HCMC racing to build modern waste-to-energy plants

HCMC is speeding up its plan to construct modern waste-to-energy incinerators to reduce landfill reliance, but a critical new project is stalled by national power planning regulations, awaiting urgent policy adjustments.

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The groundbreaking ceremony for the Vietstar Solid Waste Treatment Plant project at Northwest Solid Waste Treatment Complex in HCMC

According to the city’s plan, within the next one to two years, HCMC is set to bring two new waste-to-energy (WTE) plants to implementation. These facilities are expected to process roughly 40 percent of the more than 10,000 tonnes of household solid waste (HSW) the city generates daily.

Currently, the vast majority of HCMC’s HSW is handled at two primary locations, namely the Da Phuoc Waste Treatment Complex, operated by Vietnam Waste Solutions (VWS), and the Northwest Solid Waste Treatment Complex.

VWS alone takes in about 5,000 tonnes per day, while Vietstar JSC at the Northwest Complex processes around 2,000 tonnes. The remainder is managed by other firms like Tam Sinh Nghia and HCMC Urban Environment Co. Ltd. (CITENCO). While methods vary slightly, the overwhelming majority of this waste is processed in one way: landfilling.

To improve the city’s environmental footprint, the HCMC Department of Agriculture and Environment has confirmed that five major waste management companies have registered to transition their operations to modern WTE technology.

To date, two of these ambitious projects have already broken ground. The Tam Sinh Nghia WTE plant, designed to handle 2,000 tonnes per day, is slated for completion in 2026. Meanwhile, the VietStar WTE plant, with a similar capacity, is expected to be finished in 2027.

The other three projects are still navigating the final stages of their investment procedures. On top of these conversions, the city plans to launch a call for investment in a brand-new MSW treatment project. This new facility, to be developed under a Public-Private Partnership (PPP) model, will process 2,000 tonnes of waste per day and generate 40MW of power, specifically targeting the legacy waste that has been buried for years at the Northwest Solid Waste Treatment Complex.

The short-term reality, however, is stark. If only the two currently constructed plants are completed on schedule, they will only account for 4,000 tonnes of HSW daily. That leaves a staggering 6,000-plus tonnes of garbage every day that will continue to be managed the “traditional” way – piled high in landfills.

According to the municipal Department of Agriculture and Environment, the city is doing what it can to speed things up. HCMC is leveraging Resolution No. 28/2023/NQ-HDND to establish clear criteria, standards, and pricing structures that encourage private investors to upgrade their existing landfill sites to energy-recovery technologies. This framework allows the city to place additional, and more attractive, orders for waste processing, sweetening the deal for companies willing to make the technological leap.

However, a major roadblock has appeared for the new PPP project, and its name is Power Development Plan VIII (PDP8). In June of this year, the HCMC People’s Committee sent a formal request to the Ministry of Industry and Trade as well as the Prime Minister to amend the national plan.

The problem is that while a recent adjustment to PDP8 on April 15, 2025, did increase HCMC’s total WTE capacity to 344MW by 2030, the city has already allocated that entire capacity to four existing projects. This has left no room in the plan for the new, critically needed PPP project.

Fortunately, a potential solution has emerged. After discussions with the city, Tam Sinh Nghia JSC has reportedly agreed to transfer a portion of the power capacity allocated to its project’s second phase. Based on this agreement, the city has officially proposed that the central government allow a 40MW capacity transfer from the Tam Sinh Nghia project to the new PPP venture.

This adjustment, which is crucial for the new plant to move forward, is currently awaiting approval. Meanwhile, another WTE project by CITENCO is also awaiting the city’s green light to be proposed for inclusion in PDP8.

Da Phuoc Landfill proposes reduced waste acceptance hours, sparking concern

In a recent development that could disrupt the city’s waste management logistics, the HCMC Department of Agriculture and Environment sent a letter to Vietnam Waste Solutions (VWS) on August 14 regarding operating hours at Da Phuoc landfill site.

The letter was in response to a notice from VWS on August 11, which stated that starting today, August 15, 2025, the facility would no longer operate 24/7. Instead, it would only accept waste between 6:00 p.m. and 6:00 a.m. daily.

The Agriculture and Environment Department has assessed that this sudden change will have a significant negative impact on HSW collection and transportation schedules across the city. To prevent disruptions, the department has formally requested that VWS postpone the change in hours until October 1.

This grace period will allow the department to coordinate with local districts and transport companies to adjust their delivery schedules accordingly.

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