VIETNAM

ENVIRONMENTAL

TECHNOLOGIES

EXPORT MARKET PLAN

U.S. DEPARTMENT OF COMMERCE

International Trade Administration
Vietnam Export Market Plan

VIETNAM

ENVIRONMENTAL

TECHNOLOGIES

EXPORT MARKET

U.S. DEPARTMENT OF COMMERCE

International Trade Administration

and

United States-Asia Environmental Partnership

Washington, D.C.: 2001
 U.S. Department of Commerce, International Trade Administration

Library of Congress Cataloging-in-Publication Data

Vietnam environmental technologies export market plan/U.S. Department of

Commerce, International Trade Administration, Office of Environmental Technologies

Exports and United States-Asia Environmental Partnership.

p. cm.

1. Pollution control equipment industry—Vietnam. 2. Pollution control equipment

industry—United States. 3. Export marketing—United States. 4. Imports—Vietnam.

5. Trading companies—Vietnam. 6. Pollution—Vietnam. 7. Market surveys—Vietnam.

I. United States. Office of Environmental Technologies Exports. II. United States. Asia

Environmental Partnership.

HD9718.V52 V53 2001

382’.4568176—dc21

Illustration on page vii courtesy of the Central Intelligence Agency.

The full text of this report is available on the International Trade Administration’s Internet

site at www.environment.ita.doc.gov. Reprints in paper or microfiche are available for

purchase from the National Technical Information Service, 5285 Port Royal Road,

Springfield, VA 22161; www.ntis.gov .

ii

2001016892

Federal Recycling Program

Printed on recycled paper.

This report was prepared under contract for the Office of Environmental Technologies

Industries in the International Trade Administration of the U.S. Department of Commerce,

with the supervision and assistance of the U.S.–Asia Environmental Partnership (US-AEP),

by Mekong Research, Ltd., of Ho Chi Minh City.
Vietnam Export Market Plan

This study on the market for environmental technology

in Vietnam was prepared under the supervision of the

U.S. Department of Commerce’s Office of Environmental Technologies Industries (ETI) within the International

Trade Administration and the U.S.-Asia Environmental

Partnership (US-AEP).

For more information about ETI or US-AEP, including

tools and resources available to U.S. environmental companies seeking to enter or expand their presence in the

overseas markets, please contact the following offices:

Office of Environmental Technologies Industries

U.S. Department of Commerce

George Litman

Room 1003

Washington, DC 20230

Office: (202) 482-0560

Fax: (202) 501-7909

Web site: www.environment.ita.doc.gov

Preface

Headquarters, US-AEP/Vietnam

United States Embassy, Hanoi

James Carlson

6 Ngoc Khanh St., Room 330

Hanoi, S.R. Vietnam

Office: +84 (4) 831-4607

Fax: +84 (4) 831-4535

E-mail: jcarlson@usaep.org

Web site: www.usaep.org

HCMC Office, US-AEP/Vietnam

United States Consulate General, HCMC

Nguyen Anh Tuan

65 Le Loi Boulevard, Suite 9/F, District 1

Ho Chi Minh City, S.R. Vietnam

Office: +84 (8) 825-0484

Fax: +84 (8) 825-0491

E-mail: tuan@usaep.org

Web site: www.usaep.org

iii
 U.S. Department of Commerce, International Trade Administration iv
Vietnam Export Market Plan v

Preface .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.— iii

Abbreviations .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—viii

Executive Summary .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. ix

1 Economic Overview.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—1

2 Overview of Market for Environmental Technologies .—.—.—.—.—.—.—.—.—.—.—. 3

3 Legal and Regulatory Overview.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.— 8

4 Water Resources .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 13

5 Sewerage and Drainage.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 23

6 Wastewater Treatment .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 27

7 Solid Waste—. .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 32

8 Hazardous and Toxic Wastes .—.—.—. .—.—.—.—.—. . .—.—.—.—.—.—.—.—.—. 35

9 Air Pollution .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 36

10 Renewable Energy .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 39

11 Soil and Forestry .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 41

12 Environmental Services .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 44

13 Sources of Financing .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 46

14 Market Entry Strategies .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 51

Appendix A: Ministries and State Agencies .—.—.—.—.—.—.—.—.—.—.—.—.—.—. 53

Appendix B: International Organizations .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 56

Appendix C: Leading Environmental Service, Research, and Technology Companies .—.—. 57

Appendix D: Major Environmental Companies in Hanoi .—.—.—.—.—.—.—.—.—.—.—. 59

Appendix E: Major Environmental Companies in Ho Chi Minh City .—.—.—.—.—.—.—. 61

Appendix F: Major Environmental Companies in Hai Phong —.—.—.—.—.—.—.—.—.— . 63

Appendix G: Major Environmental Companies in Danang .—.—.—.—.—.—.—.—.—.—. . 64

Appendix H: Major Environmental Companies in Quang Ninh .—.—.—.—.—.—.—.—.—.—65

Appendix I: Leading Distributors/Wholesalers of Water Supply/Treatment Equipment.—. . 66

Appendix J: Leading Distributors With Import Licenses .—.—.—.—.—.—.—.—.—.—.—. 67

Appendix K: “Black Book” Companies in Ho Chi Minh City, List 1.—.—.—.—.—.—.—.—. 68

Appendix L: “Black Book” Companies in Ho Chi Minh City, List 2.—.—.—.—.—.—.—.—. 72

Appendix M: “Black Book” Companies in Hanoi.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 76

Appendix N: Water Project List. .—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—.—. 79

Contents
 U.S. Department of Commerce, International Trade Administration vi
Vietnam Export Market Plan vii
 U.S. Department of Commerce, International Trade Administration

Abbreviations

ADB Asian Development Bank

AFD Agence Française de Développement

(France)

AusAID Australian Agency for International

Development

BADC Belgium Administration for

Development Cooperation

BMZ Bundesministerium für Wirtschaftliche

Zusammenarbeit und Entwicklung

(Germany)

BOD biochemical oxygen demand

BOT build-operate-transfer

CIDA Canadian International Development

Agency

COD chemical oxygen demand

DANIDA Danish International Development

Agency

DFID Department for International

Development (United Kingdom)

DDC Department for Development

Cooperation

DOSTE Department of Science, Technology,

and Environment (Vietnam)

DPC District Peoples Committee

EIA environmental impact assessment

EPZ export processing zone

EU European Union

EVN Electricity of Vietnam

FINNIDA Finland International Development

Agency

HCMC Ho Chi Minh City

IE industrial estate

IFAD International Fund for Agriculture

Development

IFC International Finance Corporation

IP industrial park

IZ industrial zone

JBIC Japan Bank for International

Cooperation

JICA Japan International Cooperation

Agency

kWp peak kilowatt

MARD Ministry of Agriculture and Rural

Development (Vietnam)

MOSTE Ministry of Science, Technology, and

Environment (Vietnam)

MPI Ministry of Planning and Investment

(Vietnam)

NASDA National Association of State

Development Agencies

NEA National Environmental Agency

NetGov Government of the Netherlands

NORAD Norway Agency for Development

Cooperation

ODA overseas development assistance

OECF Overseas Economic Cooperation Fund

(Japan)

PV photovoltaic

SDC Swiss Development Cooperation

SIDA Swedish International Development

Cooperation Agency

UNDP United Nations Development Program

WFP World Food Program (United Nations)

Note: Dollar amounts given in the text are, unless otherwise

noted, in U.S. dollars. Calculations from Vietnamese

currency have been figured at 14,500 dong to the dollar.

viii
Vietnam Export Market Plan

• The market for environmental technologies is being

driven by overseas development assistance (ODA). In

general, the Vietnamese government and Vietnamese

companies do not have the resources to finance

pollution prevention or treatment equipment. ODAfinanced projects represent the largest market for

environmental technologies, equipment, and services.

• Foreign manufacturers and foreign-invested industrial

zones represent a shrinking market opportunity.

Vietnam’s economy is growing at half the rate of the

mid-1990s, and levels of foreign direct investment in

Vietnam are down by over 60 percent from 1996. The

market trend is defined by foreign companies leaving,

not entering Vietnam.

• Vietnamese companies can be a promising market

opportunity, but financing from the supplier, from

bilateral aid grants, or from other ODA sources should

be arranged. Securing bilateral grants to finance

environment-related projects at large, state-owned

companies has proven to be a successful approach to

winning business.

• To bid successfully on contracts funded by Vietnamese

companies, and even those funded by ODA, it is

essential to develop strong relationships with the

government ministries administering the tender, as well

as with the end client (often a provincial or city

government). In addition, demonstrating a willingness

to be flexible and to work in a legal environment less

secure than what exists in developed countries can be

helpful in both establishing strong relationships and

in securing contracts.

• Vietnam’s most pressing environmental problems are

providing clean water and reducing the population’s

exposure to polluted water. Less than 40 percent of

the population has access to potable water. Most of

Vietnam’s largest companies dump untreated

wastewater into canals, streams, and rivers. Over $1

billion in ODA have been committed to the water

resources sector.

• Increasingly, ODA funding is being directed toward

urban-environment improvement projects. Five of the

14 largest ODA projects in the pipeline are in the urban

planning and pollution control sector. These projects

include rehabilitation or construction of water supply,

drainage, and sewage networks. The drainage and

sewage networks in Vietnam’s urban centers are dualpurpose systems used for rainwater and wastewater

(and often solid waste). Flooding of these systems

occurs frequently, exposing the population to

pollutants.

• Vietnam is just starting to tackle its air pollution and

hazardous waste problems. The country’s first

comprehensive studies on the effects of these forms of

pollution are underway or in the planning stage. The

best opportunities in these sectors are for vendors of

monitoring and analysis equipment, as well as for

companies that can undertake air quality and hazardous

waste studies.

• Major urban centers are unable to dispose of the

volumes of solid waste being produced. Urban centers’

main dumping grounds are approaching their capacities

and have not been built to prevent leakage. ODAbacked projects are financing upgrades of garbage

collection infrastructure and construction of new

landfills.

• Vietnam’s soil environment is most threatened by

continued deforestation, rapid growth in agriculture

productivity, and overuse of pesticides. While some

ODA has been directed away from forestry

management toward urban pollution problems in recent

years, 74 percent of total planned ODA (in terms of

dollar value) is directed toward natural resources

management.

• The market for environmental services centers on

consultant contracts for ODA-funded projects. The best

opportunities for environmental services companies

rest with preparation of feasibility studies, detailed

designs, bidding documents, etc. on ODA-funded

Executive Summary

ix
 U.S. Department of Commerce, International Trade Administration

projects. Project consultant and construction

supervision contracts on ODA projects are, and will

continue to be, market opportunities.

• U.S. companies trail those from Europe, Australia, and

Japan in capturing contracts for environment-related

projects in Vietnam. This is largely because bilateral

financing from these countries, or co-financing on

multilateral ODA projects, gives companies from the

donor country the inside track for winning contracts.

The U.S. position should improve with the introduction

of U.S.-Asia Environmental Partnership initiatives, the

signing of a bilateral trade agreement between the

United States and Vietnam, as well as with the entry

of the Overseas Private Investment Corporation and

the Export-Import Bank to the market.

• Opportunities exist for U.S. exporters of equipment

related to water supply, purification, and treatment. The

most commonly imported equipment used for water

supply and treatment include industrial and household

pumps, motors, filters, aerators, and water purification

equipment/systems. U.S. brands are generally

recognized in the local market for their quality and

durability.

x
Vietnam Export Market Plan 1

From the late 1980s until 1997 Vietnam enjoyed some of

the highest growth rates in Asia after the government

launched its doi moi, or renovation, program in 1986.

Faced with a decline in Soviet aid and food shortages

caused by failing agricultural cooperatives, Vietnam’s

leaders were forced to open the country’s economy to

foreign investors and trade.

Vietnam dismantled its collective farms, giving

families the right to use land in the countryside, where

80 percent of Vietnam’s population lives. Farmers were

allowed to choose which crops to grow and to sell them

at market prices to whomever they chose.

The results of these changes were dramatic. Vietnam’s

GDP growth averaged more than 8 percent from 1991 to

1997, making it the second fastest growing country in

Asia, after China. Vietnam went from being an importer

of rice to the world’s third largest rice exporter. Poverty,

as measured by the World Bank, dropped from 70 percent

to 30 percent.

At its peak in 1996, Vietnam licensed foreign

investment projects valued at more than $8 billion.

Foreign companies, mostly from Asia, rushed into a

market of 77 million people, eager to profit from what

would surely become the next “Asian Tiger.”

In recent years, that optimism has faded. The slowing

pace of reforms and lingering effects of the Asian

economic crisis have taken their toll. After reaching $8

billion in investment pledges in 1996, that number

plunged to $4.5 billion in 1997. In 1998, the amount

dropped further, to $1.8 billion. In 1999, Vietnam

approved 274 new foreign investment projects worth

$1.48 billion. Donors estimate that actual inflows will

total $600 million in 1999, the lowest since 1992 (Table

1.1).

Recognizing the trend, the government has taken

incremental steps toward improving the investment

climate. It has made it easier for foreign companies to

establish 100 percent foreign-owned enterprises instead

of arranging forced marriages to local joint-venture

partners. Foreign companies can now set employee

salaries in Vietnamese dong. Previously, salaries were set

in dollars, making Vietnam a less competitive labor

market, especially after devaluations in Indonesia and

Thailand.

These steps have not been enough, however, and the

economy has slowed over the past three years. For 1999,

GDP growth was between 4 and 5 percent depending on

the source. Generally, the World Bank’s forecast is a bit

lower than the Vietnamese government’s. The industrial

sector grew about 10.5 percent in 1999, despite falling

demand. As has been the trend over the past five years,

foreign-invested companies are growing fastest,

recording a 19.4 percent growth rate, with state

enterprises growing an estimated 4.9 percent, and local

private businesses 8.5 percent.

Inflation dropped precipitously in 1999, with Hanoi

recording an inflation rate for the year at 0.1 percent yearon-year (Table 1.2). The figure for year-on-year inflation

in 1998 was 9.2 percent. Falling rice prices, which

account for 60 percent of Vietnam’s consumer price

Chapter 1

Economic Overview

Table 1.1 Foreign Direct Investment in Vietnam,

1987–1999 (billions of dollars)

 Total

 Commitments Disbursements

1987–1995 36.2 11.2

1995 6.6 1.8

1996 8.5 2.3

1997 4.5 2.4

1998 1.8 1.0

1999 1.0 0.6

Note: Figures do not include additional capital committed to

existing projects.

 Source: World Bank, Ministry of Planning and Investment,

 January 2000.

Table 1.2 Year-on-Year Inflation in Vietnam,

1994–1999 (Percent)

1994 1995 1996 1997 1998 1999

14.4 12.7 4.5 3.8 9.2 0.1

Source: World Bank, General Statistics Office, January 2000.
2 U.S. Department of Commerce, International Trade Administration

index, are believed to be the cause of the lower than

expected inflation rate.

Vietnam enjoyed a strong export performance in 1999,

marking one of the economic highlights of the year.

Exports rose to $11.5 billion, up 23.1 percent compared

with 1998 (Table 1.4). The trade gap for 1999 slimmed

to an estimated $113.0 million, from $2.0 billion in 1998.

Imports rose 0.9 percent to $11.6 billion for the year.

Higher oil prices and Vietnam’s continuing ability to

capitalize on its strength in agricultural commodities,

such as rice and coffee, helped boost the country’s export

performance in 1999. Meanwhile, imports have dropped

as domestic economic growth has slowed, reducing

demand for capital equipment.

The long-awaited bilateral trade agreement with the

United States is expected to boost these figures tremendously. Indeed, the trade agreement is now the key factor

that will determine Vietnam’s economic health over the

next three to four years.

With the final agreement in July 2000, Vietnam would

win Normal Trading Relations (NTR; formerly Most

Favored Nation status) with the United States. The lower

taxes on Vietnamese goods, combined with Vietnam’s

low labor costs, would result in a new influx of investment to produce items such as garments, textiles, shoes,

and furniture. In the first year of NTR alone, it is expected

that Vietnam would earn an additional $800 million in

export sales. In the long term, the agreement would lead

Vietnam to adopt market-opening measures that would

benefit foreign investors and Vietnam’s private sector.

1.9 1.8 2.0

3.0

7.3

10.5

11.0

8.0 8.0

3.0

2.5

'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99

1

2

3

4

5

6

7

8

9

10

11

Chart 1—Foreign Direct Investment in Vietnam

(as Percent of GDP), 1989–1999

Table 1.4 Vietnamese Balance of Trade 1995–1999

(Billions)

1999 1998 1997 1996 1995

Merchandise

 exports $11.5 $9.4 $8.9 $7.1 $5.1

Merchandise

 imports $11.6$11.4 $11.2 $11.1 $7.5

Trade deficit $0.1 $2.0 $2.3 $4.0 $2.3

Note: Smuggled goods estimated to add $1.5 billion to

annual import totals.

Source: World Bank, Ministry of Trade, 2000.

Table 1.3 Changes in Vietnamese Consumer Prices,

1998–1999

Dec. Nov. Dec.

1999 1999 1998

Month-on-month

 change 0.5 0.4 0.8

Year-on-year

 change 0.1 0.4 9.2

Index* 100.1 99.6109.2

*Base 100 = previous December.

Source: World Bank, General Statistics Office, January 2000.
Vietnam Export Market Plan 3

2.1—Current Trends

Since the beginning of Vietnam’s “renovation” period,

which started in 1986, the government’s stated goal has

been for Vietnam to become an industrialized and

modernized country by 2020. To achieve this goal, the

government adopted policies that encouraged foreign

investment and simultaneously sought to increase output

of domestic industries.

From 1991 to 1997, Vietnam achieved extraordinary

growth. Annual GDP growth averaged 8 percent during

that period, making Vietnam the second fastest growing

economy in Asia, after China. At one point in 1996, Ho

Chi Minh City (formerly Saigon) had the fastest growing

economy in the world.

Along with the benefits of industrialization have come

the costs, including degradation of the environment.

Vietnam is particularly vulnerable to environmental

problems for simple reasons. Vietnam’s 20th century

history was defined by war, primarily on its own soil.

Successive conflicts destroyed much of the country’s

infrastructure, leaving an already poor, underdeveloped

nation in even worse condition. Following the reunification of the country in 1975, the government’s centrally

planned economic policies, especially the establishment

of agricultural cooperatives, drove the country further into

poverty. Therefore, the government has had little or no

funds to upgrade urban infrastructure such as sewerage,

drainage, and water supply. Pollution abatement has been

a luxury, not a priority. Much of the existing infrastructure

in the country’s two largest cities, Hanoi and Ho Chi Minh

City, has remained unchanged since being built early in

the last century.

The same can be said for many of Vietnam’s industries.

Loss-making state-owned enterprises have been fighting

for their survival, so installing costly waste treatment and

prevention equipment has been, and remains, a low

priority. Many of these enterprises use outdated

equipment or second-hand imports which generate higher

levels of pollution. Wastewater goes untreated and is

dumped into local waterways. Enforcement of environmental regulations at state-owned enterprises is weak.

While firms may be inspected and fined on occasion, they

are rarely forced to close their doors. Company

management, as well as inspection bodies, are aware that

pollution is a problem, but both recognize that the SOEs

do not have the funds to address the issue. Instead,

companies try to keep the fines to a manageable amount,

rather than pay for costly pollution-prevention equipment.

Air pollution is an acute problem, since many

industries are located in densely populated areas.

Vehicular emissions are the country’s largest source of

air pollution. If the government’s decision to phase out

leaded fuel by July 1, 2001, is implemented, this pollution

source will at least become cleaner.

Some foreign manufacturers have also contributed to

Vietnam’s environmental degradation, capitalizing on the

weak enforcement of the country’s environmental

regulations. In many cases, the fines imposed for violating

standards is less than the cost of installing and operating

waste treatment facilities. There have been some reported

cases where waste treatment facilities have been installed

but are not in use. No foreign manufacturer has been shut

down because it violated environmental standards.

Over the past decade, urban migration has further

strained an already overburdened urban infrastructure.

Economic growth has been concentrated in Vietnam’s

largest cities, Hanoi and Ho Chi Minh City. In both cities,

drainage and sewerage systems are combined, so when

flooding occurs (as happens frequently) the population

is exposed to highly polluted waters. Potable water supply

in both urban and rural areas is inadequate, with large

percentages of the population going without access to

piped water or clean ground wells.

Solid waste collection and disposal is inefficient

because of inadequate collection equipment. Landfills are

reaching their capacity and many do not safeguard against

contamination of surrounding areas. Medical and other

hazardous waste are generally not treated separately from

other solid waste.

2.2 Market Drivers

Faced with these overwhelming and worsening

environmental conditions, the government passed a Law

Chapter 2

Overview of Market for

Environmental Technologies
4 U.S. Department of Commerce, International Trade Administration

on the Protection of the Environment in 1993. The law

covers everything from requirements for environmental

impact assessments to a list of prohibited activities and a

system for addressing non-compliance with the law.

The government regulations opened a limited market

for vendors of environmental services. Foreign investors

and foreign-invested industrial zones, which (in theory)

had to meet the regulations set by the law in order to

receive investment licenses, became potential customers,

especially during the early to mid-1990s, when investor

interest in Vietnam was at its peak.

Since 1996, however, foreign investment commitments

to Vietnam have dropped by over 60 percent. The

difficulties of doing business in Vietnam, combined with

the slow pace of policy reforms and the lingering effects

of the Asian crisis, have deterred new investment.

Accordingly, the number of new potential clients has

dropped as well.

The market for environmental technologies in Vietnam

today is being driven almost exclusively by overseas

development assistance (ODA). Currently, there are more

than 173 ongoing environment projects funded by 36

donors in Vietnam. The total financial commitment of

these projects is over $1.4 billion. Forty-eight of these

projects are funded by multilateral donors, and 125 are

funded by bilateral ODA. In the pipeline are 57 projects

valued at over $770 million. ODA commitments to the

environment sector have increased six-fold since 1995.

2.3—Opportunities

Water supply, sewerage, and drainage projects will

drive the market over the next two years. Limited access

to potable water and exposure to raw sewage and polluted

waters during flooding have become major health hazards

to urban populations. Aid has been targeted accordingly.

For the past three years, donors and the government

have channeled most urban-development ODA to

rehabilitate infrastructure and water supply in Hanoi and

other northern cities. Now, most attention is focused on

Vietnam’s largest city, Ho Chi Minh City. There are four

major ODA-financed urban environment projects

underway or in the planning stages. While the projects

are focused on drainage and sewerage, some also contain

air pollution and solid waste management components.

These projects are financed by the World Bank, the Asian

Development Bank, the Japan International Cooperation

Agency (JICA), and the Belgian Administration for

Development Cooperation (BADC).

Because so much of the activity in the environment

technologies sector is now centered on ODA-financed

projects in Ho Chi Minh City, Table 2.1 (page 6) provides

a useful reference for ongoing and upcoming opportunities in the sector.

Local companies are becoming more viable sales

prospects, but the market remains limited. Citizen

pressure to reduce waste emissions at manufacturing

plants and the government “black books” of environmental polluters have raised awareness at local companies

of the need to reduce pollution. Approaching these

companies directly with viable financing schemes, such

as bilateral aid or grants, has proven to be a successful

market entry strategy for environmental equipment

suppliers.

2.4—Equipment

Contracts for ODA-funded projects make up the

largest market for environmental technologies. Since

technology needs vary from project to project, it is

difficult to assess sales trends and opportunities for any

given product. The descriptions of ongoing and upcoming

ODA projects in the following chapters include examples

of the types of technologies being imported.

What is clear is that the primary environmental

technologies market is equipment for water treatment,

water supply, and water purification. These products are

imported on a regular basis for ODA projects, and also

for local industries, businesses, and consumers. For

instance, the market for pumps, valves, water meters, and

spare parts has grown steadily over the past four years.

Almost none of this equipment is produced domestically,

and local consumers are familiar with the advantages of

international brands.

Vietnam imports nearly all of the key equipment

needed for waste treatment and pollution control. For

wastewater treatment equipment, local environmental

service companies and end users import pumps, control

systems, motors, aerators, and filters. (For a list of popular

brand names and product lines in the water-treatment

sector, as well as market-size estimates, see Section 4.8.)

An interesting niche market for environmental

technologies has been local environmental service

companies and research institutions. These institutions

are part state-owned enterprise, part academic institution,

and part government ministry. They can be responsible

for everything from issuing environmental impact

assessments, to environmental monitoring, to selling

pollution control equipment, to foreign enterprises. While

sales volumes to these uniquely Vietnamese “conglomerates” may be less than those to ODA-funded projects,

they have proven to be a consistent market.

In addition to purchasing imported pollution-control

equipment, these institutions have been consistent buyers
Vietnam Export Market Plan 5

of monitoring and analysis equipment. These institutions

import equipment for taking and analyzing soil, water,

and air samples, as well as laboratory equipment such as

pH meters, spectrophotometers, and centrifugal

machines. (For a list of the leading environmental

service companies in Hanoi and Ho Chi Minh City, see

Appendix C.)

2.5—Competitive Situation and U.S.

Market Share

As is the case in numerous industries in Vietnam, U.S.

companies are playing “catch-up” in the environmental

technologies and services markets in Vietnam. Over the

past 15 years, Denmark, Finland, Holland, Japan,

Sweden, Australia, and France have been the countries

most active in financing bilateral aid projects to the

environment sector or co-financing multilateral aid

projects. Government grants from these countries are

financing feasibility studies and “master plans” for

environmental improvements and pollution prevention in

Vietnam. Companies from these countries then win the

design contracts and subsequent engineering and

equipment contracts.

U.S. bilateral aid to the sector has been relatively slow

in coming. This is largely because the focus of U.S.-

Vietnam bilateral relations over the past five years has

been on re-establishing diplomatic ties and normal trade

relations. In general, U.S. policy on bilateral aid has

shifted away from big project funding in recent years, so

it is unlikely that U.S. grants to environmental projects

in Vietnam will ever reach the levels provided by

European countries.

Therefore, projects funded by multilaterals such as the

World Bank, ADB, and UNDP offer significant opportunities for U.S. firms. Several American companies have

successfully bid for consulting contracts to ODA-funded

projects, among them Parsons, Black and Veatch, and

Camp Dresser McKee.

In addition, some American companies have won

contracts to sell equipment to the primary contractor on

environmental projects. For example, it is likely that key

equipment needed for an air quality monitoring project

in Ho Chi Minh City will be sourced from the United

States, although the primary contractor is a Danish

company.

U.S. participation in Vietnam’s environment sector is

increasing via the participation of the United States-Asia

Environmental Partnership (US-AEP), which established

offices in Hanoi and Ho Chi Minh City in 1999.

The United States has not yet provided bilateral aid in

the form of loans or grants to the environment sector. A

new source of financing for U.S. companies is available

via the Overseas Private Investment Corporation (OPIC).

OPIC provided its first financial support to a U.S.

investment project in Vietnam in December 1999. In late

2000, following the visit to Vietnam by President Clinton,

OPIC extended a loan to the Ho Chi Minh City

pharmaceutical company OPV, and announced a $200

million loan facility for joint ventures with at least 25

percent U.S. ownership. The U.S. Export-Import Bank

is operational in Vietnam, but to date it has not provided

any funding.

