[Industry report] Vietnam Water Supply Market Report 2023

FiinGroup is pleased to announce the publication of the Vietnam Water Supply Market Report 2023, the first and most comprehensive report on this sector. The purpose of this report is to provide our clients with an in-depth understanding of the current situation of Vietnam’s water supply sector as well as the growth potential in the time to come.

In this report, we provide an in-depth analysis of Vietnam’s water supply market including value chain analysis, market size & segmentation, regulatory review, sector financial performance, and competitive landscape. In addition, to assess the sector growth outlook, the analysis of market trends and key growth drivers of water supply (including residential and industrial sectors) are also covered.

Below are the most critical findings in our report:

1. Vietnam’s piped water demand has maintained its growth momentum of previous years and is forecasted to reach 11.2 mn m³/day in 2027 with CAGR 2023F-2027F of 4.3%. The market has been driven by a low pipe water penetration rate, favorable demographic factors, and robust developments in the manufacturing & industrial sectors in Vietnam.
2. Non-revenue water was on a downward trend thanks to the great efforts of both the public and private sectors in improving performance efficiency by investing in pipeline systems, SCADA systems for automatic monitoring, etc, reaching 16.5% in 2022.
3. 156 water supply companies (WSCs) in Vietnam were identified with a total designed capacity of 11.8 mn m³/day. Of which, the total designed capacity of WSCs in the South remained the highest at 5.7 mn m3 day as of 2021, driven by high demand in major cities/provinces including HCMC and Binh Duong.
4. Water supply sector financial performance: WSCs in Vietnam managed to improve their profitability during the last 3 years despite COVID-19. In particular, the OPM, EBIT, and NPM increased between 2.6-3.0% during the period 2019-2021 thanks to several factors including (i) the Government's target for Vietnam's population to have access to piped water at 90-95% by the year 2020, and (ii) the application of smart management, new pipeline systems, SCADA systems for automatic monitoring.
5. Competitive landscape of Vietnam’s water supply sector is relatively consolidated as the Top 10 players accounted for 48.7% of the market share by designed capacity. SAWACO and HAWACO remained the leading WSCs in Vietnam by weighted average designed capacity with a total market share of 20.3%.
6. Water supply sector in Vietnam recorded active M&A activities and a wave of greenfield investment, especially private WSCs in recent years. This trend is fueled by the promising performance of water supply businesses in Vietnam and the potentially rewarding investments, attracting keen interest from both domestic and foreign investors
7. Major growth drivers of the water supply sector in Vietnam come from the residential customer group and industrial customer group. Particularly, the demand from the residential customer group has been increasing in recent years thanks to the increment in urbanization rate, disposable income, population growth, and rising health concerns. Meanwhile, the demand from the industrial group is majorly attributed to the strong development of industrial parks driven by a strong FDI wave into Vietnam.

You can find our report HERE

You can also check out other reports covering key sectors of Vietnam including Cement, Cold Chain, Consumer Finance, Banking, Healthcare, Housing Builders, and Plastic etc. on our website: http://fiinresearch.vn

If you would like to obtain the full contents of this Report, kindly direct your request to our Client Advisor at research.support@fiingroup.vn