
◼ QCVN 27:2010/BTNMT - National Technical Regulation on Vibration stipulates maximum
limits of vibration acceleration in areas where people live and work. The vibration in this
regulation is caused by human activities, regardless of the source of the vibration or the
location where the vibration is generated. This regulation does not apply to assess the
vibration acceleration inside production, construction, trade and service facilities. Maximum
allowed value of vibration acceleration for construction activities, and for production, trade
and service activities are presented in Table 12 and Table 13, respectively.
◼ QCVN 24:2016/BYT - National Technical Regulation on Noise - Permissible Exposure
Levels of Noise in the Workplace prescribes the permitted level of exposure to workplace
noise.
Environment & Water Technologies – Vietnam Market Study - Page 139 of 166
No. Area From 6 am to 12 pm From 9 pm to 6 am
1 Special area* 55 45
2 Common area** 70 55
Table 10: Maximum allowed noise level (by equivalent sound level), dBA (QCVN 26:2010/BTNMT)
* Special areas are areas within the fences of health facilities, libraries, kindergartens, schools, churches, temples, pagodas and other areas with special regulations.
** Common areas include apartment buildings, separate or adjacent houses, hotels, motels, administrative agencies.
No. Area Applied hours Allowed vibration acceleration, dB
1 Special areab 6 am – 6 pm 75
6 pm – 6 am Background level
2 Special areac 6 am – 9 pm 75
9 pm – 6 am Background level
Table 11: Maximum allowed value of vibration acceleration for construction activities (QCVN 27:2010/BTNMT)
a The value measured when the oscillator is stable, value is the average of the maximum values for each oscillation measured with periodic or discontinuous intervals, and the average of 10 measured values every 5 seconds or its equivalent (L10) when the oscillations are unstable and random.
b Special areas are areas within the fences of health facilities, libraries, kindergartens, schools, churches, temples, pagodas and other areas with special regulations.
c Common areas include apartment buildings, separate or adjacent houses, hotels, motels, administrative agencies.
No. Area Applied hours and allowed vibration acceleration, dB
6 am – 9 pm 9 pm – 6 am
1 Special areab 60 55
2 Special areac 70 60
Table 12: Maximum allowed value of vibration acceleration for production, trade and service activities (QCVN 27:2010/BTNMT)
a The value measured when the oscillator is stable, value is the average of the maximum values for each oscillation measured with periodic or discontinuous intervals, and the average of 10 measured values every 5 seconds or its equivalent (L10) when the oscillations are unstable and random.
b Special areas are areas within the fences of health facilities, libraries, kindergartens, schools, churches, temples, pagodas and other areas with special regulations.
c Common areas include apartment buildings, separate or adjacent houses, hotels, motels, administrative agencies.
Environment & Water Technologies – Vietnam Market Study - Page 140 of 166
5. Annex
5.1 List of Useful Contacts
Ministry of Natural Resources and Environment (MONRE)
10 Ton That Thuyet, Cau Giay
Hanoi, Vietnam
Tel: +84 43 7956 868
Email: portal@monre.gov.vn
Website: www.monre.gov.vn
Ministry of Construction (MOC)
No. 37 Le Dai Hanh St.
Hai Ba Trung District
Hanoi, Vietnam
Tel: +84 43 9740 112
Email: N/A
Website: www.xaydung.gov.vn
Ministry of Planning and Investment (MPI)
No. 6B Hoang Dieu St.
Ba Dinh District
Hanoi, Vietnam
Tel: +84 43 8455 298
Email: ttth@mpi.gov.ph
Website: www.mpi.gov.vn
Saigon Water Corporation (SAWACO)
1 Cong Truong Quoc Te
Phuong 6, Quan 3
Ho Chi Minh City,70000 Vietnam
Tel: +84 28 3829 1777
Email: sawaco@sawaco.com.vn
Website: sawaco.com.vn
Environment & Water Technologies – Vietnam Market Study - Page 141 of 166
Hawaco Joint Stock Company
Phong 232, Khach San Binh Minh 27
Duong Ly Thai To, Phuong Tran Tien,
Hoan Kiem,
Hanoi, Vietnam
Tel: +84 24 3944 5999
Email: N/A
Website: hawaco.com.vn
European Chamber of Commerce in Vietnam
Unit 08, 3B Floor, Horison Towers
40 Cat Linh
Hanoi, Vietnam
Tel: +84 24 3715 2228
Fax: +84 24 3715 2218
Email: info-hn@eurochamvn.org
Website: eurochamvn.org
Environment & Water Technologies – Vietnam Market Study - Page 142 of 166
5.2 Starting a Business in Vietnam
Why Vietnam?