U.S. products such as water pumps, water filtration

and purification equipment, and control systems enjoy a

strong reputation among local buyers. Products from the

United States, Europe, Japan, and Australia are preferred

over imports from other Asian countries because they are

perceived to be of higher quality and durability. However,

the significantly higher prices of U.S.-made products

remains a barrier in a market that is extremely price

sensitive.
6 U.S. Department of Commerce, International Trade Administration Table 2.1 Summary of Overseas Development Assistance (ODA) Environmental Projects in Ho Chi Minh City Project Project Statusb Donor Agency/Projects Contributionsa Totala A B C D E F G H Duration Other Total UNDP Donors ODAGovernment U.N. Development Program (UNDP) Environmental management 1.63 0.70 2.33 0.04 2.37 X X 1998–2001 Other Total WB Donors ODAGovernment World Bank (WB) Irrigation 6.67 6.97 2.94 9.91 X X X X X X 1995–2001 Environmental sanitation (prep) 1.00 1.00 1.00 X X 1998–1999 Environmental sanitation 150.00 150.00 30.00 180.00 X X Poverty analysis 0.10 0.10 0.10 X X 1999– City development strategy 0.05 0.05 0.05 X X 1999–2000 Totals, World Bank projects 158.07 0.05 158.12 32.94 191.06

Other Total

ADB Donors ODA Government

Asian Development Bank (ADB)

 Water supply infrastructure strengthening 0.60 0.60 0.60 X X 1993–1994

 Water supply master plan 0.60 0.60 0.60 X X 1993–1994

 Water supply/sanitation 65.00 65.00 65.00 X X X X X X X 1993–2001

 Environmental improvement (prep) 0.60 0.60 0.60 X X 1993–1994

 Environmental improvement 70.00 1.80 71.80 28.20 100.00 X X X 1999–2006

 Totals, ADB projects 136.80 1.80 138.60 28.20 166.80
Vietnam Export Market Plan

7

Table 2.1 Summary of Overseas Development Assistance (ODA) Environmental Projects in Ho Chi Minh City continued

Project Project Statusb

Donor Agency/Projects Contributionsa Totala A B C D E F G H Duration

Other Total

JBIC Donor ODA Government

Japan Bank for International

 Cooperation (JBIC)

 Tau Hu/Ben Nghe sewerage/drainage X X

 Drainage sewerage 350.00 350.00 350.00 X 1999–2001

Other Total

JICADonor ODA Government

Japan International Cooperation

 Agency (JICA)

 Drainage/sewerage master plans 2.50 2.50 2.50 X X 1998–2000

Other Total

BADC Donors ODA Government

Belgium Administration for

 Development Cooperation (BADC)

 Hospital waste 1.48 1.48 0.43 1.91 X X X X X X 1998–2000

 Canal upgrading/sanitation 5.60 5.60 5.42 11.02 X X X 1998–2001

 Totals, BADC projects 7.08 7.08 5.85 12.93

Other Total

France Donors ODA Government

France

 Thu Duc water filter tanks 3.25 3.25 0.80 4.05 X X X X X X 1995–2000

Totals, all projects 661.88 67.83 729.71

a. Figures represent millions of U.S. dollars.

b. Legend:

 A = studies/master plans E = final approvals/agreements

 B = pre-feasability study F = detailed design

 C = feasability study G = implemented

 D = appraisal H = completed

Source: Overseas Development Assistance Partnership.
8 U.S. Department of Commerce, International Trade Administration

Chapter 3

Legal and Regulatory Overview

3.1—Institutional Structure

The Ministry of Science, Technology, and the Environment (MOSTE) is responsible for management of the

environment throughout Vietnam. MOSTE coordinates

environmental policies among ministries and between

national and local governments and People’s Committees.

Within MOSTE, the National Environmental Agency

(NEA) implements regulations set by MOSTE.

At the provincial and city levels, the People’s

Committees are responsible for implementing MOSTE’s

regulations on environmental protection. Each local

government has a department for monitoring environmental regulations—the Department of Science,

Technology, and the Environment (DOSTE).

DOSTEs in each locality are responsible for pollution

control activities, EIA appraisals, issuing import permits,

inspections of projects and establishments, imposing

penalties, and presiding over dispute resolutions, along

with the NEA, with regard to penalties for violating

environmental regulations.

The People’s Committees are permitted to promulgate

environmental legislation at the city and provincial levels.

If a local People’s Committee sets its own environmental

regulations that are stricter than those set by MOSTE,

the local government’s rules must be followed.

While the Ministry of Planning and Investment (MPI)

mainly presides over issuing investment licenses, it does

have an environmental unit called the Department of

Science, Education, and Environment. This department

evaluates environmental impact assessments that are a

part of the investment license application.

Various other ministries have ancillary roles in the

protection of the environment or in the implementation

of environment-related projects. For example, the

Ministry of Transport is responsible for inspecting any

form of transport to see that it complies with environmental standards. The Ministry of Finance is partly

Figure 3.1 Institutional Structure of Environmental Regulation in Vietnam

Ministry of Science,

Technology, and

Environment

(MOSTE)

City People’s

Committees

Local Departments of

Science, Technology,

and Environment

(DOSTE)

People’s Committee

of Districts

District Departments

of Urban

Management

Environment

Management

Division
Vietnam Export Market Plan 9

a procurement contract, disapproval will likely halt a

project or procurement decision in its tracks.

City and District People’s Committees

People’s Committees are responsible for implementing

all foreign-funded projects within their cities on behalf

of the government of Vietnam.

Vietnam’s larger cities are divided into districts.

District People’s Committees (DPCs) implement the

administrative orders of the City People’s Committee.

DPCs may share responsibilities with city agencies for

operating and maintaining infrastructure under their

jurisdiction, such as canals, drains, and bridges.

Agencies within DPCs are responsible for refuse

collection, drainage, sewerage, and environmental

responsible for setting the fees or charges for issuing and

extending an environmental permit.

Apart from MOSTE, there are approximately 20 other

central government ministries or institutions that have

some role to play in environment protection. For example,

general responsibility for the prevention of marine

pollution lies with the National Maritime Bureau, but

responsibility for dealing with the discharge of pollution

from ships falls to the Ministry of Transport.

3.1.1—Key Agencies for Procurement and

Implementation

In addition to MOSTE, the National Environment

Agency, and local DOSTEs, other ministries and agencies

are either directly responsible for approving environmentrelated projects and procurement decisions or play a vital

role in making recommendations to final decision makers.

Because Vietnam relies on consensus rather than

centralized decision making, it is important to secure

approvals from any office that might have a say in the

decision-making process. Getting an official to sign off

on a project or procurement decision, no matter how

detached from a project they may seem to be, can often

mean the difference between winning or losing a contract

in Vietnam. While approval from the agencies described

below may not guarantee a project’s implementation or

Minister

Chu Tuan Nha

Deputy Ministers

Chu Hao;

Pham Khoi Nguyen

National Environment

Agency (NEA):

Nguyen Ngoc Sinh

International

Cooperation

Thach Can:

Agricultural and

Technology

Management

Planning, Research,

and Development:

Phan Thi Lien

Deputy Ministers

Bui Manh Hai;

Hoang Van Uy

Human Resources

Finance and

Accounting

Investment Project

Assessmentt

Natural and Social

Sciences Management

Figure 3.2 Organization Chart of the Vietnamese

Ministry of Science, Technology, and Environment

Director

Dao Van Luong

Tel: 829-0885

Center for Analytical

Services and

Experimentation

1 director, 2 dep. directors

Total: 45

Deputy Director

Tran Dinh Phu

Administrative Office

Quoc Duy; Tel: 829-7831

Total: 16

Science and Technology

Management Division

Do Truong Tri; Tel: 829-0901

Total 11

Environmental

Management Division

Doan Thi Toi; Tel: 824-2709

Total 15

Science and

Technology Center

1 director, 3 dep. directors

Total 31

HCMC Dept. for

Standards, Quality, and

Metrology

1 director, 1 dep. director

Total: 47

Center for Scientific and

Technological Information

1 director, 1 dep. director

Total: 43

PC World Magazine

1 director, 2 dep. directors

Total: 14

Industrial Property

Management Division

Tel: 829-8217

Total: 7

Planning and Finance

Division

Nguyen Thi Nga;

Tel: 829-0906

Deputy Director

Nguyen Trong

Figure 3.3 Organization Chart of the Ho Chi Minh 

City Department of Science, Technology, and

Environment
10 U.S. Department of Commerce, International Trade Administration

protection within their jurisdiction. DPCs may also be

responsible for appraising proposed small-scale (less than

2 billion dong) infrastructure projects in these areas. Once

approved by the City People’s Committee, the District

People’s Committees are then responsible for managing

these projects.

Departments of Planning and Investment

The Ministry of Planning and Investment is responsible for disbursing central funds to all environmental

projects. At a local level, Departments of Planning and

Investment (DPIs) are key decision makers for preparing

and budgeting development plans for cities, whether

funded domestically or from external sources. One

foreign sponsor of a major water-related project in Ho

Chi Minh City said that a positive recommendation from

the DPI for his project was essential to getting it approved

by the Ho Chi Minh City People’s Committee and the

Ministry of Planning and Investment.

For projects valued under $500,000, the DPI plays the

largest role in granting approval. The Ministry of

Planning and Investment grants approval for projects

valued over $500,000. However, even for these larger

projects, the DPIs provide critical recommendations to

the MPI as to the feasibility of proposed projects. All

projects must be included in DPI plans before they are

examined for appraisal by the MPI, City People’s

Committees, or national ministries. The DPI provides its

recommendations on development needs, potential

funding sources, and the addition or elimination of certain

components to a project.

Because of the DPI’s key role in approving and

overseeing foreign-funded development projects, there

is a plan to include the DPIs in project management units

(PMUs). This would enable DPI officials to monitor

overseas development assistance projects and ensure that

PMUs fulfill donor requirements on bidding, work plans,

and loan management.

Departments of Finance

The Ministry of Finance is involved in all decisions

to allocate central funds to environment-related projects.

At a local level, departments of finance provide input in

appraising the contract rates for public services. Together

with the DPI, the departments of finance prepare annual

plans for fund utilization that are subject to approval by

local People’s Committees before being forwarded to the

Ministry of Finance for approval. The local departments

of finance serve as treasurer, disbursing funds and

approving invoices submitted by public service

companies.

Departments of Transport and Public Works

Local departments of transport and public works

(DTPWs) are responsible for city infrastructure such as

canals, drains, sewers, water supply, and solid waste

management. While DOSTEs are responsible for

monitoring and enforcing environmental standards,

DTPWs are responsible for implementing environmental

services through companies under their management. For

example, urban drainage companies within DTPWs are

responsible for drainage/sewerage implementation,

including issuing permits to connect to city sewer

networks. City environmental companies are responsible

for collecting and transporting solid waste from collection

points to transfer stations. Waste disposal companies are

responsible for managing solid waste landfill sites. Water

supply companies are responsible for distributing and

maintaining pipe networks. These companies purchase

environmental technologies (subject to DTPW approval)

and have significant input on plans for the development

of the cities’ infrastructure.

Ministry of Construction

The Ministry of Construction (MoC) and its local

affiliates, the departments of construction within

individual cities, is responsible for construction quality

and appraisal of civic and industrial projects using either

domestic or foreign funding sources. In effect, the MoC

has been given a broad mandate by the Vietnamese

government to manage urban development in its cities.

The MoC has numerous companies under its management that are used as primary or sub-contractors on

environmentally related infrastructure projects. The

Vietnam Water Supply and Environmental Company

(VIWASE) is the key company under the Ministry of

Construction that participates in nearly all projects related

to water-supply infrastructure. VIWASE often acts as a

subcontractor on projects lead-managed by a foreign

contractor. Two representatives from foreign companies

that have bid successfully on water-related projects cited

establishing good working relationships with VIWASE

as helpful to their efforts to win contracts.

3.2—Legal Framework and Enforcement

In the early 1990s, Vietnam’s leaders became aware

that the country’s tremendous economic growth was

causing serious pollution problems. On December 27,

1993, the National Assembly passed the Law on

Protection of the Environment.

The law has seven chapters and 55 articles, and broadly

covers everything from requirements for environmental
Vietnam Export Market Plan 11

impact assessments to a list of prohibited activities and a

system for addressing non-compliance. The most

important article of the law is the Decree on Protection

of the Environment.

The Decree on Protection of the Environment details:

the duties of various government agencies and local

organizations; the procedures for undertaking environmental impact assessments (EIAs); mechanisms such as

standards and permits for preventing, combating, and

rectifying environmental hazards, pollution, and

degradation; the types of environmental standards;

methods of financing activities to protect the environment; and establishing inspectorate and compliance

systems.

In addition to passing the Law on Protection of the

Environment, the government periodically issues

incentives for companies investing in projects related to

environmental protection. Most recently, the government

issued Circular 1817 on October 21, 1999, that outlined

tax benefits given to investment projects involving

environmental protection, pollution treatment, and waste

treatment and processing.

MOSTE has delegated to local DOSTEs the power to

verify that projects continue to comply with environmental standards. MOSTE has the overall responsibility

for organizing environmental inspections and ensuring

that actual inspections are executed according to the

relevant environmental standards. The inspectors

themselves are drawn from agencies such as NEA,

MOSTE, the State General Department of Inspection, the

People’s Committees, and customs bodies.

Commercial and manufacturing establishments are

required to make financial contributions for environmental protection, pay compensation for any damage they

cause by their activities, and rectify any environmental

degradation they cause. To improve enforcement of this

principle—in this instance, for the mining sector—the

government in October 1999 issued Circular 68CP/

Article 15. The circular requires companies engaged in

mining exploration or exploitation to contribute funds to

an environment rehabilitation fund. The funds are put in

an escrow account, to be used if the company’s operations

require environmental clean-ups. MOSTE must present

any cases of serious environmental hazards to the prime

minister and submit proposals for rectification of these

problems for his approval.

Besides the penalties imposed for violations of the Law

on the Environment, the government attempts to create

other disincentives for polluting industries. The

government has compiled a list of the country’s worst

polluters and has entered them into a “black book” which

is distributed to provincial offices responsible for

environmental protection. The government also uses the

state-owned media to highlight environmental violations

committed by these black book companies and foreign

enterprises.

These efforts aside, overall enforcement of environmental guidelines remains weak, especially regarding

domestic enterprises. One of the key problems with

Vietnam’s enforcement mechanism is that fines are so

low that they do not provide an incentive for companies

to invest in pollution-prevention technology. While the

fines vary depending upon the degree to which standards

have not been met, they usually fall in the range of 2 to 5

million dong ($150 to $400). These costs are minimal,

when compared to the cost of installing primary and

secondary waste treatment facilities.

According to an official at the DOSTE office in Ho

Chi Minh City, domestic enterprises are generally aware

that they cannot meet environmental standards set in the

law. Lacking the financial ability to minimize or treat

waste, companies simply try to keep their emissions as

close to the standards as possible in order to keep the

fines at a manageable level.

The administrative structure for managing inspections

and levying fines complicates enforcement. In Ho Chi

Minh City, for example, DOSTE used to have an

autonomous division responsible for enforcing standards

called ENCO. The division had its own “seal and

signature,” according to one DOSTE official, which gave

it the mandate to inspect and impose fines. In 1999,

however, this division was folded back into DOSTE,

weakening its clout. The division now must go through

the DOSTE bureaucracy before performing its role as

enforcer.

In practice, organized, and sometimes heated, protests

by local citizens are the strongest incentive for local

companies to install waste treatment systems. Citizens

who believe that a company is discharging harmful

pollutants will take their complaints to the local company.

For example, in the Xuan Truong area of Thu Duc district, a heavily industrialized area outside of Ho Chi Minh

City, citizens have organized and brought complaints to

polluting companies. If this does not produce results,

complaints are lodged with local authorities, provincial

authorities, and in some cases the National Assembly in

Hanoi. There have been isolated cases of citizens taking

action themselves, such as blocking discharge pipes.

Depending upon the success of the lobbying efforts,

the district officials, People’s Committee officials, etc.

will then contact the company directly. According to some

Vietnamese environmental experts, polluting companies

will only take action once forced to do so by these

government offices, not by DOSTE officials.
12 U.S. Department of Commerce, International Trade Administration

3.3 Environmental Impact Assessments

All projects implemented within Vietnam are subject

to environmental standards issued by MOSTE, of which

there are currently over 100.

MOSTE requires environmental impact assessments

(EIAs) from two types of investment projects. Group I

investment projects are those that can potentially cause

wide-scale environmental pollution, easily cause

environmental pollution, or are difficult to control and

for which it is difficult to determine environmental

standards. In practice, these are the only projects that

require detailed EIAs.

Group II investment projects are all the remaining

projects, and the applicant must prepare and analyze its

own EIA reports in order to receive a certificate of

“registration of satisfaction of environmental standards.”

In practice, these assessments are very general and are

not scrutinized by government agencies.

For companies located in industrial zones, the

industrial zone authority submits the EIAs for tenants.

When applying to the Ministry of Planning and

Investment for an investment license, the application must

contain a summary of the potential environmental impact

of the particular project. The application must include

information about the proposed site, a summary of the

production technology, any sources of pollution, all

measures to minimize that pollution, the environmental

supervision program, and all undertakings to satisfy

environmental standards. At this point, MOSTE decides

whether the project falls into Group I or Group II.

After the investment license has been issued and the

project site determined, an application file containing

environmental impact documentation must be submitted.

(In the case of petroleum projects, the EIA report must

also include plans for controlling oil spills.)

According to Circular 490, issued by the prime

minister, Group I projects include some of the following:

• Projects situated within or close to environmentally

sensitive areas, such as natural parks, tourist sites,

cultural vestiges of international and national interest;

• Projects developing a master plan for (a) a whole region

(b) a whole sector (c) a city (d) IP or export processing

zone;

• Projects on oil and gas: (a) exploitation, (b) processing,

(c) transportation, and (d) warehousing (greater than

20,000 cubic meters);

• Steel and metallurgy (greater than 100,000 tons per

year);

• Tanneries (greater than 10,000 tons/year);

• Textiles (greater than 20 million meters/year);

• Paints (greater than 1000 tons/year);

• Rubber processing (greater than 10,000 tons/year);

• Sugar (greater than 10,000 tons of sugar cane/year);

• Food processing (greater than 1,000 tons/year);

• Ice and Freezing (greater than 1,000 tons/year);

• Thermo electricity (greater than 200 megawatts);

• Pulp and paper (greater than 40,000 tons of pulp/year);

• Cement (greater than 1 million tons/year);

• Tourism and entertainment zone (greater than 100

hectares);

• Airports;

• Ports (for vessels greater than 10,000DWT);

• Railways, highways, roadways longer than 50 km;

• Hydroelectric plants (with reservoir greater than 100

million cubic meters);

• Irrigation systems (servicing areas greater than 10,000

hectares);

• Ore exploitation (total ore, earth, stone volume greater

than 100,000 cubic meters/year);

• Forestry (all kinds of wood exploitation);

• Aquaculture (areas greater than 200 hectares);

• Hazardous chemicals production and warehousing (all

kinds);

• Nuclear reactors (all kinds).

A number of state agencies may judge the EIAs to

determine whether the project will be approved. MOSTE,

the local People’s Committee where the project is being

undertaken, the local DOSTE, the National Environmental Agency, or the supervising ministry under which

the project may fall can all theoretically approve,

disapprove, or make recommendations concerning a

project based on the EIA.

In practice, the effectiveness of EIAs is weak.

Companies are able to submit plans for installing waste

treatment facilities and receive an investment license, but

then never follow up on installing the plant as promised.

In some cases, companies have won investment licenses

without submitting EIAs.
Vietnam Export Market Plan 13

Access to clean water is the largest environmental

problem facing Vietnam. Polluted water is a leading cause

of dysentery, which accounts for 25 percent of all

childhood deaths in Vietnam. UNICEF estimates that

nearly 40,000 children under the age of five die each year

from this disease. Because of the direct health benefits

of access to clean water, water-related projects have been

prioritized by the government as well as by the donor

community.

Bilateral and multilateral aid in the water resources

sector will approach $1 billion by 2001. Both the Asian

Development Bank and the World Bank have signed

major clean-water-related loans in the past six months,

presenting opportunities for American consultants,

contractors, and equipment suppliers (see Section 4.8).

There are currently over 50 water projects in 39

Vietnamese provinces, with a total investment of about

$900 million. Another 20 proposals have been submitted

in hopes of luring either direct investment or ODA.

As urban migration continues unabated, demand for

clean water is outpacing construction of new water

networks. Water supply plants have been completed in

Hanoi and Ho Chi Minh City, but the problem has been

connecting households to the network and ensuring

efficient distribution with minimal leakage and contamination. In rural areas, the challenge has been to lessen

the reliance on polluted surface waters.

Vietnam’s cities suffer from antiquated and inadequate

sewerage and drainage infrastructure. Most drainage

systems are for combined usage—mixing rainwater

runoff with untreated wastewater and solid wastes—

thereby creating heavily polluted drains, canals, and rivers

in highly populated areas. Restricted flows cause flooding

during the rainy season, further exposing the population

to untreated wastewater. Donors to Vietnam are squarely

focused on reducing these problems, especially in Ho Chi

Minh City, where Vietnam’s largest environment-related

projects are now underway.

Vietnam passed a Water Resources Law in 1998, which

effectively gave administrative responsibility for

managing the country’s water resources to the Ministry

of Rural and Agricultural Development (MARD). The

law also provides legislation for issuing permits as a

means of controlling point-source wastewater discharge

into surface or ground water.

Among the projects being carried out by MARD is

the National Program on Rural Clean Water and Environmental Sanitation. The government has designated the

program as one of the country’s seven most important

development initiatives over the next 10 years.

By 2005, the government is hoping to supply 80

percent of the urban population with a daily supply of

80 to 150 liters of potable water per capita. The target

also calls for 60 percent of the rural population to have

their own systems of wells and purification equipment.

MARD estimates that $1.23 billion is needed for the rural

component alone. In 1999, $21 million in funding for

water-related projects was disbursed from the national

budget. The Ministry of Planning and Investment

estimates that $143 million will be needed to drill 1.2

million wells to supply water to rural areas.

4.1—Water Supply

Vietnam’s ground water supply is generally pure at

the source, but this is not the case for surface water, much

of which is generated during monsoon season, exposing

the water to contamination. Ground water feeds only 30

percent of urban water systems, while 70 percent is

sourced from surface water.

Surface water from reservoirs and rivers is polluted

by untreated industrial effluents from small towns or, in

the case of coastal towns, by seawater intrusion. During

the dry season, river volumes drop, allowing seawater to

contaminate water sources, in some cases as far as 70

kilometers inland. Vietnam’s urban population outside

Hanoi and Ho Chi Minh City must depend primarily on

surface water passing through a purification plant before

being piped to customers.

Hanoi and Ho Chi Minh City have sizable ground

aquifers. But the large number of private wells being built

directly into these two large aquifers is causing problems.

While come of the wells are dug with permission and

planning by town authorities, many are drilled illegally.

Some of these wells have penetrated septic tanks or

Chapter 4

Water Resources
14 U.S. Department of Commerce, International Trade Administration

sewerage systems, contaminating the city’s basic water

supply.

A 1995 study conducted by the Hanoi Department of

Science, Technology, and Environment showed that the

unchecked exploitation of underground water in the city

has increased its subsurface water absorption capacity

from 40 percent to 80 percent over the last decade. A

1995 study of the underground water in Hanoi showed

levels in the aquifer falling by approximately half a meter

per year. The pumps for the city’s 120 pumping stations

were installed 25 meters below ground, but the 1995

study showed the water level had dropped to 27 meters

below ground, thereby rendering the pumps useless.

For Ho Chi Minh City, unpolluted source water comes

from the upper reaches of the Dong Nai and Saigon

Rivers, as well as from the Be and La Nga Rivers. The

density of organic matter and waste where treatment

plants obtain water from these rivers remains low at a

biochemical oxygen demand (BOD) of less than 3 mg/

liter, well within clean standards set by the World Health

Organization.

Current water treatment facilities in secondary cities

cover only 30 percent of the clean water demand. Rural

areas suffer the most because of their dependence on

surface water. Seventy-five percent of the rural population

get their water directly from natural sources, such as

rivers, streams, and underground aquifers, all of which

receive no treatment.

4.2—Urban Water Supply

Vietnam’s urban population is approximately 15

million, but only 50 percent of urban residents nationwide

are estimated to have access to piped water. In larger cities

(Hanoi, Ho Chi Minh City, Haiphong), it is estimated that

60 percent to 70 percent of residents are end-users of

piped water. In smaller cities it is estimated to be only

30 percent.

Those not using piped water receive their supplies

from shallow wells, rainwater, rivers, and ponds. In some

cases, urban residents obtain water from supplies

transported by truck by municipal water companies or

from public taps.

Most of Vietnam’s 192 water supply plants date from

the 1960s. The nation’s total capacity for supplying water

is estimated at 2.7 million cubic meters per day. The

biggest supply plants in Vietnam are Ho Chi Minh City’s

Thu Duc Plant (750,000 m3

/day), the Hanoi Yen Phu plant

(80,000 m3

/day), and the Haiphong An Duong plant

(85,000 m3

/day). Dozens of other urban plants have an

average capacity from 10,000 to 30,000 m3

/day and 500–

5,000 m3

/day for smaller town plants.

Ho Chi Minh City

In 1999, the Binh An Water Treatment Plant, Vietnam’s

first water build-operate-transfer (BOT) project, began

supplying water to Ho Chi Minh City (see Case Study

4.1, page 14). The HCMC Water Company now supplies

750,000 m3

 of water per day to the city. However, demand

is estimated at 1.2 million m3

 per day, so that only about

50 percent of the population of HCMC have access to

potable water.

Two other BOT projects are being negotiated. One is

a $100 million project backed by France’s Lyonnaise des

Eaux (LDE). The company has not yet signed a price

agreement with the HCMC People’s Committee,

however. LDE is reportedly asking for a price of $0.24

per m3

, a price that would be locked in for seven years.

The LDE plant would have a capacity of 300,000 m3

 per

day. The other project is backed by Grand Imperial Water

Company, a consortium of Malaysian companies. This

plant also has a scheduled capacity of 300,000 m3

 per

day.

Case Study 4.1 Being First Isn’t Easy

In August 1999, the Binh An Water Treatment plant began

supplying 95,000 m3

 of treated water per day to the Thu Duc

Reservoir. Binh An Water Co. is owned by a consortium of

Malaysian companies, including Masscorp, the investment arm

of the Malaysian government. The Binh An project is notable

because it is the first-ever BOT project implemented in Vietnam.

Achieving this feat was not easy.

According to executives familiar with the project, in order to

win the license Binh An gave a 10 percent stake to a silent partner

that had the connections in Hanoi to get the BOT approved by

the prime minister. Binh An obtained the land for the $35.8 million

project from the Vietnamese military, a factor that delayed the start

of operations by some 10 months as land transfer agreements took

longer than expected to complete. The project is entirely financed

by Binh An Water Co. Initially, the company sought financing

from the International Finance Corporation (IFC). In the end, the

IFC backed away from the deal because legal guarantees from

the government were considered insufficient. The Asian financial

crisis of the late 1990s also delayed construction, as financing

dried up for two years.

Binh An Water sources water from the Dong Nai River and

supplies it to one of Thu Duc’s four reservoirs. Once the water

leaves the property of Binh An Water, responsibility for its purity

lies with the HCMC Water Co. The capacity of the treatment plant

is 100,000 m3

 per day. HCMC Water Co. signed a take-or-pay

contract for a minimum of 85,000 m3

 per day through the year

2000. Binh An Water is charging a fixed price of $0.20 per m3

and it has recently guaranteed the HCMC People’s Committee that

the price will not increase through the year 2000.

Despite the take-or-pay clause, there are still concerns about

whether the investment is viable. At the moment, HCMC Water

Co. is unable to use the capacity of water available to it because

a pipe network doesn’t yet exist to distribute it. Another concern

is that the HCMC Water Company is paying more for its water

than the government allows it to charge. Investors in Binh An

are betting that the local infrastructure and pricing will increase

before HCMC Water Co. goes under.
Vietnam Export Market Plan 15

Hanoi

The largest water supplier in the city, the Hanoi Water

Company has eight water stations and other smaller

plants. The company says it is able to supply between

340,000 to 350,000 m3

 of clean water per day. The

company’s system is supplied by over 125 artesian wells,

some of which have less than 50 percent of their designed

capacity left.

Capacity will increase when construction of two new

water treatment plants is completed. The plants are part

of the World Bank’s $97.8 million First Water Supply

project, which is upgrading water resources in four key

northern regions: Hanoi, Haiphong, Quang Ninh, and

Danang. In addition to the World Bank loans, the Finnish

government is providing $1.96 million in co-financing

for technical assistance and consultant contracts.

In early 1999, the World Bank awarded a $33 million

construction contract for the Hanoi component to a joint

venture between Korea’s Kolon Corporation (51 percent)

and the Vietnam Construction and Import/Export

Corporation (49 percent). The World Bank is providing

85 percent of the financing for the construction contract.

The joint venture is building two 30,000 m3

 per day

water-supply stations. One plant is being built in Tu Liem

district and the other in Tay Ho district. Four new wells

will be drilled to supply water to the plants. The additional

60,000 m3

 per day will bring total capacity to 410,000

m3

 per day.

By 2010, authorities in Hanoi plan to install water

treatment systems in Ba Dinh, Hai Ba Trung, Hoan Kiem,

Dong Da, Tay Ho, Thanh Tri, and Tu Liem districts.

A U.S. firm, M-Power Corp., is developing plans to

build a $134 million build operate transfer (BOT) water

supply network in Hanoi. The project is in the feasibility

study phase and no BOT contract has been signed. The

project calls for construction of a water purification plant

with a capacity of 500,000 m3

 of clean water per day and

rehabilitation of 56 kilometers of water drainage systems.

