Vietnam Plans More Incentives for Foreign Investors in Water Sector

The Vietnamese government is working on a plan to offer more incentives to foreign investors, including South Korean firms, in the field of environment and water supply and drainage, according to the Ministry of Construction. The information was released at a conference in Hanoi on June 3 with the South Korean Ministry of Environment to share experience in infrastructure development of the water sector. Vietnam’s water supply and wastewater treatment services sector has boasted much potential for foreign investors as the government is not capable of handling the issue on its own due to a capital shortage amid the rising demand. Businesses from Vietnam and South Korea have used Entech 2013 to negotiate a number of trade contracts on waste treatment, energy saving equipment, and recycling. Vietnam now has 70 water supply enterprises and seven out of the total 765 urban areas are equipped with common wastewater treated systems with 14 treatment stations and 14% of urban wastewater volume treated. The county has to date attracted $1.29 billion in 30 foreign direct investment (FDI) projects on clean water supply and waste treatment, the Ministry of Planning and Investment said, adding that the figure accounted for just 0.59% of the country’s total FDI of $216.93 billion. Untreated waste is a pressing issue in Vietnam, with 40% of toxic waste improperly treated and the rest being buried and recycled illegally, severely harming the environment and human health, experts said. (Thoi Bao Kinh Te – Economic Times June 3 p2)