It is seeking $17.5 million in non-refundable aid from the Japan International Cooperation Agency while the remaining $3.1 million will come from the government's coffers.
The new trenchless technology will be used to upgrade 2.78 km of underground sewers in the central Districts 1 and 3. This will add 50 years to the life of the network.
The technology enables the laying of underground pipes by boring tunnels and using drive and receptor shafts without having to dig up the entire length of the sewer.
Its obvious benefits are fewer road closures, traffic jams, and disturbances to people living in the vicinity, and less risk of street collapses and sewage network failure.
Preliminary preparations such as planning, choosing contractors and infrastructure relocation are underway, and are expected to be completed next year.
Ho Chi Minh City has 100km of concrete sewers, an outdated relic of the French colonial era that is in urgent need of replacement to prevent flooding.