|Environmental Technologies Industries
|Vietnam Environmental Export Market Plan|
|Chapter 6 - Wastewater Treatment|
Case Study 6.1 To Win a Tender, It Pays to Hire WellBelgian firm Seghers International recently completed construction of a waste treatment plant at the Bien Hoa II industrial zone in Dong Nai province, outside Ho Chi Minh City. This was a unique contract, because Bien Hoa II is Vietnamese-owned, and it paid for the waste treatment facility from its own financing, not from ODA. Bien Hoa II is flush with cash because it is the most successful Vietnamese-owned industrial park in Vietnam, enjoying 95 percent occupancy.
Because of Bien Hoa's unusual financial situation, bidding for the project was extremely competitive. A good product, good relations with relevant ministries, and establishing a good working relationship with a critical government company won the Bien Hoa II contract for Seghers.
To win the project, no fewer than five agencies had to approve Seghers' technology and bid: the Ministry of Construction, Ministry of Finance, Ministry of Planning and Investment, MOSTE, and SONADEZI, a state-owned company that operates three of the largest industrial parks in Vietnam, including Bien Hoa II.
To navigate this bureaucracy, Seghers had a key advantage. Four years earlier, when Seghers' executives were on a fact-finding mission to Vietnam, their delegation was hosted by MOSTE officials. They were so impressed with one of these officials that they later hired him and eventually financed a two-year study trip for him to Belgium. This former MOSTE official not only knew the channels within the environment ministry, but also, through his own experience and through family friends, had connections with many other decision-making ministries.
Helping seal the Bien Hoa contract was Seghers' ability to sign favorable terms with VIWASE, the local company partnering on the project. VIWASE (Vietnam Consultancy for Water Supply, Sanitation, and Environment) is the most powerful local company in water infrastructure projects, and nearly all foreign companies attempt to establish partnerships with the firm when bidding on water-related projects. ("They're the only game in town," says an executive at one foreign infrastructure company.)
According to one Seghers' representative, the Belgian firm's approach was to be more flexible in negotiating revenue-sharing terms instead of looking for legal guarantees at all points in the contract. It was better to "think of each other" when doing the deal, rather than seek legal exit strategies, because often in Vietnam "going to court is a waste of time," the executive said.
Seghers also brought a world-class product to the table. Seghers' two--hectare plant includes four reservoirs for biological, chemical, and physical treatment of liquid waste before it is conveyed to another reservoir for final treatment. The $3.8 million facility has a daily capacity of 4,000 cubic meters although it can be expanded to 12,000 m3 without adding any new civil works. Seghers' engineers in Belgium can monitor operations at the plant via a remote control system using the Internet.
Investor & Capital ($M)
# of foreign investment capital projects
Foreign investment capital projectsb
Environment protection facility
|Amata IP||Dong Nai|
|$260||4,000 m3/day water treatment plant from U.S., supplied by Hydroteck (Thailand)|
|Nhon Trach 2 IP||Dong Nai|
|Go Dau IP||Dong Nai|
|Bien Hoa 2 IP||Dong Nai|
|$1,080||$3M water treatment plant (4,000 m3/day)|
|Ho Nai IP||Dong Nai|
|Phu My 1 IP||Ba Ria-Vung Tau|
|Viet-Sing IP||Binh Duong|
|$290||6,000 m3/day sewage treatment plant; piped water|
|Can Tho IP||Can Tho|
|Noi Bai IP||Hanoi|
|Sai Dong B IP||Hanoi|
|Thang Long IP||Hanoi|
|Japan;$53||Water supply (2,000 m3/day) Water treatment (15,000 m3/day)|
|Nomura-Haiphong IP||Hai Phong|
|Dinh Vu||Hai Phong|
|US, Belgium, Thailand;$80|
|Haiphong 96 EPZ||Hai Phong|
|Tan Thuan EPZ||HCMC|
|$580||$3M waste treatment plant supplied by China Eco Teck; 10,000 tons/day|
|Linh Trung EPZ||HCMC|
|$69||6,00 m3/day water treatment plant|
Case Study 6.2 Overseas Development Assistance is Driving the BusinessViet Thang Textile Co., one of Vietnam's largest textile companies, is listed in Ho Chi Minh City's "black book" of leading polluters for good reason. Many of its plants dump untreated wastewater into canals used by local residents. In November 1999, the company took a large step toward getting off that list when it installed its first waste treatment plant with help from an unlikely source.
