Hung made the statement at a January 20 ceremony in Hanoi to announce an environmental sanitation report in the Asia-Pacific region and Vietnam.
He said in recent years, along with rapid economic development, urban areas in Vietnam have had to face major challenges such as environmental pollution attributed to the improper discharge of waste from households and industrial workshops.
The waste water drainage system remains in poor condition despite upgrades, he said.
The Government has committed to spending around US$500 million per year upgrading the waste water treatment system and improving urban environment nationwide. However, meeting the demands of rapid urbanisation in the country is an ongoing problem.
Charles Feintein, Sector Manager for Water and Energy for the World Bank, also confirmed city dwellers are living in poor, substandard sanitary conditions. Economic losses due to poor hygiene in Vietnam are estimated at around US$780 million each year.
He added Vietnam needs to spend additional funds on waste water treatment in urban areas to develop healthy, clean cities in the future.
The US$8.3 billion aid is aimed at improving water sources in urban areas, raising public awareness of the issue and devising technical solutions for economic development, ensuring the quality of services.
