Tran Thi Ngoc Linh
Deputy Director - Southeast Asian Utilities Network
(SEAWUN)
Administration of Infrastructure
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Vietnam Ministry of Construction (MOC)
Sarawak, December 2015
LIST OF CONTENTS
 Part 1: Urban Water Supply
Current status of urban water supply
2. Current investment situation for water supply
3. Development Orientation for water supply in Vietnam
4. Demand for clean water to 2020
5. Need for urban water supply investment in the period of 2016 –
2020
 Part 2: Urban sewerage and wastewater
1. Current status of urban sewerage and wastewater
2. Current investment situation for sewerage and wastewater
3. Development Orientation for sewerage and wastewater
4. Forecast of urban sewerage and wastewater total capacity to
2020
5. Need for urban sewerage and wastewater investment in the
period of 2016 – 2020
 Part 3: Policy and mechanism for attracting urban water investment
1.
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LIST OF CONTENTS
 It is counted to have 779
urban of all grade in Vietnam
to November 2015, in which:
1. 02 urban at special grade
2. 15 urban at grade I
3. 23 urban at grade II
4. 42 urban at grade III
5. 77 urban at grade IV and
the rest is at grade V
Current urbanization ratio is
average above 35.5%
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PART I
URBAN WATER SUPPLY IN VIETNAM
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CURRENT STATUS OF URBAN WATER SUPPLY
1/ Capacity and Water supply ratio
To October 2015, it is counted:
- There have over 500 water supply systems nationwide: designed
capacity 7.4 million m3/day; operational capacity 6.3 million
m3/day
- Water supply ratio: 81 – 81.5% (approx. 31.3 mil person); average
consumption 108 liter/ person.day
2/ Raw water resource
- Surface and ground water resource
- Ground water: degrading rapidly in recent years, restrict using
- Surface water resource: (i) increasing exploited capacity; (ii)
challenge and risks; (iii) Surface water resource preservation
3/ Water works – Water supply systems
- Treated water quality meets the standard of QCVN 01:2009/BYT
- 70% urban water supply systems ensure supply 24/24hours. 30%
left is supplying 8 – 20hours/day
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CURRENT STATUS OF URBAN WATER SUPPLY
4/ Urban Water supply management
- There are approx. 100 water supply utilities. Limited participation from
private companies.
- Water price follow Circular No. 75, 88/2012
- Management demand for clean water
- Improving operation efficiency
5/ Water supply master planning
- Having established and got the approval of water supply master
planning for approx. 20 urban. In which, the ones for Hanoi, Hochiminh
city and 4 key economic regions were approved by the Prime Minister.
- Need to have water supply master planning for provincial region and
for urban from grade 3 above.
6/ Legal documents on urban water supply or relevant ones
- Decree No. 117, 124 in year 2007, 2011
- Decision No. 1929 in year 2009 (on water supply development
orientation), Decision No. 2147 on Non-revenue water reduction,
Decision No. 1196 on mobilizing investment resources.
- Decree No. 15/2015 on PPP
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CURRENT INVESTMENT SITUATION FOR WATER SUPPLY
1/ ODA funding resources, Counterpart fund, private funding
resource, …
2/ Under project No. 1196 within 5 years (to 2012)
- Total invested capital: approx. USD110 mil per year
- Counterpart fund 87%, including:
+ CF: 12%
+ Stated own enterprises: 9%
+ ODA: 66%
- Private funding: 13%
3/ Urban water supply is one of those fields to be encouraged
PPP investment according to Decree No. 15/2015 on private –
public partnership.
4/ Line Ministries and local government currently strongly
support to implement PPP project for water supply under forms
like BOO, BOT, BT.
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DEVELOPMENT ORIENTATION FOR WATER SUPPLY
IN VIETNAM
1/ For urban grade IV and above:
- Water supply service covered ratio: 90%
- Water supply standard:
120 liter/ person.
Day
- NRW:
below 18%
2/ Water supply master planning
- Water supply service covered ratio: 70%
- Water supply standard:
100 liter/ person.
Day
- NRW:
below 25%
- Water supply continuity:
24/24 hour
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DEMAND FOR CLEAN WATER TO 2020
Basis, calculation and approaching method
1/ Decision NO. 1107/QD-TTg on Indistrial zones
development master plan in Vietnam to 2020.
