Vietnam's Clean Water Sector Spotlight: Sustainable Investment Opportunities for Long-Term Growth

To deliver timely and valuable insights for investors, particularly in the debt market, FiinRatings is pleased to announce the “Vietnam's Sector Credit Spotlight Series” – a comprehensive series of reports analyzing credit outlooks and strategic investment opportunities across Vietnam's key economic sectors. In this edition, we are proud to present, for the first time, the Sector Credit Spotlight on Vietnam's Clean Water, offering an in-depth analysis of growth drivers, capital needs, and sustainable investment opportunities, equipping investors with the insights needed to formulate well-informed and effective strategies. 

To deliver timely and valuable insights for investors, particularly in the debt market, FiinRatings is pleased to announce the “Vietnam's Sector Credit Spotlight Series” – a comprehensive series of reports analyzing credit outlooks and strategic investment opportunities across Vietnam's key economic sectors. 

In this edition, we are proud to present, for the first time, the Sector Credit Spotlight on Vietnam's Clean Water, offering an in-depth analysis of growth drivers, capital needs, and sustainable investment opportunities, equipping investors with the insights needed to formulate well-informed and effective strategies. 

Key Credit Highlights on Clean Water Sector: 

🔹Steadily Rising Demand: Vietnam’s commercial treated water volume grew 6.3% CAGR over the past decade and is projected to rise 5-7% CAGR through 2030, driven by rising consumption from household, industrial and commercial usage. 

🔹Financing Need of US$1.6bn by 2030: Vietnam's clean water sector requires an estimated VND 38 trillion (~USD 1.6 billion) by 2030, with funding from state-owned and private entities. These financing demands require both equity and debt, in which Green Bonds are one of the financial instrument's options for long-term capital like we have witnessed recently. 

🔹Stable Operational Efficiency & Low Financial Risk: The regulated pricing framework and natural monopoly characteristic ensure stable profit margins and cash flows. Large-scale water plants are strategically located in major economic centers and industrial zones. The sector's Debt/EBITDA was 2.5 times in 2023, reflecting relatively low financial risk.  

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Vietnam's Sector Spotlight Series: A comprehensive series by FiinRatings offering data-driven analysis and insights into key trends, major driving factors, financial & credit performance; and capital market activity review across Vietnam's key economic sectors.   

This report is available for free upon registration. We are happy to help investors invest with confidence in Vietnam’s capital market via our on-demand services including KYC, credit assessment, due diligence, and other transaction-related support works. 

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