identifying key opportunities and markets in vietnam’s water and wastewater market
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Frost & Sullivan analysis of key opportunities in Vietnam’s Water and Wastewater MarketTRANSCRIPT
Identifying Key Opportunities and Markets in Vietnam’s Water and
Wastewater Market
ENERGY, WATER AND WASTEWATER CONFERENCE18 March 2011 | Tan Binh Exhibition & Convention Centre, Ho Chi Minh City, Vietnam
Prepared & Presented by: Melvin LeongEnvironment & Building Technologies PracticeFrost & Sullivan, Kuala Lumpur
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KEY FOCUS AREASKEY FOCUS AREAS
CHALLENGESCHALLENGES
MARKET OVERVIEWMARKET OVERVIEW
44 FROST & SULLIVANFROST & SULLIVAN
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11 MARKET OVERVIEWMARKET OVERVIEW
• Water / Wastewater Situation• Market Size• Key Market Trends
• Water / Wastewater Situation• Market Size• Key Market Trends
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Water & Wastewater Situation
Water stress in the above map is defined as: • ‘Low’ when less than 10 percent of total available is withdrawn; • ‘Moderate’ when 10 to 20 percent of total available is withdrawn; • ‘Medium-High’ when 20 to 40 percent of total available is withdrawn; and • ‘High’ when more than 40 percent of total available is withdrawn
Source: The World Business Council for Sustainable Development, and Frost & Sullivan
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Water & Wastewater Situation (Contd…)
Market Share by Segments (World), 2010
Services: Management of environmental outputs and by-products
Equipment: Supply of equipment related to services and resources
sector
Resources: Management of environmental sources and inputs
Services: Management of environmental outputs and by-products
Equipment: Supply of equipment related to services and resources
sector
Resources: Management of environmental sources and inputs
Note: All figures are rounded. Source: Frost & Sullivan
World Environmental Market Size 2010: $671.2 billion
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Water & Wastewater Situation (Contd…)
Note: All figures are rounded. Source: Frost & Sullivan
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Market Size
Trade Value (Export & Import) (2008) % Breakdown
Water & Wastewater Treatment 44.9
Waste Treatment 43.6
Air Pollution Treatment 11.5
Trade Value of Environmental Equipment by Country and Types of Equipment (Asia Pacific), 2009
Note: All figures are rounded; Vietnam is based on 2008 data. Source: Frost & Sullivan, Customs Department in respective countries
Source: Frost & Sullivan
Water / Wastewater Treatment Equipment
Equipment for water filtration, water / wastewater purification, pumps, valves, flow measurement
Waste Treatment Equipment
Equipment for floor sweepers, cleaning machinery, incineration equipment, sorting, screening, trash compactors, recycling
Air Pollution Treatment Equipment
Equipment for gas purification and filtration, liquefying gas, odor eliminator, sprayers for gas
Water & wastewater treatment equipment
leads the environmental market in Vietnam
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Market Size (Contd…)
Water and Wastewater Infrastructure Services Market: Revenue Forecasts (Vietnam), 2005 – 2014
Note: All figures are rounded. Source: Frost & Sullivan
Year Revenues ($ Million) Revenue Growth Rate (%)
2009 529.4 5.6
2010 558.8 5.6
2011 592.7 6.1
2012 631.7 6.6
2013 677.2 7.2
2014 732.5 8.2
CAGR (2009 – 2014) = 6.7%CAGR (2009 – 2014) = 6.7%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year
Rev
enu
es (
$ M
illi
on
)0%2%4%6%8%10%12%14%16%18%20%
Gro
wth
rates (%)
Market size includes
equipment supplies, capital
expenditures, and operational
expenditures for municipal works
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Key Market Trends
Key Trends in the Water / Wastewater Industry (Vietnam), 2010
Region Water Resource Issues Water Quality Issues
Northwest Region
Flashfloods, floods, seasonal droughtReservoir siltation and construction
Generally good river – upstream/downstream – water quality, good quality of groundwater
Northeast Region
Flashfloods, floods, seasonal drought Urban pollution, saline intrusion, marine transport, pollution risks
Red River Delta
Floods, cross-sectoral water allocation and useIntensive agriculture, groundwater over-exploitation
Urban and industrial pollution, saline intrusion, agrochemical pollution, transport pollution risks
North Central Coast
Flashfloods, floods, seasonal droughtsLow river flow during prolonged dry season in South of region
Urban pollution, saline intrusion
South Central Coast
Flashfloods, floods, severe seasonal droughtsLow river flow during prolonged dry season entire region
