Renewable Energy Development Project for Vietnam

The objective of the Global Environment Facility (GEF) Coastal Cities Project in Vietnam is to pilot an innovative waste water treatment technology to reduce the discharge of pollutants from the city of Quy Nhon in Binh Dinh province into the Ha Thanh river and the Thi Nai marine lagoon

This study presents a synthesis of 17 country studies on environmental goods and services (EG&S)
commissioned by the OECD, UNCTAD and the UNDP. The countries examined are Brazil, Chile, China,
Cuba, the Czech Republic, the Dominican Republic, Guatemala, Honduras, Israel, Kenya, Korea, Mexico,
Nicaragua, Pakistan, Panama, Thailand and Vietnam. Its aim is to identify determinants of demand for
EG&S; to show common themes and experiences in the EG&S markets of different countries; and to draw
attention to key trade, environment and development policy linkages.

Vietnam is facing a combination of environmental problems including air, water, and solid waste pollution. Major factors contributing to these problems include high population growth, rapid urbanization, accelerating industrialization, and the weak enforcement of the Law on Environmental Protection and Development.

The 2006 -2010 Socio-Economic Development Plan, approved by the National Assembly in June 2006, identifies environmental protection as one of the pillars of social and economic development. Water quality and wastewater treatment are stated priorities of the Vietnamese government. Municipal and industrial wastewater is the main cause of water pollution in the cities. In recent years, the government has spent an amount equivalent to 0.5% of the country's GDP each year for environmental protection activities, with plans to increase this budget to 1% of GDP by 2010, according to the National Strategy of Environmental Protection.

This report provides a market overview and trends of water supply and wastewater treatment in Vietnam, recommendations for market entry and best sales prospects for U.S. suppliers.

The development and management of water resources is a stated priority of the Vietnamese Government. The total market of water supply and distribution is worth approximately USD $250 million, out of which approximately USD $120 million is imported equipment and services. The overall drinking water market is growing at 20 - 25 percent annually. The market in Vietnam offers good prospects for the sale of American water resources equipment and services. There are key opportunities in providing engineering design and construction services as well as equipment. Good prospects also exist for engineering consultancy services required for the development of large-scale water resources projects, particularly drinking water treatment systems that use surface water as the raw water supply.

This report provides a market overview and recommendations how to successfully penetrate the market for drinking water treatment technologies and equipment in Vietnam. It covers the market sub-sectors, including technology consultancy services, machinery and equipment. This report also analyzes the competitive strengths of successful players in each market sub-sector.