The city collects and treats nearly 13,500 tonnes of household solid waste a day, but only about 38 per cent is currently recycled or treated using new technology.
The department said waste services remained stable, but volumes have risen since the merger with Binh Duong and Ba Ria-Vung Tau, with 58.7 per cent still sent to landfill.
Nguyen Hong Nguyen, deputy director of the department, said projects converting landfill-based treatment to waste-to-energy technology were progressing more slowly than required.
Two projects are under construction and expected to begin operations in late 2026 and early 2027, while others remain in the investment preparation stage.
The city is supporting technology conversion projects by Vietstar and Tam Sinh Nghia, with trial operations targeted for December. It is also completing investment procedures for three recycling and industrial and hazardous waste treatment plants in Chau Pha.
Plans also include increasing the capacity of the Toc Tien waste-to-energy plant from 1,000 to 1,500 tonnes a day.
At the Da Phuoc Waste Treatment Complex, Vietnam Waste Solutions has proposed a waste-to-energy plant with capacity of about 3,000 tonnes a day, which is awaiting appraisal and licensing.
The company currently operates a leachate treatment system capable of handling 3,000 cubic metres a day, reuses treated water and captures landfill gas to generate electricity.
However, an 8,000-square-metre sorting and recycling facility at the complex remains underused because supplies of pre-sorted waste are inconsistent, highlighting the need for more effective waste separation at source.
Since September 1, HCM City has charged for household waste collection, transport and treatment based on the volume or weight generated, aiming to encourage waste reduction and sorting at source.
The city plans to introduce mandatory waste separation and dedicated collection in 2027, with sorted waste transported separately to prevent it from being mixed again.
Experts have highlighted shortcomings in collection vehicles, gathering points and transfer stations, while informal collectors remain fragmented and not fully integrated into the waste management system.
In the first nine months, the department inspected 48 waste treatment facilities and another 18 in industrial and high-tech zones, resulting in 94 violation records and 63 penalty decisions.
HCM City aims to raise the share of waste recycled or treated with new technology to more than 45 per cent in 2026 and 90 per cent by 2030.