Urban pollution, saline intrusion
Central Highlands
Flashfloods, seasonal droughtsGroundwater over exploitation for irrigation, reservoir construction
Generally good river – upstream/downstream – water quality, good quality of groundwater
Northeast of Mekong
Floods, seasonal droughtSector wise water allocation and use, groundwater over exploitation
Urban and industrial pollution, saline intrusion
Mekong River Delta
Flood, cross-sectoral water allocation and useIntensive agriculture/aquaculture, groundwater over-exploitation
Saline intrusion, low pH in rivers (acid soils), agrochemical pollution, transport pollution risks
Source: Vietnam Environment Monitor, and Frost & Sullivan
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Key Market Trends (Contd…)
Water Resources and Consumption (Vietnam), 2010
Note: All figures are rounded. Source: Frost & Sullivan
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Key Market Trends (Contd…)
Water Supply and Wastewater (Vietnam), 2010
Note: All figures are rounded. Source: Frost & Sullivan
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22 KEY FOCUS AREASKEY FOCUS AREAS
• Technologies Lifecycle• Initiatives• Products and Services Criteria• Focus Markets• Direction & Funding
• Technologies Lifecycle• Initiatives• Products and Services Criteria• Focus Markets• Direction & Funding
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Technologies Lifecycle
Evaporation
Reverse Osmosis
Ultrafiltration
MaturityDevelopment Growth
Nanofiltration
UV
Ozone
Vapour Compression
Microfiltration
Multi-effect DistillationMulti-stage flash Distillation
Sand Filtration
Centrifugation
Plate & Frame Filtration
Ion Exchange
Carbon Treatment
Sludge Drying
Digestion
Secondary WW
Primary WW
Tertiary Wastewater
Saturation
Membrane Bioreactors
Membrane TechnologiesNon-Membrane Technologies
Emerging but more costly to be
implemented in Vietnam
Source: Frost & Sullivan
Technologies Lifecycle (Vietnam), 2010 Most common technologies used in
Vietnam
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Initiatives
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Products and Services Criteria
Service Criteria
Product Criteria
Two of the most important determining factors by asset owners in Vietnam are cost and technology.Cost would include operation and maintenance cost. Low operation and maintenance cost should not forfeit the quality of technology.
Most of the wastewater infrastructure and technology in the country are of low capacity and low efficiency.Availability, service, functionality, and supplier/retailer recommendation come next in priority ranking.
Equipment availability is limited in the country. Service would include improvement and staff capability.
Note: All figures are rounded. Source: Frost & Sullivan
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Focus Markets
As Vietnam is dependent on Official Development Assistance (ODA) assistance in the improvement of its water supply and water treatment facilities, most of the materials required by its projects are imported. Among the major equipment that it imports include:
• Water meters, valves and pumps, motors• Water treatment chemicals• Water filtration systems• Water control and monitoring equipment
As Vietnam is dependent on Official Development Assistance (ODA) assistance in the improvement of its water supply and water treatment facilities, most of the materials required by its projects are imported. Among the major equipment that it imports include:
• Water meters, valves and pumps, motors• Water treatment chemicals• Water filtration systems• Water control and monitoring equipment
• Under-capacity treatment plants – a need to increase capacity with construction of new plants or expansion of new plants in major cities
• Similar water and wastewater system to be provided in small towns and rural areas.
• Under-capacity treatment plants – a need to increase capacity with construction of new plants or expansion of new plants in major cities
• Similar water and wastewater system to be provided in small towns and rural areas.
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Direction & Funding
Abilities by the Government, Agencies, and Asset Owners on Project Funding
Entities Abilities & Opportunities
Municipal governments • Receives overseas development assistance (ODA) funds (such as ADB, World Bank, and others)
State-owned enterprises • The largest customers for water supply equipment• Dependent on ODA funding
In order to finance its water projects, Vietnam depends on the Official Development Assistance (ODA) assistance that it receives. State-owned enterprises that manages the
countries’ water supply and wastewater management, are receiving ODA assistance.
