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Environment & Water Technologies Vietnam Market Study MARCH 2020

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Page 1: Environment & Water Technologies Vietnam Market Study

Environment & Water Technologies

Vietnam Market Study

MARCH 2020

Page 2: Environment & Water Technologies Vietnam Market Study

© 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.

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EU Business Avenues in South East Asia

Central Management Unit

Vietnam Market Study

March 2020

Submitted to the European Commission on 16 April 2020

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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

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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

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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

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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

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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

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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.

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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.

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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

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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.

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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.

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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.

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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

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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

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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/

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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.

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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.

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◼ 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.

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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.

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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.

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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: [email protected]

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: [email protected]

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: [email protected]

Website: sawaco.com.vn

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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: [email protected]

Website: eurochamvn.org

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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

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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

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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.

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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

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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.

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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)

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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)

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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

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TuoitreNews (2018). Vietnam lacks effective solutions to aircraft noise issue: workshop. https://tuoitrenews.vn/news/business/20181130/vietnam-lacks-effective-solutions-to-aircraft-noise-issue-workshop/47951.html

UNCDC (2018). Final Country Report of the Land Degradation Neutrality Target Setting Programme, The Socialist Republic of Viet Nam, Hanoi. https://knowledge.unccd.int/sites/default/files/ldn_targets/Viet%20Nam%20LDN%20TSP%20Country%20Report.pdf

United Nations Framework Convention on Climate Change (2017). The Second Biennial Updated Report of Viet Nam to the United Nations Framework Convention on Climate Change. https://unfccc.int/sites/default/files/resource/97620135_Viet%20Nam-BUR2-1-Viet%20Nam%20-%20BUR2.pdf

Vietnam Association of Water Supply and Sewerage (2018). Water and Wastewater Management in Vietnam: Status, Plans and Business Opportunities. http://www.unido.or.jp/files/sites/2/Water-and-Wastewater-Management-in-Vietnam.pdf

Vietnam Briefing (2019). Vietnam’s Improving Business Environment: 2018 Provincial Competitive Index. https://www.vietnam-briefing.com/news/vietnams-improving-business-environment-2018-provincial-competitive-index.html/

Vietnam Briefing (2018). An Introduction to Vietnam’s Import and Export Industries. https://www.vietnam-briefing.com/news/introduction-vietnams-export-import-industries.html/

Vietnam Economic Times (2019). Nestlé & mGreen team up in environmental protection. https://vneconomictimes.com/article/society/nestle-mgreen-team-up-in-environmental-protection

Vietnam Insider (2019). Saigonese exchange e-waste for trees https://vietnaminsider.vn/saigonese-exchange-e-waste-for-trees/

Vietnam Institute of Meteorology, Hydrology and Climate Change (2018). Finance Sources for Climate Change Mitigation in Vietnam. https://www.jica.go.jp/project/english/vietnam/036/activities/c8h0vm0000bqnnlf-att/e5e.pdf

Vietnam Investment Review (2019). E-procurement system applied to banks’ projects. https://www.vir.com.vn/e-procurement-system-applied-to-banks-projects-66597.html

Viet Nam News Bizhub (2015). Consortium launches e-waste recycling programme in Viet Nam. http://bizhub.vn/tech/consortium-launches-e-waste-recycling-programme-in-viet-nam_10600.htm

Vietnam Plus (2019). Work starts on 2,000 tonne waste-to-energy plant in HCM City. https://en.vietnamplus.vn/work-starts-on-2000-tonne-wastetoenergy-plant-in-hcm-city/162187.vnp

VN Express (2019). Health ministry issues first public advisory on air pollution. https://e.vnexpress.net/news/news/health-ministry-issues-first-public-advisory-on-air-pollution-4028017.html

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VN Express International (2019). Vietnam plans to build first road made from recycled plastic. https://e.vnexpress.net/news/life/trend/vietnam-plans-to-build-first-road-made-from-recycled-plastic-3911703.html

VN Express International (2019). Vietnam Struggling to Decide How to Treat Solid Waste. https://e.vnexpress.net/news/news/vietnam-struggling-to-decide-how-to-treat-solid-waste-3921728.html

VN Express International (2019). Health Ministry Issues First Public Advisory on Air Pollution. https://e.vnexpress.net/news/news/health-ministry-issues-first-public-advisory-on-air-pollution-4028017.html

VN Express International (2019). HCMC to Spend $21 Mln on Environment Monitoring System. https://e.vnexpress.net/news/news/hcmc-to-spend-21-mln-on-environment-monitoring-system-4017733.html

