Report Overview

Growing environmental challenges from overflowing landfills driven by rapid urbanization and high consumerism, the government’s increasing focus on WtE solutions for waste management and power generation, and a growing emphasis on meeting energy security and renewable goals are expected to drive the Vietnam Waste to Energy (WtE) Market during the forecast period between 2024 and 2030.

Vietnam Waste to Energy (WtE) Market – Industry Trends & Forecast Report, 2030

Vietnam Waste to Energy (WtE) Market size was estimated at USD 48.21 million in 2023. During the forecast period between 2024 and 2030, the Vietnam Waste to Energy (WtE) Market size is projected to grow at a CAGR of 4.89% reaching a value of USD 82.43 million by 2030. A prominent driver of the market is the rapid urbanization, which has led to a substantial increase in waste generation. From 2004 to 2015, annual waste production surged by 78.2%, burdening landfills and creating environmental and health challenges. WtE technologies offer a promising solution by potentially reducing waste volume by up to 90% while generating renewable energy. The Vietnamese government's focus on meeting the escalating energy demand, projected to grow substantially by 2030, has led to a strong commitment to WtE initiatives. This includes policies and investments aimed at enhancing both waste management practices and the country’s energy generation capacity. Also, the untapped potential for energy recovery from solid waste, estimated at 1,400 MW annually, and the involvement of international players bringing advanced Waste to Energy technologies and expertise, position the Vietnam Waste to Energy Market for significant expansion. With rising private sector participation and growing public awareness, WtE projects are increasingly seen as essential for managing the challenges of urban and industrial waste sustainably while contributing to the country’s renewable energy goals.

Waste to Energy (WtE) – Overview

Waste to energy (WtE) technology transforms industrial and domestic waste into usable energy, such as electricity, steam, and fuel cells. Various WtE technologies, each with distinct processes, are employed to convert waste to energy efficiently. The resulting energy is utilized across multiple industries for diverse applications. Governments worldwide are increasingly supporting WtE initiatives through policies that encourage the development of these technologies. As energy demand rises, leading to higher oil and gas prices, WtE offers a viable solution for meeting energy needs while addressing waste management challenges. Innovative WtE plants not only generate energy but also help reduce greenhouse gas emissions and manage solid waste, contributing significantly to environmental sustainability.

Vietnam Waste to Energy (WtE) Market

Growth Drivers

Growing Environmental Challenges from Overflowing Landfills

Vietnam faces escalating environmental challenges due to its predominant practice of landfilling municipal solid waste (MSW). Annually, over 28 million tons of waste are generated, with a staggering 76% being landfilled, exacerbating pollution and health risks. These overflowing landfills contaminate ground and surface water, escalate environmental pollutants, and pose significant public health hazards. Moreover, approximately 80% of the landfilled waste remains untreated, further degrading the environment. In response, there is a pressing need for alternative waste management strategies. Waste to Energy solutions emerge as a promising avenue, reducing landfill volumes substantially while harnessing renewable energy sources. For instance, Vietnam's largest Waste to Energy plant in Hanoi recently began operations, capable of processing 4,000 tons of dry waste daily to generate electricity. This initiative not only addresses landfill overflow but also provides a sustainable solution by converting waste into energy, thereby reducing environmental impact and enhancing renewable energy sources.

Increasing Need for Alternative Waste Management Solutions Promoting WtE Technologies

Faced with the escalating challenges of waste management and environmental sustainability, the Vietnamese government has acknowledged the necessity for alternative solutions. One of the foremost strategies being promoted is the adoption of WtE technologies. These technologies are crucial in addressing the dual issues of waste disposal and energy generation. By converting waste into energy, WtE technologies can reduce waste volumes by up to 90%, significantly decreasing the burden on landfills and minimizing their environmental impact. The government’s commitment is reflected in various policies and investments aimed at fostering the development and implementation of WtE projects. Efforts are being made to attract private sector participation and to enhance the technical and institutional capacities required for successful WtE operations. This strategic shift towards WtE not only supports better waste management practices but also aligns with Vietnam’s broader goals of energy security and environmental sustainability.

Growing Emphasis on Meeting Energy Security and Renewable Goals

Vietnam is confronting a rapid increase in energy demand, projected to grow substantially by 2030, driven by ongoing urbanization and economic expansion. This surge in demand necessitates a diversified and sustainable approach to energy generation. WtE technologies offer a viable solution that aligns with the country’s energy security and renewable energy goals. By harnessing the potential to recover approximately 1,400 MW of energy from solid waste annually, WtE projects can make a significant contribution to Vietnam’s renewable energy targets. Current initiatives have only tapped into a fraction of this potential, with the WtE capacity estimated at around 300 MW. The Vietnamese government has recognized the strategic importance of WtE in its clean energy landscape and has implemented policies to support the development of these technologies. By integrating WtE solutions, Vietnam can reduce its reliance on traditional fossil fuels, improve waste management, and enhance its overall energy security. Additionally, the involvement of international companies with advanced WtE technologies and expertise can further accelerate the growth and effectiveness of this sector, ensuring that Vietnam meets its future energy and environmental objectives.

Challenges

Lack of Technological Expertise

The growth of Vietnam Waste to Energy (WtE) Market is hampered by a lack of technological expertise. Local firms often lack advanced WtE technologies and operational know-how, which are crucial for efficiently converting waste into energy. This gap in expertise limits the adoption and expansion of WtE solutions, slowing market development and reducing the potential for addressing the country’s waste management and energy challenges effectively.

