The Asian Development Bank (ADB) and Thu Dau Mot Water Joint Stock Company (TDM) of Vietnam have signed a $6 million loan agreement to expand the Bau Bang water treatment plant, addressing growing water needs amid rapid economic and population growth in Ho Chi Minh City’s northern industrial and residential parts of Binh Duong and Thu Dau Mot, according to the bank.

The loan will be used to increase the plant’s capacity from 30,000 to 80,000 cubic meters per day, ensuring a reliable supply of clean water for residents, as well as for the growing commercial and industrial users. ADB is joined by the Japan International Cooperation Agency (JICA), which is cofinancing an equivalent amount.

“The expansion of the Bau Bang water treatment plant is essential to ensure clean and reliable water supply for local consumers, existing businesses, as well as prospective investors looking to establish a presence in the Southern Key Economic Zone of Viet Nam,” said ADB Country Director for Vietnam Shantanu Chakraborty. “The project will support ongoing economic growth, job creation, and foreign direct investment in Viet Nam.”

The project aligns with the government’s equitization reforms, aimed at transitioning state-owned enterprises to private sector utilities. The transition that ADB has been supporting is expected to improve operational efficiency and help reduce public and publicly guaranteed debt in Vietnam’s infrastructure sector.

TDM will also receive knowledge and technical assistance support through ADB’s Water Organization Partnership for Resilience Program. The program will provide capacity-building training to its staff in key areas, including water ecology management, smart energy management, and carbon neutrality. The training will be delivered in partnership with Korea Water Resource Corporation, a globally recognized leader in water management.

“We are committed to providing high-quality water services to our customers and contributing to sustainable development in Binh Duong and Thu Dau Mot,” said TDM’s General Director Tran The Hung. “Our collaboration with ADB will help us access long-term financing, strengthen our capacity to manage environmental and social impacts, and improve climate sustainability and resilience.”

Founded in 2013, TDM specializes in the treatment and wholesale supply of potable water through its Bau Bang and Di An water treatment plants. In 2024, these two plants produced 70.8 million cubic meters of water for wholesale distribution. The company is recognized as one of Vietnam’s most efficient water utilities, boasting a low non-revenue water loss rate of 0.50%. TDM is publicly listed on the Ho Chi Minh Stock Exchange.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.