An overall planner of investment projects and coordinator ofODA assistance
An overall planner of investment projects and coordinator ofODA assistance
Issues legal documents, standards, procedures, instructions, and economic and technical norms in the fields of water and environment
Issues legal documents, standards, procedures, instructions, and economic and technical norms in the fields of water and environment
Ministry of Planning and Investment
Ministry of Planning and Investment
Ministry of NaturalResources and Environment
Ministry of NaturalResources and Environment
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Direction & Funding (Contd…)
World Bank ($2.5 billion)
World Bank ($2.5 billion)
World Bank ($2.6 billion)
World Bank ($2.6 billion)
World Bank ($2.7 - $2.8 billion)
(projection)
World Bank ($2.7 - $2.8 billion)
(projection)
Asian Development Bank
($1.5 billion)
Asian Development Bank
($1.5 billion)
Asian Development Bank
($1.5 billion)
Asian Development Bank
($1.5 billion)
Asian Development Bank
($1.5 - $1.6 billion)(projection)
Asian Development Bank
($1.5 - $1.6 billion)(projection)
Funding Opportunities
Funding Opportunities
ODA (Official Development
Assistance) loans and grants
20102010 20112011 20122012
In Vietnam, funding for water supply and wastewater projects comes from various sources:
Bilateral contributors such as Japan, France, Denmark, the Netherlands, Finland, Germany, and Australia.
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33 CHALLENGESCHALLENGES
• Restraining Forces• Issues that Need to be Addressed• Short Term Needs• Selection Criteria
• Restraining Forces• Issues that Need to be Addressed• Short Term Needs• Selection Criteria
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Restraining Forces
Restraining Forces for Investment over the Time (Vietnam), 2010
High
Medium
Low
Short Run Medium Run Long Run
De
gre
e o
f Im
pa
ct
Time
(01) Policies and implementations may be inadequate
(02) Low water tariff
(03) Lack of relevant human resources and local expertise
Source: Frost & Sullivan
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Issues that Need to be Addressed
Issues that Need to be Addressed in Waste and Wastewater Market (Vietnam), 2010
Pollution is the most alarming issue to be dealt in Vietnam. Tracking and preventing pollution is the issue on regulation implementation and enforcement and wastewater infrastructure and technology.
Note: All figures are rounded. Source: Frost & Sullivan
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Short Term Needs
Short Term Needs in Water and Wastewater Market (Vietnam), 2010
Note: All figures are rounded. Source: Frost & Sullivan
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Selection Criteria
Capital costs is the most common concern during the process of vendor selection. Attractive commercial proposals are at better advantage
As local professionals are limited, technical expertise is valued in Vietnam
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Water & WastewaterW&WW Treatment EquipmentDisinfection TreatmentSludge TreatmentSolid-Liquid SeparationDesalinationMembranesMonitoring & AnalysisServices
Water ManagementWaste Management
ServicesMunicipal Waste
Hazardous/Liquid WasteIndustrial Waste
Construction & DemolitionSludge Management
Waste to EnergyOutsourcingUtilityMulti-UtilityO&MIndustrialMunicipalEngineering Services
RecyclingEquipmentTechnologyServices
OthersLaboratory Testing
Site RemediationCleanrooms
Utility Meters
About Environment Technologies Practice
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Heating Ventilation & Air Conditioning
HVAC Controls
HVAC Equipment
Chillers and Boilers
Indoor Air Quality
Commercial, Industrial and Utilities
Demand Side Analysis
Supply Side Analysis
Fire and Life Safety
Fire Suppression Systems
Alarm Systems
Fire Fighting Systems
Fire Control Panels
Building Automation and Controls
Automation Controls
Communication Protocols
Intégration
Power Line Carrier Communication
Cable Management Systems
Wireless Networking
Power Over Ethernet
Lighting Controls
Switches & Sensors
Lighting Control Panels
Building Security
Physical Security
Security Services
Access Controls
Biometrics
RFID
Wireless Controls
About Building Technologies Practice
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For Additional Information
Donna JeremiahCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Melvin LeongProgram ManagerEnvironment & Building Technologies +603 6204 [email protected]