Since 1992, Viet Thang had been doing business with Peja NV, a small Dutch trading company with a representative office in Ho Chi Minh City. Peja represented several European companies selling textile equipment to Viet Thang. Recognizing Viet Thang's need for pollution control equipment, Peja suggested installing a waste treatment facility using another company it represented, Stork Aqua NV. Stork Aqua specializes in waste treatment facilities for the textile and dairy industries.
Crucially, Peja and Stork were able to arrange financing so that Viet Thang only had to bear part of the plant's cost. The firms applied for, and won, a grant from the Dutch development aid agency to fund 75 percent of the plant's $2.5 million cost. Viet Thang financed the rest, using loans from local banks.
Today the plant is one of the largest ever installed at a state-owned firm. The facility has a capacity of 5,000 cubic meters of wastewater per day. The plant reduces BOD to less than 20 mg/liter, COD to less than 50 mg/liter, and total suspended solids to less than 50 mg/liter.
Since the plant opened, Peja has received numerous calls from other state-owned companies seeking to reduce their emissions and wastewater discharges. Peja has also been active in contacting state-owned firms listed in the Ho Chi Minh City and Hanoi environmental black books to propose similar financing schemes.
|Osmonic (USA)||Water treatment system, including filters, water softener, RO membrane, ozone purifier||30 m3/day||$21,450|
|Tsurumi (Japan)||Air blower||5 m3/minute||$3,500-4,000|
|Alpha-Laval (Holland)||Mud conditioner||10 m3/hour||$30,000|
|Ebara (Italy)||Sewage pump||10 m3/hour||$500|
|Caprari (Italy)||Sewage pump||2060 m3/hour||$1,000|
|Flygt (Sweden)||Sewage pump||20-80 m3/hour||$1,000-1,200|
|Tsurami||Sewage pump||20-80 m3/hour||$750|
|Trominelc (Germany)||Tossing pump||20-120 liters/hour||$300-2,000|
|Aldos (Germany)||Tossing pump||20-120 liters/hour||$300-2,000|
|Dosatron (Italy)||Tossing pump||20-120 liters/hour||$150-1,000|
|Kohn (Germany)||Flow meter||60 m3/hour||$750|
|Flygt (Sweden)||Air diffuser|
|Polymer (Singapore)||Mud treatment chemicals||$8/kg|
Type of product
|Centrifugal Pump||EBARA, Japan||FS||5-150 m3/h|
|Centrifugal Pump||EBARA, Japan||S, 100SF||5-150 m3/h|
|Centrifugal Pump||EBARA, Japan||FSGD||5-150 m3/h|
|Chemical Dosing Pump||Pominent Sigman, Germany||SIBA||1.6-150 L/h|
|Submersible Pump||EBARA, Japan||Best||5-150 m3/h|
|Submersible Pump||Tsurumi Pump, Japan||KTZ, KTV, KRS||5-150 m3/h|
|Submersible Pump||J.S. Pump, Taiwan||J.S., SV4||5-150 m3/h|
|Motor of mixer||GEAR Motor, USA||3/4-10 HP|
|Mixer||Neptune Mixer Co., Japan||3/4-10 HP|
|Electric facilities of electric control box||LG Industrial system, Korea, Mitsubishi|
|Aerator||Force 7.1 T, 7.2 T, Italy|
|Air blower||Taiwan, Japan||140-1,800 m3/h|