Foreign media notes investment prospects in Vietnam waste disposal management

According to the website, the country’s rapid urbanisation and industrial growth has brought forth a significant challenge in the management and disposal of increasing amounts of waste. However, the challenge also presents a golden opportunity for investors keen to make a positive impact on the environment while tapping into a burgeoning sector.

“With a growing demand for sustainable waste management solutions, Vietnam offers a promising landscape for investment in waste disposal,” it said.

Vietnam Briefing quoted data from the Ministry of Natural Resources and Environment (MoNRE) as saying that the country produces approximately 60,000 tonnes of household waste each day. Most notably, the urban areas of Hanoi and Ho Chi Minh City alone account for a significant portion, generating 7,000 to 9,000 tonnes of trash each, with this amount projected to increase by 10% to 16% by 2025.

Despite the staggering volume of waste generated, waste treatment in the country remains largely ineffective. Currently, according to MoNRE’s National Environmental Status Report in 2021, the majority of the waste is taken to landfill sites, but only 20% of them meet national sanitary requirements.

“Vietnam is currently undergoing rapid urbanization and industrialization, resulting in a significant increase in waste generation,” the website stressed.

As reported by Mordor Intelligence, the waste management market in Vietnam is projected to reach US$5.12 billion this year and US$7.54 billion by 2028.

“This surge in waste production presents numerous opportunities for investors to provide suitable and effective waste disposal solutions to meet the escalating demand for waste management services across the country,” it noted.

In the article, David Duong, president of California Waste Solutions (CWS) and CEO of Vietnam Waste Solutions (VWS), expressed his optimism about the future of waste disposal in Vietnam. The CEO who has been investing in waste treatment in Ho Chi Minh City since 2005, said he firmly believes that both Ho Chi Minh City and Vietnam as a whole possess substantial potential in this field.

“With the market size of the waste management industry projected to grow steadily, coupled with the endorsement of industry experts like Duong, it is evident that Vietnam presents a promising landscape for investors seeking to contribute to waste disposal and management solutions,” Vietnam Briefing wrote.

According to the media outlet, the Vietnamese Government has also implemented policies which seek to encourage further cooperation through public-private partnerships (PPPs).

The website shared that this approach is recognised as a promising direction for waste management development, adding that PPPs enable investors to collaborate with the Government’s entities or local authorities as part of efforts to establish waste management infrastructure projects.

By engaging in PPPs, investors can benefit from long-term contracts that provide stability and predictability. This therefore allows for more efficient planning and implementation of waste management projects.

Vietnam Briefing shared that financiers can capitalise on the rising waste generation and favourable government policies in a bid to establish profitable waste disposal businesses.

“Furthermore, by making the right investment decisions, firms could potentially see long-term, sustainable revenue streams develop,” it concluded.