The project aims to include construction of reservoirs and

installation of water supply systems in Hanoi’s suburbs,

as well as steps to reduce water loss throughout Hanoi’s

distribution system.

Haiphong

Construction has been completed on the Haiphong

component of the World Bank’s First Water Supply

project. The project is rehabilitating the main water

supply plant for Haiphong, the An Duong Water Plant.

Capacity of the plant is being increased from 60,000 m3

per day to 100,000 m3 per day. The project also involves

rehabilitation of the distribution system, water intake, and

pumping stations and will increase household connections

to the water network. The project is scheduled to be

complete by 2002.

The World Bank has signed a credit for $24.4 million

to finance these upgrades. The Chinese Metallurgy and

Construction Corporation will supply and install

equipment worth $19.3 million over the next three and a

half years.

Quang Ninh

After a three-month delay, construction has started on

the Quang Ninh component of the First Water Supply

project. French contractor SAUR International won the

main civil works contract, valued at approximately $19

million.

By mid-2000, SAUR had started purchasing materials

and equipment and had started construction of raw water

lines. SAUR was also preparing the detailed design for

rehabilitation of two water supply plants in Quang Ninh.

When completed, the Dong Ho Water Plant will have

a capacity of 20,000 m3

 per day, and the Dien Vong plant

will have a capacity of 60,000 m3

 per day.

Danang

Danang is the fourth component of the First Water

Supply project and has been the slowest in getting

underway. Prequalification for bidding on the project has

been completed, and bid documents for the civil works

contract and construction supervision contracts were

submitted on January 5, 2000. Five contractors have

submitted bids. The consultant evaluating the bids,

GHDK Co., is a joint venture between GHD of Australia

and Kim Hien Co., a Vietnamese firm with offices in

Hanoi and Danang.

4.3—Rural Water Supply

In mid-1999, the government completed a master plan

for rural water supply. The study was conducted by the

Ministry of Construction, the Ministry of Agriculture and

Rural Development (MARD), and Danish International

Development Assistance (DANIDA). DANIDA provided

a $2 million grant to complete the study.

The plan focuses on supplying clean water to rural

households, building household sanitary facilities, and

preventing diseases caused by polluted surface waters by

the year 2020. The government and National Assembly
16 U.S. Department of Commerce, International Trade Administration

have designated the project as one of Vietnam’s “seven

most important” development programs.

By 2005, the government objective will provide 80

percent of the rural population with clean water and 50

percent of the rural population with adequate sanitation

facilities. In order to achieve these rates of penetration,

the plan’s authors estimated an investment of $132.3

million per year will be needed. In total, the master plan

calls for $2 billion to implement the project.

The majority of the financing for rural clean water and

sanitation projects will come from overseas development

assistance sources. Since the program started, MARD

reports that 750,000 farming families have been able to

access clean water supplies, bringing the total number

of rural users nationwide with access to clean water to

19.7 million. This marks a penetration rate of 33 percent

of the rural population.

The program is also designed to provide hygienic

toilets to 50 percent of all rural families and to install

wastewater treatment facilities for 30 percent of rural

water users. The government has spent over $5 million

on the program since the beginning of the year.

Approximately $16.2 million in funds for the project are

also being supplied by DANIDA, the World Bank,

UNICEF, and the Asian Development Bank. Denmark is

also financing a $1.8 million water supply and sanitation

project in the north-central province of Ha Tinh.

AusAID has provided $45 million in financing for

rural water supply projects in Bac Giang, Bac Ninh, Ha

Tinh, Tra Vinh, and Vinh Long provinces.

Between 1990 and 1997, UNICEF dispersed $14.8

million in funding as part of a rural water supply program

to 20 million people, covering all of Vietnam’s 61

provinces. The program has installed 180,000 clean water

stations, including 500 small water plants. Half of the

water installations have been set up in rural areas, with

15 percent in mountainous zones and 11 percent at

kindergartens, schools, and local clinics. The remainder

were set up for the families of war veterans.

4.4—Distribution

While the quality of treated water in Vietnam usually

meets World Health Organization standards, once it

leaves the treatment plants, it is exposed almost

immediately to contamination. Between 40 and 50

percent of the water pumped out of the country’s

treatment plants is lost on its way through Vietnam’s 119

rusted and leaky distribution networks.

The majority of the 14,800 kilometers of water pipes

in urban systems are either cast iron, concrete, or steel

Case Study 4.2—Relationships Count

Hong Kim Co. is a local Vietnamese company based in Ho Chi

Minh City. For four years it served as an agent for a CanadianAmerican water purification company based in Nevada called

Vector Corp. Vector sold water purification equipment under the

brand name Diamond Rain. The equipment retailed for between

$30,000 and $200,000, with the primary markets being hospitals,

schools, and bottled water companies.

Last year, Vector Group left Vietnam to focus on other markets,

but it licensed the trademark to Hong Kim Co. After four years

serving as an agent, Hong Kim Co. knows the technology and

provides sufficient after-sales service. The Diamond Rain

trademark is established, and the system is considered durable and

of high quality. Hoping to build on its success of distributing U.S.-

made purification equipment, Hong Kim Co. executives have

traveled to the United States to meet with other companies, such

as Ametek and Universal Aqua.

The government’s $2 billion rural water supply program could

turn out to be a gold mine for Hong Kim Co. The government is

allocating overseas development assistance funds to most of

Vietnam’s provinces to implement the program. In one province,

Australian aid has already funded construction of a 200,000

gallon/day purification system, and the province has funds from

other sources, including the UNDP, to install another 60

purification systems.

In addition to having a solid product with a proven track record

in Vietnam, Hong Kim Co. has a trump card: Several of its

employees are directly related to the chairman of the province

awarding the contract. While this many not necessarily win the

deal for Hong Kim, this small distributor of American-built

purification technology is now on the inside track to win several

parts of this sizeable rural water supply initiative.

and are in extremely poor condition. With the unsealed

pipes and low water pressure comes greater exposure to

contaminants from outside the pipes.

Vietnam’s water companies are extremely inefficient.

Not only does a huge amount of leakage and waste occur,

but the companies continually fail to earn enough income

to offset operating costs or upgrade their distribution

systems.

Because of unreliable piped water supplies, authorities

have been unsuccessful in controlling the use of ground

water sources. Well digging at the household, neighborhood, and industrial levels continues unregulated in many

urban and rural areas. This is resulting in both

contamination and depletion of ground water supplies in

some urban areas.

Charging less than their operating costs, municipal

water companies are losing money and have no funds to

upgrade their infrastructure, creating the supply

inefficiencies. After years of debate, the government

finally agreed to raise water prices effective March 1,

2000, but prices remain below operating costs (Table 4.1).
Vietnam Export Market Plan 17

because HCMC’s primary water distribution network is

unable to handle large volumes of water. HCMC Water

Co. is unable to distribute at capacity because higher

volumes will cause the old piping networks to crack.

Another problem is the small diameter of many of the

pipes in five key districts in HCMC—Districts 1 through

5—pipe capacity needs to be expanded or rehabilitated

so that the HCMC Water Co. can reach its customers.

Hanoi

Hanoi’s primary water distribution network is in better

shape than Ho Chi Minh City’s. Its main system is a 330-

kilometer-long network built in 1985 with funding from

the Finnish Development Agency. This network meets

European health standards and delivers water to over half

a million customers. Hanoi has a second main distribution

network, which is 217 kilometers long. This network,

however, was built in the early 1900s by the French and

needs rehabilitation.

While HCMC’s biggest problems are leakage and the

need to rehabilitate existing pipelines, Hanoi Water

Supply Co. suffers from administrative weakness.

The recently completed Binh An Water Treatment

plant supplies the HCMC Water Company with 95,000

m3

 per day. The company pays a fixed price of $0.20 per

m3

 on a take-or-pay basis. Meanwhile, the company can

charge residential customers a maximum of $0.18 per m3

.

A second problem is the lack of accurate water meters.

Installation of water meters is usually included in ODA

or bilateral/multilateral projects to the water sector. In

Hanoi, for example, over 70 percent of households lack

water meters. Because of the poor distribution network,

the water pressure is so low that meters cannot measure

accurately. Water supply companies therefore charge a

flat fee, resulting in overuse by some consumers and

continuing losses for water companies.

According to one estimate by the Hanoi Water Supply

Company, households pay $0.43–$0.55 month, per

person, for the equivalent of four cubic meters of water

per person; $0.107 cents per cubic meter of water is well

below prices recommended by multilateral donors

funding water-supply projects in Vietnam.

Ho Chi Minh City

The water distribution network in Ho Chi Minh City

(HCMC), much of it built during the French colonial

period and not repaired since, is in desperate need of

overhaul. Dilapidated pipe systems and weak water

pressure have forced the HCMC Water Co. to use large

water tanks to deliver clean water to many of HCMC’s

districts.

While BOT projects are lined up to supply HCMC with

enough capacity to meet demand, the challenge will be

efficiently distributing water to consumers. Therefore, if

the two other BOT water-supply projects were to come

on line, there would be no way to distribute the water,

Table 4.1 Water Prices in Vietnam, per Cubic Meter

 Before After

03/01/00 03/01/00

Residential $0.09 $0.12 (1–4 m3

)

$0.18 (4–6 m3

)

Industrial $0.18 $0.23

Luxury/Entertainment $0.29 $0.36

Note: Prices are given in U.S. dollars.

Source: Ho Chi Minh City Water Company.

Table 4.2 Industrial Water Demand Estimates for Industrial Estates and Export Processing Zones

 Size (in hectares)

Export Annual Percent of

Industrial Processing Water Total

Location Estates Zones Total Demand* Demand

Hanoi 1,700 760 2,460 0.492 8.4

Haiphong 800 100 900 0.180 3.1

Quang Ninh 200 100 300 0.060 1.0

Quang Nam-Danang 1,010 470 1,480 0.2965.1

HCMC 22,800 360 23,160 4.632 79.5

Vung Tau 600 100 700 0.140 2.4

Can Tho 150 150 0.030 0.5

Total 27,110 2,040 29,050 5.830 100.0

* Water demand is given in millions of cubic meters per year.

Source: World Bank, Vietnam Water Resources Sector Review (May 1996).
18 U.S. Department of Commerce, International Trade Administration

According to the Hanoi Water Supply Co., 65 percent of

the water distributed is either lost in transmission or goes

unpaid. Of this, 25 percent fails to reach customers

because of leakage, 10 percent is siphoned off from illegal

taps, and the remaining 30 percent reaches the customer

but is not paid for.

As part of the World Bank’s $33 million First Water

Supply project for Hanoi, Korea’s Kolon will install a

407-kilometer pipe network. In addition, 30 network

water meters and 75,000 household water meters will be

fitted.

4.5—Market Opportunities and

Competitive Situation

Water Supply Equipment Market

The largest customers for imported water supply

equipment are government-executed but foreign financed

water supply projects for major cities, provincial capitals,

and rural areas. Hospitals, schools, and industrial zones

are also large customers.

The market for pumps, filters, water meters, and valves

has increased steadily over the past four years. Industrial

and household pumps represent the largest market, and

foreign companies supply the majority of the equipment.

The market for industrial pumps has primarily been to

ODA-financed water supply systems, sewerage and

drainage, and irrigation projects. Other customers have

been manufacturing plants, industrial zones, and real

estate developments.

Foreign suppliers account for 85 to 90 percent of the

market demand. Market leaders include:

• Grundfos (Denmark): submersible pumps

• Pleuger (Germany): submersible pumps

• Ebara (Japan): horizontal and submersible pumps

• Flygt (Sweden): submersible and vertical pumps

• Perollo, Matra (Italy): submersible and horizontal

pumps

Table 4.3 Sample Product Lines for Water Treatment Equipment

Brand Product Capacity Cost*

Osmonic (USA) Water treatment systems 30 m3

/day $21,450

(including filters, water

softener, RO membrane,

ozone purifier)

Diamond Rain (USA) Water treatment systems

Meytoroy (USA) Metering pump for 1 m3

/hour $3,000

wastewater treatment

G.A. (USA) Valves 150 $3,000

20 mm $500

Charlotte (USA) Pipes 10 inches, 3 m $413

Ametek Industrial filter STBC 25 m3

/hour $1,300

Tsurumi (Japan) Air blower 5 m3

/minute $3,500–$4,000

Alpha-Laval (Holland) Mud pressing 10 m3

/hour $30,000

Ebara (Italy) Sewage pump 10 m3

/hour $500

Caprari (Italy) Sewage pump 20–60 m3

/hour $1,000

Flygt (Sweden) Sewage pump 20–80 m3

/hour $1,000–$1,200

Tsurami (Japan) Sewage pump 20–80 m3

/hour $750

Trominelc (Germany) Tossing pump 20–120 liters/hour $300–$2,000

Aldos (Germany) Tossing pump 20–120 liters/hour $300–$2,000

Dosatron (Italy) Tossing pump 20–120 liters/hour $150–$1,000

Kohn (Germany) Flow meter 60 m3

/hour $750

Flygt (Sweden) Air diffuser

Polymer (Singapore) Mud treatment chemicals $8/kg

* In U.S. dollars.

Source: Center for Environmental Technology (ECO), Ho Chi Minh City.
Vietnam Export Market Plan 19

These firms supply the market via bids on ODAfinance projects or via distributors and trading companies

with an established presence in Vietnam.

Household-sized pumps are used in urban and rural

areas to increase water pressure supplied from a city’s

supply system or to source from drilled wells. The market

for household pumps is dominated by Asian suppliers.

Companies from Taiwan, such as Kutaz and Kikawa, and

Korean companies, such as Goldstar, Hanil, and Shinil,

control an estimated 60 percent of the market share.

Chinese-made pumps own a 20 percent market share.

The filter and purifying system market is also supplied

by imports. Along with foreign competitors such as Elga

and Doulton from the U.K., several U.S. companies are

active in this sector of the market. American products

from Pura, Instapure Water, Diamond Rain, Osmonic, and

Water Pur International are distributed locally and have

gained a reputation for high-quality, durability, and

reasonable price.

Mekong Delta Water Resources

In August 1999, the World Bank and the government

of Vietnam signed a $101.8 million credit for the $147

million Mekong Delta Water Resources project. The

project will increase agricultural productivity, reduce

pollution of surface water in the affected areas, and

increase the clean water supply to over 280,000 people.

It will provide domestic water supply through wells,

pumps, and piped systems for remote communities and

improve sanitation. Finally, it will strengthen water

Table 4.4 Sample Product Lines for Water Supply Equipment

Brand Product Capacity Costa

LG-Goldstar (S. Korea) High-pressure pump 1.0 hp $111

LG-Goldstar Lifting pump 2.5 hp $267

LG-Goldstar Industrial pump 4.0 hp $342

Ebara CMA100 (Italy) High-pressure pump 1.0 hp $125*

Pentax MB200 (Italy) Lifting pump 2.2 hp $214*

Teco (Taiwan) Industrial pump 4.0 hp $296*

Teco (Taiwan) Industrial pump 5.0 hp $403*

Viking Johnson (USA) Flexible couplings

Flange adapters

Tapping tee

G.A. Industries Valves

a. In U.S. dollars.

* Includes 5 percent of value-added-tax.

Source: Dai Viet Trading Co. (HCMC); Duc Quang Trading Co. (HCMC).

resources management and planning at the provincial,

communal, and farmer levels. The project is scheduled

to be completed by 2005.

Civil works contracts will be awarded for canal

dredging and excavation, and construction or repair of

sluices, bridges, and canal-connected roads. Nearly 200

sluice gates will be repaired or built. Over 3,000

kilometers of irrigation/drainage canals, embankments,

and structures will be upgraded. Works for the irrigation

component (valued at $2.3 million) and the rural water

supply component ($5.3 million) will be procured

through local shopping procedures. Consulting services

will be required to assist in engineering design,

implementation supervision, and water management

studies.

The Central Project Office at the Ministry of

Agriculture and Rural Development (MARD) is

implementing the project. The Vietnam National Mekong

Committee will also supervise project implementation.

Two subproject implementation offices, already

established by MARD, will carry out all procurement for

water resources infrastructure.

Second Provincial Towns Project

The Asian Development Bank has committed $69

million to improve public health in seven provincial

capitals by increasing access to clean water supplies. The

cities include: Tuyen Quang, Ninh Binh, Vinh, Dong Hoi,

Dong Ha, Quy Nhon, and Ben Tre. The project has

included investments to rehabilitate or build new
20 U.S. Department of Commerce, International Trade Administration

sewerage and drainage systems. The project was started

in 1997 and is scheduled to be completed by 2002.

In December 1999, construction started on a $12.9

million component of the project in Dong Ha, Quang Tri

province. The project will include a treatment facility

capable of supplying 15,000 m3

 per day, 63 kilometers

of raw water piping, 11 kilometers of concrete sluices

for the city’s drainage system, and 11 wells. Once

complete, the supply plant and distribution network will

supply 85 to 90 percent of the population of Dong Ha

with clean water.

Phuoc Hoa Multipurpose Water Resources

The Asian Development Bank has identified the Phuoc

Hoa Multipurpose Water Resources project in its firm

loan pipeline for 2000. The $140 million project will

focus on developing a reservoir and associated infrastructure for irrigation and municipal and industrial water

supply for Ho Chi Minh City and the Bien Hoa – Vung

Tau economic triangle. A feasibility study has been

completed and preliminary and detailed engineering

designs are being developed. The project started in 1999

and is scheduled to be completed by 2005.

Red River Delta and Third Provincial Towns

Projects

The Asian Development Bank has identified the

Second Red River Delta Water Resources project and the

Third Provincial Towns Water Supply and Sanitation

project for its 2001 loan pipeline. The bank estimates it

will provide $60 million for the Red River Delta Water

Resources project and $60 million for the Third

Provincial Towns Water Supply project.

Second Water Supply Project

According to a World Bank official in Hanoi, a Second

Water Supply project is in the conceptual stages. Instead

of targeting water supply/distribution projects for specific

cities, the World Bank would establish a water supply

fund. Qualifying water supply companies from each city

or region would then apply to access funds for specific

projects. This design would decentralize project planning

and allow local governments to design water-resource

projects based on local needs.

If such a fund is established, it will be essential for

vendors and contractors to develop strong ties to

municipal water supply companies, departments of

planning and investment, and People’s Committee

officials. Opportunities may exist for foreign contractors

to co-design projects directly with these local authorities

and subsequently apply to the World Bank fund for

financing.

World Bank officials estimate that if a Second Water

Supply project along these lines is approved, it would

not be implemented until 2002 or 2003 at the earliest.

Bilateral Aid Projects

Numerous bilateral aid projects have financed watersupply improvements in both rural and urban areas.

Finland has been among the most active supporters of

such programs.

Finland’s Development Agency (FINNIDA) has been

instrumental in upgrading water supply and distribution

facilities in northern Vietnam. In addition to the water

distribution project it financed in 1985, FINNIDA has

financed water supply projects in Haiphong since 1990.

FINNIDA is providing co-financing for technical

assistance and design studies for three World Bankfinanced projects: Hanoi Water Supply ($2.5 million

grant), Haiphong Water Supply and Sanitation ($6.1

million grant), and the Haiphong component of the

Bank’s Three Cities Sanitation project ($1.3 million

grant).

Denmark has also been an active player in the waterresources sector. Most recently, Danish Per Aarsleff A/S

won a contract to supply equipment as part of Hanoi’s

water upgrade project. The purchases are being financed

via a 12-year, $6 million loan from ABN AMRO

bank and the Ministry of Finance to the Hanoi Water

Company. The Eksport Kredit Fonden is providing loanenhancement measures. The Ministry of Foreign affairs

is providing interest and insurance premium supports.

The Australian Agency for International Development

(AusAID) has been active in financing water projects,

especially as part of the Rural Water Supply project. To

date, AusAID has provided $45 million in financing for

water supply projects in Bac Giang, Bac Ninh, Ha Tinh,

Tra Vinh, and Vinh Long provinces.
Vietnam Export Market Plan 21

Table 4.5 Vietnam’s Imports of Water Equipment by Exporting Country, 1998 (U.S. dollar value)

Water pumps for domestic use

Country Value Country Value

India 2,597 United States 20,783

Belarus 92,400 Russia 107,574

Belgium 1,002 Japan 995,085

Taiwan 710,436Australia 7,067

Denmark 10,968 France 17,469

Germany 212,987 Philippines 9,061

Netherlands 108 Singapore 449,941

South Korea 690,638 Spain 7,572

Hong Kong 75,900 Thailand 70,742

Indonesia 167,621 Sweden 237

Italy 680,810 China 1,010,618

Malaysia 540,680

Total: $5,822,296

 Industrial pumps

Country Value Country Value

India 364,832 United States 1,273,056

England 33,972 Norway 5,623

Austria 2,346Russia 48,443

Belgium 11,142 Japan 4,186,714

Canada 70,209 Australia 256,081

Taiwan 346,799 Finland 11,090

Denmark 3,247 France 77,837

Germany 1,133,982 Philippines 8,730

Netherlands 42,199 Singapore 1,842,881

South Korea 1,004,449 Spain 12,294

Hong Kong 218,479 Thailand 909,580

Indonesia 89,200 Sweden 226,807

Iran 570 Switzerland 18,137

Italy 1,143,120 China 332,277

Malaysia 88,223 Ukraine 8,018

Mexico 194,353

Total: $13,964,691

Spare parts

Country Value Country Value

India 112,463 Italy 106,740

England 1,123 Malaysia 11,099

Belarus 32,330 United States 38,480

Belgium 2,068 Russia 26,619

Canada 4,428 Japan 66,463

Taiwan 81,920 Australia 5,473

Denmark 4,528 France 51,761

Germany 14,278 Singapore 93,245

South Korea 524,565 Thailand 6,479

Honduras 46,893 Sweden 8,207

Hong Kong 18,815 China 73,586

Indonesia 25,916

Total: $1,360,479
22 U.S. Department of Commerce, International Trade Administration

Table 4.5 Vietnam’s Imports of Water Equipment by Exporting Country, 1998 (U.S. dollar value) Continued

Water filters

Country Value Country Value

India 4,929 Malaysia 1,907

England 8,218 United States 282,231

Austria 5,118 Japan 21,245

Taiwan 113,983 Australia 896

South Korea 16,205 France 318,005

Hong Kong 1,618 Singapore 424,690

Indonesia 15,600 Spain 32,961

Italy 26,690 Thailand 258,592

Laos 3,950 China 782

Total: $1,540,620

Valves

Country Value Country Value

India 250 Japan 18,176

Canada 7,187 Singapore 22,999

Taiwan 94,656 Spain 3,492

Hong Kong 18,507 Thailand 197,355

Italy 42,332 China 60,399

Malaysia 3,064 Yemen 14,540

United States 780,506

Total: $1,263,463

Water meters

Country Value Country Value

Taiwan 46,407 Malaysia 43,905

Denmark 274,447 Australia 78,490

Germany 625,003 Finland 95,930

Hong Kong 60,079 France 67,190

Indonesia 1,848,290 Thailand 151,411

Italy 299,177 China 413,538

Total: $4,003,867

Source: General Department of Statistics, Vietnam.
Vietnam Export Market Plan 23

5.1—Current Trends

The Ministry of Agriculture and Rural Development and

the Asian Development Bank estimate that only 16

percent of Vietnam’s urban population are served by

sewerage systems. Many of these systems are dualpurpose sewers that carry rainwater runoff as well as

wastewater. The pipe and canal networks are unable to

handle volume flows, resulting in backups and flooding.

Some of the largest overseas development assistance

(ODA)-funded projects over the next five years are

directed toward rehabilitating sewerage and drainage

systems in Vietnam’s major cities, most notably Hanoi

and Ho Chi Minh City. While the projects in Hanoi are

already underway, the four projects in Ho Chi Minh City

are in the project preparation phase (Table 5.1).

Ho Chi Minh City

Ho Chi Minh City has nearly 1,000 kilometers of

existing drainage—consisting of streams, canals, and

closed sewers—that double as a conduit for rainwater and

wastewater. Much of this system was built in the 1870s,

with sporadic improvement projects conducted from the

1950s to 1975.

Most of the sewers are concrete, though some were

built with brick and masonry. Settling has occurred since

Chapter 5

Sewerage and Drainage

initial construction. Some areas require frequent repairs,

because they collapse during high-volume periods, such

as monsoon rains.

The system is too small to meet current needs and

requires widespread repairs. The network was designed

for a population of 1.5 million, whereas HCMC’s

population is expected to reach 7.6 million by 2020. The

existing drainage network is estimated to handle 650,000

cubic meters of water per day. Therefore, certain sections

of the city become flooded with polluted waters during

the rainy season.

Most of the underground sewers drain into canals that

eventually flow to the Saigon River. Over-development

along the canals and the volume of solid waste restrict

water flows, causing the canals and sewer systems to back

up and flood.

Hanoi

Because of inadequate drainage and dual-purpose

sewers, most of Hanoi’s lakes and rivers suffer from

pollution from urban wastes. The center of Hanoi is

bordered by the Red River on the east and the Nhue River

on the west. The center is most prone to floods because

of inadequate drainage and sewerage networks. During

heavy rains, water flows backwards from the Nhue River

Table 5.1 Pending Sanitation Projects in Ho Chi Minh City

Project Donor Amount* Status

HCMC Environmental Loan approved, feasibility

 Improvement Asian Development Bank $100 million study completed

HCMC Environmental Feasibility study completed,

 Sanitation World Bank $180 million detailed design underway

Sewerage and Drainage for Overseas Economic Feasibility study

 Tau Hu–Ben Nghe Canal Cooperation Fund $350 million completed

Tan Hoa–Lo Gom Belgian Administration Feasibility and design

 Canal Sanitation Development Cooperation $5 million studies underway

* Values represent U.S. dollars.

Source: Mekong Research Ltd., 2000.
24 U.S. Department of Commerce, International Trade Administration

HCMC Environmental Sanitation Project

The World Bank recently completed a feasibility study

for a $180 million project to improve Ho Chi Minh City’s

sewerage and drainage systems. The project will

rehabilitate the 33-square-kilometer Nhieu Loc–Thi Nghe

catchment basin in the heart of Ho Chi Minh City,

improving sanitary conditions for 1.2 million residents.

According to current plans, the World Bank will finance

$150 million of the project. The Ho Chi Minh City

People’s Committee and the Department of Transport and

Public Works are the local implementing agencies. The

project is scheduled to start in 2000 and be completed

by 2005.

American environmental consulting firm Camp

Dresser McKee (CDM) won a $958,000 contract to

prepare the recently completed feasibility study for the

project. The World Bank is in the final stages of extending

this contract and selecting CDM as project consultant to

prepare the detailed engineering design. Prequalification

for bidding on the project’s first contracts was scheduled

for late 2000.

The project will improve the network of drainage and

sewerage systems that empty into the Nhieu Loc–Thi

Nghe canal, derisively referred to by local residents as

“stink river.” The nine-kilometer canal serves as the main

drain for untreated wastewater from over a million

residents and industries in the city center. The canal also

serves as the main channel for rainwater drainage.

The project will create separate wastewater and rain

water catchment systems leading to the canal. An

interceptor pipeline will be installed two to three meters

under the canal to separate wastewater and rain-water

flows. A wastewater treatment station will eventually be

built where the canal empties into the Saigon River, but

funds are not currently available for its construction. For

now, a pumping station only will be built at the end of

the canal. Much of the project involves basic construction

and piping installation, two areas where domestic

enterprises have experience, equipment, and requisite

skills. Domestic contractors will likely be in a strong

position to win bids. Piping is also likely to be sourced

domestically.

Some areas may provide opportunities for foreign

equipment suppliers and contractors. The interceptor

pipeline will include a series of combined sewer overflow

structures or sluice gates that may be sourced from

overseas. Pumps for the pumping station will also likely

be purchased overseas, as few pumps are produced

locally. Project managers may have to hire a foreign

construction firm with experience in pipe jacking, as this

is the most likely method to be used to install the two- to

three-meter pipe underneath the canal.

into the urban drainage facilities, causing widespread

flooding of both rainwater and wastewater.

Hanoi’s main drainage system is a network of 90

kilometers of inlet sluices. Much of this system servicing

the “old city” was built before 1945 and services an area

of 1,008 hectares.

A system servicing the “new city” covers an area of

about 4,000 hectares for a population of 600,000 people.

The system includes more than 60 kilometers of inlet

sluice and nearly 40 kilometers of open sluice. The inlet

sluices and canals are highly polluted. Some 120,000–

130,000 cubic meters of mud accumulate there each year.

