Finnish waste treatment technology solution in Vietnam has been in investment focus. In Vietnam, highly rapid pace of socio-economic development has put waste treatment a big challenge. Despite the government’s efforts to apply advance technology, waste treatment has been still handled at low capacity compared to huge market demand.
Present condition and Vietnamese market potentiality evaluation
According to statistics, by the year 2020, urban population will increase by 44 million, accounting for 45% of the national population, and by 2025, 52 million, 55% of the national population. These figure mean that the urban waste will also increase about 19 million tons/ year, in which 12.8 million tons is solid domestic waste. Clearly, there are a lot of works to be done and potential for waste treatment business is very high if there are advance treatment technologies applied.
70% of total waste is solid domestic waste. The solid waste if being professionally treated to convert into energy (W2E – Waste to Energy) can be a substitute material source for supplementing currently shortage of energy.
Renewable energy produced from waste is a promising possibility as the shortage of electricity in Vietnam has been quite severe. This technology has been used in many nations. With a high rate of solid domestic waste, the W2E business in Vietnam is a very potential market for foreign investors.
Waste being properly categorized can be used to produce fuel cells or CH4 used in boilers.
Beside electricity, clean water is also one of the main concerns. The water source has been badly affected by industrial waste charges. Natural water source has been also affected from climate change. Together with urbanization and limited budget, the water supply system will face challenges. Therefore, investment and cooperation in water treatment technology transfer are encouraged.
Finnish waste treatment technology solution
Finland has always made a lot of investment in recycling and renewable energy for domestic and industrial uses. The country has accumulated experience and reputation over decades with a lot of research, theory and practice. In fact, all the landfills in Finland have been inactive. Instead, recycling and renewing have become the maijor waste treatment method. Finland has been very successful in recycling and waste-to-energy technology including Bioga technology application for waste treatment. 40% of the energy in Finland is from renewable energy source.
With more than thirty years of diplomatics and cooperation relationship between Finland and Vietnam and a number of Finnish companies in operation in Vietnam, there pose many opportunities in this field for both sides. Finland always prioritize Vietnam in technological support regarding waste treatment and renewable energy.
Examples of Finnish waste treatment projects in Vietnam
Doranova currently has two landfill gas plant projects, one is going to be completed in early 2019 and one six-million euro- project in Ho Chi Minh city.
Watrec has launched it waste to energy project in Hanoi, Vietnam in January 2018.
Valmet has it reprentative office in Vietnam and is very interested in cooperation and technology transfer with Vietnamese partners in this area.
BioGTS is also in its early stage to prepare proposal and implementation plan for biogas technology application in waste and waste water treatment in Dong Thap province, Vietnam.
Recommendation for Finnish enterprises to enter the waste treatment and clean energy market in Vietnam
The Vietnamese government always welcomes investment and support from Finnish companies regarding high technology application on waste treatment and clean energy. However, there have still been several hindrances that cause delay of current projects and slowness in implementation of new ones.
The first reason is ununiformed mode and implementation procedures between related partners, which has showed negative impact on project effectiveness and quality. To solve this, it is required participation from Ministry of Environment and Natural Resources, heads of provinces and cities.
Secondly, it is always very timely for a project to be put in implementation because this is very new technology, which requires approval from Ministry of Environment and Natural Resources, heads of provinces and cities, Ministry of Sciences and Technology, Ministry of Construction, etc.
One of the most important reason that decides the feasibility of a project is cost and price. Since this area is very new and uses high technology, the investment cost is quite high. Besides, Vietnamese partners have little experience in operating and controlling. The Vietnamese government has issued many incentives to encourage investment in this area.
It is noted that Vietnam really need investment, cooperation with as well as experience of Finnish companies to help the country in solving waste treatment and waste to energy problems. Under such urgent circumstance that the annual waste is growing more and more and its negative impacts, applying new technologies to completely solve the problems should be studied and put in to use more than ever.