Vietnam Water Supply: Strong Upside Potentials on Water Demand

In Vietnam, 82% of the clean water supply is allocated to meet the needs of residential areas, encompassing households, administrative and commercial users.

Vietnam water supply recorded a solid growth, achieving a CAGR of 6.9% in 2011-2021, reaching 8.4mn m3 per day. Major driving factors for the sector’s solid growth include the expansion of population and rapid urbanization, industrial development, and the active participation of the private players.

Urban and industrial provinces such as Dong Nai, Binh Duong are being recognized as potential locations for new water supply projects thanks to their substantial populations, high urbanization, and extensive industrial park.

On the ground of rising demand from both residential and industrial sectors, Vietnam has upside water supply demand of an additional 7.7mn m3. Strong upside potential for piped water in Vietnam, driven both by the residential and industrial sectors, presents opportunities for private players to engage in M&A with leading water supply groups and business collaboration in greenfield water supply projects.

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