Impact of Escalating Geopolitical Tensions on Vietnam Waste to Energy (WtE) Market

Geopolitical tensions can have a multifaceted impact on the Vietnam Waste to Energy (WtE) Market by disrupting international trade and investment flows crucial for technological and financial support. These tensions can lead to increased costs for importing advanced WtE technologies and create uncertainties for foreign investors wary of unstable markets. Additionally, strained relations with major trading partners might hinder collaborations and knowledge transfer essential for market growth. The volatility can also shift government focus and resources away from environmental initiatives, delaying policy implementation and infrastructure development necessary for expanding the WtE sector, ultimately affecting the country’s ability to address its growing waste management needs effectively.

Vietnam Waste to Energy (WtE) Market

Segmental Coverage

Vietnam Waste to Energy (WtE) Market – By Technology

By technology, the Vietnam Waste to Energy (WtE) Market is bifurcated into Thermochemical and Biochemical segments. The thermochemical segment holds a higher share in the Vietnam Waste to Energy (WtE) Market by technology. It is primarily due to broader application and effectiveness in converting solid waste into valuable energy resources. Thermochemical technologies involve processes such as direct combustion, gasification, and pyrolysis, which are commonly used to convert solid waste into energy through high-temperature chemical reactions. These technologies are favored due to their efficiency in handling various types of waste and their capability to generate electricity or heat reliably. On the other hand, the Biochemical segment typically involves anaerobic digestion, which uses microorganisms to break down organic waste to produce biogas (mainly methane and carbon dioxide). While biochemical processes are effective for organic waste management, they generally cater to a smaller portion of the overall Waste to Energy (WtE) Market in Vietnam compared to thermochemical technologies.

Vietnam Waste to Energy (WtE) Market – By Waste Type

Based on waste type, the Vietnam Waste to Energy (WtE) Market is divided into Municipal Solid Waste, Process Waste, and Agriculture Waste segments. The municipal solid waste segment holds the highest share in the Vietnam Waste to Energy (WtE) Market by waste type. The segment includes waste from households, commercial activities, and institutions, making it the largest contributor to the overall waste stream in Vietnam. Municipal Solid Waste is abundant and diverse, providing a significant feedstock for WtE projects across the country. Due to its sheer volume and consistent generation, MSW offers a reliable source for converting waste into energy through technologies such as incineration, gasification, or anaerobic digestion. This dominance underscores the focus of Vietnam's waste management and energy sectors on tackling urban waste challenges while advancing towards renewable energy goals.

Vietnam Waste to Energy (WtE) Market – By Application

Based on application, the Vietnam Waste to Energy (WtE) Market is bifurcated into Electricity and Heat segments. The electricity segment holds a higher share in the Vietnam Waste to Energy (WtE) Market by application. It is primarily due to the country's emphasis on addressing energy security and sustainability through waste management solutions. WtE technologies primarily convert municipal solid waste into electricity, meeting urban energy demands while reducing reliance on fossil fuels. The integration of WtE facilities into the national grid enables consistent electricity generation, supporting Vietnam's infrastructure growth and industrial development. As urbanization and industrialization continue to drive energy consumption, the electricity segment remains pivotal in leveraging waste as a resource for sustainable power generation.

Competitive Landscape

Major players operating in Vietnam Waste to Energy (WtE) Market include Hau Giang Biomass Power Joint Stock Company, Vietstar Joint Stock Company, T&J Green Energy, Thuan Thanh Environment Joint Stock Company (TT), Hitachi Zosen Corporation, Watrec Ltd, Becamex IDC Corp., Tam Sinh Nghia Investment and Development JSC, Vietnam Waste Solutions (VWS), and C&G Environmental Protection Holdings Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - The Thang Long-Bac Ninh WtE plant in Bac Ninh province was inaugurated with Finnish parliament speaker Jussi Halla-aho in attendance. Valued at VND 1.4 trillion (approximately USD 56.5 million), the facility, equipped by Finland's Valmet, employs advanced circular technology to process 500 tons of waste daily, producing 11 MW of electricity. This initiative marks Bac Ninh as Vietnam's first locality to manage its entire daily domestic waste output with such advanced methods. The plant, Bac Ninh's fourth of its kind, is poised to commence trial operations, augmenting the province's waste processing capacity to 1,500 tons per day alongside other ongoing projects.

• In November 2023 - A waste to energy (WtE) plant treating domestic and industrial waste to produce electricity was inaugurated in Phu Lang village, Bac Ninh province. This pioneering project, jointly invested by Green Star Environmental Company Limited of Vietnam and Chosun Refractories ENG Co., Ltd from the Republic of Korea, has a daily capacity to process 800 tons of waste. Its main incinerator handles 100 tons of household waste and 80 tons of industrial waste daily, generating 6.1 MW of electricity through waste heat recovery technology from Korea. The project, costing USD 45 million, commenced in July 2020, completed in Q2 2022, and connected to the national grid in August 2022, contributing approximately 40 million kWh annually to Bac Ninh province.

Scope of the Report

By Technology

• Thermochemical

• Biochemical

By Waste Type

• Municipal Solid Waste

• Process Waste

• Agriculture Waste

By Application

• Electricity

• Heat