Vietnam’s future development is very much dependent on continued trade and investment, and developing the infrastructure sector is a key priority for both the government and businesses. Accordingly, Vietnam has continuously increased investment in infrastructure, and reached a ratio of 9-10% of GDP by 2005, an impressive number for a country at Vietnam’s stage of development. Yet, demand continues to grow rapidly, and it is projected that future annual infrastructure investment needs to constitute at least 11% of GDP in order to meet the government targets for access to electricity, water, transport and telecommunications.
At the same time, environmental concerns are becoming more pressing as the country develops and the impact of rapid economic growth and urbanisation is becoming evident. Urban pollution and greenhouse gas emissions are rising, the pressure on scarce natural resources is increasing rapidly and the surface, ground and coastal waters are continually being threatened by pollution; all illustrating the need for sustainable business solutions.
Vietnam is offering favourable conditions for investments in renewable energy solutions with a coast line of 3260 km, thousands of islands, rivers and canals, an average sunshine of 1,600-2,000 hrs a year and average temperatures between 22 and 27 degrees. In addition, there is a big market for improvements in conventional energy generation facilities. The total investment needed in the energy sector for 2006-2025 is projected at VND 1,262,980 billion (approx US $72,55 million), and the government has set its targets for the ratio of renewable energy at 3% in 2010, 5% in 2020, and 11% in 2050.

The water sector in Vietnam is showing a huge investment demand, both regarding Greenfield water supply systems and modification of existing facilities: In order to meet the Millennium Development Goals by 2020, it is estimated that the current investment amount of US$ 600 million would have to be increased four-fold. Pollution and problems regarding contaminated water are growing, and efficient waste-water treatment practices, both regarding technologies and management, are in high demand.

Vietnam’s policy and regulatory environment is becoming increasingly favourable for green products and investments, including ever stricter environmental laws and their enforcement, investment incentives and subsidies, tax exemptions and reductions as well as exemptions on certain import duties with ambitious future environmental targets. However, the opportunities have not nearly been exhausted, and especially in times of global turmoil the need for sustainable long time solutions becomes evident.