2/ Decision No.445/QD-TTg on Adjustment of Urban
system general development master plan in Vietnam to
2025.
3/ Decision No. 1659/QD-TTg on National urban
development program in the period from 2012 – 2020.
4/ Decision No. 1929/QD-TTg on Urban water supply and
industrial zones development orientation in Vietnam to
2025 and vision to 2050.
5/ Decision No. 2174/QD-TTg on National program on Nonrevenue water reduction.
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DEMAND FOR CLEAN WATER TO 2020
Demand for clean water to 2020
1/ Urban population
: 44 Million
2/ Concentrated industrial areas
: 80,000 ha
3/ Domestic water supply average norm: 115 liter/ person. day
4/ Urban water supply average ratio: 85%
5/ Water supply norm for concentrated industrial zone: 30
m3/ha.day
6/ Industrial zone filled ratio
: 65%
7/ Other demands
: 25% for domestic
8/ Average NRW ratio
: 20%
9/ Total calculated demand
: approx. 9.4 – 9.6 mil m3
per day
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NEED FOR URBAN WATER SUPPLY INVESTMENT IN
THE PERIOD OF 2016 – 2020
1/ Water supply capacity development: approx. USD 1.6
bil
2/ Current system development (developing current
assets, expanding service areas, NRW reduction, …):
approx. USD 1.4 bil
3/ Others activities (assets management, human
resources development, capacity building on operation
and management, communication, etc. ): approx. USD 0.3
bil
4/ Total: approx. USD 3.3 bil, and USD 0.6 bil per year
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PART II
Urban Sewerage and Wastewater
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CURRENT STATUS OF URBAN SEWERAGE AND
WASTEWATER
1/ Urban sewerage and wastewater management current status
 To July 2015, it is counted:
- 30 WTP on operation, designed capacity 800,900 m3 per day
- Operational capacity: 50% designed capacity with collection
ratio 12%, sludge treatment 4%
- 40 WTP in designed period or on-going construction with
capacity of 1.6 mil m3 per day
 90% industrial zone have WT systems under operation or on-
going construction
 50% hospitals have WT systems
 Most of 5,000 trade village nationwide don’t have WT systems
 Decentralized WT systems
 On-site septage tank
 Sludge management
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CURRENT STATUS OF URBAN SEWERAGE AND
WASTEWATER
2/ Urban sewerage and wastewater collection system
 Coverage about 65% urban area
 Lack of tertiary network and household connection
3/ WT technology
- Activated sludge technology is popular
- Biological membrane, OD
- Most of WTP’s products meet standard QCVN 40:2011
4/ Management Uititlies
- Most of management utilities are stated own and depend
on government budget. Some of them are private
companies.
- Wastewater price is set in complying with Decree 80/NDCP, Circular 02/2015/TT-BXD
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CURRENT STATUS OF URBAN SEWERAGE AND
WASTEWATER
5/ Urban sewerage and wastewater master plan
 Currently prepared for central cities
 Master plan on wastewater is available for 03 river
valley and 04 key economic zones
 Necessary to prepare Urban sewerage and
wastewater master plan for each city or provincial
region.
6/ Legal basis
- Decree 80/2014
- Decision No. 1930 in 2009
- Decision No. 1196 in 2014
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CURRENT INVESTMENT SITUATION FOR SEWERAGE
AND WASTEWATER
1/ ODA funding resources, Counterpart fund, private funding
resource, …
2/ Under project No. 1196 within 5 years (to 2012)
- Total invested capital: approx. USD230 mil per year
- State budget (ODA 82%)
- Private funding occupy a small part due to limited profit
3/ Some cities have proposed wastewater treatment projects
under PPP form like Hanoi, Hachiminh city, Bac Ninh, Thanh Hoa,
etc.
