The Vietnam Development Bank (VDB) is supporting the construction of a water supply system in Hong Ngu town, Dong Thap province in Vietnam. The project, owned by the Dong Thap Water Supply, Sanitation and Urban Environment Company, is a component of the Investment Program of urban water supply in Mekong Delta, funded by the French Government’s ODA through the French Development Agency (AFD). It has a total investment of over VND 155 billion, of which VND 112.5 billion comes from AFD through VDB and the balance of VDN 42.7 billion as counterpart fund. Using surface water from Tien River, the water treatment factory has a designed capacity of 10.000 m3/day and night. After construction, the project will distribute clean water for inner wards of Hong Ngu town and surrounding areas through its a pipeline network length of more than 100,000 meters. This project construction will meet the urgent need for clean water in the region, increasing people’s standards of life, reducing the harm caused by unclean water use, improving environmental conditions and creating stable jobs for local labourers as well as positively contributing to economic and social development of the area.