In December 2024, Vietnam’s water supply and waste treatment sector recorded no new projects but registered US$100,344 in newly registered capital, according to data from Vietnam’s Ministry of Planning and Investment. This reflects a decline from November, when the sector saw no new projects but registered US$24,823 in newly registered capital.
In 2024, the sector attracted a total of 1 new project with US$20,630 in newly registered capital.
Vietnam’s water supply and waste treatment sector has seen significant development, driven by the country’s rapid urbanisation, industrial growth, and increased focus on environmental sustainability. This sector encompasses water supply, wastewater treatment, solid waste management, and recycling activities. The Vietnamese government has prioritised investments in water infrastructure and waste management systems to address growing urban demands and reduce environmental pollution.
Foreign direct investment plays a crucial role in modernising the sector, with contributions from countries such as Japan, South Korea, Germany, and Singapore. Key projects include the construction of modern water treatment plants, advanced sewage systems, and solid waste-to-energy facilities. Foreign investors often bring expertise in sustainable technologies, helping Vietnam meet its environmental and public health goals.
Despite its growth, the sector faces challenges, such as ageing infrastructure and gaps in coverage, particularly in rural areas. However, ongoing government reforms, incentives for foreign investors, and a focus on public-private partnerships are expected to drive further FDI. As Vietnam continues to align with global sustainability standards, this sector offers significant opportunities for innovation and international collaboration.
See also: How to Start a Business in Vietnam