Enterprises subject to investment attraction spending more than 320 billion VND are muddy in Dak Lak

Dia kinh doanh

More than 10 years ago, people in Cu Kuin district and some areas in Buon Ma Thuot city had a serious lack of domestic water, making life extremely difficult.

To solve this situation, the Dak Lak Provincial People's Committee has invited businesses to invest and build factories to provide clean water for people.

In 2017, the Dak Lak Provincial People's Committee approved the investment policy for the inter-commune water supply project in Cu Kuin district. Buon Ma Thuot Water Supply Company Limited is the investor with a total amount of more than 320 billion VND to date.

The project's goal is to supplement domestic water sources (piped) for Buon Ma Thuot city, with a capacity of 15,000 m3/day.

Before implementing the project, the leaders of Dak Lak Provincial People's Committee held many meetings and concluded in writing directing Dak Lak Water Supply and Construction Investment Company Limited (at that time not equitized - PV) to sign a water purchase contract.

This is the basis for banks to disburse loans to businesses to implement the project. In 2018, the two sides officially signed a water sale and purchase contract with a volume of 15,000m3/day. In April 2019, this project was officially completed and put into operation.

However, the tragedy has also begun for Buon Ma Thuot Water Supply Company Limited. First of all, in 2019, Dak Lak Water Supply and Construction Investment Company Limited equitized and changed its name to Dak Lak Water Supply Joint Stock Company (Dakwaco). According to the equitization rate, the State only holds 36% of shares, the private sector owns more than 58%.

After equitization, this enterprise did not comply with the signed contract. In 2019, Dakwaco bought an average of 1,277m3/day from partners, accounting for 9% of the signed volume in the contract; in 2020, it decreased to 1,229m3/day, accounting for 8%; in 2021, it decreased to 220m3/day, accounting for 1%; in 2022, it was 198m3/day, accounting for 1%; in 2023, it was 156m3/day, accounting for 1%; in 2024, it was 125m3/day, accounting for 0.84%.

After many years of buying in small quantities, in early 2025, Dakwaco stopped buying water from a partner while the contract between the two parties was valid until 2043.

Mr. Le Quoc Nam - Director of Buon Ma Thuot Water Supply Company Limited - said: "We are supplying water to more than 2,700 households in Cu Kuin district. In early 2025, Dakwaco's decision to stop buying water to supply to people in Buon Ma Thuot city caused our business to plummet, and debt to pillow up."

"Because of too many difficulties, we were forced to send a document to the competent authority requesting to stop supplying water to people in Cu Kuin district. If the Provincial People's Committee does not take drastic measures to resolve the issue, businesses will be forced to temporarily suspend water supply because their revenue is not enough to cover expenses," Mr. Nam added.

Having lived in the locality for more than 30 years, Mr. Nguyen Van Tam (Cu Kuin district) said that hearing the news that a water supply enterprise was about to stop operating, people in the area were very confused. If the company does not continue to operate, it will be very difficult for us to have a source of clean water for use.

4 months, still no meeting to resolve difficulties for businesses

In January 2025, the Department of Finance sent a document to the Dak Lak Provincial People's Committee to advise on a plan to handle the proposal of Buon Ma Thuot Water Supply Company Limited.

Accordingly, the Department of Finance requested the Provincial People's Committee to chair a meeting with the participation of relevant parties to review and remove obstacles and difficulties for businesses or request Buon Ma Thuot Water Supply Company Limited to file a lawsuit in court according to regulations.

However, more than 4 months have passed, and the Dak Lak Provincial People's Committee has not yet held a meeting as requested by the Department of Finance.

For this project, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) participated as a sponsor with a capital of up to 220 billion VND. Of which, Vietcombank Gia Dinh (HCMC)'s capital is 143 billion VND and Vietcombank Dak Lak's capital is 77 billion VND.

In mid-April 2025, Vietcombank Gia Dinh sent a document requesting the Provincial Party Committee and the People's Committee of Dak Lak province to consider supporting the removal of difficulties and obstacles that Buon Ma Thuot Water Supply Company Limited is facing.

Thereby, ensuring the financial plan of the investment project, avoiding affecting the security of water resources. "Due to the urgent nature of the situation of paying loans to businesses as well as avoiding loss of State capital, we hope to receive attention, direction and help from the Dak Lak Provincial People's Committee," the document stated.

Discussing this issue, Mr. Truong Cong Thai, Vice Chairman of Dak Lak Provincial People's Committee affirmed: "The Provincial People's Committee will meet to discuss and focus on solving this issue".