“We have worked in this field for years, which has passed through generations and served the development of the country. I think just follow your passion, and success will follow you”, said Mr David Duong, Chairman & CEO of Vietnam Waste Solutions, Inc. (VWS), in an interview with Vietnam Business Forum regarding the waste management and environmental protection industry. Phan Dong reports.
Could you please tell us about the activities of Da Phuoc Integrated Waste Management Facility (DPIWMF) since 2005 up to present time?
Originally, investment was projected at US$90 million for the Da Phuoc Integrated Waste Management Facility (DPIWMF). However, at this time the total investment has increased to over US$150 million. The reason being that we would like to build a better facility after completing a more thorough assessment than the initial one. In the beginning, we planned to receive all 128 ha of land at the same time to carry out the whole construction. However, the construction contracts, including building material and other prices, have increased remarkably at this time. In addition, there were some incurring works, such as cleaning trucks after leaving the site and power generation from landfill gas instead of burning in order to create more socially beneficial products. All these contingencies have been fully carried out. Although the selling price of power does not cover the costs, we still consistently implement these two projects as a way to protect the environment and improve our recycling capacity.
Daily operations of the DPIWMF include receiving garbage from HCMC, then classifying into one of 3 categories: for recycling, for producing compost, or for burial in a state-of-the-art sanitary landfill in compliance with US standards on environmental protection and suitable with Vietnam’s conditions. At present, Da Phuoc Integrated Waste Management Facility (DPIWMF) receives and treats 5,000 tonnes of waste per day. Up to now, over 10 million tonnes of waste have been safely received and treated at VWS contributing to the environmental protection of HCMC.
Besides Da Phuoc project, we know that VWS has just deployed a new project at Long An province. How is this work proceeding?
Over ten years after Da Phuoc Integrated Waste Management Facility (DPIWMF) was built and operated in Binh Chanh district, HCMC, we are still looking for new projects with the hope of investing more in the homeland. VWS was honoured when, in 2010, the Government selected it as the investor of Green Technology Park at Long An. In September 2015, VWS officially received the investment license of this Asia-class project. With an area of 1,760 ha, applied the most advanced technology following US environmental protection standards and in compliance with Vietnam environmental protection laws, this is the largest project in South East Asia currently.
The project has a designed treatment capacity of 40 million tonnes per day, with a duration of 75 to 100 years. As a result, the Green Technology Park shall be capable of providing comprehensive waste management for the Southern Key Economic Zone after 2020. Phase 1 of the Green Technology Park project has an investment capital of US$450 million. This is one of the biggest investment projects in all 645 currently-effective foreign investment projects in Long An province. December 30, 2015, we signed a loan of US$148 million from BIDV (Bank for Investment and Development of Vietnam). Phase 1 has a design capacity of receiving and treating over 10,000 tonnes per day. Project’s objectives from now on to 2020 shall treat solid wastes for Ho Chi Minh city and Long An province; and after 2020, shall cover other provinces of Southern Key Economic Zone.
At present, we are building the infrastructure such as roads, and access bridges, of which there is a 6-8 lane bridge. It is projected that in 2016 VWS shall complete major works and start to receive and treat wastes for Long An province.
What are differences between waste management in the US and Vietnam? What are the advantages and difficulties VWS faces in Vietnam? What is your impression when coming back Vietnam to do the investment?
At first, I hesitated to come back and invest in Vietnam as I have also experienced some business failure from my Vietnamese – American friends before. However, I was strongly inspired and motivated by my parents’ encouragement who always believed that if I could be successful in a place with such highly demanding technological and scientific standards as the US, why and what obstacles could prevent me from bringing those facilities to benefit our homeland. As far as I am experienced, there are always difficulties wherever you do business and such difficulties are different from country to country. In Vietnam, I faced a non-transparent competition. However, in return for that, I received the government’s support in solving our difficulties.
Doing business in the environmental and waste management industry has specific characteristics compared to other industries, i.e. you have markets everywhere you do business. Currently, in Vietnam there is an overload waste treatment in many big cities and provinces. However, the problem is the dependency on the owner of waste sources, which requires the determination of government leaders in order to reorder the waste management operations.
Our investment principles are currently focused on core works and technologies that we specialize in. The waste management and environmental protection industry require a large investment; as a result, the investor must ensure considerable capital. In addition, this industry also requires a passion and enthusiasm. We have worked in this field for years, passing through generations and serving the development of the country. I think just follow your passion, the success will follow you.
Our relentless efforts are repaid when our projects in the US and other cooperation projects in the Philippines and Hong Kong are flourishing. My return to my homeland Vietnam with two projects: Da Phuoc Integrated Waste Management Facility (DPIWMF) and currently the Green Technology Park at Long An, have really strengthened the bond between me and my homeland. I am always proud of my Vietnamese origin.
Would you please tell us the milestones of CWS and VWS in 2015?
The year 2015 is a remarkable journey for both CWS and VWS. There are two important milestones. First, VWS received the investment license for the Green Technology Park project at Long An with a capital of US$450 million for Phase 1. Second, CWS set out to implement the US$1 billion waste collection and treatment contract in Oakland city (California). If it must be determined which one is more important and practical, the Oakland contract shall be predominant as CWS has struggled for that bid for over two years with huge difficulties. There are no words to describe our feelings when receiving the winning news. The Oakland contract success brings happiness not only to CWS but also to my family, relatives, our associates working here, and Vietnamese communities in the States. However, the Green Technology Park project is also a big success for VWS as its investment scope is larger than our US investment.
What are CWS and VWS Outlook of 2016?
In 2016, VWS shall focus on the Green Technology Park because this is a big project, not only in terms of investment capital and high technology but also our desire to build a pioneer project that can become a social project with equitization potential. Success in this project will also help invite many other Vietnamese-Americans to come back and investment in Vietnam. At first, VWS must complete the infrastructure construction and win some contracts with governments of Mekong Delta provinces. It is projected that after 3 years, the equitization shall be public. VWS wants to prove that investors can earn profits from such a project. And that will be an advantage to call for other projects in the Central and the North of Vietnam.
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