Water-running speed at sluices and canals is very small,

about 0.05–0.10 m/s. The combined-use network is for

rain, domestic, and industrial wastewater.

To date, projects to improve drainage and sewerage

in both the “old” and “new” cities have been financed

by Japanese development aid. From 1994 to 1997, Japan’s

Bank for International Cooperation (JBIC) has provided

loans worth 18.6 billion yen to the Hanoi Drainage and

Environmental Improvement Project. The project is

improving flood control and drainage facilities for a 77.5-

square-kilometer area bordered by the Red River and the

To Lich River.

The program has financed dredging and clearing of

sludge in existing sewers and drainage channels. In

addition, the program is constructing flood and control

gates, improving river and drainage channels, and

rehabilitating sewers. A pumping station is being built at

Yen So in the Southeast section of the city to regulate

drainage channels and a reservoir.

The main civil works and procurement of equipment

were selected through international competitive-bidding

methods. Contracts for drainage-channel rehabilitation,

lake dredging, and sewer rehabilitation were awarded

based on local competitive-bidding methods.

5.2—Market Opportunities and

Competitive Situation

The greatest opportunities in drainage and sewerage

over the next two years will be in Ho Chi Minh City.

This is largely because of the four major ODA projects

that are underway or in the planning stages. These

projects are tackling a number of environment-related

problems in Ho Chi Minh City, but focus on improving

the city’s drainage and sewerage infrastructure.
Vietnam Export Market Plan 25

HCMC Environment and Sanitation Improvement

The Asian Development Bank has signed a $70 million

credit for the $100 million Ho Chi Minh City Environmental Improvement project. The project will improve

urban drainage/sewerage and solid waste management

and will finance improvements to the water distribution

network. The total cost of the urban drainage/sewerage

component of the project is $20.88 million.

The project will upgrade water drainage systems in

districts 5, 6, and 11. The focus of the project will be on

the Hang Bang canal area. The 380-hectare area is

currently used as a catch basin, collecting waste and rain

water from surrounding districts. Seventeen kilometers

of new pipes, 7 kilometers of culverts, and 12 sluice gates

will be built. The Ministry of Transport and Communications and MOSTE will administer the project, to

begin in 2000 and reach completion in 2005.

Secondary Towns Environmental Improvement

According to the Asian Development Bank, a followup to the Ho Chi Minh City Environmental Improvement

project is planned for 2002 to 2005. The ADB is

scheduled to approve a loan in 2001 to improve

environmental conditions in some of Vietnam’s larger

secondary cities.

Three Cities Sanitation Project

The World Bank is financing $80.5 million of a $119.5

million project to upgrade the drainage and sewerage

infrastructure in Danang, Haiphong, and Quang Ninh

(Halong City and Cam Pha). Prequalification for bidding

on these projects has been completed. Consultants on

the projects are Soil and Water Ltd. (Finland) in

Haiphong, GHDK (Australia) in Danang, and Kampsax

(Netherlands) in Halong.

The project will upgrade sewerage and wastewater

treatment and drainage networks. The project also aims

to foster administrative reform within the cities’ sanitation

and drainage companies.

Eight civil works contracts have been awarded. The

primary equipment procured for the projects include

waste compactors, vacuum trucks, solid waste trucks, and

bulldozers. Three countries are providing co-financing

for the project: Denmark’s DANIDA is providing $11.7

million, Finland’s FINNIDA $5.8 million, and Australia’s

AusAID $1.24 million. The DANIDA and FINNIDA

funds have financed most of the consulting services for

the project.

Companies from each of these countries have won the

consultant contracts for the projects. In Halong, the

Danish firm Kampsax is the primary consultant. In

Haiphong, Finland’s Soil and Water is the consultant, and

in Danang, a joint venture, between Australia’s GHD and

Vietnam’s Kim Hien Co. (GHDK), is the primary

consultant.

Urban Drainage and Sewerage System for HCMC

In December 1999, Japan’s Pacific Consultants

International completed a draft master plan for rehabilitating Ho Chi Minh City’s drainage and sewerage

systems. The Japan International Cooperation Agency

(JICA) funded the study. The study estimates that $350

million is needed to complete priority upgrades of

sewerage and drainage in the center of Ho Chi Minh City.

JBIC would finance rehabilitation of sewers, drainage

networks, and canals in Districts 1, 5, and 6. This area is

known as the Ben Nghe–Tau Hu Canal, which runs along

the southern edge of the central business area. The canal

is 12.2 kilometers long. It is contaminated with waste,

garbage, direct inflow of domestic wastewater, and

sludge. JICA has proposed dredging and building an

interceptor along the length of the canal, which will

parallel Ham Nghi and Tran Hung Dao roads. A treatment

plant with a capacity of 512,000 m3

/day at Nha Be has

also been recommended.

Tan Hoa–Lo Gom Canal

A fourth project to rehabilitate Ho Chi Minh City’s

drainage network is being undertaken by the Belgian

Administration for Development and Cooperation

(BADC). BADC is providing $1.5 million in grants to

improve solid-waste collection and recycling, cleaning

and maintaining the Tan Hoa–Lo Gom Canal, and

improving collection and treatment of household and

industrial wastewater. A European consortium will be

selected to complete the detailed design of the project,

scheduled to be complete by 2003.

As an extension of this project, BADC is providing a

$5 million grant for rehabilitating a catchment basin

covering 3,300 hectares in Districts 6, 8, 11, Tan Binh,

and Binh Chanh. The government has agreed to provide

$4 million in funding and may provide an additional $3

million to compensate relocated residents. The project

feasibility study proposes a combined sewer system with

an interceptor along the Tan Hoa–Lo Gom canal. In

addition, a wastewater treatment plant with a capacity of

242,000 m3

/day would be built in Binh Chanh district.
26 U.S. Department of Commerce, International Trade Administration

Second Provincial Towns Water Supply and

Sanitation

The Asian Development Bank has committed $69

million to improve public health in seven provincial

capitals by increasing access to clean water supplies. The

project includes investments to rehabilitate or build new

sewerage and drainage systems. The project was started

in 1997 and is scheduled for completion in 2002.

The larger of these projects is facing a three-year delay

and is now scheduled to be completed in 2004 instead of

in 2001 as was originally planned. Holding up implementation are administrative delays related to relocating

existing residents and obtaining land permits to build a

solid waste station and aerated lagoon. A Vietnamese

company has been hired to complete the detailed designs

for the project.
Vietnam Export Market Plan 27

6.1—Current Trends

Vietnam is seriously deficient in the area of wastewater

treatment. Enormous quantities of industrial wastewater

are generated annually and discharged, untreated, into

lakes, canals, rivers, and streams. Companies have

insufficient funds to install water treatment facilities. The

Vietnamese state-industrial sector remains the largest

source of untreated wastewater. Many enterprises are

hopelessly mired in debt with no real prospects of

turnaround. Spending precious resources on pollution

control equipment is rarely a priority.

Foreign-invested businesses, industrial parks, and

export processing zones generally have built their own

wastewater treatment plants to comply with the

government’s environmental regulations. According to

anecdotal reports, some companies choose not to use the

treatment facilities in order to save on operating costs.

In a report issued in May 1999, Professor Le Quy An,

a deputy minister at MOSTE, estimated that Hanoi dumps

300,000 m3

 of untreated wastewater daily. The Viet Tri

Industrial Zone outside Hanoi dumps nearly 170,000 m3

of wastewater into the Red River and its tributaries. The

Thuong Dinh industrial zone in Hanoi adds another

22,000 m3

 of daily waste. Professor Le also estimated

that Ho Chi Minh City discharges 730,000 m3

 of

wastewater per day. Ho Chi Minh City’s infamous “black

canals” are open dumping grounds for 700 large factories

and 30,000 smaller industrial establishments. Water with

biochemical oxygen demand (BOD) content larger than

13 mg/liter is considered contaminated. Some of the water

tested in the HCMC canal system reaches BOD content

of 50 to 200 mg/liter.

MOSTE estimates the following as the daily amount

of pollutants discharged into the city’s canals: 590 tons

of solid wastes, 270 tons of BOD, 480 tons of chemical

oxygen demand (COD), 50 tons of nitrogen, 14 tons of

phosphorous, and 110 tons of organic oil.

The most industrialized parts of Vietnam are in

provinces and cities to the north of Ho Chi Minh City.

Dong Nai province and the city of Bien Hoa as well as

Binh Duong province are some of the most economically

successful regions of the country and are, in turn, the

source of much of the country’s pollution.

Chapter 6

Wastewater Treatment

Bien Hoa Industrial Zone pours tens of thousands of

cubic meters of wastewater into the Dong Nai River.

Several kilometers away are the Bien Hoa and the Hoa

An water plants, which supply usable water to Bien Hoa

City and Ho Chi Minh City.

6.2—Market Opportunities and

Competitive Situation

Nearly all of the key components used in wastewater

treatment systems in Vietnam are imported. Local

companies are winning contracts to design and install

treatment facilities. Almost universally, they purchase

parts from overseas and assemble the equipment

domestically. Vietnam has little difficulty building or

sourcing water tanks and the like. Parts such as fans,

blowers, pumps, valves, and motors are imported from a

variety of sources, including Italy, France, Switzerland,

Japan, and Korea.

Foreign-Invested Enterprises and Joint Ventures

With the decline in foreign investment, fewer

opportunities are available for supply of wastewater

treatment equipment to foreign enterprises and joint

ventures. Most of the foreign-invested manufacturing

enterprises have at least some form of wastewater

treatment facilities already in place.

Realistic market opportunities are for existing ventures

that are building new facilities or expanding production.

But here, too, market opportunities are limited, with many

manufacturing enterprises facing stockpiles of goods. The

market trend is not toward expanding capacity but in

managing market gluts.

If a trade agreement with the United States can be

finalized, the market should change shape rapidly. Textile

producers will be the main beneficiaries of the trade

agreement because of the lower import tariffs on

Vietnamese textile goods that Normal Trade Relations

will bring. With textile and garment firms installing new

production lines and expanding output, the need for new
28 U.S. Department of Commerce, International Trade Administration

or larger-capacity wastewater treatment plants will

increase.

Industrial Zones/Export Processing Zones

Industrial zones and export processing zones represent

an attractive market for wastewater treatment plants. Of

the 60 industrial zones, parks, and export processing

zones operating in Vietnam, only six have installed central

wastewater treatment plants.

The reason there are so few installed plants is that

many are operated by Vietnamese companies that are able

to sidestep environmental regulations or that are unable

to finance treatment plants. In addition, current market

conditions for industrial parks and zones are abysmal.

The lack of tenants led one official from the Dong Nai

Department of Planning and Investment to remark,

“Local industrial zones are suffering from remarkable

emptiness.” As a result, few new parks will be built in

the near future.

The country’s most successful export processing zone

(EPZ), the foreign-invested Tan Thuan export processing

zone, completed construction of a 10,000 m3

 per day

wastewater treatment facility in 1999. In the same year,

the Linh Trung EPZ completed construction of its

wastewater treatment plant with a capacity of 6,000 m3

per day.

The best opportunities in industrial zones/parks and

EPZs in the near future are for individual tenants whose

waste requires a separate treatment facility. According

to anecdotal reports from Vietnamese suppliers of

wastewater treatment equipment, business has been most

active at industrial zones/EPZs in Ho Chi Minh City and

surrounding provinces of Dong Nai and Binh Duong.

Local Companies

To date, Vietnamese state-owned companies have not

been realistic sales prospects, except in cases where they

receive overseas development assistance to finance a

project. According to local companies, such as the Ho

Chi Minh City Center for Environmental Technology

(ECO), the market for supplying equipment to Vietnamese companies is small but improving. Its business

has gradually shifted from servicing foreign-owned

companies and joint ventures to local companies. The

company director estimates that in 1997, 65 percent of

his business was generated by foireign invested

enterprises (FIEs) or joint ventures (JVs). By 2000, about

half his business was with local companies and half with

foreign-invested firms.

Case Study 6.1—To Win a Tender, It Pays to

Hire Well

Belgian firm Seghers International recently completed construction of a waste treatment plant at the Bien Hoa II industrial zone

in Dong Nai province, outside Ho Chi Minh City. This was a

unique contract, because Bien Hoa II is Vietnamese-owned, and

it paid for the waste treatment facility from its own financing, not

from ODA. Bien Hoa II is flush with cash because it is the most

successful Vietnamese-owned industrial park in Vietnam, enjoying

95 percent occupancy.

Because of Bien Hoa’s unusual financial situation, bidding for

the project was extremely competitive. A good product, good

relations with relevant ministries, and establishing a good working

relationship with a critical government company won the Bien Hoa

II contract for Seghers.

To win the project, no fewer than five agencies had to approve

Seghers’ technology and bid: the Ministry of Construction,

Ministry of Finance, Ministry of Planning and Investment,

MOSTE, and SONADEZI, a state-owned company that operates

three of the largest industrial parks in Vietnam, including Bien Hoa

II.

To navigate this bureaucracy, Seghers had a key advantage.

Four years earlier, when Seghers’ executives were on a fact-finding

mission to Vietnam, their delegation was hosted by MOSTE

officials. They were so impressed with one of these officials that

they later hired him and eventually financed a two-year study trip

for him to Belgium. This former MOSTE official not only knew

the channels within the environment ministry, but also, through

his own experience and through family friends, had connections

with many other decision-making ministries.

Helping seal the Bien Hoa contract was Seghers’ ability to sign

favorable terms with VIWASE, the local company partnering on

the project. VIWASE (Vietnam Consultancy for Water Supply,

Sanitation, and Environment) is the most powerful local company

in water infrastructure projects, and nearly all foreign companies

attempt to establish partnerships with the firm when bidding on

water-related projects. (“They’re the only game in town,” says an

executive at one foreign infrastructure company.)

According to one Seghers’ representative, the Belgian firm’s

approach was to be more flexible in negotiating revenue-sharing

terms instead of looking for legal guarantees at all points in the

contract. It was better to “think of each other” when doing the

deal, rather than seek legal exit strategies, because often in

Vietnam “going to court is a waste of time,” the executive said.

Seghers also brought a world-class product to the table.

Seghers’ two-hectare plant includes four reservoirs for biological,

chemical, and physical treatment of liquid waste before it is

conveyed to another reservoir for final treatment. The $3.8 million

facility has a daily capacity of 4,000 cubic meters although it can

be expanded to 12,000 m3

 without adding any new civil works.

Seghers’ engineers in Belgium can monitor operations at the plant

via a remote control system using the Internet.

Two factors are driving this trend. First, there are fewer

foreign companies establishing operations in Vietnam.

Second, more complaints from local residents and

awareness by polluting companies have increased the

need to cut emissions.
Vietnam Export Market Plan 29

Table 6.1 Leading Industrial Parks (IPs) and Export Processing Zones (EPZs) in Vietnam

Investor and Number Foreign

Capital of foreign investment

(Millions investment capital

Name Locality Areaa of dollars) projects projectsb Environment protection facility

Danang EPZ Danang 63 Malaysia; $12 3 $15

Amata IP Dong Nai 100 Thailand; $466 $260 4,000 m3/day water treatment plant from U.S.,

supplied by Hydroteck (Thailand)

Nhon Trach 2 IP Dong Nai 350 Vietnam; $37 7 $1,000

Go Dau IP Dong Nai 210 Vietnam; $18 13 $420

Loteco Dong Nai 100 Japan; $41 6$70

Bien Hoa 2 IP Dong Nai 376Vietnam; $18 82 $1,080 $3 million water treatment plant (4,000 m3/day)

Ho Nai IP Dong Nai 190 Vietnam; $15 18 $85

Phu My 1 IP Ba RiaVung Tau 954 Vietnam; $763 $105

Viet-Sing IP Binh Duong 100 Singapore; $52 21 $290 6,000 m3/ day sewage treatment plant; piped

water

Can Tho IP Can Tho 300 Vietnam; $14 11 $120

Noi Bai IP Hanoi 100 Malaysia; $30 9 $64

Daitu-Hanoi IP Hanoi 40 Taiwan; $12

Sai Dong B IP Hanoi 97 Vietnam; $12 13 $280

Daewoo-Hanel IP Hanoi 197 S.Korea; $152

Thang Long IP Hanoi 128 Japan; $53 Water supply (2,000 m3/day) Water treatment

(15,000 m3/day)

Nomura-Haiphong IP Hai Phong 153 Japan; $164 8 $58

Dinh Vu Hai Phong 164 US, Belgium,

Thailand; $80 1 $15

Haiphong 96 EPZ Hai Phong 150 Hong Kong; $75

Tan Thuan EPZ HCMC 300 Taiwan; $89 149 $580 $3 million waste treatment plant supplied by

China Eco Teck; 10,000 tons/day

Linh Trung EPZ HCMC 60 China; $14 23 $69 6,000 m3/day water treatment plant

a. Area is in hectares.

b. Values are in U.S. dollars.

Source: Mekong Research.
30 U.S. Department of Commerce, International Trade Administration

system are major additions to be built to improve the

existing infrastructure. The JBIC loan will go toward civil

works, equipment, and consulting services to the project.

HCMC Environmental Sanitation

The World Bank–financed $180 million HCMC

Environmental Sanitation project will contain a

wastewater treatment component in the future. The bank

has suggested that by 2010, Ho Chi Minh City should

build a biotech treatment plant for the Nhieu Loc Thi

Nghe basin with an initial capacity of 400,000 m3

 per

day.

A $142 million treatment station will eventually be

built where the canal empties into the Saigon River, but

funds are not currently available for its construction. For

now, project developers are following the maxim “the

solution to pollution is dilution” and plan to only build a

pumping station at the end of the canal.

Local Environmental Service Companies

Because the key components used for wastewater

treatment plants are almost exclusively imported, an

active market exists for suppliers of pumps, motors,

aerators, and filters. Some regular purchasers of these

items are local environmental service companies. These

firms are often small-scale treatment plants, offering

primary wastewater treatment.

Local companies import equipment, then assemble the

machinery and install the plant onsite. These companies

service both local- and foreign-invested enterprises. For

example, the Center for Environmental Technology

(ECO) in Ho Chi Minh City has installed waste treatment

facilities for some of the largest foreign investors in

Vietnam, such as Cargill, Morning Star Cement, and

Vietnam Brewery.

Another consistent importer of equipment for

wastewater treatment systems in Ho Chi Minh City, is

the Center for Environmental Technology and Management (CENTEMA). Like most other significant

environmental organizations in Vietnam, CENTEMA

doubles as a research institute and commercial enterprise.

CENTEMA conducts environmental monitoring and

provides engineering/consulting services. Its research has

centered on pollution control at Vietnam’s largest

industrial zones, primarily in the Ho Chi Minh City-Bien

Hoa-Vung Tau industrial triangle. Some of its largest

clients for wastewater treatment systems have included

the ProSun textile factory, Thanh An Seafood Processing

Co., and VEDAN Co., one of Vietnam’s largest food

processing companies.

Case Study 6.2 Overseas Development

Assistance is Driving the Business

Viet Thang Textile Co., one of Vietnam’s largest textile

companies, is listed in Ho Chi Minh City’s “black book” of

leading polluters for good reason. Many of its plants dump

untreated wastewater into canals used by local residents. In

November 1999, the company took a large step toward getting

off that list when it installed its first waste treatment plant with

help from an unlikely source.

Since 1992, Viet Thang had been doing business with Peja NV,

a small Dutch trading company with a representative office in Ho

Chi Minh City. Peja represented several European companies

selling textile equipment to Viet Thang. Recognizing Viet Thang’s

need for pollution control equipment, Peja suggested installing a

waste treatment facility using another company it represented,

Stork Aqua NV. Stork Aqua specializes in waste treatment

facilities for the textile and dairy industries.

Crucially, Peja and Stork were able to arrange financing so that

Viet Thang only had to bear part of the plant’s cost. The firms

applied for, and won, a grant from the Dutch development aid

agency to fund 75 percent of the plant’s $2.5 million cost. Viet

Thang financed the rest, using loans from local banks.

Today the plant is one of the largest ever installed at a stateowned firm. The facility has a capacity of 5,000 cubic meters of

wastewater per day. The plant reduces BOD to less than 20 mg/

liter, COD to less than 50 mg/liter, and total suspended solids to

less than 50 mg/liter.

Since the plant opened, Peja has received numerous calls from

other state-owned companies seeking to reduce their emissions

and wastewater discharges. Peja has also been active in contacting

state-owned firms listed in the Ho Chi Minh City and Hanoi

environmental black books to propose similar financing schemes.

(See Appendixes K, L, and M for lists of black book firms.)

At the time of publication, numerous local and foreign

suppliers of wastewater treatment equipment were

preparing to bid on a project to supply the state-owned

firm Vinamilk with a treatment plant. Vinamilk is often

voted for Vietnam’s most successful local company, so

it is possible that Vinamilk will be able to finance

installation of the plant from its own resources.

Hanoi Urban Infrastructure Project

The Japan Bank for International Cooperation (JBIC,

formerly OECF) has committed a loan of 11.4 billion yen

toward the development of a new urban center in the

Thang Long North Area, 20 kilometers north of Hanoi.

Overcrowding in Hanoi’s city center is straining its

infrastructure. Under a master plan of Hanoi Urban

Development prepared by Japanese consultants, the new

urban area will be comprised of an industrial zone, a

residential area, a commercial area, and a cargo

distribution center.

Wastewater treatment plants, water supply systems,

drainage and sewerage networks, power supply and a road
Vietnam Export Market Plan 31

Table 6.2 Sample Product Lines for Wastewater Treatment Equipment

Brand Product Capacity Cost*

Osmonic (USA) Water treatment system,

including filters, water softener,

RO membrane, ozone purifier 30 m3

/day $21,450

Tsurumi (Japan) Air blower 5 m3

/minute $3,500–4,000

Alpha-Laval (Holland) Mud conditioner 10 m3

/hour $30,000

Ebara (Italy) Sewage pump 10 m3

/hour $500

Caprari (Italy) Sewage pump 2060 m3

/hour $1,000

Flygt (Sweden) Sewage pump 20–80 m3

/hour $1,000–1,200

Tsurami Sewage pump 20–80 m3

/hour $750

Trominelc (Germany) Tossing pump 20–120 liters/hour $300–2,000

Aldos (Germany) Tossing pump 20–120 liters/hour $300–2,000

Dosatron (Italy) Tossing pump 20–120 liters/hour $150–1,000

Kohn (Germany) Flow meter 60 m3

/hour $750

Flygt (Sweden) Air diffuser — —

Polymer (Singapore) Mud treatment chemicals — $8/kg

* Values in U.S. dollars. Subject to import tax rate of 10–20 percent.

Source: Center for Environmental Technology, Ho Chi Minh City.

Table 6.3 Sample Product Lines for Wastewater Treatment Equipment

Type of Product Company Model Capacity

Centrifugal Pump EBARA, Japan FS 5–150 m3

/h

Centrifugal Pump EBARA, Japan S, 100SF 5–150 m3

/h

Centrifugal Pump EBARA, Japan FSGD 5–150 m3

/h

Chemical Dosing Pump Prominent Sigma, Germany SIBA 1.6–150 L/h

Submersible Pump EBARA, Japan Best 5–150 m3

/h

Submersible Pump Tsurumi Pump, Japan KTZ, KTV, KRS 5–150 m3

/h

Submersible Pump J.S Pump, Taiwan J.S, SV4 5–150 m3

/h

Motor of mixer GEAR Motor, USA 3/4–10 HP

Mixer Neptune Mixer Company, Japan 3/4–10 HP

Electric facilities of LG Industrial system,

electric control box Korea, Mitsubishi —

Aerator Force 7.1 T, Force 7.2 T, Italy —

Air blower Taiwan, Japan 140–1,800 m3

/h

Source: Center for Environmental Technology and Management.
32 U.S. Department of Commerce, International Trade Administration

Chapter 7

Solid Waste

7.1—Current Trends

Vietnam’s National Environmental Agency (NEA)

estimates that 19,315 tons of solid waste are created daily

in the country’s Vietnam’s urban and industrial areas.

NEA breaks down this waste as follows:

Industrial waste: 10,162 tons

Hospital waste: 212 tons

Municipal waste: 8,665 tons

Vietnam is only able to collect about 50 percent of

the total waste. City-based companies are responsible for

collection and management of solid waste. For example,

in Ho Chi Minh City, the City Environmental Company

(CITENCO) is responsible; in Hanoi, it is the Urban

Environmental Company.

Hanoi is the only city that has a sizeable composting

factory, but it accounts for only a small percentage of

total waste generated. Ho Chi Minh City used to have

composting facilities with equipment supplied by

Denmark. The city discontinued its use of the factory in

1991 and now uses landfills. In general, most smaller

cities have not built dump sites. Uncollected waste in

cities tends to accumulate in drains, canals, and rivers,

polluting the waterways, causing restricted flows and

contributing to flooding during the rainy season.

Ho Chi Minh City produces the most solid waste in

the country. Each day, some 4,000 tons of solid waste

are generated. This amount is forecast to increase to 5,500

tons a day by 2005. Only 40 percent of the waste is

thought to be collected and treated or disposed of

properly. The city spends an estimated 40 billion dong

($3 million) on solid waste collection and disposal

annually.

Most solid waste is collected by handcarts and

delivered to 380 collection points in the city. The waste

is often stored at these collection points for a day or

longer, presenting environmental hazards and foul odors

around these sites. The waste is then transferred to two

transfer stations. The station in District 11 has a capacity

of 500 tons/day. The station in Go Vap district has a

capacity of 700 tons/day.

Finally, the waste is disposed of by dumping at three

primary fills. Forty-eight percent of the total waste goes

to the Dong Thanh dumping ground at Hoc Mon, north

of the city. The Ho Chi Minh City Waste Treatment

Company estimates that 3,000 tons of solid waste each

day are buried at this 25-hectare field. Approximately 20

percent of the waste is dumped at the Go Cat landfill west

of the city, while 17 percent goes to a privately operated

site at Vinh Loc.

Landfill management in Vietnam usually consists of

digging a hole, dumping the garbage, and covering the

pit with a layer of clay. Water penetrates the clay layers,

however, and both leachate water and rain water enter

landfills before they are covered. This system causes both

ground water pollution and soil pollution.

Most of the sites are open to scavengers that pick their

way through the mounds of rubbish. During the dry

season, the clay layers tend to burst open at the surface

because of pressures from biogas generated in the covered

landfills. Five-foot high flames are occasionally seen

erupting from the surface of the landfills.

Most landfills have no wastewater treatment systems,

although some of the larger ones have installed primary

systems to treat effluent waters. In urban areas, residents

living near these landfills source their water from wells

that are likely contaminated by water leaking from the

dumping sites.

In Hanoi, the waste collecting and disposal systems

are believed to remove only 60 to 65 percent of the city’s

daily solid waste. The government made some progress

on this front in May 1999, when it upgraded one of its

dumping sites in Nam Son commune, Soc Son District,

outside Hanoi. The upgrade included a 3.3 kilometer

access road and construction of four dumping zones on

the 13-hectare site. The Nam Son dumping ground now

handles an estimated one third of Hanoi’s daily waste.

Hanoi’s only solid waste treatment plant is in Cau

Dien, which processes waste into micro-biological

fertilizer. The UNDP-funded plant is capable of

converting 30,000 tons of solid waste a year, which is

only 5 percent of Hanoi’s annual total. The rest is buried

in landfills.
Vietnam Export Market Plan 33

financed by a grant from the Dutch government. The

agreement has not yet been signed, in part, because the

Netherlands is requesting that waste collection/disposal

fees be introduced as part of the project.

Foreign investors, including several U.S. firms, are

watching the deal closely for the precedent it may set if

the central government agrees to the service charges.

Negotiations for the $106 million Premier wastetreatment BOT, for example, will likely regain momentum if the Vermeer deal is completed successfully.

HCMC Environment and Sanitation Improvement

The Asian Development Bank’s Ho Chi Minh City

Environment and Sanitation Improvement project

includes a solid waste component. The total cost for the

solid waste portion of the project is estimated at $63.6

million. The project focuses on improving the efficiency

of primary collection by supplying garbage bins and carts,

garbage trucks, compactors, and containers and by

building new transfer stations. The project will also

finance construction of a new landfill on a 130-hectare

site next to the existing Dong Thanh site. The new site

would be capable of handling disposal needs at Dong

Thanh for at least 10 years.

Three Cities Sanitation Project

The World Bank is financing $80.5 million of a $119.5

million project to upgrade the drainage and sewerage

infrastructure in Danang, Haiphong, and Quang Ninh

(Halong City and Cam Pha). Although prequalification

for bidding on these projects has been completed,

opportunities may exist for suppliers to the project’s

contractors.

