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

Author

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  • 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
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    References listed on IDEAS

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    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. Yiannis Xenidis & Demos Angelides, 2005. "The financial risks in build-operate-transfer projects," Construction Management and Economics, Taylor & Francis Journals, vol. 23(4), pages 431-441.
    4. 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.
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    Cited by:

    1. Samuel Kojo Aidoo & Patricia Lindelwa Makoni, 2026. "Macroeconomic and Sectoral Determinants of Alternative Infrastructure Funding Models in Ghana: A Dynamic Time‐Series Analysis," Journal of Critical Infrastructure Policy, John Wiley & Sons, vol. 7(1), January.

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