Korea Water Resources Corporation (K-water) is making a strategic move to invest in Vietnam’s growing water treatment sector. On April 18, the company announced a stock purchase agreement to acquire a 30% stake in Phu My Binh C&I, a Vietnamese water treatment firm, for approximately $28 million. The transaction is expected to be completed next month.
Phu My Binh C&I, headquartered in Ho Chi Minh City, operates three water treatment facilities in Vietnam, including locations in Phu My and Long An. This investment aligns with K-water’s goal of expanding its advanced water management technologies, including AI-based purification systems and smart water network management, in the Southeast Asian market.
The Southeast Asian water treatment market is shifting from government-led projects to private sector initiatives, fueled by rapid economic development. Vietnam, in particular, presents significant growth potential due to its fast urbanization and existing infrastructure challenges. The country’s tap water coverage is projected to rise from 53.2% in 2021 to 67.3% by 2025, indicating a growing demand for water services.
Moreover, as Vietnam attracts substantial foreign direct investment (FDI) for industrial zone development, the demand for industrial water is also increasing. According to Vietnam’s Ministry of Natural Resources and Environment, the total water demand, combining residential and industrial consumption, is expected to reach approximately 1.3 trillion cubic meters annually by 2030.
This investment not only enhances K-water’s footprint in Vietnam but also positions it to tap into the burgeoning water treatment market, making it an attractive opportunity for investors looking to engage in sustainable infrastructure development in the region.
