FiinResearch, the research and consulting division of FiinGroup, has completed a comprehensive study on water supply in Vietnam, supporting Samsung Engineering on its acquisition of DNP Water

Strategic Partnership Signing Ceremony between Samsung Engineering & DNP Water (Source: DNP Water)

FiinResearch is pleased to announce that on 29^th June 2022, its client, Samsung Engineering Company Limited announced to complete a transaction to acquire 24% stake in DNP Water for US$41 million (around VND 960 billion).

DNP Water is one of the leading private water supply companies in Vietnam with total installed capacity of 1.15 million m3 per day, covering thirteen provinces and cities throughout Vietnam.  

Founded in 1970, Samsung Engineering, one of the world’s leading engineering, procurement, construction, and project management (EPC & PM) companies, offers a broad business portfolio with a full range of engineering services including for hydrocarbon facilities such as in Oil & Gas Processing, Refinery, Petrochemicals, and Green solutions, further for the Industrial & Environmental field, water, and waste treatment plants and industrial production facilities. The investment in DNP Water is in line with its expansion strategy to water supply and wastewater treatment market in Vietnam.  

FiinGroup was engaged by Samsung Engineering to conduct a comprehensive study on Vietnam water supply sector to support their management to get in-depth understanding of the sector in Vietnam; to identify and evaluate business opportunities for Samsung Engineering in term of investments and/or EPC engagements and to connect Samsung Engineering to leading local partners in the sector, including DNP Water.

Mr. GyuYeon Kang, Executive Vice President at Samsung Engineering, commented: “We appreciate the in-depth insights on water supply, as well as on the local business network in this sector provided by FiinGroup that supported us in making informed decisions in the transaction. In line with recent global environmental, social and governance (ESG) development trends, the environmental business is positioned as one of Samsung Engineering's future growth engines. Samsung Engineering plans further to expedite and grow in the global environmental markets such as in Asia, by setting an example with successfully executing our environmental businesses in Vietnam.”

Mr. Dong Le, Head of FiinGroup’s Market Research & Consulting (“FiinResearch”), commented: “We are proud to have worked for Samsung Engineering to assist their management in the transaction. The project demonstrates FiinResearch’s in-depth water sector expertise, comprehensive corporate database, analytics capability, and strong local business network of our project team. Water supply sector in Vietnam is forecasted to deliver the solid growth with CAGR 2022-2026 of 7.0% and might reach 12 million m3 per day in 2026. The market is mainly driven by low piped water penetration rate, favorable demographic factors (i.e. high population growth, rapid urbanization rate, rising disposable income, growing household’s water consumption etc.,) as well as robust developments of manufacturing & industrial sectors in Vietnam, leading to steady increase in water demand from the segment. We expect DNP Water would enjoy strong business synergy contributed by Samsung Engineering to move up to a next stage of development in the time to come”.

ABOUT DNP WATER

DNP Water is one of the leading private water supply companies in Vietnam with 23 water supply portfolio companies in thirteen provinces and cities throughout Vietnam with the total installed capacity of 1.15 million m3 per day. The Company plans to expand its water supply business, via greenfield project developments and M&A, to achieve total installed capacity of 2 million m3 per day by 2025.

ABOUT SAMSUNG ENGINEERING CO., LTD

At Samsung Engineering, we aim to create value based on the world’s best technological competence and contribute to our clients, society and people. Samsung Engineering as one of the world’s leading EPC & PM companies, has served clients in a variety of industries such as oil-refining, gas-processing, petrochemicals, infrastructure & environmental sector and bio-industry. Providing professional services across the whole project cycle ranging from professional feasibility-studies to design, procurement, construction, commissioning, maintenance & operation. Samsung Engineering has completed more than 1,000 projects worldwide.

To prepare for ESG-based eco-friendly businesses for the future, we expanded our value chain to the business of operating green infrastructure, such as water treatment facilities and incinerators, and green solution business for energy optimization and carbon neutrality. To preemptively respond to changes in the global energy industry and take the lead in resolving global warming, we will provide optimal solutions based on our technologies and expertise. For more information, please visit: www.samsungengineering.com

ABOUT FIINGROUP AND FIINRESEARCH

FiinGroup is the leading financial information, business information, market research and consulting, and rating service firm in Vietnam and has been an associated company of Nikkei Inc. (Japan) since Sep 2014.

FiinResearch, the research and consulting division of FiinGroup, provides high-quality independent research reports, in-depth analytics, and consultancy services across major Southeast Asia markets in various sectors. In recent years, it has successfully supported so many foreign investors to penetrate and/or expand their business in the Vietnam market.

For more information about FiinResearch’s market research and advisory services and how we can support, please contact our Client Advisor at +84 (24) 3562 6962/+84 (28) 3933 3586 or research.support@fiingroup.vn.