The market is poised for strong growth, underpinned by a significant gap between actual demand and existing infrastructure capacity. As the government pushes forward sustainability targets through 2030, alongside funding from ODA, public-private partnerships (PPP) and private capital, the sector is increasingly attracting long-term investors.

With substantial capital required to meet the target of treating 70% of urban wastewater by 2030, expanding room for private-sector participation is seen as key to easing fiscal pressure and accelerating market development.

Beyond demand and capital flows, policy mechanisms and the ability to generate stable cash flows are emerging as critical bottlenecks that will determine the sector’s pace of growth. Analysts say that once revenue models are clarified, wastewater treatment will become not only a high-potential sector but also financially viable for investors.

At its 2026 annual general meeting on April 25, Nguyen Xuan Dong, CEO of Vinaconex, said the sector had previously received limited attention due to low income levels, but conditions are changing rapidly.

He added that from late 2026 to 2027, the introduction of wastewater treatment fees via clean water tariffs is increasingly likely, which could mark a turning point by creating stable revenue streams and encouraging greater corporate participation. Vinaconex is preparing to capitalize on this trend.

As of April 20, 2026, Vinaconex had held a 97.5% stake in Viwaseen (UPCoM: VIW), which operates in water supply and wastewater treatment. The company owns around six plants with a combined capacity of about 200,000 cubic meters per day across localities including Hai Phong, Hai Duong and Kien Giang.

Meanwhile, Gelex has also outlined plans to step up infrastructure investments, including water and wastewater projects. At the company's AGM on April 1, chairman Nguyen Van Tuan said the group is working with Petrosetco on three wastewater treatment projects in Ho Chi Minh City, while exploring further opportunities under BT (build-transfer) and other partnership models.

Petrosetco chairman Phung Tuan Ha said the three projects, with total investment of nearly VND37 trillion ($1.4 billion), would be implemented under a land-for-infrastructure (BT) model, with the city allocating land as payment.

“For years, wastewater treatment has been a pressing issue in Ho Chi Minh City. These projects have been delayed due to the lack of a suitable model. Policy adjustments now make BT a viable option,” Ha said.

The company said its capital contribution would account for only part of the total investment and is already factored into its financial plans, with no significant capital increase expected.

The sector is not entirely new. Domestic firms such as Phu Dien Construction and Trading Investment JSC have built experience through projects ranging from urban and industrial wastewater treatment to landfill leachate treatment in cities like Hanoi and Ho Chi Minh City.

Similarly, CII has invested in water infrastructure projects including Tan Hiep 2 water plant (BOT) and Thu Duc BOO water plant.

The growing presence of large investors underscores the sector’s rising appeal. Amid rapid urbanization, mounting environmental pressure and improving policy frameworks, wastewater treatment is expected to become a key infrastructure segment attracting long-term capital in the years ahead.