K-water acquires 30% stake in Phu My Vinh, marking its first venture into Vietnam’s water industry.
Korea Water Resources Corporation (K-water) announced on April 29 that it has signed a contract to acquire shares of Phu My Vinh, a water company in Long An Province, Vietnam, with RBC Water, a local company in Kuala Lumpur, Malaysia.
This marks K-water’s first entry into the Vietnamese market since the domestic water management agency began its overseas operations.
By acquiring a 30% stake in Phu My Vinh, K-water will participate in the operation and management of waterworks facilities for 39 years from this year until 2063.
Phu My Vinh is currently supplying 80,000 tons of water per day to nearby industrial complexes and individual companies through the operation of the Hoa Khanh Tay water treatment plant in the industrial complex area of Long An Province, adjacent to Ho Chi Minh City.
Vietnam is an economic hub where water demand is rapidly increasing due to recent rapid industrialization and urban expansion. As privatization in the water sector is gaining momentum, investment by foreign companies is becoming more active.
Some areas are experiencing difficulties in stable water supply due to aging infrastructure and lack of operational efficiency, necessitating innovation through smart technology.
In the case of Long An Province, industrial complexes are expected to be expanded to the second-largest scale in the country by 2030, and business expansion such as water treatment plant expansion is also anticipated.
In this context, K-water plans to strategically enter the Vietnamese water market, discover new water management projects, and expand technology exports, starting with this acquisition.
In particular, K-water plans to introduce cutting-edge technologies such as Smart Water Network Management (SWNM) on a trial basis, utilizing them for local marketing in Vietnam and export proposals to neighboring regions, and contributing to the joint export of domestic water companies.
K-water plans to establish a strategic cooperation base to expand its entry into the Southeast Asian water market based on smart water management technologies such as water supply network maintenance and water flow rate improvement by signing a business agreement with Lohas Technic and RBC Water.
Ahn Jeong-ho, Head of Green Infrastructure Division at K-water, stated, “Vietnam is a strategic market with high growth potential in the water market due to its steep economic development.” He added, “This share acquisition will serve as an important starting point for K-water’s entry into new global water markets, establishing a bridgehead for expansion into the Southeast Asian market, building a foundation for exporting Korean smart water management technology, and leading the joint overseas expansion of the domestic water industry.”