VN Express International (2019). Pollution-choked Saigon Should Monitor Air Quality Daily: Environment Department. https://e.vnexpress.net/news/news/pollution-choked-saigon-should-monitor-air-quality-daily-environment-department-4023704.html

VN Express International (2019). Vietnam Dumps Almost All Urban Wastewater Untreated Into the Environment. https://e.vnexpress.net/news/news/vietnam-dumps-almost-all-urban-wastewater-untreated-into-the-environment-3993043.html

VN Express International (2019). Hanoians Struggle for Drinking Water After River Contaminated with Oil. https://e.vnexpress.net/news/life/trend/hanoians-struggle-for-drinking-water-after-river-contaminated-with-oil-3998037.html

Vietnam Institute of Meteorology, Hydrology and Climate Change (2014). Vietnam National Strategy on Climate Change. http://www.mrcmekong.org/assets/Publications/Events/2nd-CCAI-Forum/5-4-Viet-Nam.pdf

Vietnam Investment Review (2019). People’s Awareness Plays a Key Role in Handling Solid Waste. https://www.vir.com.vn/peoples-awareness-plays-a-key-role-in-handling-solid-waste-65230.html

Vietnam Investment Review (2019). German Solutions for Hanoi’s Wastewater and Sludge Problem. https://www.vir.com.vn/german-solutions-for-hanois-wastewater-and-sludge-problem-66624.html

Vietnam Investment Review. (2018). Vietnam reports first billion-dollar FDI projects of 2018. https://www.vir.com.vn/vietnam-reports-first-billion-dollar-fdi-projects-of-2018-60562.html

Vietnam Investment Review (2018). Air Pollution is Vietnam’s Silent Killer. https://www.vir.com.vn/air-pollution-is-vietnams-silent-killer-56542.html

VietnamNet Global (2019). Vietnam Strives to Effectively Manage Solid Waste. https://vietnamnet.vn/en/sci-tech-environment/vietnam-strives-to-effectively-manage-solid-waste-530059.html

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Viet Nam News (2019). Rural Residents Thirsty for Clean Water. https://vietnamnews.vn/society/507328/rural-residents-thirsty-for-clean-water.html

Viet Nam News (2019). HCMC students lead efforts to recycle waste. https://vietnamnews.vn/society/483344/hcmc-students-lead-efforts-to-recycle-waste.html

Viet Nam News (2019). Viet Nam Takes Action to Reduce Plastic Waste. https://vietnamnews.vn/environment/505164/viet-nam-takes-action-to-reduce-plastic-waste.html#jH4e8lVlHcdf2zsf.97

Viet Nam News (2019). Hanoians Seek Solutions to Air Quality Nightmare. https://vietnamnews.vn/economy/536220/hanoians-seek-solutions-to-air-quality-nightmare.html

Viet Nam News (2018). UNESCO announces project using arts to raise recycling awareness. https://vietnamnews.vn/life-style/468145/unesco-announces-project-using-arts-to-raise-recycling-awareness.html

Viet Nam News (2018). Eco-industrial Parks Critical for Development. https://vietnamnews.vn/economy/469589/eco-industrial-parks-critical-for-development.html

Vietnam Net (2015). HCM City needs regional urban visions to tackle flooding. https://english.vietnamnet.vn/fms/society/142018/hcm-city-needs-regional-urban-visions-to-tackle-flooding.html

Vietnam Plus (2020). Can Tho to Double Capacity of Wastewater Treatment Plant. https://en.vietnamplus.vn/can-tho-to-double-capacity-of-germanfunded-wastewater-treatment-plant/167050.vnp

Vietnam Plus (2019). Hanoi Calls for German Investors in Drainage, Wastewater Treatment. https://en.vietnamplus.vn/hanoi-calls-for-german-investments-in-drainage-wastewater-treatment/148580.vnp

Water Resources Group (2017). Hydro-Economic Framework for Assessing Water Sector Challenges. https://www.2030wrg.org/wp-content/uploads/2017/08/Vietnam-Hydro-Economic-Framework.pdf

WaterWorld (2017). Wastewater Overhaul in Vietnam Funded by Dutch Government. https://www.waterworld.com/international/wastewater/article/16203151/wastewater-overhaul-in-vietnam-funded-by-dutch-government

World Bank (2019). Vietnam: toward a safe, clean, and resilient water system. http://documents.worldbank.org/curated/en/589341559130979599/pdf/Vietnam-Toward-a-Safe-Clean-and-Resilient-Water-System.pdf

Xinhuanet (2018). Vietnam Buries 70 Pct of Domestic Solid Waste. http://www.xinhuanet.com/english/2019-07/18/c_138237654.htm

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