Investors eye waste treatment on Phu Quoc island

Enterprises are expressing an interest in investing in waste management on Phu Quoc island off the Mekong Delta province of Kien Giang, where waste is piling up at a rate of 170-180 tons a day.

Consecutive failures

In 2017, Toan Cau Renewable Energy Joint Stock Company (Toan Cau Company) invested VND230 billion ($9.3 million) in constructing a waste-to-energy plant in Bai Bon hamlet, Ham Ninh commune, Phu Quoc town, capable of processing 200 tons of waste daily.

However, during the testing phase, this project faced significant problems, turning the area into a sizable dump.

In 2021, state-owned lender VietinBank’s Phu Quoc branch, the creditor of Toan Cau Company, initiated a lawsuit against the firm to recover a principal debt of over VND85 billion ($3.4 million) and nearly VND20 billion ($813,670) in interest.

The company had used waste-to-energy equipment and technology, as well as property rights related to the waste-to-power plant project in Bai Bon hamlet, as collateral for the loans.

In 2022, VietinBank's Phu Quoc branch invited bids for Toan Cau Company’s debt, which amounted to more than VND122 billion ($4.9 million) at that time, including both the principal and interest.

As a result, the People’s Committee of Kien Giang province reassigned the project to Minh Thuan Thanh Construction Investment Co. Ltd.

However, during trial processing of around 100 tons of waste from July to September 2022, the plant failed to meet environmental requirements, emitting unpleasant odors that affected the lives of nearby residents.

On March 22, 2023, Kien Giang officially terminated the trial operation of the plant.

In May, Chairman of the provincial People’s Committee Lam Minh Thanh ordered the Department of Planning and Investment to urgently call for new investments in the project.

While waiting for a new investor, all waste in Phu Quoc City has been transported to the Dong Cay Sao temporary landfill in Cua Duong commune since 2019, quickly forming a new "garbage mountain".

Investors queue up for water treatment

Last May, Hanoi-based Licogi 13 JSC won the bid to manage the Dong Cay Sao interim landfill for 22 months at a cost of VND55 billion ($2.24 million).

Phu Quoc authorities have installed medium voltage power lines and handed over the ground for the investor to build the waste treatment facility, which is projected to undergo testing and become operational by the end of this year.

A number of other investors have submitted proposals to the Kien Giang administration, expressing their interest in investing in waste management solutions in Phu Quoc.

Among them, a Ho Chi Minh City-based company is looking to invest in waste treatment through thermal vaporization technology, while a company in the north central province of Thanh Hoa has applied to invest in a waste drying and recycling solution using biological products.

However, local authorities have not completed formal procedures for calling on waste treatment investments.

Nguyen Thanh Tung, head of the Phu Quoc Economic Zone Authority, explained that the selection of waste treatment investors for Phu Quoc has a 50-year timeline and requires approval from the provincial Department of Planning and Investment and the provincial People’s Committee.

“This process requires time and adherence to the procedures. Local authorities are making every effort to expedite waste management investment, ensuring a cleaner environment for Phu Quoc," he said.

As Vietnam’s largest island, Phu Quoc topped a list the of 10 most searched destinations by Vietnamese travelers for the year-end holiday season, according to a report from U.S. tech giant Google based on the frequency of searches on its online flight booking service called Google Flights from mid-December 2023 to mid-January 2024.

Situated to the south of the mainland in the Gulf of Thailand, Phu Quoc was Vietnam’s first island city that has long been famous for its long, sandy beaches and upscale resorts. It is also home to a marine sanctuary and a national park popular with trekkers.

This month, Phu Quoc Island ranked third in The Travel magazine's list of the 17 most budget-friendly tourist islands worldwide, while the island was honored by American travel magazine Condé Nast Traveler as one of the best to visit this year.

Phu Quoc received 4.7 million tourists in the nine months through September, up 15.5% from the corresponding period last year. Of the total, the number of foreign visitors topped 470,000, up 276% year-on-year.

The island raked in tourism revenue of VND12.23 trillion ($509 million) in the nine-month period, up 118% from a year earlier.