IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v18y2025i4p216-d1637035.html
   My bibliography  Save this article

Balancing Financial Risks with Social and Economic Benefits: Two Case Studies of Private Sector Water, Sanitation, and Hygiene Suppliers in Rural Vietnam

Author

Listed:
  • Lien Pham

    (Research & Evaluation, InsightRise, Sydney 2076, Australia)

Abstract

This paper examines the financial health risks that private sector water, sanitation, and hygiene (WASH) businesses in rural Vietnam face. It investigates the challenges faced by water operators and sanitation suppliers involved in donor-funded development projects aimed at supporting poor and vulnerable households. Through surveys and focus group discussions with 15 suppliers who worked in public–private partnerships, this research examines the financial risk factors affecting water and sanitation suppliers and their impact on financial viability through two case studies. For water operators, the risks primarily involve infrastructure management, operational costs, and revenue instability. In the sanitation sector, risks center around fluctuating material prices, limited business expansion capital, and household affordability. This study highlights the dual role of government and donor subsidies, which enhance service accessibility but potentially distort market dynamics. It also underscores the need for targeted financial and policy interventions, including better access to microfinance, regulatory improvements, and human resource development. The findings aim to inform strategies for government, donors, and private sector actors in similar WASH development contexts to enhance financial sustainability, ensuring inclusive WASH services in underserved areas. This paper contributes to policy discussions by proposing mechanisms to balance public–private collaboration while fostering market resilience and equitable access to WASH services in emerging economies similar to that of Vietnam.

Suggested Citation

  • Lien Pham, 2025. "Balancing Financial Risks with Social and Economic Benefits: Two Case Studies of Private Sector Water, Sanitation, and Hygiene Suppliers in Rural Vietnam," JRFM, MDPI, vol. 18(4), pages 1-18, April.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:4:p:216-:d:1637035
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/18/4/216/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/18/4/216/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mugabi, Josses & Kayaga, Sam & Njiru, Cyrus, 2007. "Strategic planning for water utilities in developing countries," Utilities Policy, Elsevier, vol. 15(1), pages 1-8, March.
    2. Ms. Anja Baum, 2020. "Vietnam's Development Success Story and the Unfinished SDG Agenda," IMF Working Papers 2020/031, International Monetary Fund.
    3. Xavier Faz & Paul Breloff, 2012. "A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico," World Bank Publications - Reports 9441, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tuan Nguyen Tran, 2023. "A comparative study of urban land use efficiency of the cities of Hai Phong and Can Tho, Vietnam," Environmental & Socio-economic Studies, Sciendo, vol. 11(3), pages 43-53, September.
    2. Kim, Sung Eun & Park, Jong Hee & Rhee, Inbok & Yang, Joonseok, 2025. "What do aid recipients want? Public attitudes toward foreign aid in developing countries," World Development, Elsevier, vol. 186(C).
    3. Emmanuelle Bouquet & Sol�ne Morvant-Roux & Gerardo Rodriguez-Solis, 2015. "Agricultural Workers, Credit Rationing and Family Networks in Rural Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 51(5), pages 523-537, May.
    4. Nguyen, Thi Cuc & Miatto, Alessio & Kim, Junbeum, 2024. "Material services in an emerging economy: Tracking resource utilization in Vietnam's shelter, thermal comfort, and road transportation," Ecological Economics, Elsevier, vol. 220(C).
    5. Harrison Mutikanga & Saroj Sharma & Kalanithy Vairavamoorthy, 2011. "Multi-criteria Decision Analysis: A Strategic Planning Tool for Water Loss Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(14), pages 3947-3969, November.
    6. Zorica Srdjevic & Ratko Bajcetic & Bojan Srdjevic, 2012. "Identifying the Criteria Set for Multicriteria Decision Making Based on SWOT/PESTLE Analysis: A Case Study of Reconstructing A Water Intake Structure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(12), pages 3379-3393, September.
    7. Schouten, M. & Halim, R.D., 2010. "Resolving strategy paradoxes of water loss reduction: A synthesis in Jakarta," Resources, Conservation & Recycling, Elsevier, vol. 54(12), pages 1322-1330.
    8. Abubakar, Ismaila Rimi, 2016. "Quality dimensions of public water services in Abuja, Nigeria," Utilities Policy, Elsevier, vol. 38(C), pages 43-51.
    9. Banda, E.M. & Mwale, F.D., 2018. "Utility performance in supplying water to informal settlements: A case study from Malawi," Utilities Policy, Elsevier, vol. 55(C), pages 151-157.
    10. Arve Hansen, 2022. "Negotiating Unsustainable Food Transformations: Development, Middle Classes and Everyday Food Practices in Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1441-1459, June.
    11. Amr Hosny, 2021. "Adapting to Climate Change in Vietnam: Insights from a Structural Model," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(2), pages 145-152, June.
    12. Proença, Lúcio Costa & Ghisi, Enedir & Tavares, Davi da Fonseca & Coelho, Gabriel Marcon, 2011. "Potential for electricity savings by reducing potable water consumption in a city scale," Resources, Conservation & Recycling, Elsevier, vol. 55(11), pages 960-965.
    13. Mohammed Aminu Sualihu & M. Arifur Rahman & Zakiya Tofik-Abu, 2017. "The Payment Behavior of Water Utility Customers in the Greater Accra Region of Ghana: An Empirical Analysis," SAGE Open, , vol. 7(3), pages 21582440177, September.
    14. Moyo, Laurane & Wehn, Uta, 2017. "Interaction dynamics: The case of the water sector skills plan in South Africa," Evaluation and Program Planning, Elsevier, vol. 60(C), pages 91-99.
    15. Amarasekara, Chandranath & Venuganan, Poongothai, 2021. "Comparative Review of the Human Capital Development Journeys of Vietnam and Sri Lanka," MPRA Paper 111204, University Library of Munich, Germany.
    16. Henrietta E. M. George-Williams & Dexter V. L. Hunt & Christopher D. F. Rogers, 2024. "Sustainable Water Infrastructure: Visions and Options for Sub-Saharan Africa," Sustainability, MDPI, vol. 16(4), pages 1-30, February.
    17. Golam MOINUDDIN, 2013. "Urban Basic Utilities Management Under Fragmented Governance: An Oratory On Its Contribution In Cities Of Developing World," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(4), pages 85-106, November.
    18. Nazari, Bijan & Liaghat, Abdolmajid & Akbari, Mohammad Reza & Keshavarz, Marzieh, 2018. "Irrigation water management in Iran: Implications for water use efficiency improvement," Agricultural Water Management, Elsevier, vol. 208(C), pages 7-18.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:18:y:2025:i:4:p:216-:d:1637035. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.