Vietnam offers a dynamic business environment for foreign companies due to the country’s
economic growth and stability, favourable tax environment and skilled labour force.
The Vietnamese government continues to improve business conditions for foreign investors
through reforms to lower the cost of doing business within the country.
Located next to China, Vietnam’s proximity makes also it an ideal alternative location for investors
seeking to diversify their supply chains from China.
Registering your business
Establishing a business in Vietnam is not simple as there are a number of important steps that
must be taken in order to ensure proper compliance with the country’s laws. Key among these
processes are the acquiring of an Investment Certificate, charter capital, and establishing the
correct management structure of the company.
The first step in setting up a business in Vietnam is acquiring an Investment Certificate (IC), also
known as a Business Registration Certificate. The time period required to acquire an IC varies by
industry and entity type, since these determine the registrations and evaluations required. It can
take about 15 to 37 working day to get an IC.
In order to be able to transfer capital into Vietnam, foreign investors must open a capital bank
account in a legally licensed bank. A capital bank account is a special purpose foreign currency
account designed to enable tracking of the movement of capital flows in and out of the country.
Government agencies
◼ Foreign Investment Agency (FIA), an organisation belonging to the Ministry of Planning
and Investment, is commissioned to advise to the Minister of Planning and Investment, to
implement state management functions related to foreign direct investment activities in
Environment & Water Technologies – Vietnam Market Study - Page 143 of 166
Vietnam. It presides over the development, amendment and complementation of foreign
investment policy and mechanism in the country.
FIA has a Vietnam Investment Portal (https://vietnam.eregulations.org/) that provides step-
by-step guides on investment procedures in 7 provinces in Vietnam. For each procedure,
a summary shows the institutions involved, the expected results, the requirements,
the average duration and the legal justifications. For each step, you can see the contact
details of the civil servants in charge, the forms and requirements, the costs, duration and
laws.
◼ Ministry of Industry and Trade (MIT) is the government ministry in Vietnam responsible for
the advancement, promotion, governance, regulation, management and growth of industry
and trade.
Business locations
The Vietnamese Government highlights 7 cities to foreign investors. These are Hanoi, Ho Chi
Minh City, Binh Dinh, Da Nang, Hai Duong, Phu Yen and Vinh Phuc, which are also the locations
of the industrial zones in the country. Industrial zones are locations that are earmarked by the
government for the production of industrial goods and services. Accordingly, industrial zones are
a popular investment destination for foreign businesses due to incentives for businesses to set-
up operations there.
As of December 2018, there were 326 industrial zones set up countrywide, with 249 already in
operation. The occupancy rate reached 73%, according to the Ministry of Planning and
Investment.
Finding a distributor in Vietnam
Foreign companies could strongly benefit from appointing a distributor to enter the Vietnamese
market. As experts on the local market, distributors can provide immediate access to an
established marketing network and in-depth knowledge about the regulatory framework. Buyer
and end-users, especially in the public sector, usually expect a local representative to handle all
Environment & Water Technologies – Vietnam Market Study - Page 144 of 166
aspects of the distribution. Foreign companies are also advised to have a local partner with strong
technical skills and good connection with ministries and public agencies.
Vietnam-based trade associations, chambers of commerce, and foreign commercial offices within
EU Member State embassies are all good places to start the search for a distributor in the country.
International business consultants with experience in helping foreign companies can also prove
invaluable by facilitating introductions to qualified distributors. It is always best to meet a
prospective distributor in person, and to check references.
Environment & Water Technologies – Vietnam Market Study - Page 145 of 166
5.3 International Financial Sources for Climate Change Mitigation in
Vietnam
UNFCC Financial Mechanism Funds
Funds Modality of
Support Sectors Fund Structure
Green Climate Fund
(GCF)
Financial
Assistance
CC mitigation and
adaptation
- GCF support projects, programmes and
policies on CC mitigation and adaptation
- Private sector facility allows direct and indirect
financing by the GCF for private sector
activities
- All developing country parties to UNFCC are
eligible to receive resources from the GCF.
