The Korea Water Resources Corporation (K-water) started its full-scale entry into Vietnam’s water market on Friday after taking over shares in its water supply and wastewater treatment facilities.

According to K-water, the public enterprise signed a memorandum of agreement with Vietnamese water treatment companies Phu My Vinh and GS Minh Hung-Sikico concerning the acquisition of shares in water supply and wastewater treatment facilities currently operating in industrial complexes near Ho Chi Minh City in Vietnam.

The main points in the MOA include equity acquisition, facilitating technical cooperation to enhance and optimize operations, and facilitating mutual collaboration for collective entry into Vietnam’s water market.

Vietnam has recently earned attention as a high-potential market for the water treatment sector due to its rapidly growing economy. As industrial complexes expand due to this economic effect, the demand for industrial water has continued to rise. Ensuring a secure supply of clean water has also been a critical issue for the country, where climate change has led to challenges such as drought and salinization.

Phu My Vinh operates the Hoa Khanh Tay regional water treatment plant in southern Vietnam and GS Minh Hung-Sikico operates the wastewater treatment plant at the Minh Hung-Sikico Industrial Complex in southern Vietnam. According to K-water, both facilities are included in the scope of the agreement.

K-water added that it plans to acquire shares previously owned by local companies as a strategy to reduce initial investment risks and ensure a stable market entry. In the future, the enterprise plans to provide technological assistance, operational assistance and management support on-site, while also focusing on developing business models for the future.

According to K-water, Friday’s agreement was strategically pursued through efforts that localized its water management technology to suit Vietnam’s needs, such as running water treatment plants with artificial intelligence and using Smart Water Network Management. SWNM is a water supply management technology that can take preemptive action when accidents such as water leaks and abnormal water quality occur.

K-water added that it held a strong reputation in the country as a leading water industry expert through Official Development Assistance projects related to water supply in Hoa Binh Province in northern Vietnam.

The public enterprise added that the recent MOA holds particular significance as it mark's K-water's official entrance into its first overseas wastewater market through proactive administrative efforts with the South Korean Ministry of Environment.

“Vietnam is a market where global water companies are active, and fierce competition is expected among such companies as the water sector is projected to expand rapidly,” said Han Seong-yong, vice president of K-water’s Global Business Division. “Through these MOAs, we will work to establish a foothold, using Korea’s cutting-edge water management technologies to boost the export performance of domestic companies and contribute to the country’s economic advancement.”