Valuation Study

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Values of Wastewater Treatment


Medium: Water

Country: Vietnam

Analytical Framework(s): Other

Unit(s): Costs

Study Date: 2003

Publication Date: 2004

Major Result(s)

Resource/Environmental Good VND, per m3
VND, per m3
USD, per m3
Wastewater treatment fees at Bien Hoa 23 3,645.83 7,389.59 0.35
Amata 3,208.33 6,502.84 0.30
Loteco 4,083.33 8,276.34 0.39
Nhon Trach 1 3,500.00 7,094.01 0.33
Go Dau 3,791.67 7,685.18 0.36

About the Inflation Adjustment: Prices in Vietnam (VND) changed by 102.69% from 2003 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 2.03 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2022) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: The development of the industrial sector in Vietnam has raised the urgent need for studies on its impact on the environment, especially that of wastewater generated by industrial estates. As the government continues to emphasize the role of industrialization through the growth of industrial and export processing zones, the need for imposing proper policies to keep industrial estates compliant with wastewater management has increased. The fact is that not all industrial estates have invested in common wastewater treatment plants. This raises the question of what influences industrial estates to invest in wastewater treatment facilities and what the government should do to keep industrial estates developed in an environmentally sustainable manner.

Study Details

Reference: Le Quang Thong, Nguyen Anh Ngoc. 2004. Incentives for Wastewater Management in Industrial Estates in Vietnam. EEPSEA Research Report, No. 2004-RR1.

Summary: This study provides information on the level and effectiveness of wastewater pollution control in industrial estates in four provinces of Vietnam. It finds low levels of wastewater treatment in many industrial estates in the areas surveyed and identifies significant negative effects on many rivers. It investigates why many estates and the factories that operate inside them have not invested in wastewater treatment plants. It also looks at why many companies (even those connected to treatments plants) choose not to comply with wastewater treatment legislation. Among the reasons for this poor performance are a lack of investment capital, poor law enforcement, low penalties for non-compliance and an inappropriate fee structure for wastewater treatment.

Site Characteristics: The study sites covered Ho Chi Minh City, Binh Duong Province, Dong Nai Province and Ba Ria-Vung Tau Province, all located in southern Vietnam, where the process of urbanization and industrialization has evolved the fastest. The main objective of this study is to determine the factors affecting investment on common wastewater treatment plants in industrial estates.

Comments: Data was collected from 32 industrial estates in the four study areas. The mode included several visits to Infrastructure Construction Companies and selected industries. Secondary data was collected from the Industrial Estates Management Boards in the same areas.