The project will upgrade sewerage and sewage

treatment, drainage, and foster administrative reform

within the cities’ sanitation and drainage companies.

There are solid waste components to each project, with

special emphasis placed on administrative reform of

Danang’s solid waste management.

Bilateral Aid Projects

The Netherlands is involved in two solid waste projects

in Ho Chi Minh City. The Go Cat Landfill Project in Hoc

Mon District is being implemented by the Dutch firm

Vermeer Contractors Group and the Ho Chi Minh City

Waste Disposal Company.

In 1999, the government approved a project to upgrade

Cau Dien Waste Treatment plant with Spanish assistance.

The $400,000 investment will raise the capacity of the

plant to 50,000 tons of waste annually. Another $17

million waste treatment plant, with a capacity of 250,000

tons and producing 66,300 tons of fertilizer a year, is

scheduled to be built in Soc Son district over the next

two years.

7.2—Biomass Projects

Several proposals for building biomass power plants

or waste conversion plants have been submitted to the

government. Most recently, an American-British

consortium of Premier International Trading & Consulting (U.S.), Enviro-Control Ltd. (U.K.), and AS-C

Materials Handling Ltd (U.K.) have proposed building a

$106 million build-operate-transfer (BOT) power plant

fueled by waste generated in Ho Chi Minh City. The plant

would process waste at $2.00–$2.50 per ton to fire a 12

megawatt power plant. The project sponsors would sell

electricity to Electricity of Vietnam at $0.06 per kilowatt

hour. The plant would also produce 300,000 tons of

fertilizer per year.

Since 1996, Ho Chi Minh City authorities have been

considering a biomass project proposed by Canada-based

Pourslo Systems, Inc. Pourslo has made little progress

since it made its initial proposal to use waste at the Hoc

Mon dumping ground to fire a 100 megawatt power plant.

The $175 million BOT project would burn 1,500 tons of

waste per day at a cost of $1.50 per ton. Pourslo would

then sell electricity to Electricity of Vietnam at a rate of

$0.045 per kilowatt hour. The project is still pending

approval from the Ho Chi Minh City People’s Committee.

7.3—Market Opportunities and

Competitive Situation

Hampering the development of solid waste treatment

is the Vietnamese government’s reluctance to introduce

or raise waste collection and disposal fees. Without

official charges for these services, foreign invested

projects are not commercially viable. In addition, BOT

projects have proven extremely difficult to implement in

Vietnam because of a weak legal infrastructure.

Vermeer Group of the Netherlands is in the advanced

stages of negotiating an agreement to build a landfill at

Go Cat, near Ho Chi Minh City. The project would be
34 U.S. Department of Commerce, International Trade Administration

A final agreement on participation by Vermeer is

pending. The project would develop a new 25-hectare

site at Go Cat with a capacity of 4 million tons of solid

waste and be able to handle all of the city’s waste from

2001 to 2003. Land for the project has been acquired and

preliminary designs are completed.

The new site at Go Cat would include bottom, side,

and top layers of polyethylene, a drainage system,

vacuum welding, a wastewater treatment plant, and gas

wells for extracting biogas. The gas will later be used

for power generation. Vermeer has already contacted

potential equipment suppliers for the project, including

some from the United States.

A solid waste management project in District 10 has

been proposed by the Dutch firms, Peja Export BV and

ARA NV. The Ho Chi Minh City Environmental

Company is the local implementing agency. The final

grant agreement for the project is still being prepared.

Case Study 7.1—Tapping State Resources

Several U.S. firms are exploring opportunities to build landfills

in northern provinces. The companies—Envirotech and equipment

supplier Red River, Inc.—have worked with a marketing office

for the state of Oklahoma’s trade office in Vietnam. Oklahoma is

one of the few states to have opened trade offices in Vietnam. It

did so largely to focus on opportunities in the oil and gas

industries. Pacific Ventures, Inc. is the marketing office assisting

the Oklahoma companies with market entry.

Envirotech and Red River representatives first came to

Vietnam on a trade delegation in January 1999. The firms later

won a $25,000 grant from the National Association of State

Development Agencies (NASDA), to return in March 1999. On

this trip, the two firms held seminars and conferences on solid

waste disposal and landfill technologies. Following the

conference, officials from Hai Duong and Bac Giang provinces

approached the companies and asked them to prepare proposals.

The NASDA grant also financed the feasibility studies carried out

in the two provinces.

Current solid waste disposal in these provinces consists of

digging a hole and burying the garbage. The landfills do not use

any layering techniques or measures to prevent against leakage.

As a result, contamination of ground water and foul odors are

degrading the environment in the surrounding areas. Envirotech

has proposed building landfills using layering and containment

technologies. Envirotech specializes in consulting and design,

while Red River leases associated equipment, so it is likely the

two will team together for the projects. The contracts, estimated

to be worth between $500,000 and $1 million, have not yet been

signed but are said to be “on the desks of the provincial chairmen”

and ready for signing.

In January 2000, Pacific Ventures hosted a delegation from the

Southern States Energy Board, which was visiting Vietnam to

explore opportunities in clean energy and renewable energy

production.
Vietnam Export Market Plan 35

8.2—Market Opportunities and

Competitive Situation

As part of the Ho Chi Minh City Environmental

Improvement project, the Asian Development Bank will

undertake a detailed master plan for managing toxic

wastes in regions surrounding Ho Chi Minh City—the

most heavily industrialized part of Vietnam. The study

will focus on toxic waste production in Ho Chi Minh City,

Dong Nai, Ba Ria-Vung Tau, and Binh Duong province.

The master plan will be used both to identify leading

toxic pollution sources and to begin design of a hazardous

waste disposal facility for the region. The Norwegian

Agency for Development Cooperation (NORAD) has

expressed interest in financing the master plan and studies

associated with building the disposal facility.

The Vietnamese government has allocated some funds

to remedy the medical waste problem. For the period

August 1999 to August 2000, the government allocated

5 billion dong ($1.03 million) from the state budget to

improve waste treatment facilities at hospitals. Thirty

hospitals were supposed to have received funds for

improvements, but because of a lack of funds, only 10

hospitals will be selected. According to Nguyen Minh

Tuan of the Ministry of Health, these hospitals have yet

to be selected.

While the Ministry of Health has garnered some funds,

the largest opportunities in medical-waste disposal remain

with bilateral aid-funded projects. In November 1999, the

Austrian government penned an agreement to provide

$5.3 million in financing for installation of medical-waste

furnaces at 25 provincial hospitals. Austrian firm Vamed

Engineering Co. is reported to be the lead supplier for

the project. Vamed has proposed installing furnaces with

a capacity of 1,400 kilograms of waste per day at an

average cost of $0.06 per kilogram.

Belgian development aid is financing construction of

an incinerator in Ho Chi Minh City to dispose of medical

waste. The Urban Environment Company in Ho Chi Minh

City is now building a plant in Binh Chanh district.

Belgian aid is financing $1.5 million of the $1.9 million

project. The incinerator will be capable of treating seven

to eight tons of waste per day.

8.1—Current Trends

According to the Law on Protection of the Environment,

any establishment that produces solid, liquid, or gaseous

“waste” must ensure that such waste is treated prior to

being disposed of, and that the disposal process conforms

to environmental standards.

The law states, vaguely, that toxic wastes must be

disposed of in dumps other than those used for “normal”

refuse. However, there is no national, provincial, or local

system for effectively disposing of hazardous wastes.

Some industrial zones have designated certain disposal

facilities for solid waste, but these do not identify the

wastes, nor do they have proper coverage or containment

facilities for holding hazardous wastes.

In general, there is little detailed knowledge of the

amount or kind of hazardous wastes produced in Vietnam.

According to an Asian Development Bank report

prepared for the Ho Chi Minh City Environmental

Improvement project, Vietnam has no existing database

that details levels of hazardous waste production and

disposal.

Medical waste is one area of hazardous waste disposal

where the government and overseas donors have focused

their attention. The Ministry of Health estimates that 240

tons of medical waste are dumped daily throughout the

country. Furthermore, only 10 percent of Vietnam’s

hospitals have adequate disposal equipment. At present,

up to 90 percent of the hospitals nationwide do not have

a wastewater treatment system. All wastewater—some

of which contains toxic pollutants and bacteria—are

discharged directly into the environment.

Hanoi has 36 hospitals, which together discharge

between 11 and 20 tons of solid waste per day. Hospitals

in Ho Chi Minh City are estimated to dump 50 tons of

garbage and 6.5 tons of medical waste daily. Much of

this waste goes untreated or is treated improperly before

it is disposed. The ratio of “dangerous waste” in hospital

garbage collected by Hanoi’s Urban Environment Co. is

believed to be between 12 and 25 percent. Some hospitals

use old furnaces to dispose of medical waste, spreading

air pollution into the vicinity of the hospitals. Others

dump wastewater into old reservoirs, contaminating the

ground water.

Chapter 8

Hazardous and Toxic Wastes
36 U.S. Department of Commerce, International Trade Administration

9.1—Current Trends

Vietnam has set a number of guidelines on emissions

(Table 9.1), but the uncontrolled growth of poorly

maintained, lead-fueled vehicles has led to deteriorating

air quality in Vietnam’s major cities. Vietnam has an

estimated 400,000 cars/minibuses and over 5 million

motorbikes swarming its streets. If drivers and transport

companies even know about the emissions regulations,

they are widely disregarded. Vehicle emissions have a

direct impact on public health, causing respiratory

infections, particularly among young children. High

blood pressure and heart problems are also health

concerns associated with lead-fueled vehicle emissions.

According to regulations issued in 1995 by the

Ministry of Science, Technology, and Environment

(MOSTE), “all means of transportation within cities must

have a smoke emission level of less than sixty hartridge

units and must not discharge any polluting agents into

the environment.” For those vehicles with operation

permits issued prior to the issuance of the Law on

Protection of the Environment, the owners “must apply

technical measures to limit the maximum emission level

of smoke and toxic waste into the environment.”

Lead concentrations in the air are well above

permissible levels in both Hanoi and Ho Chi Minh City.

This is largely because all vehicles in use in Vietnam use

leaded gas. Virtually none of the old trucks, buses, and

three-wheeled vehicles on Vietnam’s streets use any

pollution controls. The main pollutants emitted by these

vehicles are lead, lead additives, carbon monoxide,

hydrocarbons, nitrogen oxides, sulphur dioxide, and

particulate matter.

In 1995, the government initiated a proposal to phase

out the use of leaded fuel in Vietnam. The proposal was

never carried out. In December 1999, the Ministry of

Transport, the U.S.-Asia Environmental Partnership, and

the World Bank sponsored a workshop on phasing out

leaded gasoline, and again an action plan was drawn up.

Eliminating leaded fuel is considered economically

feasible in Vietnam because the country imports all of

its petroleum products, removing the need for costly

upgrades to existing refineries. In addition, most of the

vehicles on Vietnam’s roads can use either leaded or

unleaded fuel. Finally, Vietnam stands to save money if

it switches to unleaded fuel, because it is less expensive

on world markets than leaded fuel.

In Hanoi, carbon monoxide levels are 1.7 to 1.9 times

higher than permissible levels; nitrogen dioxide is 2.5 to

3.0 times higher; settled particulates are 50 to 60 times

higher; and suspended particulates are 8 to 10 times

higher. In some areas of Ho Chi Minh City, sulfur dioxide

and dust levels are four times higher than standards set

by MOSTE.

In addition to motor vehicles, leading sources of air

pollution include power plants, cement mills, chemical

plants, steel mills, and industrial manufacturing. Because

of poor urban planning and overcrowding in cities,

industrial manufacturing is located in heavily populated

urban areas. Many of these industries use antiquated

machinery and are high polluters. The Ministry of

Industry estimates that most manufacturing equipment

is 50 to 100 years out of date. A survey of 42 factories

found that 70 percent of newly imported equipment dated

back to the 1950s and 1960s. Some of the equipment was

built as early as the 1920s.

The government also blames the importation of

second-hand equipment for increasing air pollution. More

than half the machinery imports are second-hand, mainly

from Singapore, Thailand, South Korea, and China.

Chapter 9

Air Pollution

Table 9.1 Vietnamese Air Emissions Standards

 (milligrams per cubic meter)

Average Emissions

Pollutant in 1 hour in 8 hours in 24 hours

CO 40.0 10.0 5.000

NO2 0.4 — 0.100

SO2 0.5 — 0.300

Pb — — 0.005

O3 0.2 — 0.060

Dust 0.3 — 0.200

Source: Ministry of Science, Technology, and Environment.
Vietnam Export Market Plan 37

The main industrial air pollutant is smoke from fuel

oil and coal. Most plants use fuel oil for energy. Gas

exhausts from steel plants and dust particulates from

cement plants are other leading causes of air pollution.

The Center for Environmental Science and Technology

(CEFINEA) is a leading air pollution research institution

in Ho Chi Minh City and also sells air treatment

equipment to domestic companies. CEFINEA has

installed air treatment facilities at major steel manufacturing plants, such as POSVINA (Ho Chi Minh City)

and Phuong Nam Steel Plate Co. (in Bien Hoa I industrial

zone).

CEFINEA has conducted studies of air pollution,

primarily in the industrialized south. It found that most

plants use old equipment without any air treatment

systems. Those that use treatment systems tend to use

wet-filter systems supplied locally. Some local firms, such

as the Bien Hoa and Thu Duc Steel factories, have

installed treatment systems from abroad which use dust

filtering and carbon monoxide treatment systems.

While new cement plants, or those built with foreign

investment have installed modern air treatment systems

(capable of filtering more than 90 percent of dust

volumes), numerous local plants in the south (Ha Tien,

Binh Dien, and Quan Khu 7 Cement companies) have

not yet installed dust-filtration systems.

CEFINEA has found that leading chemical and

detergent producers (Thu Duc Chemicals, Tan Binh

Chemicals, Bien Hoa Chemicals, Daso Detergent, Tico

Detergent) are primary sources of gas exhausts (SO2

, Cl,

HCL). With the exception of some foreign-built plants

(CP Group, Cargill), few food processing and animal feed

companies have installed modern dust treatment lines.

Instead of requiring firms to install pollutionabatement equipment, the government’s primary solution

to air pollution in urban areas appears to be moving

companies from urban to less-populated areas or

industrial parks. In June 1998, the Hanoi People’s

Committee issued Instruction 36/CT-TW, allowing city

authorities to force polluters to move from population

centers. Sixty companies were targeted for relocation

immediately, and 67 others were told to move by 2020.

None of the companies have moved, and the bureaucracy

and cost involved with shifting companies from one

location to another has delayed the plans indefinitely.

9.2—Market Opportunities and

Competitive Situation

There have been few major initiatives to reduce air

pollution overall. In general, it is only the large foreigninvested enterprises that have invested in modern

pollution-control equipment, such as filters and scrubbers

for cement mills. Some domestic enterprises may be fitted

with filters or, less frequently, scrubbers, but these

systems tend to be old and inefficient for reducing dust

particulates.

To date, there has been limited ODA funding for air

pollution abatement efforts. Most of the ODA efforts have

been directed toward building air-monitoring stations as

a first step toward reducing air pollution. Current methods

of checking air pollution levels are uncoordinated. In Ho

Chi Minh City, for example, four different local

companies have been contracted to measure air quality

at different locations using mobile stations. Each

company uses different, incompatible equipment, so an

accurate and consistent data base has yet to be compiled.

The Asian Development Bank’s Ho Chi Minh City

Environment Improvement project includes an air-quality

monitoring component. The bank intends to identify key

air pollution sources and develop an air pollution tracking

database. The results of the studies will be used to develop

air quality legislation and action plans for reducing air

emissions.

The Norwegian Agency for Development Cooperation

(NORAD) will provide co-financing of $1.8 million for

equipment and training of local personnel. Six air

monitoring stations are to be introduced:

• Urban background station for the Ho Chi Minh City

area (one station)

• Urban background stations in new residential areas

(two stations)

• Roadside stations to monitor the results of traffic

management (two stations); and

• Mobile station (one station)

The United Nations Development Program (UNDP)

initiated the first air-quality monitoring project in Ho Chi

Minh City as part of its $2.3 million environmental

management project (VIE/96/023). The project will

measure ambient air, urban background, and residential

and industrial air pollution levels.

The project includes co-financing from Denmark,

valued at $700,000, for the installation of four airmonitoring systems. Instrumatics A/S of Denmark won

the tender for supplying the monitoring stations, which

will be capable of monitoring:

• meteorological data;

• particulates;

• nitrogen oxides;

• sulfur dioxide;

• ozone;

• carbon monoxide;
38 U.S. Department of Commerce, International Trade Administration

• non-methane hydrocarbons;

• methane;

• benzene, toluene, xylene;

• noise, vibration; and

• toxic gases

Although the contract was awarded to a Danish

company, American companies may also benefit.

Instrumatics has proposed buying some key equipment

for the stations from a U.S. firm. At the time of

publication, project sponsors were considering the

Instrumatics proposal. The first monitoring station was

scheduled to be operating by March 2000.

The ADB air-monitoring program will expand upon

the UNDP initiative. Significantly, the Asian Development Bank has agreed to use equipment that is compatible

with equipment currently being procured by the UNDP.
Vietnam Export Market Plan 39

financed one such company, focused on building minihydro electric dams. Privately owned Viet Phong Co.

teamed with Den Elec to consult on renewable energy

projects. The companies are helping Lam Dong Province

to construct a small hydroelectric plant. The firms also

provide consulting services on thermal electricity, wind

energy, hydro energy, solar energy, and improving

efficiency of electricity transmission and distribution.

10.3—Solar

Solar Lab, at the Institute of Technology in Ho Chi

Minh City, and the Institute of Energy in Hanoi are the

leading institutions focused on research and development

of solar-powered generation systems.

Vietnam has over 110 monitoring stations throughout

the country to track data on solar energy resources. On a

countrywide basis, average total annual insolation ranges

from 4 to 5 kilowatt hours per square meter per day.

There are currently five large-scale solar photovoltaic

power systems in Vietnam. These include a hybrid system

of solar photovoltaic (PV) and micro-hydro power

generation in Gia Lai province that has a capacity of 125

kilowatts (PV has 100 peak kilowatts). Ninety percent

of the financing for the project came from Japan’s New

Energy and Industrial Technology Development

Organization (NEDO).

The government has financed construction of 100 solar

home systems and 200 solar community systems for

inhabitants of islands off the northeast coast. Total

capacity of these systems is 25 peak kilowatts. Four

hundred solar home systems were built for communities

in Tien Giang and Tra Vinh provinces with a total capacity

of 14 kWp.

According to the Institute of Energy, three large PV

projects to be built over the next two to four years are

now in the planning stages. Ten hybrid systems (PV and

diesel), with a capacity of 10 kilowatts each, are being

built with funding from the German government and

EVN. Tohoku of Japan is considering funding a hybrid

system of PV and wind-power generation in Dak Lak

10.1—Current Trends

Vietnam’s national power company, Electricity of

Vietnam (EVN), has a mandate to supply electricity to

80 percent of Vietnam’s households by the year 2010.

Currently, less than 50 percent of rural households have

electricity. Rural electrification via extensions of the

centralized power grid is prohibitively expensive given

the costs of new infrastructure and the economic status

of rural residents.

The government’s efforts to increase rural electrification have focused on promoting the use of renewable

energy. The World Bank agrees with this strategy and

has provided $95,000 to help local authorities implement

renewable energy projects. Local companies now

manufacture family and small community micro-hydrounits, solar heaters, solar photo voltaic, family wind

turbines, and family and community biogas digester

systems.

10.2—Micro-Hydro

Vietnam has long used micro-hydro for energy needs

at the family and small community level in rural areas.

Since 1955, the government has funded research and

implementation of small-scale hydro power to electrify

rural and mountainous areas. Over 400 small hydro

stations are now in place with a total installed capacity

of 30 megawatts. The stations supply electricity to over

1 million people in 20 mountainous and remote provinces.

On a smaller scale, it is believed that over 100,000

micro- and family-hydropower generators are now in use.

Local, state-owned facilities such as the Ho Chi Minh

City-based Research Center for Thermal Equipment and

Renewable Energy (RECTARE) and the Hanoi-based

Hydro Power Center produce units ranging in capacity

from 100 watts to 1,000 kilowatts. However, systems

imported from China that retail for roughly $20 per unit

have the majority of the market share, especially in

northern mountainous regions.

Some private companies are becoming active in the

micro-hydro market. Danish development aid has

Chapter 10

Renewable Energy
40 U.S. Department of Commerce, International Trade Administration

The Institute of Energy is preparing feasibility studies

for larger-scale wind farms. One is a 20 megawatt wind

farm in Khanh Hoa province. EVN and Germany’s

VENTIS are in discussions to build the farm under a

build-operate-transfer (BOT) contract. A second wind

farm with a capacity of 30 megawatts is proposed for

Binh Dinh province. The project would be funded by

Japanese aid. EVN plans to fund a third wind farm, also

in Khanh Hoa province, with a capacity of 20 megawatts.

10.5—Biomass

Biomass and wood fuel account for about 57 percent

of primary energy consumption in Vietnam. Besides

wood, agricultural residues and agro-industrial residues

are the main biomass fuel sources. Most of these fuel

sources are used on a household level.

Rice growers create about 45 million tons of paddy

straw annually, accounting for over 90 percent of the

waste. It is used as fuel and as livestock feed. It is also

used as a bio-fertilizer via field burning. Roughly 3

million tons of sugar cane trash, coconut shells and

leaves, and cassava stems are produced annually,

accounting for about 6 percent of the combined waste.

This waste is used primarily as fuel or fertilizer at the

household level.

Foreign investors have prepared feasibility studies on

the use of urban biowastes for power generation, although

no major commercial biomass plants are yet in operation.

There is an Australian-funded project in the works for

Long An province. It will burn rice husks and produce

50 kilowatt hours of electricity.

The government is still considering the $106 million

BOT plant in Ho Chi Minh City backed by American

and British investors. The proposed project would include

construction of a waste plant capable of treating 1,500

to 3,000 tons of waste per day, generating 15 megawatts

of power, and up to 480,000 tons of NPK per year. The

project is in discussion stages with the Ho Chi Minh City

Department of Urban Planning and Transportation.

The central problem for these co-generation/waste

projects has been price. The cost to produce a kilowatt

hour of power from solid waste is expensive (around 10

to 12 cents per kilowatt hour). However, EVN can only

charge its customers half that amount, so it is willing to

buy power at no more than 6 cents per kilowatt hour.

Until price reform takes place, bio-waste projects (and

other types of renewable—and usually expensive—power

generation) may simply be too expensive.

province. The system would also have a capacity of 10

kilowatts.

Electricité de France and the French Ministry of

Foreign Affairs have pledged $1.5 million to finance solar

power programs in three southern provinces (Gia Lai,

Quang Nam, and Binh Phuoc) from 1999–2002. The

Vietnamese partners to the project are MOSTE,

Electricity of Vietnam, the Committee for Ethnic

Minorities, and Solarlab.

10.4—Wind

The Research Center for Thermal Equipment and

Renewal Energy (RECTARE) is the primary organization

developing and promoting wind-energy technologies. The

center is under the Ho Chi Minh City Technical

University and has been granted permission by the

Ministry of Planning and Investment to build and sell

renewable energy products.

To date, RECTARE has installed over 800 wind

generators in over 40 provinces and towns throughout

Vietnam. The largest number of these units have been

installed near Nha Trang, in Khanh Hoa province on the

south central coast, where 135 units are in use. Nha Trang

is also home to one of only two wind villages in Vietnam.

The village was financed by MOSTE and by the SwissVietnam Association. The second wind village is located

on Can Gio island near Ho Chi Minh City, where 50 units

have been installed through the support of the French aid

agency Agence de Coopération Culturelle et Technique

(ACCT).

Nearly all of the units are for small-scale, household

use only. The generators in Nha Trang, for example, are

capable of charging one or two 100-ampere-per-hour

batteries per day. Each unit costs about 5 million dong

($353) to build and install, according to RECTARE.

RECTARE has built all of the generators producing 200

watts or less of electricity. Units producing 500 watts to

90 kilowatts of electricity are manufactured in Vietnam

but use some imported parts.

RECTARE officials have expressed interest in

purchasing higher-grade, small-scale wind turbines and

generator technology from foreign suppliers. These

purchases would be for 300 watt, 500 watt, or 1 kilowatt

units.

A second group responsible for developing windenergy technologies is the Institute of Energy in Hanoi.

However, the Institute has neither the technology nor the

equipment to produce units on their own and must be

supplied with equipment by RECTARE in Ho Chi Minh

City.
Vietnam Export Market Plan 41

forest coverage has fallen to as low as 8 to 10 percent.

The General Department of Statistics estimates that up

to 100,000 hectares of forests are destroyed every year.

Table 11.1, based upon a World Bank report published

in 1994, gives an indication of the rate of deforestation

in Vietnam since 1943. Before 1993, wood-product

industries sourced all their raw materials from domestic

forests. As timber demand grew during the economic

boom of the mid-1990s, high-quality timber resources

diminished. In an attempt to stem deforestation, the

government placed a number of bans on the export of

products using domestically-sourced timber. In 1997, the

prime minister called for a moratorium on logging in

Vietnam’s natural forests and instructed the Ministry of

Agriculture and Rural Development (the ministry

responsible for managing the country’s forest resources)

to convert the remaining forest area into protected

reserves.

Both plans succeeded in reducing the amount of timber

exploited. Vietnam harvested 350,000 cubic meters of

timber in 1998, according to official estimates, down from

levels in the early 1990s of 1 million cubic meters per

year. To bridge the shortfall of raw supplies, domestic

wood processing industries began to source raw materials

from illegal imports from Cambodia and Myanmar, as

well as by legal imports, primarily from Indonesia.

11.1—Current Trends

Protection of soil quality has focused on better

management of Vietnam’s forest resources and on

overuse of pesticides and fertilizers. Awareness of the

need to protect forests in preventing soil erosion and

related flooding was highlighted in November and

December 1999, when the central region of Vietnam

wasdevastated by the largest flooding to hit the country

this century. Deforestation of surrounding hills and mountainous areas in the central region were partly blamed

for the massive scale of the floods.

Since the early 1990s, the government has stepped up

its efforts to prevent deforestation, but has had limited

success. An estimated 19 million hectares of Vietnam’s

total land area of 33 million hectares are classified as

forest. Of those 19 million hectares, however, only an

estimated 9.3 million hectares are still covered by trees

and are considered natural forests. Deforestation has been

the result of years of warfare, uncontrolled industrial

logging, and unsustainable logging by rural populations.

The Vietnamese Ministry of Agriculture and Rural

Development noted in 1997 that the country’s green

coverage was less than 30 percent. In some highland and

mountain areas, such as Lai Chau and Son La (the

Northern mountain areas noted in the table above), the

Chapter 11

Soil and Forestry

Table 11.1 Forest Cover and Barren Land in Vietnam

 Forest cover Barren area

 Land area (percent of land area) (percent of land area)

Region (thousands of hectares) 1943 1991 1943 1993

Northern mountains 7,645 95 17 60 65

Northern midlands 3,982 55 29 27 33

Red River delta 1,030 3 3 5 14

North central coast 4,002 66 35 40 44

South central coast 4,582 62 32 42 49

Central highlands 5,557 93 60 25 32

Northeast Mekong 2,348 54 24 23 34

Mekong delta 3,957 23 9 12 21

Totals 33,104 5729 35 42

Source: World Bank, Environmental Program and Policy Priorities (1994).
42 U.S. Department of Commerce, International Trade Administration

these regions has increased by 80 percent to 90 percent

since 1986.

Studies conducted in the Mekong delta and in the Red

River delta show that pesticide levels in the water, soil,

air, and produce, are higher than standards set by the

National Environmental Agency. In a survey of vegetable

growing areas in Khanh Hoa province on the south central

coast, 25 percent of the vegetables sampled had pesticide

levels 2 to 6 times higher than standards. Thirty-nine

percent of 423 soil samples taken showed levels 2 to 40

times higher than standards.

11.2—Market Opportunities and

Competitive Situation

The forestry sector has received a substantial portion

of overseas development assistance (ODA) commitments

over the past five years. Many of the largest projects in

the sector were developed in the mid-1990s, with

implementation in 1997 and 1998. Table 11.3 shows some

of the largest forestry ODA projects to date.

While attention is still focused on improved management of Vietnam’s natural resources, ODA and government funding trends are moving away from forestry

toward urban pollution problems (water supply, drainage/

sewerage, wastewater treatment, etc.).

