AWA in Vietnam
Overview of Vietnam water sector
Major capital investments across Vietnam have delivered greater water security and safety in recent years. However, water infrastructure and services have often not kept pace with economic development. Ageing water supply systems struggle to cope with rapid growth in demand, and environmental management services are not adequately dealing with the final treatment and disposal of liquid or solid waste.
In addition to that, management efficiency of water utilities is often constrained by the lack of up-to-date and reliable information on the extent or condition of assets, low water tariffs and lack of accountability. Rising sea levels and new extremes in droughts and flood events are compounding the challenges facing the Vietnam water sector.
In terms of regulatory frameworks and institutions, in response to new risks, over the years there have been layers of new regulations and responsibilities imposed across the Vietnam water sector. Devolution of responsibilities to the provincial government, coupled with a greater role for the private sector is adding to the challenge.
One key point determining the development of the water sector in Vietnam is the access to capital and private sector involvement. Servicing expanding populations of Vietnam will require continued major capital expenditure and technological innovation. The Vietnam Government is actively encouraging private investors to provide the capital required or private service providers to enter the market. Despite strong national policy on public-private partnership, the sector is yet to attract significant private sector interest.
The Australian Water Association is working with the Vietnam Government and the broader water sector in two key areas:
- Strengthening the governance and service delivery of Vietnam water sector
- Public Private Partnerships in Water