Global Environment
Facility Trust Fund
(GEF/TF)
Financial
Assistance
CC mitigation and
adaptation
Activities supported by GEF/TF:
- Climate change mitigation: EE, RE;
sustainable transport; and management of
land use, land use change and forestry
- Climate change adaptation: Promoting both
immediate and longer-term adaptation
measures in development in policies, plans,
programs, projects and actions.
GEF Special Climate
Change Fund
(GEF/SCCF)
GEF/SCCF supports the following activities:
- Adaptation to climate change
- Technology transfer
- Mitigation in selected sectors: energy,
transport, industry, agriculture. Forestry and
waste management
- Economic diversification
GEF Small Grants
Programme (GEF-
SGP)
Financial
Assistance
CC mitigation and
adaptation
Activities supported include:
- Biodiversity
- CC mitigation and adaptation
- Land degradation and sustainable forest
management
- International waters and chemicals
Table 13: UNFCC Financial Mechanism Funds
Environment & Water Technologies – Vietnam Market Study - Page 146 of 166
Non-UNFCC Financial Mechanism Funds (Multilateral Funds)
Funds Modality of
Support Sectors Fund Structure
Clean Technology
Fund (CTF)
Financial
Assistance
Power, Transport,
EE
- CTF aims at promoting scaled-up deployment
and transfer of clean technologies by funding
low-carbon programmes and projects
- CTC focuses on the power, transport and EE
sectors
- 5 Projects approved by the CTF in Vietnam
through IBRD, ADB and IFC for a total of
EUR 96.09 million
Global Energy
Efficiency Renewable
Energy Fund
(GEEREF)
Financial
Assistance EE, RE
- GEEREF invests in private equity sub-funds
that specialise in financing small and medium-
sized projects in developing countries and
economies in transition
Forest Carbon
Partnership Facility
(FCPF)
Financial
Assistance REDD+
- The FCPF consists of Readiness Fund (RF)
and Carbon Fund (CF)
- FCPF assists developing countries to reduce
emissions from deforestation and forest
degradation, enhance and conserve forest
carbon stocks, and sustainably manage
forests.
UN-REDD
Programme
Financial
Assistance REDD+
UN-REDD supports are channelled through:
- Direct support to the design and
implementation of National REDD
Programmes
- Complementary tailored support to national
REDD+ action
- Technical capacity building support through
sharing of expertise, common approaches,
analyses, methodologies, tools, data, and best
practices.
Future Carbon Fund
under the Carbon
Market Initiative (ADB
CMI)
Financial
Assistance EE, RE
- ADB CMI supports and encourages EE and RE
projects, and other projects with long-term
GHG abatement benefits beyond 2012.
- Assisting countries have mandatory or
voluntary GHG reduction targets and policies
beyond 2012 by providing ongoing access to
certified emission reductions (CERs) and
verifiable emissions reductions (VERs).
- Enhancing the affordability and attractiveness
of low-carbon technologies over conventional
options through the reduction of the initial
capital barriers of GHG mitigation projects.
Asian Clean Energy
Fund (ACEF)
Financial
Assistance EE, RE
- ACEF was established by Japan as part of its
initiative of Enhanced Sustainable
Development for Asia.
Environment & Water Technologies – Vietnam Market Study - Page 147 of 166
Non-UNFCC Financial Mechanism Funds (Multilateral Funds)
Funds Modality of
Support Sectors Fund Structure
- ACEF supports efforts of developing member
countries towards reducing greenhouse gases
through utilisation of renewable energy and
energy efficiency technologies.
Asian Clean Energy
Fund (ACEF)
Financial
Assistance EE, RE
- ACEF was established by Japan as part of its
initiative of Enhanced Sustainable
Development for Asia.
- ACEF supports efforts of developing member
countries towards reducing greenhouse gases
through utilisation of renewable energy and
energy efficiency technologies.
Clean Energy
Financing Partnership
Facility (CEFPF)
Financial
Assistance Energy
CEFPF supports:
- Deployment of new clean energy technology.
- Projects that lower the barriers to adopting
clean energy technologies.
- Projects that increase access to modern forms
of clean and efficient energy for the poor.