Coastal Wetlands Protection

A $65.6 million coastal wetlands protection and

development project is expected to help restore the

Mekong delta’s depleted coastal mangrove swamps. The

six-year project will develop sustainable resource use in

six provinces, including Ca Mau, Bac Lieu, Soc Trang,

and Tra Vinh provinces. About 60 percent of the

mangrove coverage in these provinces have been lost

since 1984 because of logging and uncontrolled shrimpfarm development. Project financing will come from a

$31.8 million loan from the World Bank, $11.3 million

loan from Danish International Development Assistance

(DANIDA), and $22.5 million loan from the Vietnamese

government. The project is scheduled to be carried out

between 2000 and 2006.

Deforestation continues, however. Slash-and-burn

agriculture is still practiced in many areas, with harvesting

cycles too short for forests to be replenished. Land

designated for protection is still used by rural farmers

for grazing livestock. State-owned forestry enterprises

have been allowed to continue operations, because

officials are concerned about increasing unemployment

in the already poor rural areas.

The government has initiated several action plans to

try to readdress the problem. The 10th National Assembly

approved an forestation plan covering 5 million hectares.

Two million hectares will be protected forest, and 3

million hectares will be used for industrial purposes. The

government’s goal is to have 14.3 million hectares of total

forest area by 2010, an increase from the current 9.3

million. Total funding needed for the project is estimated

at $2.5 billion.

There are concerns that this plan will be as unsuccessful as the plans implemented earlier in the decade, such

as the “Greening the Barren Hills” plan of 1992.

According to the World Bank, this plan failed because

the day-to-day concerns of local populations were not

considered. Incentives to protect or manage the resources

in a sustainable manner did not outweigh the immediate

need for income, shelter, and fuel. As a result, natural

forests areas have continued to decline.

Liberating Vietnam’s agricultural sector and dismantling its rural cooperatives have led to tremendous growth

in farming. Since beginning its renovation process in

1986, Vietnam has moved from a net importer of rice to

the world’s third largest exporter. Regions that once only

grew one crop of rice a year now can harvest two or three

crops. This productivity growth has been accomplished

through the use (and overuse) of fertilizers and pesticides

(Table 11.2).

Anecdotal evidence from farmers in the Mekong Delta

point to declining fish stocks due to the overuse of

pesticides. The Ministry of Agriculture has conducted

surveys of farming families in the north, south, and

central regions of the country. Use of pesticides in all of

Table 11.2 Pesticide Use in Vietnam, 1980–1999

(tons per year)

Year Volume

1984 10,000

1992 21,400

1995 30,000

1999 130,000

Source: Ministry of Agriculture and Rural Development.
Vietnam Export Market Plan 43

Table 11.3 Five Largest Ongoing Overseas Development Assistance Projects in the Vietnamese Forestry Sector

 Amount

 (millions of Executing

Donor U.S. dollars) Duration Title Agency Project Objective

Asian $33.0 1997–2003 Forestry MARD To restore vegetative cover of

 Development Sector Project mountainous areas and to raise

 Bank productivity of country’s forestry

resources.

World Bank $32.3 1998–2003 Forest MARD To protect and manage natural

Protection forests and reduce dependency on

forests for subsistence and cash.

BMZ $19.61997–2002 Vietnam KfW To establish social forestry programs.

Forestation

European Union $19.3 1997–2003 Resources MARD To reduce destruction and

Conservation degradation of forest resources

in Nghe An in Pu Mat Nature Reserve through

Province sustainable resources management.

World Food $15.61997–2001 Smallholder MARD To increase village-level incomes

 Program Forestry through village tree nurseries and

Development by planting fruit and cash-tree species.

MARD = Ministry of Agriculture and Rural Development

KfW = KfW Bank (German Development Bank)

BMZ = Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung

Source: Mekong Research, Ltd.
44 U.S. Department of Commerce, International Trade Administration

for consulting and technical assistance components of

projects. These grants then go to companies from the

bilateral donor’s host country. For example, the Finnish

development agency is financing design/technical

assistance contracts to three major World Bank

environment projects: Hanoi Water Supply, Haiphong

Water Supply and Sanitation, and the Haiphong

component of the Bank’s Three Cities Sanitation project.

These service contracts were awarded to Finnish

companies (YME Group, Plancenter Ltd., and Soil and

Water of Finland, Ltd.).

12.2—Market Opportunities and

Competitive Situation

Demand for monitoring services is increasing, and

numerous ODA projects have provided funding in this

area. Comprehensive studies and measurements of

pollution levels in Vietnam are now underway.

12.1—Current Trends

The market for environmental services is driven by

technical assistance and consulting contracts to projects

funded with overseas development assistance. Such

projects require numerous feasibility studies, project

preparation studies, and preparation of bidding documents

(terms of reference).

Larger contracts for detailed project design and

supervising implementation represent the largest value

contracts available in Vietnam for environmental services

companies. In 1999, for example, U.S.-based Camp

Dresser McKee was awarded a $958,000 contract to

prepare a feasibility study for rehabilitation of a polluted

canal in Ho Chi Minh City as part of a $180 million World

Bank sanitation project in that city. Camp Dresser McKee

is also likely to win the contract for detailed design and

preparation of bid documents, valued at approximately

$6 million.

A number of the large overseas development assistance

projects source co-financing from bilateral aid agencies

Case Study 12.1—U.S. Success Story

U.S. engineering firm Black and Veatch has been one of the more

successful American companies tapping the environmental

services market in Vietnam. Black and Veatch has targeted largescale ODA projects funded by the Asian Development Bank

(ADB) and the World Bank.

Black and Veatch first established itself in Vietnam by opening

a representative office shortly after the U.S. trade embargo was

lifted in 1994. It has since capitalized on its reputation as a world

leader in engineering and project management to win consultancy

contracts on major civil works projects.

Its first project in Vietnam was a $1.2 million contract for the

ADB-financed Second Provincial Towns Water Supply project.

Black and Veatch served as the construction supervisor for water

works projects in the northern cities of Tuyet Quang, Ninh Binh

and Vinh. It won a second consultant contract with the ADB,

valued at $1.7 million, for the Phuoc Hoa Multipurpose Water

project in Binh Duong Province, outside Ho Chi Minh City. The

project is developing infrastructure for water supply, irrigation, and

salinity control.

Capitalizing on its reputation and established track record in

Vietnam, Black and Veatch won a World Bank consulting contract

for a small water resources project in the Mekong delta. While

this project is relatively small compared to the ADB projects, it

could be a key stepping stone to much larger contracts to be

awarded for the World Bank’s $147 million Mekong delta water

resources project, which is beginning implementation in 2000.

Black and Veatch is also targeting the ADB’s Ho Chi Minh

City Environmental Improvement Project, the Danang component

of the World Bank’s Three Cities Sanitation project, and the World

Bank’s Ho Chi Minh City Environment and Sanitation project.

One of Black and Veatch’s keys to success has been

demonstrating to ministries awarding the contracts (in this case,

the Ministry of Construction and the Ministry of Transport) their

engineering capabilities and their capacity to solve problems.

Implementing large-scale civil works projects in Vietnam

inevitably means tackling unexpected difficulties. The client’s

vision of the project often differs from that of the project

designers.

Being able to mesh the needs and demands of the local

People’s Committee where the project is being built with those

of the project designers is a key factor in winning tenders,

according to one Black and Veatch executive. “You have to show

that you will be able to solve the conflicts between local interests

and project interests.”

Chapter 12

Environmental Services
Vietnam Export Market Plan 45

companies. ECO also advises companies on wastetreatment solutions.

As a state-owned company, ECO uses government

networking as an effective marketing tool. The government occasionally sponsors training sessions and

seminars on waste reduction. Directors at ECO speak at

these events, providing a valuable opportunity to meet

potential clients. ECO is well known among local

DOSTEs, so when polluting companies ask DOSTE for

advice on waste reduction or other environmental

services, DOSTE refers them to the center.

In the past year and a half, ISO 14000 has been

introduced to Vietnam, though only a handful of

companies have been certified. Several American

companies, such as Ford, Nike, and Indochina Building

Supplies, have been ISO 14000 certified. ISO 14000

certification is in its infancy in Vietnam. While it is being

promoted to a limited degree, the market for such

certifications will be negligible for the near future. The

government has not provided any specific incentives to

companies that meet ISO 14000 standards.

One of the larger certification companies in Vietnam,

Société Générale de Surveillance (SGS), has looked at

the market for environmental services but has not made

it one of its core businesses in Vietnam. Its environmentrelated business in Vietnam has been centered on the

forestry industry. Furniture buyers in the European Union,

for example, restrict imports of furniture that have used

illegally logged timber for raw materials. SGS Vietnam

monitors about 50 furniture factories in Vietnam to

determine their source of origin for hardwood timber.

One example is air-quality monitoring. There is no

consistent database available on air pollution levels on a

national, regional, or local level. The Asian Development

Bank, United Nations Development Program (UNDP),

the Norwegian Agency for Development Cooperation

(NORAD), and DANIDA are funding projects in Ho Chi

Minh City to establish accurate measuring systems and

monitoring equipment. The U.S.-Asia Environmental

Partnership is also providing assistance to this project.

Contract awards include a technical assistance and

training component to build the capacity of local staff.

Investment projects need to complete an environmental

impact assessment (EIA) before they are licensed by the

Ministry of Planning and Investment. For most

companies, completing the assessment is straightforward

and does not require the use of international consultants.

As a result, local Vietnamese companies dominate the

market for EIAs. Local companies also perform audits

and monitoring of facilities to determine whether waste

output is within standards set by the Law on the

Environment. Only major polluting industries, such as

the oil, gas, steel, and cement industries, have required

services of international consulting companies to

complete the EIAs. In general, the market for environmental services is moving away from providing EIAs to

providing clean production consulting or waste-auditing

services. According to directors at the Center for

Environmental Technology (ECO) in Ho Chi Minh City,

one of the country’s largest environmental services

companies, the center has shifted away from providing

EIAs to providing “clean production” studies for local
46 U.S. Department of Commerce, International Trade Administration

Overseas development assistance from multilateral

institutions, such as the World Bank and the Asian

Development Bank, remains the largest source of

financing for environmental initiatives in Vietnam

(Tables 13.1 and 13.3). While loans for environmentimprovement projects have been approved and signed,

implementing the projects and disbursing funds rarely

proceed on schedule.

Vietnam has had a particularly poor track record of

aid absorption for numerous reasons, including an

entangled bureaucracy and extremely slow decisionmaking procedures. Local managers responsible for

implementing projects must get approval for the smallest

decisions along an entire chain of command. Major

spending or disbursal decisions often must be approved

by the local People’s Committee, numerous agencies

affiliated with the project, parent ministries in Hanoi, and,

occasionally, the prime minister.

Chapter13

Sources of Financing

The government has issued an inter-ministry decision

(Decree 87/CP) on speeding up ODA disbursements and

on decentralizing decision making. Implementation of

this decree is a work in progress, however. Bidders on

projects should expect delays in procurement schedules.

13.1—U.S. Funding Sources

The United States has not yet provided bilateral aid in

the form of loans or grants to the environment sector.

However, the Overseas Private Investment Corporation

(OPIC) provided its first financial support to a U.S.

investment project in Vietnam in December 1999, a $2.3

million loan to V-Trac Infrastructure Company, the sole

authorized dealer of Caterpillar equipment in Vietnam.

OPIC is a federal agency that provides investment

services to small and medium-sized companies in

overseas markets.

$0 $10 $20 $30 $40 $50 $60

0.3

0.5

0.7

1.2

4.0

4.1

4.1

5.7

7.0

9.2

13.1

18.9

21.0

42.3

52.3

FAO

MAE

DFID

Sida

NETGOV

DIDC

BADC

WB

NORAD

BMZ

UNDP

UNDP/GEF

EU

JIKA

DANIDA

Chart 13.1 Pipeline Commitments in Vietnam, by

Main Grant Donors (millions of dollars)

Note: Full names of donor organizations are given in the

abbreviation list on page viii. Dollar figures have been rounded.

Source: U.N. Development Program.

13.2—Key Sources of Overseas

Development Assistance in Vietnam

Asian Development Bank

23 Phan Chu Trinh

Hanoi

Tel: +84 (4) 733-0923

Fax: +84 (4) 733-0925

Web: www.adb.org

E-mail: adbhanoi@netnam.org.vn

Project officer: Mr. Le Dinh Thang

United Nations Development Program

27-29 Phan Boi Chau

Hanoi

Tel: +84 (4) 942-1495

Fax: +84 (4) 825-9267

Resident representative: Edouard Wattez
Vietnam Export Market Plan 47

Japan Bank for International Cooperation (JBIC)

63 Ly Thai To St.

Hanoi

Fax: +84 (4) 824-8937

E-mail: jbic@hn.vnn.vn

Web: www.jbic.go.jp

Chief Representative: Koki Hirota

Dutch Development Aid Agency

Royal Netherlands Embassy

Daeha Office Tower

6th Floor, 360 Kim Ma St.

Hanoi

Tel: +84 (4) 831-5650

Fax: +84 (4) 831-5655

E-mail: nlgovhan@netnam.org.vn

Commercial officer: Mr. Geoffrey van Leeuwen

Japan International Cooperation Agency (JICA)

Daeha Business Center

11th Floor, 360 Kim Ma

Hanoi

Tel: +84 (4) 831-5005

Fax: +84 (4) 831-5009

E-mail: jicavietnam@fpt.vn

Chief representative: Jibiki Takanori

Danish International Development Agency (DANIDA)

19 Dien Bien Phu St.

Hanoi

Tel: +84 (4) 823-1888

Fax: +84 (4) 747-0167

E-mail: ambadane@hn.vnn.vn

Chief representative: Toiben Bellers

Swedish International Development Agency

(SIDA)

2 Nui Truc St.

Hanoi

Tel: +84 (4) 845-4824

Fax: +84 (4) 823-2195

E-mail: per.lundell@sida.se

Consular for Development Cooperation: Per Lundell

Norway Agency for International Development

(NORAD)

56 Ly Thai To

Hanoi

Tel: +84 (4) 826-2111

Fax: +84 (4) 826-0222

E-mail: noramb@hn.vnn.vn

ambassade-hanoi@ud.dep.telemax.no

First Secretary: Svein Damsgaard

World Bank

63 Ly Thai To

Hanoi

Tel: +84 (4) 934-6600

Fax: +84 (4) 934-6597

E-Mail: nthanh@worldbank.org

Web: www.worldbank.org.vn

Project officer: Mr. Cong Thanh

Overseas Development Assistance Partnership

32 Le Thanh Ton St.

Ho Chi Minh City

Tel: +84 (8) 823-8988

Fax: +84 (8) 822-4009

E-Mail: odap@hcm.vnn.vn

Program Coordinator: Ms. Le Dieu Anh

13.3—Select Bilateral Aid Agencies

Australian Agency for International Development

Australian Embassy

8 Dao Tan St.

Hanoi

Tel: +84 (4) 831-7754

Fax: +84 (4) 831-7706

E-mail: ausaid@fpt.vn

Web: www.ausinvn.com

Belgian Administration for Development and

Cooperation

216 Nguyen Dinh Chieu

Ho Chi Minh City

Tel: +84 (8) 930-0407

Fax: +84 (8) 930-0211

Project Manager: Mr. Benoit Legrand

Finland International Development Agency

(FINNIDA)

Embassy of Finland

31 Hai Ba Trung St.

Central Building

Hanoi

Tel: +84 (4) 826-6788

Fax: +84 (4) 826-6766

E-mail: finnemb@netnam.org.vn

Web: www.global.finland.fi

Program Officer: Le Quoc Hung
48 U.S. Department of Commerce, International Trade Administration Table 13.1 Largest Ongoing Development Projects in Vietnam, 2000 Annual Average Total Sector Donor Project Title Duration Executing Agency Budget* Budget* Energy Efficiency World Bank Transmission, Distribution and Disaster Rehabilitation Project 1998–2002 Electricity of Vietnam 49,750 199,000 Energy Efficiency World Bank Power Sector Rehabilitation and Expansion Project 1997–2000 Electricity of Vietnam 55,000 165,000 Urban Planning Overseas Economic Hanoi Urban Infrastructure Cooperation Fund (Japan) Development Project 1997–2002 PC Hanoi 21,400 107,000 Urban Planning World Bank/IDA Three Cities Sanitation Project (Ha Long, Danang and Hai Phong) 1999–2004 PCs in three cities 16,100 80,500 Disaster Management Asian Development Bank Irrigation and Flood Protection Rehabilitation Project 1994–2000 MARD 12,750 76,500 Urban Planning Asian Development Bank Second Provincial Towns Water Supply and Sanitation 1997–2002 MOC 13,800 69,000 Urban Planning Overseas Economic Hanoi Drainage Project for Cooperation Fund (Japan) Environment Improvement 1995–2002 PC Hanoi 9,764 68,349 Watershed Asian Development Bank Red River delta Water Resources Sector Project 1995–2000 MARD 12,000 60,000 Fisheries Asian Development Bank Fisheries Infrastructure Improvement Project 1996–2002 MOFish 9,500 57,000 Forestry Asian Development Bank Forestry Sector Project 1997–2003 MARD 5,500 33,000

Forestry World Bank Forest Protection and Rural

Development Project 1998–2003 MARD 6,458 32,290

Disaster Management World Food Program Rehabilitation and Upgrading of

(United Nations) Sea Dikes in Northern Vietnam 1996–2000 MARD 6,657 26,631

Rural Development European Union Cao Bang/Bac Can Rural

Development Project 1999–2004 MARD 4,295 21,476

Rural Development European Union Son La/Lai Chau Rural

Development Project 1999–2004 MARD 4,000 20,000

Forestry BMZ Vietnam Forestation 1997–2002 KfW 3,920 19,600

Forestry European Union Social Forestry and Natural

Resources Conservation in

Nghe An Province 1997–2003 MARD 3,212 19,273

Institutional International Fund for Strengthening Tuyen Quang

 Strengthening Agriculture Development Province to Implement Participatory

Resource Management 1996–1999 PC Tuyen Quang 6,000 18,000

Total, all projects $1,072,619

* Thousands of U.S. dollars.

Source: U.N. Development Program
Vietnam Export Market Plan 49

Table 13.2 Largest Pipeline Projects in Vietnam 2000

Annual

Executing Average Total

Sector Donor Project Title Duration Agency Budget* Budget*

Energy Efficiency World Bank Rural Energy Project 2000–2004 EVN 37,500 150,000

Rural Development World Bank Northern Mountains

Poverty Reduction 2001–2006MPI 20,000 100,000

Urban Planning and Asian Development Bank Phuoc Hoa Multipurpose

 Pollution Control Water Resources 2000–TBA TBA — 80,000

Urban Planning and Asian Development Bank HCMC Environmental

 Pollution Control Improvement 1999–2001 PC HCMC 34,000 68,000

Protection of Man- World Bank Coastal Wetlands Protection

 groves and Wetlands and Development Project 1999–2006MARD 9,314 65,200

Watershed Asian Development Bank Second Red River

Water Resources 2001–TBA TBA — 60,000

Urban Planning and Asian Development Bank Third Provincial Towns

 Pollution Control Water Supply and Sanitation 2001–TBA TBA — 60,000

Fisheries DANIDA Fisheries Sector Program Support 1999–2004 MOFish 7,367 36,838

Urban Planning and European Union Urban Environmental

 Pollution Control Planning Program 1999–TBA TBA — 20,480

Marine Protection UNDP/GEF Prevention and Management of

Marine Pollution in the EastAsian Seas, Phase 2 1999–TBA IMO — 16,289

Protection of JICA Reforestation of the Coastal Sandy

 Mangroves Soil Areas in Quang Nam, Quang Ngai,

 and Wetlands Phu Yen and Khanh Hoa Provinces 2000–2004 MARD 3,939 15,758

Disaster Management JICA Upgrade of Typhoon Operation of

 and Preparedness the Hydro-meteorological Services 2000–2003 HMS 5,202 15,608

Urban Planning, JICA Urgent Equipment Supply for

 Pollution Control, for Waste Management

 and Health Issues in Hanoi 2000–2002 PC Hanoi 5,466 10,933

Protection of Man- DANIDA Coastal Wetlands Protection

 groves and Wetlands and Development Project 1999–2006WB 1,505 10,541

Total, all projects $ 709,647

* Thousands of U.S. dollars.

Source: U.N. Development Program.
50 U.S. Department of Commerce, International Trade Administration

Table 13.3—The 15 Largest Donors for Ongoing Projects in Vietnam, 2000

Number Average Average

 of Length Annual

Rank Donor Projects Total Budget* (years) Budget*

 1 World Bank 7 482,820 3.6134,116

 2 Asian Development Bank 7 298,182 4.4 54,932

 3 Japan Bank for International

 Cooperation 2 175,349 6.0 31,164

 4 European Union 18 67,544 3.2 13,947

 5 World Food Program (United Nations) 2 42,4964.0 10,624

 6Bundesministerium für Wirtschaftliche

 Zusammenarbeit und Entwicklung

 (Germany) 5 38,985 4.4 10,723

 7 Swedish International Development

 Cooperation Agency 11 38,312 2.5 12,598

 8 Japan International Cooperation Agency 632,654 1.8 18,195

 9 International Fund for Agriculture

 Development 2 30,800 3.5 9,200

10 Government of theNetherlands 13 29,405 3.0 7,595

11 Swiss Development Cooperation 8 25,072 3.4 7,327

12 Agence Française de

 Développement (France) 2 24,900 6.0 4,150

 13 United Nations Development Program 14 18,722 2.8 6,930

14 Danish International

 Development Assistance 611,752 3.7 3,690

15 Canadian International

 Development Agency 7 10,695 4.7 2,269

Total 110 1,327,688 — —

* Thousands of U.S. dollars.

Source: U.N. Development Program.
Vietnam Export Market Plan 51

ment (VIWASE). VIWASE is owned by the Ministry of

Construction.

14.3—Imports

All imported equipment must be through a company

with an import/export license. Every shipment of goods

must have an import permit from the Ministry of Trade.

In general, government authorities frown upon imports

of used or outdated equipment, even when such

equipment may be more appropriate for Vietnam’s low

level of infrastructure development.

Industrial water pumps, water filters, liquid filters, and

air or gas purifying machinery is exempt from import

duties. Equipment imported for use at a foreign-invested

company and in ODA projects may also be imported duty

free. However, local customs officials are occasionally

unaware of national import policies. In the past, imports

of equipment for ODA projects have been delayed until

these policies could be clarified for local officials.

Household pumps and filters are subject to a 20 percent

import tax. Import duties change often, especially since

the introduction of the value added tax in Vietnam in

January 1999, so rates should be checked before contracts

are signed.

Vietnam tends to grant import licenses only to large,

state-owned firms. If one is distributing product via a

smaller local agent that does not have import rights, this

company then signs an import contract with the firm that

owns an import license. The larger trader then earns a

commission, ranging from 1 to 2 percent of the contract

value.

14.4—Distribution

Vietnam does not grant distribution rights to foreign

companies. They are only allowed to manage distribution

legally if they enter into a joint manufacturing venture

with a local firm.

14.1—Getting Started

It is highly recommended that companies build a local

presence in Vietnam by establishing a representative

office to understand the dynamics of the market.

Successful business in Vietnam means establishing

relationships with key industry leaders and government

officials and this can be accomplished locally. A foreign

company with a representative office is allowed to

negotiate and sign contracts with local firms or apply for

an investment license from the government. However, a

representative office cannot conduct commercial

activities and earn revenue. Its sole purpose is to allow a

company to research and prepare for a more formal

investment project. The Ministry of Trade issues

representative office licenses that are usually valid for

five years. The current fee is just 1 million dong

(approximately $71).

14.2—ODA-Funded Projects

In the foreseeable future, the best opportunities for

environmental equipment and services will be projects

financed with overseas development assistance (ODA).

Therefore, it is essential to maintain contact with ODA

sources to remain abreast of project opportunities and

status.

Tracking ODA projects includes establishing relationships with implementing ministries, agencies, and offices

that will be responsible for project management on a local

level. Successful bidding on ODA projects depends upon

meeting the detailed qualifications set out in bidding

documents and establishing relationships with key local

decision makers.

ODA projects funded by the World Bank and the Asian

Development Bank usually require that foreign contractors partner with local companies to promote transfer of

technology/expertise. For example, in the case of large

water supply, sewerage, and drainage projects, foreign

companies often try to partner with the Vietnam

Consultancy for Water Supply, Sanitation and EnvironChapter 14

Market Entry Strategies
52 U.S. Department of Commerce, International Trade Administration

Distribution of environment-related equipment—such

as pumps, filters, valves, motors, etc.—tends to be

managed through local companies, both state-owned and

private. Again, vendors should confirm that the agent

either has an import license or a relationship with a

licensed trading company.

Common distribution channels for vendors include:

• Local companies that import products for their own

use. These may be environmental service companies

which sell pollution prevention or treatment equipment

but that need to import parts.

• Manufacturers that import under consignment.

• Import-export companies that import on behalf of other

agents or to serve as an agent themselves.

Local companies provide marketing and promotion

services and can be more effective in navigating

distribution channels than would a foreign company

establishing a new presence in the market. They can be

invaluable for their contacts and relationships with

equipment buyers, such as provincial, municipal, and

district government officials.

It is important to provide local agents/distributors with

adequate training so that they are able to provide aftersales services to buyers.

14.5—Payment

The Vietnamese dong is not a convertible currency.

Moreover the state bank imposes strict controls on

foreign-exchange transactions. While some foreigninvested firms may have convertibility rights, it does not

mean that the needed foreign currency will be available,

as the market may fluctuate wildly. Convertibility rights

are generally issued to import substitution manufacturers

and other “important” industries.

Letters of credit are the most common method of

payment for importing goods. Vietcombank, Vietnam’s

largest state-owned bank, is the most active bank in

issuing letters of credit. However, it is often reluctant to

allow confirmation of its letters of credit by overseas

banks. Also, Vietnamese banks do not always accept that

a letter of credit constitutes a commitment on their part

to meet obligations, and some banks have walked away,

claiming that the importer is unable or unwilling to pay.

It is advisable for foreign exporters to open a letter of

credit with a foreign bank branch in Vietnam. There are

more than 20 foreign banks with branches in either Hanoi

or Ho Chi Minh City. It is fairly standard for foreign

companies that do not have a legal presence in Vietnam,

such as a representative office, to import and sell goods

through a state-owned enterprise that has import licenses

and convertibility rights.

Consignment sales are not recommended unless the

distributor’s performance and reliability can be verified.

Once a proven track record is established, distributors

often ask for payment terms of 30 to 180 days.
Vietnam Export Market Plan 53

Ministry of Science, Technology and Environment

(MOSTE)

Minister: Chu Tuan Nha

39 Tran Hung Dao

Hanoi

Tel: +84 (4) 825-2731/2722

Fax: +84 (4) 825-2733

Ministry of Planning and Investment (MPI)

Minister: Tran Xuan Gia

2 Hoang Van Thu

Hanoi

Tel: +84 (4) 845-5298

Fax: +84 (4) 823-4453

Ministry of Industry (MOI)

Minister: Dang Vu Chu

54 Hai Ba Trung

Hanoi

Tel: +84 (4) 825-3831/8311

Fax: +84 (4) 826-5303

Ministry of Agriculture and Rural Development

(MARD)

Minister: Le Huy Ngo

2 Ngoc Ha

Hanoi

Tel: +84 (4) 846-8160

Fax: +84 (4) 845-4319

Ministry of Construction (MOC)

Minister: Nguyen Manh Kiem

37 Le Dai Hanh

Hanoi

Tel: +84 (4) 976-0271

Fax: +84 (4) 976-2153

Ministry of Health (MOH)

Minister: Do Nguyen Phuong

138 A Giang Vo

Hanoi

Tel: +84 (4) 846-4416

Fax: +84 (4) 846-2195

Water Supply and Environment Committee

Director: Chu Tan Nha, MOSTE minister

37 Le Dai Hanh

Hanoi

Tel: +84 (4) 821-5097

Fax: +84 (4) 821-6339

Foreign Economic Relations Department (Ministry

of Planning and Investment)

Deputy Director: Nguyen Van Phuc

2 Hoang Van Thu

Hanoi

Tel: +84 (4) 804-4408

Fax: +84 (4) 823-4716

Management Board of Water Supply and

Sanitation Projects (Ministry of Construction)

Director: Nguyen Quy Don

37 Le Dai Hanh

Hanoi

Tel: +84 (4) 976-0271

Fax: +84 (4) 976-2153

Mekong Delta Water Resources Project

(Ministry of Agriculture and Rural Development)

Project Manager: Le Van Hien

23 Hang Tre

Hanoi

Tel: +84 (4) 824-2363

Fax: +84 (4) 824-2372

National Environment Agency

Director: Nguyen Ngoc Sinh

67 Nguyen Du

Hanoi

Tel: +84 (4) 822-3194

Fax: +84 (4) 822-3189

Organizes and manages environmental protection

activities on a national level; formulates policies on

environmental protection; reviews environmental

impact assessments; implements monitoring systems

and pollution controls.

