"Across Vietnam, challenges like untreated wastewater and inadequate drainage harm health and risk reducing GDP by 3.5 per cent annually by 2035," said Carolyn Turk, the World Bank's country director for Vietnam.

"This project is an important step in creating a cleaner, healthier environment in Binh Duong province, contributing to sustainable growth and development," Turk Continued.

With a total investment of $311 million, of which $231 million is financed by the World Bank, the project is designed to transform wastewater management in Thuan An, Di An, and Tan Uyen cities, covering an area of more than 33,000 hectares and a total population of around 1.4 million.

Currently, these areas have limited sewage collection and treatment capabilities, and the coverage critically low. The investment will substantially expand these services, directly benefiting approximately 550,000 residents by 2032.

The project will increase wastewater services from under 10 per cent to 32 per cent in Tan Uyen, and from 17-19 per cent to 45 per cent in Thuan An and Di An. This targeted improvement in high-density urban areas is crucial for reducing pollution in the Saigon and Dong Nai river systems.

The engineering designs incorporate future climate scenarios, ensuring that the infrastructure is resilient and sustainable in the long term. This includes selecting technical solutions that are energy-efficient and reduce greenhouse gas emissions.

Furthermore, the project integrates principles of the circular economy, which means it focuses on resource efficiency and sustainability. For instance, the use of LED lighting and solar panels will reduce energy consumption, while the innovative reuse of treated sludge and wastewater will contribute to the more sustainable management of resources.

The remaining sum of $80 million for the project will come from Vietnam’s state budget.