- Technical capacity programs for clean energy
Table 14: Non-UNFCC Financial Mechanism Funds (Multilateral Funds)
Environment & Water Technologies – Vietnam Market Study - Page 148 of 166
Non-UNFCC Financial Mechanism Funds (Bilateral Funds)
Funds Modality of
Support Sectors Fund Structure
UK's International
Climate Fund (UK-
ICF)
Financial
Assistance Climate Change
Activities supported by the ICF include:
- Building global knowledge and evidence;
- Developing and scaling-up low-carbon and
climate resilient programs.
- Building capacity in the public and private
sectors and supporting country level action.
- Mainstreaming climate change into UK
development aid.
Actions for Cool Earth
2.0 (ACE 2.0)
Financial
Assistance Climate Change
ACE 2.0, a new initiative of the Japanese Government
for supporting action in developing countries and
advancement of innovative technologies to address
climate change.
- A total amount of EUR 9.17 billion will be
provided as climate finance to developing
nations in 2020
- Supported activities: RE production, resilient
infrastructure, and a variety of other mitigation
efforts
Japan’s fast start
finance (J-FSF)
Financial
Assistance Climate Change
Japan's FSF supports both mitigation and adaptation
activities.
- Mitigation activities supported: energy
savings, increased energy efficiency
technologies, and new, clean energy initiatives
- Assistance for adaptation projects may include
adaptation planning, forestry, rural
electrification research, drought management,
and co-benefit approaches.
Table 15: Non-UNFCC Financial Mechanism Funds (Bilateral Funds)
Environment & Water Technologies – Vietnam Market Study - Page 149 of 166
Domestic Finance Sources
Funds Modality of
Support Sectors Fund Structure
Sustainable Energy
Promotion Fund
(SEPF)
Financial Support RE
- SEPF, created at the Prime Minister's Decision
No. 2068/QD-TTg dated "Approving the
Vietnam's Renewable Energy Development
Strategy up to 2030 with an outlook to 2050” as
a financial support source for renewable
energy development and utilisation, aims to
provide financial support to the promotion of RE
development on the national scale.
Vietnam
Environmental
Protection Fund
(VEPF)
Financial Support
Environmental
Protection and
Climate Change
- VEPF is a financial institution under MONRE.
- VEPF provides loans to environmental
protection projects.
- VEPF provides financial assistance CC
mitigation activities.
Green Growth
Strategy Facility
(GGSF)
Financial Support Climate Change
- GGSF is funded by The Government of
Vietnam and the Belgium Government.
- GGSF supports the implementation of the
Green Growth Strategy (GGS) and a Green
Growth Action Plan for 2014-2020.
Green Investment
Facility (GIF) Financial Support
EE in bricks and
ceramic
production,
and food
processing
- GIF is established under "Low Carbon
Transition in Energy Efficiency Sector" which
is supported by the Government of Denmark.
- GIF supports small and medium enterprises in
Vietnam get access to funding for energy
efficient projects.
Table 16: Domestic financial resources
Environment & Water Technologies – Vietnam Market Study - Page 150 of 166
NDC Partnership Funds
Funds Modality of
Support Sectors Fund Structure
Global Climate
Partnership Fund
Financial
Assistance,
Technical
Assistance
Agriculture, EE,
RE
- GCPF facilitates broad-based investments in
climate-relevant projects in selected countries
Low Carbon
Transition in the EE
sector
Financial
Assistance,
Technical
Assistance
EE
- Promoting EE of new Building Construction as
well as in SMEs in selected sectors - The
project addresses a wide range of barriers to
EE in Buildings, such as lack of capacity to
design EE Buildings - Providing financial
assistance for SMEs
Norway’s International
Climate and Forest
Initiative (NICFI)
Financial
Assistance
Forestry &
REDD+
- A Norwegian government fund aims at
supporting efforts to slow, reduce and
eventually halt greenhouse gas emissions
resulting from deforestation and forest
degradation in developing countries (REDD+).
Mitigation of Climate
Change in Agriculture
(MICCA) Programme
Technical
Assistance,
Capacity Building
Agriculture,
Climate Change,
Coastal
Resources,
Forestry &
REDD+, Gender,
Land Use
- MICCA programme is a FAO’s initiative to
address climate change in the agriculture,
forestry and fisheries sectors and supports
countries participating in the climate change
negotiation processes within UNFCC.