Appendix A

Ministries and State Agencies

Note: See page viii for abbreviations and acronyms used in this appendix.
54 U.S. Department of Commerce, International Trade Administration

Department of Science, Technology and

Environment (DOSTE) of Ho Chi Minh City

Director: Dao Van Luong

244 Dien Bien Phu

District 3

Ho Chi Minh City

Tel: +84 (8) 829-7831/ 824-2709

Fax: +84 (8) 824-2584/ 2711

DOSTEs are city-level offices responsible for

implementing regulations set by MOSTE and theNEA,

as well as for environmental management at a local

level.

Department of Science, Technology and

Environment (DOSTE) of Hanoi

Director: Tran Lam

2 Phan Chu Trinh

Hanoi

Tel: +84 (4) 825-6877/ 826-6672

Fax: +84 (4) 825-1894

DOSTE of Binh Duong Province

Director: Nguyen Trong Dung

Huynh Van Nghe, Phu Loi, Phu Hoa

Thu Dau Mot

Binh Duong Province

Tel: +84 (650) 822-924/824-421

DOSTE of Da Nang City

Director: Le Khac Thanh

15 Quang Trung

Danang

Tel: +84 (511) 821-466/822-864

DOSTE of Dong Nai Province

Director: Huynh Van Tam

260, 15 Highway

Bien Hoa City

Dong Nai

Tel: +84 (61) 822-297/ 825-585

DOSTE of Hai Phong City

Director: Dao Viet Tac

1 Pham Ngu Lao

Hai Phong

Tel: +84 (31) 846-444

Fax: +84 (31) 845-183

DOSTE of Quang Ninh Province

Director: Vu Van Thanh

Km 8, Nguyen Van Cu

Ha Long City

Tel: +84 (33) 835-958

Fax: +84 (33) 835-471

HCMC Department of Transportation and Public

Works (DTPW)

Deputy Director: Nguyen Thi Dung

63 Ly Tu Trong

Ho Chi Minh City

Tel: +84 (8) 829-0451

Fax: +84 (8) 829-0458

Involves in several municipal environment projects

(sewage, drainage, water supply, solid waste.)

Hanoi Department of Transportation and Public

Works (DTPW)

Director: Pham Quoc Truong

12-14 Phan Dinh Phung

Hanoi

Tel: +84 (4) 845-2471

Fax: +84 (4) 845-6333

HCMC Department of Planning and Investment

(DPI)

Deputy Director: Phan Xuan Hoa

32 Le Thanh Ton

Ho Chi Minh City

Tel: +84 (8) 829-7831

Fax: +84 (8) 824-2584

Department is responsible for approving investment

proposals in HCMC and for making key recommendations to the HCMC People’s Committee.

Hanoi Department of Planning and Investment

(DPI)

Director: Nguyen Thanh Binh

17 Tran Nguyen Han

Hanoi

Tel: +84 (4) 825-5275

Fax: +84 (4) 825-1733

Responsible for approving investment proposals in

Hanoi and for making key recommendations to the

Hanoi’s People Committee.

HCMC Department of Science, Technology,

Environment (DOSTE)

Environment Management Office

Manager: Doan Thi Toi

244 Dien Bien Phu

Tel: +84 (8) 824-2709

Fax: +84 (8) 824-2711
Vietnam Export Market Plan 55

Hanoi Department of Science, Technology,

Environment (DOSTE)

Environment Management Office

Director: Tran Lam

204 Tran Quang Khai

Hanoi

Tel: +84 (4) 826-6672

Fax: +84 (4) 934-3184

HCMC People’s Committee

Vice Chairman: Vu Hung Viet

Environment Expert: Dao Thi Bich Thu

Tel: +84 (8) 829-7067

Fax: +84 (8) 829-5049

Department of Medical Equipment Project

(Ministry of Health)

Environment expert: Nguyen Minh Tuan

138A Giang Vo

Hanoi

Tel: +84 (4) 823-0795

Fax: +84 (4) 846-0843
56 U.S. Department of Commerce, International Trade Administration

Birdlife International

Program Coordinator: Jonathan C. Eames

17M13 Lang Trung

Dong Da District

Hanoi

Tel: +84 (4) 851-7217

Fax: +84 (4) 835-2562

E-mail: birdlife@netnam.org.vn

Fauna and Flora International

Cuc Phuong National Park

Ninh Binh

Tel: +84 (30) 866-085

Fax: +84 (30) 866-174

E-mail: FFI@netnam.org.vn

International Union for Conservation of Nature

and Natural Resources (IUCN)

Representative: Le Minh Thong

13 Tran Hung Dao

Hanoi

Tel: +84 (4) 933-0012

Fax: +84 (4) 933-0013

E-mail: iucnvne@bdvn.vnmailvnd.net

Appendix B

International Organizations

Note: See page viii for abbreviations and acronyms used in this appendix.

Society for Environmental Exploration

Program manager: Richard Sopey

P7 / A 4 Bach Khoa

Hai Ba Trung District

Hanoi

Tel: +84 (4) 869-1541/ 933-0013

C/O BP +84 (4) 826-6156

E-mail: SEEe@netnam.org.vn

World Wide Fund for Nature (WWF)

Representative: Eric Coull

116 Yet Kieu

Hanoi

Tel: +84 (4) 822-0640/ 822-0641

Fax: +84 (4) 822-0642

E-mail: wwfvne@netnam.org.vn
Vietnam Export Market Plan 57

.

Center for Applied Hydrology and Environmental

Engineering

(Hanoi Water Resources University)

Director: Ngo Dinh Tuan

299 Tay Son

Dong Da District

Hanoi

Tel: +84 (4) 852-2027

Fax: +84 (4) 853-4198

Conducts research and development; provides

commercial applications for water resources projects;

conducts EIAs for projects related to water resources;

engaged in planning, design, and construction of flood

control and dyke protection infrastructure.

Center for Environmental and Chemical

Engineering

(Vietnam Chemicals Corporation)

Director: Dang Xuan Toan

21A Cat Linh

Hanoi

Tel: +84 (4) 823-5335

Fax: +84 (4) 823-2325

Applied research institute specializing in environment

protection for the chemical industry. Conducts EIAs.

Center for Environmental Engineering of Towns

and Industrial Areas (CEETIA) (Hanoi University

of Civil Engineering)

Director: Pham Ngoc Dang

5 Giai Phong

Hai Ba Trung District

Hanoi

Tel: +84 (4) 869-3405/ 869-1604

Fax: +84 (4) 869-3714

Conducts EIAs and applied research focused on water

and air pollution in urban areas and industrial zones.

Center for Environmental Science and Technology

(Hanoi University of Technology)

Director: Dinh Van Sam

1 Dai Co Viet Road, C10

Hanoi University of Technology

Hanoi

Tel: +84 (4) 869-1466

Fax: +84 (4) 869-3551

Engages in research and development of environmental

technologies, conducts investigations and audits, and

provides EIAs for industrial parks and zones.

Center of Environmental Chemistry (University of

Natural Science/Hanoi National University)

Director: Pham Hung Viet

T 3 Building, National University of Hanoi

90 Nguyen Trai

Dong Da District

Hanoi

Tel: +84 (4) 858-7964

Fax: +84 (4) 858-8152

Research and development of environmental treatment

technologies; pollution controls. Performs EIAs and

consultancy services.

Center for Research and Application of

Environmental Technology (RAENTEC)

Director: Nguyen Duc Canh

60 Nguyen Du

District 1

Ho Chi Minh City

Tel: +84 (8) 822-5106

Fax: +84 (8) 822-5068

Specializes in waste treatment technologies: site

implementation, training, and environment-research

software.

Appendix C

Leading Environmental Service, Research,

and Technology Companies

Note: See page viii for abbreviations and acronyms used in this appendix.
58 U.S. Department of Commerce, International Trade Administration

Center of Environmental Technology (ECO)

Director: Tran Ung Long

18 A Cong Hoa St

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 842-5760

Fax: +84 (8) 842-5763

Research and application of environmental technology;

environmental impact assessment and waste auditing.

Environment Protection Center (EPC)

Director: Tran Minh Chi

56 Truong Quoc Dung

Ho Chi Minh City

Tel: +84 (8) 844-7975/ 845-2354

Fax: +84 (8) 844-7976

E-mail: BTTEP@Netnam2.org.vn

Leading research and commercial enterprise conducting EIAs and installing wastewater, air emission,

and solid waste treatment technologies. Provides

training, consultancy services, and cooperation with

international agencies in environmental protection.

Center for Environmental Technology and

Management (CENTEMA)

Director: Nguyen Trung Viet

C4/5-6 Dinh Bo Linh St

Binh Thanh District

Ho Chi Minh City

Tel: +84 (8) 898-1504/ 1502

Fax: +84 (8) 898-1505

E-mail: centema@Netnam2.org.vn

Leading research institute and commercial enterprise

providing waste audits, clean production studies, and

studies of wastes produced at industrial zones.

Center for Environmental Science and Technology

(CEFINEA)

Director: Nguyen Dinh Tuan

268 Ky Thuong Kiet

District 10

Ho Chi Minh City

Tel: +84 (8) 865-1132/ 863-7044

Fax: +84 (8) 865-5670

E-mail: chidhl@mailser.ut-hcmc.edu.vn

Research institute and commercial enterprise

specializing in air pollution control and installation of

air treatment technologies.
Vietnam Export Market Plan 59

Center for Rural Water Supply and Environmental

Sanitation

Director: Le Van Can

C10 Nam Thanh Cong

Ba Dinh District

Hanoi

Tel: +84 (4) 835-5821/ 5964

Fax: +84 (4) 835-5964

Provides systems for clean water supply; wastewater

treatment, and safe use of pesticide and fertilizer.

Performs EIAs and conducts research and

development.

Center of Environmental Technology (CET)

Director: Truong Xuan Tung

37 Lang Ha

Hanoi

Tel: +84 (4) 856-2382

Fax: +84 (4) 856-2401

Conducts consulting, research and development,

production, and commercial application of

environmental technologies.

Center of Safety and Environment

Director: Do Thanh Bai

2 Pham Ngu Lao

Hanoi

Tel: +84 (4) 824-9231

Fax: +84 (4) 826-5633

Specializes in conducting EIAs and applying clean

production techniques to the chemicals industry.

Research Center for Water Resources and

Environmental Engineering

Director: Nguyen Quang Trung

299 Tay Son

Dong Da District

Hanoi

Tel: +84 (4) 853-3893

Fax: +84 (4) 853-6290

Conducts research on water pollution control, wastewater treatment, and effects of water works on the

ecology.

Scientific Technological Center for Water Supply

and Sanitation Consultative Company for Water

Supply and Environment

Director: Dinh Viet Duong

5 Duong Thanh

Hanoi

Tel: +84 (4) 824-4328

Fax: +84 (4) 823-2760

Advises and supplies water supply and drainage

solutions. Cooperates with Nisso Koe to provide

drainage solutions for Hanoi. Upgrades Thu Duc Water

Plant (HCM City), consultant for Ho Da Den, Nhon

Thach water projects in Ba Ria-Vung Tau.

Vietnam Consultancy for Water Supply, Sanitation

and Environment (VIWASE)

Director: Nguyen Nhu Ha

5 Duong Thanh

Hanoi

Tel: +84 (4) 896-6780

Fax: +84 (4) 896-0713

Key construction and engineering company owned by

the Ministry of Construction responsible for evaluating

water-related construction projects. VIWASE is often

selected as the local partner by foreign civil works

contractors/consultants participating in ODA-funded

water projects.

Appendix D

Major Environmental Companies in Hanoi

Note: See page viii for abbreviations and acronyms used in this appendix.
60 U.S. Department of Commerce, International Trade Administration

Hanoi Water Supply Development Project

Director: Hoang Quoc Loc

44 Yen Phu

Hanoi

Tel: +84 (4) 829-4393

Develops water supply projects, primarily the Hanoi

component of the World Bank First Water Supply

project.

Hanoi Drainage Development Project

Director: Nguyen Quoc Don

37 Le Dai Hanh

Hanoi

Tel: +84 (4) 821-5586

Manages the JBIC Hanoi drainage development

project.

Water Resources Development Consulting Joint

Venture

Director: Phung Van Luyen

299 Tay Son

Hanoi

Tel: +84 (4) 853-5110

Fax: +84 (4) 863-9417

Consultants on water resources projects.

Hanoi Drainage Company

Director: Le Minh Chau

95 Van Ho 3

Hanoi

Tel: +84 (4) 976-2245

Fax: +84 (4) 976-2663

Owned by Hanoi Department of Communication and

Public Works. Manages drainage and water treatment

systems. Supervises drainage projects in Hanoi.

Hanoi Urban Environment Company

Director: Chu Van Chung

18 Cao Ba Quat

Hanoi

Tel: +84 (4) 845-4807

Fax: +84 (4) 823-2566

Owned by Hanoi Department of Communication and

Public Works. Responsible for collecting and disposing

of solid wastes. Supervises solid waste treatment

projects in Hanoi, including procurement.

Hanoi Water Business Co.

Director: Bui Van Mat

44 Yen Phu

Hanoi

Tel : +84 (4) 829-4315

Fax: +84 (4) 829-4069

Implementing agency for the World Bank First Water

Supply project in Hanoi.

Red River Engineering and Trading Company

Director: Pham Minh Tuan

32 Thai Thinh 2

Dong Da District

Hanoi

Tel: +84 (4) 856-3579

Fax: +84 (4) 856-3580

Supplier of water supply and water treatment

equipment, pumps, air compressors and construction

equipment.

High-Tech Development Center

Director: Nguyen Hoai Chau

21/6 Lang Ha

Hanoi

Tel: +84 (4) 856-0858

Fax: +84 (4) 756-1352

Supplies equipment for water treatment; installs filter

stations, wastewater treatment units.
Vietnam Export Market Plan 61

New Technology Transfer Center Viet-NGA

Tropical Center

Director: Vu Van Tieu

3 Road 3/2

District 10

Ho Chi Minh City

Tel: +84 (8) 833-4564

Fax: +84 (8) 832-6353

Research and application of technologies and equipment for water supply and wastewater treatment plants.

Transfers new technology, helping health centers to

completely burn disposed syringes and needles.

Science and Technique Center (STC)

Director: Nguyen Dang Hung

273 Dien Bien Phu

District 3

Ho Chi Minh City

Tel: +84 (8) 824-4902

Fax: +84 (8) 823-1650

Research and environmental monitoring.

Ho Chi Minh City Water Supply Company

Director: Vo Quang Chau

1 Cong Truong Quoc Te

District 3

Ho Chi Minh City

Tel: +84 (8) 823-1090/ 829-1777

Fax: +84 (8) 824-1644

Contact: Dao Trong

Water supply company for Ho Chi Minh City.

Ho Chi Minh Drainage Company

Director: Vo Quang Ke

88 Bis Pham Ngoc Thach

District 3

Ho Chi Minh City

Tel: +84 (8) 823-0800

Fax: +84 (8) 910-0498

Supervises drainage network for Ho Chi Minh City.

Water and Sewage Construction Company

(WASECO)

Director: Phan Hong Son

10 Pho Quang Str.

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 847-5166

Fax: +84 (8) 847-5161

Responsible for sewage and waste treatment in Ho Chi

Minh City. Designs and develops water supply and

wastewater treatment systems. Has developed

wastewater treatment systems at Tan Thuan EPZ in Ho

Chi Minh City, Huyndai Shipbuilding Plant in Khanh

Hoa; and in Daklak provinces (40,000 m3

/day).

Waseco has also built water supply systems at Cao

Lanh, Dong Thap (Holland-funded, 25,000 m3

/day), at

Hoc Mon, HCMC (50,000 m3

/day).

Water Construction Company (WACO)

Director : Pham Tra

54/5 Au Co Str.

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 865-3425

Fax: +84 (8) 865-5952

General contractor and supplier of water-electric

equipment and wastewater treatment equipment.

Trans-Tech Saigon

Director: Vo Anh Tuan

76 Cao Van Lau

District 6

Ho Chi Minh City

Tel and Fax: +84 (8) 853-6096

Equipment supplier for environment-related projects.

Appendix E

Major Environmental Companies

in Ho Chi Minh City

Note: See page viii for abbreviations and acronyms used in this appendix.
62 U.S. Department of Commerce, International Trade Administration

Waste Disposal Company (HOWADICO)

Director: Le Dinh Mai

Huong Lo 16, Hiep Thanh Ward

District 12

Ho Chi Minh City

Tel: +84 (8) 891-6586

Fax: +84 (8) 891-0801

Provides waste treatment services for Ho Chi Minh

City. Manages dumping field in Hoc Mon commune.

HCMC Urban Environment Company

Director: Nguyen Van Mon

42-44 Vo Thi Sau

District 1

Ho Chi Minh City

Tel: +84 (8) 829-1975

Fax: +84 (8) 829-6680

Responsible for collecting and transporting municipal

solid waste to dumping sites

DAMIFA Co. Ltd.

Director: Le Quy Son

V10Bis Huong Giang

Cu Xa Bac Hai

District 10

Ho Chi Minh City

Tel: +84 (8) 865-4179

Fax: +84 (8) 865-2245

E-mail: Ka3@hcm.vnn.vn

Designs and develops water and industrial wastewater

treatment systems (Phu My power plant in Ba RiaVung Tau, Espace Bourbon Cora supermarket, Vedan

glutamate plant in Dong Nai, Tan Thuan container

port, Kotobuki pastry factory in HCMC).

Saigon Engineering Co., Ltd.

Director: Ton That Canh Hung

90 Nguyen Thi Minh Khai

District 3

Tel: +84 (8) 829-9161/ 9116/ 822-6696

Fax: +84 (8) 822-5865

Designs and installs equipment for air ventilation

and water drainage systems. Manufactures air ducts,

grills, and diffusers. Distributes Honeywell (U.S.)

air cleaners.
Vietnam Export Market Plan 63

Hai Phong Consultation and Technical Support on

Environment Center (ENCEN)

Director: Hoang Ngoc Tuan

1 Pham Ngu Lao

Ngo Quyen District

Hai Phong

Tel: +84 (31) 849-476

Fax: +84 (31) 840-691

Conducts EIA studies, research and application of

pollution control technologies.

Haiphong Sewerage and Drainage Co.

Director: Nguyen Ba Can

1 Ly Tu Trong

Hai Phong

Tel: +84 (31) 842-810

Fax: +84 (31) 841-072

Haiphong Water Supply Co.

Director: Dam Xuan Luy

54 Dinh Tien Hoang

Hai Phong

Tel: +84 (31) 829-4315

Fax: +84 (31) 829-4069

Appendix F

Major Environmental Companies in Hai Phong

Note: See page viii for abbreviations and acronyms used in this appendix.
64 U.S. Department of Commerce, International Trade Administration

Da Nang Environment Technology Center

Director: Huynh Ngoc Thach

46 Tran Hung Dao

Danang

Tel: +84 (511) 824-402

Fax: +84 (511) 824-120

Conducts EIAs, manufactures and installs equipment

for air emissions and wastewater treatment.

Danang Water Supply Co.

Director: Ho But

25 Pasteur

Danang

Tel : +84 (511) 822-222

Fax: +84 (511) 827-633

Water supply company for Danang.

Danang Urban Environment Co.

Director: Nguyen Tan Lien

53 Nui Thanh

Danang

Tel : +84 (511) 625-299

Fax: +84 (511) 615-912

Responsible for solid waste collection and disposal.

Appendix G

Major Environmental Companies in Danang

Note: See page viii for abbreviations and acronyms used in this appendix.
Vietnam Export Market Plan 65

Quang Ninh Environment Co.

Director: Nguyen Manh Ha

Cao Xanh

Quang Ninh

Tel: +84 (33) 826-501

Fax: +84 (33) 829-569

Quang Ninh Water Supply Co.

Director: Le Minh

375 Nguyen Van Cu

Quang Ninh

Tel: +84 (33) 835-733

Fax: +84 (33) 835-796

Appendix H

Major Environmental Companies in Quang Ninh

Note: See page viii for abbreviations and acronyms used in this appendix.
66 U.S. Department of Commerce, International Trade Administration

Dai Viet Trading Co.

70 De La Thanh

Hanoi

Tel: +84 (4) 851-7219

Fax: +84 (4) 851-3842

HCMC

Tel: +84 (8) 811-5715

Fax: +84 (8) 811-5714

Schmidt Vietnam

Schmidt Tower

Cau Giay, Tu Liem

Hanoi

Tel: +84 (4) 834-6186

Fax: +84 (4) 834-6188

HCMC

Tel: +84 (8) 822-8228

Fax: +84 (8) 823-0239

Appendix I

Leading Distributors/Wholesalers of

Water Supply/Treatment Equipment

Note: See page viii for abbreviations and acronyms used in this appendix.

D and B Engineering Co.

479 Hoang Van Thu

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 845-2544

Fax: +84 (8) 845-2544

Dai Dong Nguyen Co.

4G Bui Minh Truc St.

District 8

Ho Chi Minh City

Tel: +84 (8) 850-4005

Fax: +84 (8) 850-4006

Viet-Tech Co.

5 Lieu Giai St.

Hanoi

Tel: +84 (4) 823-5975

Fax: +84 (4) 843-8852
Vietnam Export Market Plan 67

Contrexim

39 Nguyen Dinh Chieu St.

Hanoi

Tel: +84 (4) 826-5836

Fax: +84 (4) 826-2701

Artex Thang Long

164A Ton Duc Thang St.

Hanoi

Tel: +84 (4) 823-7814

Fax: +84 (4) 845-6731

Savimex

4A Giai Phong Rd.

Hanoi

Tel: +84 (4) 869-4171

Fax: +84 (4) 869-4168

Technoimport

16 Trang Thi St.

Hanoi

Tel: +84 (4) 825-6821

Fax: +84 (4) 825-4059

Machinoimport

8 Trang Thi St.

Hanoi

Tel: +84 (4) 826-0344

Bavico Ltd.

97a Ly Tu Trong

District 1

Ho Chi Minh City

Tel: +84 (8) 824-3046

Fax: +84 (8) 822-3582

Gia Khuong Co. Ltd.

244 Pasteur

District 3

Ho Chi Minh City

Tel: +84 (8) 820-4944/ 45

Fax: +84 (8) 820-4908

E-mail:

Vinh Phu Co. Ltd.

129/4 Km03 National Road 13

Vinh Phu Ward

Thuan An District

Binh Duong Province

Tel: +84 (650) 853-702

Fax: +84 (650) 853-701

Appendix J

Leading Distributors with Import Licenses

Note: See page viii for abbreviations and acronyms used in this appendix.
68 U.S. Department of Commerce, International Trade Administration

Cty Det Viet Thang

Viet Thang Textile Co.-VICOTEX

Linh Trung Ward

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-9337/ 9319/ 9543

Fax: +84 (8) 896-9319

E-mail: vietthang@hcm.vnn.vn

General Director: Mr. Le Quang Thu

Cty Det Phuoc Long

Phuoc Long Textile Company (FULTEX)

Phuoc Long B Ward

District 9

Ho Chi Minh City

Tel: +84 (8) 896-1100

Fax: +84 (8) 896-4715

Director: Mr. Trinh Van Son

Cty Det Phong Phu

Phong Phu Textile Company

Phong Phu, Tang Nhon Phu B

District 9

Ho Chi Minh City

Tel: +84 (8) 896-3533/ 34/ 35

Fax: +84 (8) 896-6088

Director: Ms. Tran Thi Duong

Cty Det Thanh Cong

Thanh Cong Textile Company (T.C.TEX)

8 National Road 1

Ward 15, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 891-0926/ 849-5962

Fax: +84 (8) 849-5932/ 891-0920

E-mail: tctex@hcm.vnn.vn

Director: Mr. Dinh Cong Hung

Appendix K

“Black Book” Companies in

Ho Chi Minh City, List 1

Note: See page viii for abbreviations and acronyms used in this appendix.

Source: Ho Chi Minh City, Department of Science, Technology, and Environment.

Cty Det Thang Loi

Thang Loi Textile Company

2 National Road No. 1

Ward 15, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-5961/ 5977

Fax: +84 (8) 849-6076

E-mail: dethangloi@hcm.vnn.vn

Director: Mr. Duong Ba Chien

Cty Det Chan A

CHAN A Textile Company

40 Huong Lo 14

Ward 20

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 855-6905

Cty Det Quyet Thang

Quyet Thang Textile Co. Ltd. (QUYTEXCO)

304 Quang Trung

Go Vap District

Ho Chi Minh City

Tel: +84 (8) 894-4546/ 6158

Fax: +84 (8) 894-0339

Director: Mr. Nguyen Van Thanh

Cty Det Gia Dinh

Gia Dinh Textile-Garment Company (GIDITEXCO)

189 Phan Van TriBinh Thanh District

Ho Chi Minh City

Tel: +84 (8) 894-0509/ 2145

Fax: +84 (8) 894-0291

Director: Mr. Nguyen Van Than
Vietnam Export Market Plan 69

Xi Nghiep Giay Vinh Hue

Vinh Hue Paper Company (VIHIMEX)

66/5 National Road No. 1

Linh Xuan Ward, Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-0006/ 3916

Fax: +84 (8) 896-2092

Director: Mr. Nguyen Hoa

Xi Nghiep Giay Xuan Duc

Xuan Duc Paper Company

54B Nam Hoa

Phuoc Long A, District 9

Ho Chi Minh City

Tel: +84 (8) 896-0114

Fax: +84 (8) 896-5540

Director: Mr. Duong Van Cao

Xi Nghiep Giay Liksin

LIKSIN Plate-making Factory

709/6 Hung Vuong

District 6

Ho Chi Minh City

Tel: +84 (8) 875-6972

Director: Mr. Nguyen Ngoc Sang

Nha May Hoa Chat Tan Binh

Tan Binh Chemical Factory46/6 Huong Lo 11

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 842-6185

Fax: +84 (8) 849-5936

Director: Mr. Trinh Minh Hong

Cty Vietnam Ky Nghe Suc San (Vissan)

Vissan Import Export Corporation

420 No Trang Long

Binh Thanh District

Ho Chi Minh City

Tel: +84 (8) 843-3907

Fax: +84 (8) 843-2372

Director: Mr. Le Quang Nhuong

Xi Nghiep Lien Doanh Saigon-Vewong

Saigon Vewong Co. Ltd.

