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Vietnam Spends $255M to Combat its Water Problem

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If there was concern about commodity capacity in Vietnam, water shortages may soon be less of an issue.

Vietnam will spend $255 million to build the Duong River Surface Water Treatment Plant to help curb the country’s water shortage by 2020, according to the Vietnam Investment Review (VIR).

As investment in Vietnam’s textile sector grew, both in anticipation of the Trans-Pacific Partnership passing and the country’s general advancement in apparel manufacturing, some were concerned that, despite the abundance of available labor, Vietnam would reach capacity with commodities like water.

Now, the new 300,000 cubic meter capacity water plant will cut the strain on water availability in Hanoi (which was supposed to reach a water shortage of 600,000 cubic meters by 2020). Phase 1 of the project is slated for completion by 2020.

Once operational, the plant is expected to supply clean water for three million people in eight districts, including residential areas and industrial zones in Bac Ninh and Hung Yen.

TPP was expected to deepen the supply chain in Vietnam, bringing with it more investment and likely more mills and manufacturers and water treatment plants to accommodate the capacity that would have come with it, but as Vietnam is pressing on despite the deal going bust, efforts to quell things like water shortages could continue as the country anticipates its growth.

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