Multilateral Fund for
the Implementation of
Montreal Protocol
Financial
Assistance,
Technical
Assistance
Climate
Change/General
- The main objective of the Fund is to assist
developing country parties to the Montreal
Protocol whose annual level of consumption of
the ozone depleting substances (ODS)
chlorofluorocarbons (CFCs) and halons is less
than 0.3 kilograms per capita to comply with
the control measures of the Protocol.
Nationally Determined
Contribution
Leadership Compact
Technical
Assistance
Agriculture,
Climate Change,
EE, RE, Forestry
& REDD+,
Infrastructure and
Industry, Land
Use
- A U.S-led initiative with 15 or more developing
countries from Africa, Asia, and Latin America
and the Caribbean that are leaders in their
commitments and actions to move quickly in
making substantial progress in addressing
climate change.
Partnership on
Transparency in the
Paris Agreement
Technical
Assistance,
Capacity Building
Climate
Change/General
- To support a practical exchange on mitigation-
related activities and MRV between
developing and developed countries in order
to help close the global ambition gap.
Clean Technology
Fund (CTF) of
Climate Investment
Fund
Financial
Assistance EE, RE, Transport
- Driving down technology costs
- Bridging financing gaps
- Creating markets
- Innovating private sector finance
Environment & Water Technologies – Vietnam Market Study - Page 151 of 166
NDC Partnership Funds
Funds Modality of
Support Sectors Fund Structure
Green Climate Fund
(GCF)
Financial
Assistance
Agriculture, CC,
EE, Forestry &
REDD+,
Infrastructure and
Industry, Land
Use, RE,
Transportation,
Urban Adaptation,
Waste, Water
- The GCF aims to promote the paradigm shift
towards low emission and climate-resilient
development pathways by providing support to
developing countries to limit or reduce their
greenhouse gas emissions and to adapt to the
impacts of climate change, taking into account
the needs of those developing countries
particularly vulnerable to CC.
Capacity Building
Initiative for
Transparency (CBIT)
Trust Fund
Financial
Assistance
Enhance capacity
and transparency
in CC mitigation
- Global Environment Facility (GEF) council will
act as the CBIT Council, which will utilise the
policies, procedures, and the governance
structure of the GEF Council.
- GEF policies and procedures, such as M&E
policies, reporting requirements, gender policy
and environmental and social safeguards will
apply to projects supported by the CBIT.
Table 17: NDC Partnership Funds Source: Vietnam Institute of Meteorology, Hydrology and Climate change (IMHEN)
Environment & Water Technologies – Vietnam Market Study - Page 152 of 166
5.4 Useful Statistics
Exporters Imported value in 2014
Imported value in 2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 63,800 96,259 106,871 85,599 98,446
China 17,228 27,695 30,566 22,704 35,973
Republic of Korea 15,914 32,266 36,979 19,256 19,179
Germany 3,010 1,591 2,849 9,982 7,181
Japan 2051 6,078 4,017 6,758 6,503
United States of America 2019 1540 4,045 5,827 5,529
Taipei, Chinese 10755 10694 14,103 8,561 5,124
Malaysia 444 4376 2169 1,092 3,608
India 508 261 1272 1,212 2,569
Singapore 212 1122 816 423 2,538
Italy 742 422 701 1367 1,854
Table 18: Imports of machinery and apparatus for filtering or purifying water Source: Trade Map Unit: US Dollar thousands
Importers Exported
value in 2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 129,193 2,718 2,906 3,319 3,659
Republic of Korea 145 - 33 239 610
Myanmar 148 452 577 1,061 509
Taiwan - 6 91 11 485
Indonesia 11 20 100 434 369
Pakistan - 51 1 - 251
Saudi Arabia 127,882 - 17 30 239
India 32 15 115 142 196
Laos 124 174 85 134 152
United Arab Emirates - - 54 2 151
Thailand 160 1,207 132 155 147
Table 19: Exports of machinery and apparatus for filtering or purifying water Source: Trade Map Unit: US Dollar thousand
