Report on the Water Treatment and Supply Sector in Vietnam

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.  

For more information, you can access free-of-charge to the report: “Vietnam's Sector Credit Spotlight Series | Clean Water” at: LINK 

About FiinRatings 

FiinRatings, a member of FiinGroup and a technical cooperation partner of S&P Global Ratings, is a licensed credit rating agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, credit institutions, and investors in the Vietnamese credit market. FiinRatings is also the first authorized green bond verifier in Vietnam, adhering to the international green bond standards of the Climate Bonds Initiative 

For more information, please visit https://fiinratings.vn/ 

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