In January, Vietnam’s water supply and waste treatment sector registered a total of US$73.8 million in new foreign direct investment (FDI) across three new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decrease of US$26.5 million compared to December, which saw US$100.3 million in registered capital. No new projects were recorded in December.

In total, the sector accounted for 1.7 percent of total FDI in January, up from 1.47 percent in December.

Vietnam’s water supply and waste treatment industry is becoming increasingly important as the country tackles rapid urbanisation, industrialisation, and environmental concerns. With a growing population and expanding urban areas, the demand for clean water has surged, while the need for effective waste management systems has become more urgent.

In recent years, foreign direct investment (FDI) has played a significant role in modernising the sector, with international companies bringing expertise and advanced technologies to improve water treatment and waste disposal systems. Large-scale projects have focused on expanding water treatment plants, improving distribution networks, and developing waste-to-energy technologies. Vietnam has also been increasing efforts to reduce pollution by promoting more efficient and eco-friendly waste treatment solutions, particularly in major cities like Hanoi and Ho Chi Minh City, where water and waste management systems are under significant pressure.

Despite the progress, the industry faces challenges, including limited resources for wastewater treatment, outdated infrastructure in rural areas, and the impact of climate change on water availability. Additionally, industrial growth and increased agricultural activity have led to higher levels of water pollution, further straining the sector. However, with continued investment in infrastructure, the promotion of sustainable practices, and government support for innovation, Vietnam’s water supply and waste treatment industry is poised for growth, contributing to the country’s long-term environmental sustainability and public health goals.

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