Environment & Water Technologies – Vietnam Market Study - Page 153 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 81,976 124,380 96,485 101,089 108,385
China 10,873 39,393 16,927 20,765 25,640
United States of America 13,366 15,781 20,928 20,204 17,538
Republic of Korea 9,211 31,433 16,764 16,754 16,693
Taiwan 10,340 6,969 11,451 11,135 10,537
Japan 7,049 6,549 6,564 9,015 8,875
Germany 6,576 6,163 5,257 5,805 7,617
Thailand 6,628 2,432 3,001 3,129 4,209
Malaysia 1,874 3,642 3,928 3,347 3,802
India 5,740 4,118 829 553 2,196
Spain 63 19 52 214 2,025
Table 20: Imports of parts of machinery and apparatus for filtering or purifying liquids or gases Source: Trade Map Unit: US Dollar thousands
Importers Exported value in
2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 33,441 31,177 23,656 30,710 36,398
Japan 6,056 7,033 6,972 6,836 7,515
United States of America 3,856 4,301 5,131 4,981 6,389
China 550 798 485 2,737 5,421
Iraq - - - - 4,121
Republic of Korea 786 850 5,063 3,101 3,840
Thailand 770 929 2,350 1,897 1,611
Kuwait 1 - - 2,541 1,133
United Kingdom 2 - 3 1 934
Taiwan 1,094 788 199 124 765
Philippines 17 18 231 593 579
Table 21: Exports of parts of machinery and apparatus for filtering or purifying liquids or gases Source: Trade Map Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 154 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 45,308 51,905 50,292 45,826 46,440
China 9,059 7,993 7,992 7,803 9,491
Germany 4,887 6,543 6,359 5,613 5,171
Japan 3,940 6,198 7,356 3,256 4,312
Republic of Korea 2,800 4,051 5,556 4,609 4,093
France 2,663 3,028 3,157 3,102 3,761
United States of America 3,293 3,255 4,462 3,905 3,145
Thailand 3,457 4,203 3,708 3,886 2,204
United Kingdom 2,429 3,409 1,648 1,542 2,056
Sweden 1,296 1,264 1,000 1,256 1,979
Italy 1,135 1,126 1,249 1,382 1,699
Table 22: Imports of instruments and apparatus for measuring or checking the flow or level of liquids (excluding meters and regulators) Source: Trade Map Unit: US Dollar thousands
Importers Exported value in
2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 2,043 3,783 4,536 4,928 5,092
Brazil 723 2,813 3,347 3,356 3,931
Cambodia 76 96 383 10 296
Italy 1 - 194 371 261
Taiwan 1 32 195 181 229
Republic of Korea - 44 43 18 133
Laos 155 346 26 415 47
Malaysia 33 4 17 47 35
Singapore 592 162 59 162 32
Thailand 8 31 20 62 16
France - - 3 5 15
Table 23: Exports of instruments and apparatus for measuring or checking the flow or level of liquids (excluding meters and regulators) Source: Trade Map Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 155 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 20,666 17,972 20,241 24,703 29,420
Germany 7,174 1,836 2,243 4,888 6,495
United States of America 1,929 3,729 4,516 3,735 5,073
United Kingdom 1,366 1,216 3,916 2,715 3,627
China 2,794 1,191 1,370 2,324 3,387
Japan 670 801 1,633 1,213 1,684
Singapore 201 432 504 913 1,292
Republic of Korea 680 1,513 1,916 2,684 1,259
Australia 2,516 1,427 1,108 776 1,096
Canada 93 93 46 226 958
Czech Republic 21 - 102 18 709
Table 24: Imports of gas or smoke analysis apparatus Source: Trade Map
Unit: US Dollar thousands
Importers Exported
value in
2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 30,438 38,287 56,955 67,809 85,899
Republic of Korea 29,280 33,327 51,586 62,804 75,372
China - 4,834 5,280 4,750 10,122
Côte d'Ivoire - - - - 78
Cambodia - 11 6 4 58
India - - 1 4 47
Japan 3 25 13 4 46
Laos - 4 1 - 39
Germany - - 2 3 24
Brazil - 7 2 - 21
United States of America - 13 32 47 17
Table 25: Exports of gas or smoke analysis apparatus Source: Trade Map Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 156 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 113,720 140,049 151,437 154,329 198,252
Republic of Korea 8,090 11,339 15,160 15,708 41,457
China 16,496 26,842 19,524 22,617 31,174
Japan 16,278 21,887 34,993 28,138 30,731
