[Vietnam] Vietnam's Central Conclusion No. 75-KL/TW Sets the Tone for New Environmental and Climate Policy: 2026–2030 Environmental Budget No Less Than 2% of State Spending

On July 29, the Secretariat of the Communist Party of Vietnam Central Committee issued Conclusion No. 75-KL/TW, systematically deploying "environmental protection and climate change response in the new era." For the first time, a central document sets the environmental protection budget at no less than 2% of annual state spending for 2026–2030, mandates automatic monitoring of major pollution sources and requires full compliance of industrial-park wastewater, injecting long-term certainty into Vietnam's water market.

1. Background: The Environmental Governance Gap Amid Rapid Development

Vietnam's economy has maintained medium-to-high growth in recent years, with industrialization and urbanization accelerating in tandem, yet environmental infrastructure clearly lags. According to Vietnam's Ministry of Agriculture and Environment, as of June 2025 the national urban domestic wastewater treatment rate was only about 17%, and about 5% in rural areas; Ministry of Construction data show the country discharges about 13 million m³ of wastewater daily, of which only about 1.95 million m³ is treated. As urbanization advances, wastewater discharge is expected to grow about 5% annually before 2030, and the treatment capacity gap continues to widen. At the same time, industrial parks dense with textile, electronics and food processing industries face increasingly stringent discharge requirements, and aging treatment facilities generally face upgrade pressure. It is against this backdrop that Vietnam's top decision-makers used a programmatic document to push environmental and climate issues to the core of the national strategy.

2. Core: The Four Hard Constraints of Conclusion No. 75-KL/TW

Conclusion No. 75-KL/TW, issued by the Secretariat of the Communist Party of Vietnam Central Committee, deploys "environmental protection and climate change response in the new era." Its key points can be summarized in four aspects:

First, fiscal guarantees made rigid. The document makes clear that Vietnam will allocate no less than 2% of annual state budget expenditure to environmental protection for 2026–2030. This shifts environmental spending from a "flexible item" to a "hard constraint," providing a predictable funding source for new wastewater treatment plants, standard upgrades and monitoring system construction.

Second, full automatic monitoring of pollution sources. The document requires automatic monitoring of all major wastewater and exhaust emission sources, changing the previous model of reliance on manual sampling. The mandatory deployment of automatic online monitoring (such as COD, ammonia nitrogen, total nitrogen and flow) directly drives procurement demand for monitoring equipment and data platforms.

Third, full compliant treatment of industrial-park wastewater. The document sets 100% compliant treatment of industrial-park wastewater as a hard target, imposing clear compliance requirements on centralized park wastewater plants and enterprise-level pretreatment, forcing upgrades of existing facilities and high-standard construction of new ones.

Fourth, quantified 2030 targets. By 2030, the urban domestic waste treatment rate should reach 95% and 85% in rural areas; the green economy should account for about 10% of GDP; renewable energy should account for no less than 26.1%; and greenhouse gas emissions should be reduced by at least 9%. These targets interlock — the decarbonization, biogas recovery and self-use photovoltaics of wastewater treatment plants will become the intersection of carbon reduction and compliance.

3. Significance: From "Compliance Pressure" to "Market Pull"

The deeper impact of this conclusion lies in turning environmental compliance from a cost center into certain market demand. The legalization of the budget ratio gives local and park environmental projects stable payment capacity; full automatic monitoring turns "monitoring – treatment – operations & maintenance" into a long-term service chain; and full industrial-park compliance opens large-scale space for membrane separation, advanced nitrogen and phosphorus removal, and water reuse processes. For both domestic and foreign water utilities in Vietnam, the next five years are a concentrated release window, with new capacity, standard upgrades and intelligent O&M running in parallel.

4. TIANYI TECH's Perspective: A Certain Opportunity for Going Global and Technology Export

For TIANYI TECH, Conclusion No. 75-KL/TW is a clear market signal. First, mandatory compliance plus automatic monitoring means a substantial increase in demand for treatment facilities and O&M, which aligns closely with TIANYI TECH's technical accumulation in wastewater treatment, water reuse and membrane separation. Second, the hard target of full industrial-park wastewater compliance provides an entry scenario for TIANYI TECH's integrated equipment, advanced treatment modules and intelligent monitoring solutions. Third, Vietnam is bringing in international capital through ODA and PPP (such as the Yen Xa system and Hanoi's Nhuệ River remediation), allowing TIANYI TECH to ride along through light-asset equipment supply and technical subcontracting, reducing single-project risk.

Overall, Vietnam has locked in five years of environmental investment with a central document, effectively laying a predictable growth track for the wastewater treatment and water reuse industry. TIANYI TECH should seize the policy window and position itself in the Vietnamese market in advance: using standardized integrated equipment and intelligent O&M solutions to enter industrial parks and decentralized scenarios, leveraging ODA and PPP funding mechanisms, and turning "compliance" into sustainable overseas orders.

(Source: Vietnam Government Portal baochinhphu.vn, 2026-07-29; compiled by TIANYI TECH Content Editorial Department)