ADB and Thu Dau Mot Water Partner to Boost Water Supply for Vietnam’s Northern Industrial Zone

The Asian Development Bank (ADB) and Thu Dau Mot Water Joint Stock Company (TDM) have signed a significant $6 million loan agreement aimed at expanding the Bau Bang water treatment plant. This expansion is a critical response to the surging water demand driven by rapid economic development and population growth in the northern industrial and residential areas of Binh Duong Province and Thu Dau Mot city, adjacent to Ho Chi Minh City’s expanding metropolitan region.

Addressing Growing Water Needs in a Key Economic Zone

Binh Duong and Thu Dau Mot are part of the Southern Key Economic Zone of Vietnam, a hub attracting considerable commercial and industrial investment. The region’s fast-paced industrialization and urbanization have put increasing pressure on water resources, necessitating urgent infrastructure upgrades. The Bau Bang water treatment plant currently processes about 30,000 cubic meters of water daily. This loan will facilitate an expansion that boosts the plant’s capacity to 80,000 cubic meters per day, nearly tripling its output. This enhancement ensures a more reliable and sustainable supply of clean water to serve not only the local residential population but also the growing number of commercial and industrial users, essential for continued economic vitality.

Co-Financing and Strategic Partnerships

The loan from ADB is complemented by a co-financing commitment of an equivalent amount from the Japan International Cooperation Agency (JICA), demonstrating strong international support for Vietnam’s water infrastructure development. Such collaborative financial backing underlines the importance of the project in supporting Vietnam’s broader economic growth strategy.

ADB Country Director for Vietnam, Shantanu Chakraborty, highlighted the strategic importance of the project: “The expansion of the Bau Bang water treatment plant is essential to ensure clean and reliable water supply for local consumers, existing businesses, as well as prospective investors looking to establish a presence in the Southern Key Economic Zone of Vietnam. The project will support ongoing economic growth, job creation, and foreign direct investment in Vietnam.”

Supporting Vietnam’s Equitization Reforms and Infrastructure Modernization

This initiative aligns closely with the Vietnamese government’s equitization reforms, which aim to transition state-owned enterprises toward more efficient private sector utilities. ADB’s involvement supports this reform process, helping improve operational efficiency and reduce public and publicly guaranteed debt burdens within the country’s infrastructure sector. The modernization of water utilities is a critical pillar of these reforms, contributing to sustainable management and long-term fiscal stability.

Capacity Building and Environmental Sustainability

Beyond financial support, TDM will benefit from ADB’s Water Organization Partnership for Resilience Program, which provides vital knowledge and technical assistance. This program will deliver capacity-building training for TDM staff on crucial topics such as water ecology management, smart energy use, and carbon neutrality. The training will be conducted in partnership with Korea Water Resource Corporation, a globally recognized leader in water resource management. These efforts aim to enhance the environmental sustainability and climate resilience of TDM’s operations, preparing the company to meet future challenges related to water management and climate change.

Tran The Hung, General Director of TDM, emphasized the company’s commitment: “We are committed to providing high-quality water services to our customers and contributing to sustainable development in Binh Duong and Thu Dau Mot. Our collaboration with ADB will help us access long-term financing, strengthen our capacity to manage environmental and social impacts, and improve climate sustainability and resilience.”

TDM’s Track Record and Operational Efficiency

Founded in 2013, TDM operates two major water treatment plants—Bau Bang and Di An. In 2024, these facilities collectively produced 70.8 million cubic meters of potable water for wholesale distribution. The company is regarded as one of Vietnam’s most efficient water utilities, maintaining an impressively low non-revenue water loss rate of only 0.50%, far below the national average. TDM is publicly traded on the Ho Chi Minh Stock Exchange, reflecting its growing stature and transparency in the Vietnamese water sector.

Looking Ahead

This expansion project is a vital step toward meeting the increasing water demand of one of Vietnam’s fastest-growing industrial regions. It also highlights the critical role of international financial institutions like ADB and JICA in supporting sustainable infrastructure development and reforms in emerging economies. With the enhanced capacity and strengthened operational expertise, TDM is well-positioned to support the continued economic and social development of Binh Duong, Thu Dau Mot, and the wider Southern Key Economic Zone for years to come.