Germany 16,215 16,536 27,189 27,072 29,529
United States of America 12,830 13,368 12,991 12,498 10,979
France 4,192 4,677 5,231 5,764 7,618
India 1,256 1,246 4,048 3,847 7,065
United Kingdom 4,185 4,920 3,140 4,339 6,172
Taiwan 5,143 4,156 3,311 3,819 4,218
Italy 2,346 2,369 2,571 3,079 3,865
Table 26: Imports of instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases Source: Trade Map Unit: US Dollar thousands
Importers Exported
value in 2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 64,160 67,324 90,634 88,427 91,632
Republic of Korea 11,309 17,407 40,722 41,005 45,746
Japan 7,741 10,183 15,501 14,279 13,153
Thailand 15,091 9,136 7,190 7,225 7,552
Indonesia 3,598 4,090 5,942 5,432 6,003
Brazil 723 2,873 3,347 3,356 3,931
India 2,207 2,191 1,131 2,871 3,418
Netherlands 424 441 2,629 3,117 2,900
China 7,860 6,320 5,809 3,140 2,788
United States of America 157 123 836 1,693 1,747
Taiwan 2,561 2,487 1,832 1,377 1,199
Table 27: Exports of instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases Source: Trade Map Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 157 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 26,781 31,134 28,942 31,949 44,082
China 3,147 5,728 7,050 6,841 10,265
Korea, Republic of 2,268 3,333 3,373 5,744 10,237
Japan 5,017 4,186 6,285 4,374 5,324
Germany 4,089 3,805 3,472 3,056 4,491
United States of America 3,532 4,834 2,436 2,482 3,156
India 615 248 829 608 1,913
Singapore 1,444 455 811 1,298 1,277
Italy 533 614 445 530 1,108
Taipei, Chinese 772 720 663 757 1,061
France 734 586 572 889 1,036
Table 28: Imports of instruments and apparatus for measuring or checking pressure of liquids or gases (excluding regulators)
Source: Trade Map Unit: US Dollar thousands
Importers Exported value in
2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 19,553 27,559 30,138 27,854 25,036
Republic of Korea 11,302 17,196 22,782 22,869 20,688
China 6,560 5,923 5,497 3,121 2,753
Thailand 677 709 1,088 1,153 1,006
Singapore 703 484 61 89 140
Egypt - - 47 41 106
Cambodia 7 19 47 88 78
Netherlands - 116 - - 56
Japan 46 641 44 28 35
Laos 14 75 124 59 30
Malaysia 127 2,243 45 102 30
Table 29: Exports of instruments and apparatus for measuring or checking pressure of liquids or gases (excluding regulators) Source: Trade Map
Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 158 of 166
Exporters Imported value in
2014
Imported value in
2015
Imported value in
2016
Imported value in
2017
Imported value in
2018
World 26,402 35,962 41,511 49,176 64,389
Germany 5,657 3,884 15,186 16,198 17,926
Japan 3,961 6,234 5,829 8,768 10,029
China 2,579 9,369 2,104 5,002 9,888
Republic of Korea 1,867 2,368 4,230 2,844 7,326
United States of America 3,631 3,831 4,230 4,656 3,175
United Kingdom 1,085 502 772 1,670 2,968
France 531 777 1,247 1,264 2,391
Taiwan 740 975 885 1,244 1,362
Belgium 25 719 351 175 1,301
Netherlands 932 896 1,016 339 1,041
Table 30: Imports of instruments or apparatus for measuring or checking variables of liquids or gases Source: Trade Map Unit: US Dollar thousands
Importers Exported
value in 2014
Exported value in
2015
Exported value in
2016
Exported value in
2017
Exported value in
2018
World 40,243 34,062 55,358 53,706 54,829
Republic of Korea 7 167 17,886 17,197 19,689
Japan 7,687 9,480 15,344 13,997 12,616
Thailand 14,376 8,387 6,063 5,977 6,484
Indonesia 3,216 3,696 5,386 5,045 5,628
India 2,186 2,191 1,127 2,858 3,408
Netherlands 390 311 2,624 3,107 2,844
United States of America 108 2 783 1,648 1,617
Taiwan 2,473 2,322 1,627 1,193 888
United Kingdom - 2 637 894 671
Turkey - - 628 616 564
Table 31: Exports of instruments or apparatus for measuring or checking variables of liquids or gases Source: Trade Map Unit: US Dollar thousands
Environment & Water Technologies – Vietnam Market Study - Page 159 of 166
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