1707 National Road No. 1

An Phu Dong Ward, District 12

Ho Chi Minh City

Tel: +84 (8) 891-9150/ 54

Fax: +84 (8) 891-9159

Xi Nghiep Ruou Binh Tay

Binh Tay Distillery

621 Pham Van Chi

District 6

Ho Chi Minh City

Tel: +84 (8) 855-2644/ 5485

Fax: +84 (8) 855-7797

Director: Mr. Nguyen Ba Thi

Xi Nghiep Quoc Doanh Che Bien Hang XK Cau Tre

Cau Tre Enterprise (C.T.E)

125/208 Huong Lo 14

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 856-5543

Fax: +84 (8) 855-0057

E-mail: cautreent-hcmcg@hcm.vnn.vn

Director: Ms. Nguyen Thi Thu Ba

Cty VIFON

Vietnam Food Industries Company (VIFON)

6/1B Cach Mang Thang Tam

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-5947

Fax: +84 (8) 849-6059

E-mail: vifon@hcm.fpt.vn

Director: Mr. Nguyen Bi

Cty Thuy Dac San Xuat Khau

Special Aquatic Product Import-Export Company

(SEASPIMEX)

213 Hoa Binh

Ward 19, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 865-4081

Fax: +84 (8) 865-3143

E-mail: seaspimex@hcm.vnn.vn

Director: Mr. Le Huu Tho

Nha May Bia Saigon

Saigon Brewery Company

187 Nguyen Chi Thanh

District 5

Ho Chi Minh City

Tel: +84 (8) 855-9595/ 9488

Fax: +84 (8) 857-7095

Director: Mr. Nguyen Chi Thanh
70 U.S. Department of Commerce, International Trade Administration

Cty Bot Giat Viso

VISO Detergent Company (VIDECO)

672-673 Cu Xa Kien Thiet

Hiep Phuoc Ward, Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-8202/ 8047

Fax: +84 (8) 896-1943

Director: Mr. Nguyen Hung Viet

Xi Nghiep Bot Giat Tico

TICO Detergent Enterprise

121 Huong Lo 14

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 855-2730/ 7098/ 0916/ 856-1405

Fax: +84 (8) 855-2538

Director: Mr. Ho Chi Cong

Cty Bot Giat Phuong Dong

ORDESCO40 Kim Bien

District 5

Ho Chi Minh City

Tel: +84 (8) 855-7750/ 1667

Fax: +84 (8) 855-4723

Director: Mr. Le Luu Ca

XN Thuoc Sat Trung Binh Trieu

Binh Trieu Pesticide Enterprise

Ga Binh Trieu, National Road No. 1

Hiep Binh Chanh Ward

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-6951

Xn Thuoc Sat Trung Tan Thuan

Tan Thuan Pesticide Factory

Tan Thuan Dong Ward

District 7

Ho Chi Minh City

Tel: +84 (8) 872-8523

Fax: +84 (8) 873-0386

Director: Mr. Bui Van Duc

XN Thuoc Tru Sau Saigon

Saigon Pesticide Company

Hamlet 1, Tan Thuan Dong

District 7

Ho Chi Minh City

Tel: +84 (8) 872-4666/ 9599/ 873-0069

Fax: +84 (8) 872-8391

Director: Ms. Le Thi Bich Lieu

XN Chan Nuoi Heo 3/2

3/2 Pig Breeding Enterprise

3/9 Kha Van Can

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-6627

Fax: +84 (8) 896-1492

Director: Mr. Ngo Cong Hien

XN Chan Nuoi Heo Phuoc Long

Phuoc Long Pig Farm

Xom Moi

Phuoc Long B Ward

District 9

Ho Chi Minh City

Tel: +84 (8) 896-0158/ 5943

Fax: +84 (8) 896-5943

Director: Mr. Nguyen Duc Thanh Hai

Nha May Thep Thu Duc

Thu Duc Steel Works

Km 9 Xa Lo Hanoi

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-1150/ 9612

Fax: +84 (8) 731-0154

Director: Mr. Le Huu Viet

Nha May Thep Nha Be

Nha Be Steel Works

Khu Pho 1, Phu Thuan

District 7

Ho Chi Minh City

Tel: +84 (8) 872-0261/ 9625

Fax: +84 (8) 873-0264

Director: Nguyen Ngoc Vinh

Nha May Thep Tan Binh

Tan Binh Stell Rolling Mill

117 Au Co

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 865-6862/ 3581

Fax: +84 (8) 865-6862

Director: Mr. Tran Tien Dat

Nha May Dien Thu Duc

Thu Duc Power Plant

21 Duong Van Cam

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-2395/ 6841
Vietnam Export Market Plan 71

Nha May Dien Cho Quan

Cho Quan Power Plant

8 Ben Ham TuDistrict 5

Ho Chi Minh City

Tel: +84 (8) 839-7139

Cty Xi Mang Ha Tien 1

Ha Tien 1 Cement Corporation

Kilometre No. 8, Hanoi Highway

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-6608/ 13/ 19

Director: Mr. Nguyen Man

XN Xi Mang Quan Khu 7

Z11 National Road No. 1A

Dong Tien Hamlet

Trung My Tay Ward

District 12

Ho Chi Minh City

Tel: +84 (8) 891-2902/ 1395/ 6821

Nha May Xi Mang Binh Dien

Binh Dien Cement Joint-Venture Enterprise

C1/3 Hamlet 3, National Road No. 1, Tan Kien

Binh Chanh District

Ho Chi Minh City

Tel: +84 (8) 875-0284

Fax: +84 (8) 875-2750

Director: Mr. Nguyen Thien

Nha May Thuoc La Vinh Hoi

Vinh Hoi Cigarette Factory

151-155 Ben Van Don

District 4

Ho Chi Min City

Tel: +84 (8) 940-1742/ 1489

Fax: +84 (8) 822-3357

Director: Mr. Nguyen Nam Hai

Nha May Thuoc La Saigon

Saigon Cigarette Factory

152 Tran Phu

District 5

Ho Chi Minh City

Tel: +84 (8) 835-7052/ 3138/ 8554

Fax: +84 (8) 835-3462

Director: Mr. Nguyen Triet

Nha May Thuy Tinh Khanh Hoi

Khanh Hoi Glass Factory

76 Ton That Thuyet

District 4

Ho Chi Minh City

Tel: +84 (8) 872-3149/ 5293

Fax: +84 (8) 872-5293

Director: Mr. Ton Tich Dung

XN Acquy Cuu Long

Cuu Long Storage Battery Enterprise277 Ben Binh

Dong

District 8

Ho Chi Minh City

Tel: +84 (8) 855-3730

Director: Mr. Nguyen Minh Lam

Cty Bong Bach Tuyet

Bach Tuyet Cotton-Wool Corporation (COBOVINABACH TUYET)

16/2 Au Co

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-6080/ 5994/ 842-5576

Fax: +84 (8) 849-6080

Director: Ms. Le Thi Mung

XN Duc So 1

Foundry No. 1 Enterprise

220 Binh Thoi

Ward 14

District 1

Ho Chi Minh City

Tel: +84 (8) 865-7761

Fax: +84 (8) 865-7761

Hop Tac Xa Cao Su Toan Luc

182 Hoang Van Thu

Ward 9

Phu Nhuan District

Ho Chi Minh City

Tel: +84 (8) 844-1301

Lo Thieu Binh Hung Hoa

BINH HUNG HOA Incinerator

Tan Ky Tan Quy Street

Binh Hung Hoa

Binh Chanh District

Ho Chi Minh City

Tel : +84 (8) 875 5191
72 U.S. Department of Commerce, International Trade Administration

Nhaø Maùy Giaáy LINH XUAÂN

Linh Xuan Paper Company (SAKYGICO)

61/6 National Road No. 1

Linh Xuan Ward

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-6784/ 1073

Fax: +84 (8) 896-1540

Director: Mr. Tong Van Ngoan

XN Lieân Doanh DOMATEX

Domatex

18/3 Au Co

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 842-5519~22

Fax: +84 (8) 849-6145

Cty Deät Kim ÑOÂNG PHÖÔNG

Dong Phuong Knitting Company (DOPIMEX)

10 Au Co

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-6062/ 7466/ 6047

Fax: +84 (8) 849-5940

Director: Mr. Dinh Cong Hung

Cty Deät Chaên BÌNH LÔÏI

Binh Loi Blanket Company (BLATEX)

438 No Trang Long

Binh Thanh District

Ho Chi Minh City

Tel: +84 (8) 843-2359

Fax: +84 (8) 843-2352

Director: Mr. Ho Manh Hien

Cty May Nhuoâm Deät Len VIEÄT PHOÙ

Viet Pho Textile, Dyeing, Garment Company

3 An Duong Vuong

District 6

Ho Chi Minh City

Tel: +84 (8) 875-0505/ 876-6264

Fax: +84 (8) 875-0504

Director: Mr. Luong Van Chu

XN Lieân Doanh TAMICO

Tamico

46/1 Au Co

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 865-6436/ 0310

Fax: +84 (8) 865-0320

Nhaø Maùy Thuûy Tinh GOØ VAÁP

Go Vap Glass Corporation

26 Nguyen Thuong Hien

Go Vap District

Ho Chi Minh City

Tel: +84 (8) 894-1716

Fax: +84 (8) 894-5717

E-mail: govapglass@hcm.fpt.vn

Director: Ms. Nguyen Thi Tuyet Minh

Cty SX Haøng Tieâu Duøng BÌNH TAÂN

Binh Tan Consumer Good Manufacturing Co. Ltd.

(BITA’s Pte. Ltd.)

22 Au Co

Ward 17, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 844-4173

Fax: +84 (8) 849-6005

E-mail: binhtan@hcm.vnn.vn

Director: Mr. Do Long

Appendix L

 “Black Book” Companies in

Ho Chi Minh City, List 2

Note: See page viii for abbreviations and acronyms used in this appendix.

Source: Ho Chi Minh City, Department of Science, Technoloy, and Environment.
Vietnam Export Market Plan 73

Cô Sôû Xi Maï GIANG HÖNG

Giang Hung Nickel Plating Enterprise

17 (Chan Cau So 1) Bui Huy Bich

Ward 13, District 8

Ho Chi Minh City

Tel: +84 (8) 854-6789

Nhaø Maùy Löôùi Theùp BÌNH TAÂY

Binh Tay Wire Netting Factory

337 An Duong Vuong

District 5

Ho Chi Minh City

Tel: +84 (8) 855-5316/ 18

Fax: +84 (8) 855-5316

Director: Mr. Pham Van Luong

Nhaø Maùy Hôïp Kim Saét NHAØ BE

Nha Be Ferro Alloys Works

Khu Pho 2, Tan Thuan Dong

District 7

Ho Chi Minh City

Tel: +84 (8) 872-3553

Fax: +84 (8) 872-3960

Director: Mr. Nguyen Van Hai

Cty Cheá Bieán Goã ÑÖÙC THAØNH

Duc Thanh Wood Processing Co. Ltd.

3/58 Hai Muoi Sau Thang Ba

Go Vap District

Tel: +84 (8) 894-1839/ 1697

Fax: +84 (8) 894-1576

E-mail: dt.wood@fmail.vnn.vn

Director: Ms. Le Hai Lieu

Nhaø Maùy Cheá Bieán Haøng Moäc Xuaát Khaåu

SATIMEX

Saigon Timber Export Manufacturing Enterprise

Hiep Thanh Ward, District 12

Ho Chi Minh City

Tel: +84 (8) 891-0348/ 0546

Fax: +84 (8) 891-4394

E-mail: satimex@hcm.vnn.vn

Director: Mr. Huynh Ngoc Hoi

Nhaø Maùy Döôøng KHAÙNH HOÄI

Khanh Hoi Sugar Company

147 Bis Nguyen Tat Thanh

District 4

Ho Chi Minh City

Tel: +84 (8) 940-4675/ 0103/ 0104

Fax: +84 (8) 940-4689

Director: Mr. Phung Van Phong

Nhaø Maùy Mì Aên Lieàn BÌNH TAÂY

Binh Tay Instant Noodle Stock Company

634 Bis Pham Van Chi

District 6

Ho Chi Minh City

Tel: +84 (8) 855-3222/ 6611

Fax: +84 (8) 855-4688

Director: Mr. Hoang Xuan Duc

Doanh Nghieäp Tö Nhaân CAÙT TÖÔØNG

Cat Tuong Ent. Pte.

241/1/24 Bis Nguyen Van Luong

District 6

Ho Chi Minh City

Tel: +84 (8) 865-3276/ 875-6180

Fax: +84 (8) 865-6985

Director: Mr. Truong Chi Hieu

XN Nöôùc Chaám NAM DÖÔNG

Nam Duong Sauce Factory

467-469 Ben Binh Dong

District 8

Ho Chi Minh City

Tel: +84 (8) 855-5761/ 3600

Fax: +84 (8) 855-9805

Director: Mr. Van Thanh Su

Cty Boät Mì BÌNH ÑOÂNG

Binh Dong Flour Mill Company (BIFLOMICO)

277 A Ben Binh Dong

District 8

Ho Chi Minh City

Tel: +84 (8) 855-9744/ 5740/ 6620/ 5786

Fax: +84 (8) 855-5786

Director: Mr. Nguyen Hong Le

Nhaø Maùy Daàu TAÂN BÌNH

Tan Binh Cooking Oil Factory (NAKYDACO)

6 Cach Mang Thang Tam

Ward 15, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-6010/ 6013/ 6113

Fax: +84 (8) 842-5226

Director: Mr. Do Ngoc Khai

Nhaø Maùy Daàu TÖÔØNG AN

Tuong An Cooking Oil Factory

48/5 Huong Lo 11

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 849-5972/ 5950/ 5941

Fax: +84 (8) 842-5649

Director: Mr. La Xuan Anh
74 U.S. Department of Commerce, International Trade Administration

Nhaø Maùy Söõa TRÖÔØNG THO

32 Dang Van Bi

Truong Tho Ward

Thu Duc District

Ho Chi Minh City

Tel: +84 (8) 896-0727/ 6884

XN Löông thöïc Thöïc phaåm MILIKET

Miliket Food and Foodstuff Enterprise (FOOCOSA)

130 Chau Van Liem

District 5

Ho Chi Minh City

Tel: +84 (8) 855-9761/ 4347/ 4363/ 857-5122

Fax: +84 (8) 857-5123

Director: Mrs. Duong Tu Trinh

Nhaø Maùy Söõa THOÁNG NHAÁT

Thong Nhat Dairy Factory

89A Cach Mang Thang Tam

District 1

Ho Chi Minh City

Tel: +84 (8) 832-4125/ 24

Cty Lieân Doanh GOLDEN HOPE

Golden Hope-Nha Be Edible Oils Co. Ltd.

Phu Thuan Ward

District 7

Ho Chi Minh City

Tel: +84 (8) 872-8005/ 8006

Fax: +84 (8) 873-8597

Nhaø Maùy Boät Ngoït ORSAN

Orsan Vietnam

28 Phung Khac Khoan

District 1

Ho Chi Minh City

Tel: +84 (8) 824-2782/ 3162

Fax: +84 (8) 829-3387

Nhaø Maùy Thöïc Phaåm THIEÂN HÖÔNG

Thien Huong Food Company

Tan Thoi Hiep Ward

District 12

Ho Chi Minh City

Tel: +84 (8) 891-2922/ 23

Fax: +84 (8) 891-1174

E-mail: yen.th@hcm.vnn.vn

Director: Pham Xuan Dung

Cty Lieân Doanh VIFON-ACECOOK

Vifon Acecook Co. Ltd.

6/1B Cach Mang Thang Tam

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 891-1211/ 1880/ 82

Fax: +84 (8) 891-1383

E-mail:

XN Thuûy Saûn Ñoâng Laïnh VIEÄT PHUÙ

Viet Phu Frozen Sea Products Enterprise

138 Hung Vuong

District 11

Ho Chi Minh City

Tel: +84 (8) 855-6807

Fax: +84 (8) 855-8533

Director: Mr. Nguyen Cong Thanh

XN Cheá bieán Xuaát khaåu CHIEÁN THAÉNG

Chien Thang Food Export Processing Enterprise

219 B Ton That Thuyet

District 4

Ho Chi Minh City

Tel: +84 (8) 940-4399/ 4185

Fax: +84 (8) 940-4583

Cty Xuaát Nhaäp Khaåu and

Cheá Bieán Thuûy Saûn Ñoâng Laïnh 4

Frozen Seafood Processing and

Import-Export Co. No. 4 (SEAPRIEXCO 4)

331 Ben Van Don

District 4

Ho Chi Minh City

Tel: +84 (8) 825-3115/ 9140/ 940-1962

Fax: +84 (8) 940-1735

Director: Mr. Nguyen Van Chinh

XN Cheá Bieán Haøng Xuaát Khaåu Quaän 8 (XN

Dong Lanh Q.8)

District 8 Export Processing Enterprise

2 Tung Thien Vuong

Ward 11

District 8

Ho Chi Minh City

Tel: +84 (8) 855-5001/ 0371/ 950-0583

Fax: +84 (8) 855-7766
Vietnam Export Market Plan 75

XN Ñoâng Laïnh VIEÄT LONG

Viet Long Frozen Food Enterprise

208 Ben Nguyen Duy

District 8

Ho Chi Minh City

Tel: +84 (8) 855-2796/ 0054

Fax: +84 (8) 855-8921

Director: Mr. Vo Van Thanh

Cty TNHH Thuûy Saûn VAÏN HÖNG

Van Hung Seafood Co. Ltd.

176/2A Hoa Binh

Ward 20, Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 865-0799/ 5143

Fax: +84 (8) 865-0002

E-mail: vanhin288@saigonnet.vn

Director: Mr. Ho Vi Cuong

Cty Cheá Bieán Thuûy Haûi Saûn NHAN HOØA

Nhan Hoa Agricultural-Marine Product Co. Ltd.

176/51A Hoa Binh

Tan Binh District

Ho Chi Minh City

Tel: +84 (8) 856-4791

Fax: +84 (8) 865-4352

Director: Mr. Nhan Hoa Chau

XN Ñoâng Laïnh COFIDEC

Coastal Fisheries Development Company (COFIDEC)

28 Tu Xuong

District 3

Ho Chi Minh City

Tel: +84 (8) 829-2268/ 6391

Fax: +84 (8) 829-0546/ 896-0789

Director: Mr. Vo Hue Tran

Xöôûng Deät Nhuoäm May Theâu DÖÙC HOØANG

Duc Hoang Textiles, Dying and Garment Factory

8/2B Thuan Hoa

Tan Thoi Nhat

District 12

Ho Chi Minh City

Tel: +84 (8) 8910692
76 U.S. Department of Commerce, International Trade Administration

1. Downtown Hanoi (Seven Units)

Coâng Ty Bia Haø Noäi

(Hanoi Brewery)

70 Hoang Hoa Tham

Ngoc Ha Ward,

Ba Dinh District

665 workers. Capacity: 46,470 liters/year.

Nhaø Maùy Gaïch Laùt Hoa and Maù Phanh Otoâ

(Hanoi Tiles and Automobile Brakes Factory)

Dai Mo

Tu Liem

Hanoi

141 workers. Capacity: 120 tons/year.

Coâng Ty Giaáy Truùch Baïch

(Truc Bach Paper Company)

128 Thuy Khue

Tay Ho District

Hanoi

153 workers. Capacity: 600 tons/year.

Xí Nghieäp Baùnh Keïo Haù Noäi

(Hanoi Bakery)

5 Lang Trung

Dong Da District

Hanoi

183 workers. Capacity: 450 tons/year.

Nhaø Maùy Röôïu Haø Noäi

(Hanoi Distillery)

94 Lo Duc

Hanoi

700 worker. Capacity: 2,000,000 liters/year.

Coâng Ty Xe Daïp Thoáng Nhaát

(Thong Nhat Bicycles)

198 Tay Son

Hanoi

292 workers. Capacity: 20,020 tons/year

Cty Lieân Doanh Hoùa Myõ Phaåm TNM

(TNM Cosmetic Joint Venture)

129 de La Thanh

Dong Da

Hanoi

43 Workers.

2. Mai Dong-Vinh Tuy Area (Five Units)

Cty Bia Doâng Nam A

(Dong Nam A Brewery)

167 b Minh Khai

Hai Ba Tung District

Hanoi

350 workers. Capacity: 30,000,000 liters/year.

Cty Deät Haø Noäi

(Hanoi Textiles)

1 Mai Dong Street

Hai Ba Trung District

Hanoi

3378 workers. Capacity: Textiles: 0.25 ton/day;

Knitted items: 3551 items/year.

Cty Da Giaày Haø Noäi

(Hanoi Leather and Footwear Company)

Nguyen Tam Trinh Street

Hai Ba Trung Street

Hanoi

230 workers. Capacity: 310 tons/year.

Cty Bia Vieät Haø

(Viet Ha Brewery)

254 Minh Khai Street

Hai Ba Trung District

Hanoi

110 workers. Capacity: 10,000,0000 liters/year.

Appendix M

“Black Book” Companies in Hanoi

Note: See page viii for abbreviations and acronyms used in this appendix.

Source: National Environmental Agency.
Vietnam Export Market Plan 77

Cty Deät 8/3

(March 8 Textiles)

Minh Khai Street

Hai Ba Trung District

Hanoi

4,600 workers. Capacity: Textiles: 3,930 tons/year;

cloth: 22,860,000 m/year; garments: 600,000 units/

year.

Thuong Dinh Area (Three Units)

Cty Lieân Doanh Thuûy Tinh Pha Leâ Bohemia

(Bohemia Crystal Joint Venture Company)

Nhan Chinh Ward

Thanh Xuan District

Hanoi

53 workers. Capacity: 120,000 tons/year.

Cty Cô Khí Ngaân Haøng

(Banking Engineering Company)

Thanh Xuan Street

Thanh Xuan District

Hanoi

120 workers. Capacity: 1,074 safes/year and other

strong boxes.

Cty Duïng Cuï Cô Khí Xuaát Khaåu

(Engineering Tools for Export Company)

Capacity: 1,000,000 items / year

Phap Van-Van Dien-Cau Buou Area (Five Units)

Cty Phaân Laân Vaên Dieån

(Van Dien Phosphorous Fertilizer Company)

Vinh Quynh Village

Thanh Tri Commune

Hanoi

458 workers. Capacity: fertilizer: 2.6 million tons/year;

portland cement: 3,000 tons/year.

Cty Pin Vaên Dieån

(Van Dien Batteries Company)

Van Dien Township

Hanoi

560 workers. Capacity: 76 items/year.

Cty Goám Xaây Döïng Daïi Thanh

(Dai Thanh Construction Ceramics Company)

Cau Buou

Thanh Tri

Hanoi

321 workers. Capacity: 25,000,000 items/year.

Cty Thieát Bò Thöông Maïi

(Trading Equipment Company)

Van Dien Township

Thanh Tri Commune

Hanoi

Cty Sôn Toång Hôïp Haø Noäi

(Hanoi Synthetic Paints Company)

Thanh Liet Village

Thanh Tri Commune

Hanoi

375 workers. Capacity: 3,700 m3

/year.

Gia Lam-Sai Dong-Yen Vien Area (Four Units)

Xöôûng Thuoác Saùt Truøng Döùc Giang

(Duc Giang Pesticide company)

Thuong Thanh Village

Gia Lam Commune

Hanoi

130 workers.

Nhaø Maùy Söõa Vinamilk

Vinamilk Plant

Yen Thuong Village

Gia Lam Commune

260 workers. Capacity: condensed milk: 35,000,000

cans/year; fresh milk: 7 million liters/year.

Xöôûng Cô Khí Yeân Thöôøng

(Yen Thuong Engineering Factory)

Yen Thuong Village

Gia Lam Commune

Hanoi

260 workers.

Cty Hoùa Chaát Döùc Giang

(Duc Giang Chemicals Company)

Duc Giang Township

Gia Lam

Hanoi

308 workers. Capacity: detergent: 6,570 tons/year;

chemicals: 550 tons/year; NPK: 10,000 tons/year.

Dong Anh Area (Five Units)

Nhaø Maùy Coät Theùp Huyndai-Dong Anh

(Huyndai-Dong Anh Steel Pillar Plant)

Uy No Village

Dong Anh Commune

Hanoi

304 workers. Capacity: 180,000 tons/year.
78 U.S. Department of Commerce, International Trade Administration

Cty Khoaù Vieät-Tieäp

(Vietnam-Czechoslovakia Lock Company)

Xuan Non Village

Dong Anh Commune

Hanoi

300 workers. Capacity: 2,000,000 units/year.

Cty Daàm Theùp va Xaây Döïng Thaêng Long

(Thang Long Steel Girder and Construction)

Hai Boi Village

Dong Anh Commune

Hanoi

470 workers. Capacity: 2,000 tons/year.

Cty Cô Khí 19/8

(August 19 Engineering Company)

Minh Tri Village

Soc Son Commune

Hanoi

225 workers.

Xí Nghieäp Saûn Xuaát and Dòch Vuï Vaät Tö Dong

Anh

(Dong Anh Production and Services Company)

Uy No Village

Dong Anh Commune

120 workers. Capacity: beer: 1.8 million liters/year;

wine:300,000 liters/year, fruit juice: 1,600 tons/year.

Chem-Cau Dien Area (One Unit)

Xí Nghieäp Cheá Bieán Raùc Caàu Dieãn

(Cau Dien Waste Processing Enterprise)

Cau Dien

Tu Liem

Hanoi
Vietnam Export Market Plan 79

Appendix N

Water Project List

Province Project Description Country donor Beneficiary

Can Tho Water Project in Drinking Water France Can Tho People’s Committee

Can Tho (Phase III) and Sanitation

Vinh Phu Water Supply System Drinking Water Germany Vinh Phu People’s Committee

in Viet Tri and Sanitation

Thua Thien-Hue Water Project in Hue Drinking Water France Hue People’s Committee

(phase IV) and Sanitation

Ha Tay, Lai Chau, Clean Water Systems Drinking Water USA Provincial Health Services

Long An and Wells Development and Sanitation

Ba Ria-Vung Tau,Nuclear Techniques for Drinking Water International Centre of Nuclear Techniques,

Dong Nai, Ho Chi Ground Water Poll ution and Sanitation Atomic Energy HCMC

Minh City, Long An Protection Agency

Nationwide Rural Water Supply Drinking Water UNICEF Ministry of Agriculture and

and Sanitation Rural Development

Nationwide Environmental Drinking Water UNICEF Ministry of Education and

Sanitation and Sanitation Training

Dac Lac The Buon Ma Thuot Drinking Water Denmark Dac Lac People’s Committee

Water Supply and and Sanitation

Sanitation Project

Quang Ninh Ha Long City Water Drinking Water Denmark Quang Ninh People’s

Supply and Sanitation and Sanitation Committee

Project

Lam Dong Rehabilitation and Drinking Water Denmark People’s Committee of Lam

Extension of Distribution and Sanitation Dong Province

System for Da Lat Water

Supply-Phase II

Dong Nai Thien Tan Water Drinking Water Republic of

Supply Project, Dong Nai and Sanitation Korea

Quang Nam-Danang WB Water Project Drinking Water Australia Quang Nam-Danang People’s

in Danang and Sanitation Committee

Hai Hung Improvement of Water Drinking Water Japan Hai Hung People’s Committee

Supply in Hai Duong and Sanitation

Town, Hai Hung Province

Danang City, Hanoi, Water Supply Project Drinking Water WB Danang Water

Hai Phong, Quang Ninh and Sanitation Supply Company

Hai Phong Water Supply Project Drinking Water WB Hai Phong Water Supply

and Sanitation Company

Quang Ninh Water Supply Project Drinking Water WB Quang Ninh Water Supply

and Sanitation Company

Nationwide Community Water Supply Drinking Water WHO

and Sanitation and Sanitation
80 U.S. Department of Commerce, International Trade Administration

Nationwide Community Water Drinking Water WHO

Supply and Sanitation and Sanitation

An Giang, Binh Provincial Towns Drinking Water Asian Khanh Hoa Water

Thuan, Gia Lai, Water Supply and and Sanitation Development Supply Company

Khanh Hoa,Thai Sanitation Bank

Nguyen,Thanh Hoa

Ho Chi Minh City Ho Chi Minh City Drinking Water ADB HCMC Water Supply

Water Supply and and Sanitation Company

Sanitation Rehabilitation

Hanoi Hanoi Water Supply Drinking Water Finland Hanoi People’s Committee

Programme, Phase 4 and Sanitation

Hai Phong Hai Phong Water Supply Drinking Water Finland Hai Phong People’s

and Sanitation Program,and Sanitation Committee

Phase 3

Hanoi Rehabilitation of water Drinking Water Denmark Hanoi Urban Environment

supply system in Hanoi and Sanitation Management Company

Nationwide Capacity building for Drinking Water Switzerland

urban water and sanitation and Sanitation

Ben Tre, Ninh Binh, Provincial Towns Water Drinking Water ADB

Quang Binh,Quang supply and Sanita tion and Sanitation

Tri, Quy Nhon Town, Project

Binh Dinh, Tuyen

Quang, Vinh City

Nam Dinh Support Social Drinking Water European Union

Organizations for water and Sanitation

Health Hygiene

Ba Ria-Vung Tau,Dong Nai and Ba Drinking Water Japan

Dong Nai Ria-Vung Tau Water and Sanitation

Supply Project

Hoa Binh Hoa Binh Water Project Drinking Water France

Phase II and Sanitation

Hoa Binh Water Project of Drinking Water France Hoa Binh People’s

Hoa Binh and Sanitation Committee

Yen Bai Yen Bai Water Project Drinking Water France Water Company of Yen Bai

and Sanitation

Nam Dinh Water Project in Nam Drinking Water France People’s Committee of

Dinh ( Phase III ) and Sanitation Nam Dinh Province

Dac Lac Support to water resources Drinking Water

managementin Daklak and Sanitation Denmark Dac Lac People’s Committee

Yen Bai Development of Four Drinking Water Germany

Community Based and Sanitation

Irrigation Systems

Bac Giang, Bac 5 Towns water Drinking Water Australia

Ninh,Ha Tinh, Tra supply project and Sanitation

Vinh,Vinh Long

Source: U.N. Development Program.

Province Project Description Country donor Beneficiary