4/ Assessment from Donors and Development Partners:
- Lack of Information, Education and Communication activites
(IEC)
- Need to carry out capacity building for project management
and operation
- Lack of funding resource for system’s O&M activities
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DEVELOPMENT ORIENTATION FOR SEWERAGE AND
WASTEWATER
Specific targets to 2020
1/ For storm water:
- Absolutely reduce flood for urban grade IV and
above
- Service area: 80%
2/ For sewerage: in terms of collestion and domestic
sewerage treatment ratio
- Urban grade III and above: 60%
- Urban grade IV, V and trade villages: 40%
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FORECAST OF URBAN SEWERAGE AND WASTEWATER
TOTAL CAPACITY TO 2020
Demand for clean water to 2020
1/ Urban population : 44 Million
2/ Sewerage standard : 80% of water supply standard
3/ Collection ratio
: 80%
4/ Non – domestic wastewater: 15% of domestic
discharge flow
5/ Wasewater average discharge flow: 3.2 mil m3 per day
6/ Absorbed flow
: 0.32 mil m3 per day
7/ Go – together storm water (combined system) : 3.2 mil
m3 per day
8/ Total wastewater flow to treatment plan: 6.7 mil m3 per
day
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NEED FOR URBAN SEWERAGE AND WASTEWATER
INVESTMENT IN THE PERIOD OF 2016 – 2020
1/ Developing collection and treatment systems: approx.
USD 6.3 bil
2/ Others activities (assets management, human
resources development, capacity building on operation
and management, IEC, etc. ): approx. USD 0.6 bil
3/ Total: approx. USD 6.9 bil, and USD 1.1 bil per year
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PART III
Policy and mechanism for
attracting urban water investment
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POLICY AND MECHANISM FOR ATTRACTING URBAN
WATER INVESTMENT
A/ Current policy and legal basis for investment
encouragement
1. Decree No. 117/2007/ND-CP and 124/2011/ND-CP on
clean water production, supply and consumption;
2. Decree No. 80/2014/ND-CP on urban and industrial
zone wastewater;
3. Decree No. 38/2013/ND-CP on ODA management and
use;
4. Decree No.15/2015/ND-CP on PPP investment;
5. Decree No. 75/2011/ND-CP and 54/2013/ND-CP on
national investment and export credit;
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POLICY AND MECHANISM FOR ATTRACTING URBAN
WATER INVESTMENT
A/ Current policy and legal basis for investment
encouragement
7. Decree No. 69/2009/ND-CP on additional assignment
for land using master plan, land price, land revocation,
compensation, support and resettlement;
8. Decision No. 29/2011/QD-TTg on sector portfolio
which receive concessionary interest when re-borrow
ODA from the Government;
9. Decree No. 25/2013/ND-CP on environmental
protection fee for wastewater;
10. Decree No.19/2015/ND-CP on preference and support
for environmental protection activities; etc.
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POLICY AND MECHANISM FOR ATTRACTING URBAN
WATER INVESTMENT
B/ Specific concessions
1. Investment capital for water supply
2. Investment capital for wastewater
3. Landing
4. Land using, land borrowing expense
5. Ground clearing expense
6. Infrastructure system beside house’s fence
7. Financing
8. Clean water price
9. Wastewater service price
10. Corporate income tax
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POLICY AND MECHANISM FOR ATTRACTING URBAN
WATER INVESTMENT
C/ Decision No.1196/QD-TTg on “Mobilizing all
funding resource to invest in water supply, wastewater
system and solid waste treatment construction” 
strongly encourage all kind of economic resource to
join investment, ensure harmonious interest of the
government, legal profit of investors, benefit and
responsibility of consumers. It is hoped to make
breakthrough development ever for Vietnam water
sector.
 Improving water supply and wastewater master plan
in cities
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POLICY AND MECHANISM FOR ATTRACTING URBAN
WATER INVESTMENT
 Improving policies and legal basis for sector on:
-
Encourage private sector;
-
Study to apply hiring – management, operation to
water supply and wastewater works;
-
Improving standards system and cost norms;
-
Commitment and responsibility from local
government during project investment
implementation process;
-
Open ODA funding for private enterprises;
-
Adjust water price frame for 2020 there is no subsidy
from the government;
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POLICY AND MECHANISM FOR ATTRACTING
URBAN WATER INVESTMENT
-
Caculate wastewater service price and roadmap to
progressively fulfill O&M cost investment espense;
-
Capacity building for water sector;
-
IEC development;
 Some big cities has sucessfully apply PPP form in
water sector as Hanoi, Hochiminh, Da Nang, Hai Phong,
Can Tho, Binh Dinh, Dong Nai, Bac Ninh, Thai Binh, etc.
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