This Review, undertaken by the World Bank Water & Sanitation Program, is provided at the request of the Ministry of Construction of the Socialist Republic of Vietnam with the objectives of (a) Providing guidance/recommendations concerning the reform proposals of state owned enterprises operating in the field of water supply and urban sanitation and (b) Providing guidance/recommendations concerning economic management options for service providers. It will be important to ensure that these reforms are undertaken in an explicitly poor-inclusive manner. The Review achieves these objectives through a review of the current situation, are view of progress on the reform agenda and presentation of potential options for improvement of the urban water and waste sector in Vietnam.