Source: Vietnam Environment and Urban E-Magazine

From 4 industrial parks (IPs) piloting the ecological IP model a decade ago, dozens of IPs have now been making efforts to convert to this model.

Ecological Industrial Park – Selection criteria of FDI enterprises

According to the Department of Economic Zones Management, Ministry of Planning and Investment, by the end of July 2024, the whole country had 431 industrial parks and export processing zones established with a total area of about 132.3 thousand hectares, creating an industrial land fund of about 89.9 thousand hectares; of which 301 industrial parks have come into operation, attracting large amounts of investment capital, supplementing important resources for investment in socio-economic development of the country in general and localities in particular.

In recent years, FDI capital in industrial parks and economic zones accounts for about 35 – 40% of the total registered FDI capital increase of the whole country; if only counting the processing and manufacturing sector, FDI capital in industrial parks and economic zones accounts for 70 – 80% of the total registered capital of the whole country.

Industrial parks and economic zones have truly become key areas attracting large domestic and foreign investment capital and projects, and are the destination of many leading corporations in the world (Samsung, LG, Canon, Foxconn, Lego, Gortek, Hyosung, Formosa…), playing an important role in the total state budget revenue, creating jobs, contributing to improving competitiveness, accelerating the process of industrialization, modernization, restructuring the economy and promoting the process of economic integration of Vietnam.

Not outside the general trend of the world, with the support of international organizations and experts; the efforts and determination of the Government, in the period of 2015-2019, Vietnam has piloted the eco-industrial park initiative in 3 localities: Ninh Binh, Da Nang, Can Tho, implemented by the Ministry of Planning and Investment in coordination with the United Nations Industrial Development Organization (UNIDO) with funding from the Swiss State Secretariat for Economic Affairs (SECO), the Global Environment Facility (GEF) and the United Nations Development Program (UNDP).

The pilot activities to implement ecological industrial parks have achieved positive results. After more than 4 years of supporting the conversion of 4 pilot industrial parks (Khanh Phu Industrial Park, Gian Khau Industrial Park in Ninh Binh, Hoa Khanh Industrial Park in Da Nang and Tra Noc Industrial Park 12 in Can Tho), the solutions for efficient use of resources and cleaner production proposed by the project have helped 72 enterprises save more than 22,000 MWh of electricity, 600,000 m3 of water, 140 TJ of fossil fuels, nearly 3,600 tons of chemicals and waste, over 76 billion VND/year and mobilized over 207 billion VND from the private sector, cutting 32 Kt of CO2/year.

From 2020-2024, with financial support from the Swiss Government, the Ministry of Planning and Investment will continue to coordinate with UNIDO to replicate the ecological industrial park model in 3 more localities: Hai Phong, Dong Nai, and Ho Chi Minh City.

By the end of May 2024, 90 enterprises had been supported with 889 resource efficiency and cleaner production (RECP) solutions in 4 industrial parks (Hiep Phuoc – Ho Chi Minh City; Amata – Dong Nai; Dinh Vu – Hai Phong; and Hoa Khanh – Da Nang), of which 429 solutions have been implemented, contributing to saving energy, water, reducing CO2 emissions and bringing economic benefits to enterprises; proposing to implement 62 industrial symbiosis opportunities, industrial – urban symbiosis for 3 industrial parks (Hiep Phuoc, Amata, Dinh Vu) with 18 highly feasible cases, contributing to optimizing waste reuse, concretizing the implementation of circular economy.

In addition, within the framework of cooperation with other international organizations, the Ministry of Planning and Investment is currently coordinating with the World Bank to support the construction of ecological industrial parks in Binh Duong; implementing water circulation networks for some industrial parks with a high concentration of textile and garment activities in Hung Yen and Thua Thien Hue; promoting the efficient use of energy in industrial parks to build ecological industrial parks following the Korean model; continuing to expand cooperation activities with the European Union (EU) Delegation, the Vietnam Sustainable Trade Initiative of the Netherlands (IDH), … to deploy activities to support enterprises in industrial parks to implement circular economy in production, meeting the requirements of sustainable development of the industry chain to participate in the global value chain.

According to Ms. Vuong Thi Minh Hieu, Deputy Director of the Department of Economic Zone Management, the strong implementation of ecological industrial parks within the framework of international cooperation projects in recent times has had a widespread meaning, raising awareness of sustainable development for many localities and enterprises investing in industrial park infrastructure in Vietnam…

“It can be said that eco-industrial parks are becoming the selection criteria of FDI enterprises with the goal of sustainable development, economic benefits combined with responsibility to the community and society. Many localities and industrial park infrastructure investors identify the development of industrial parks according to the eco-industrial park model as an inevitable and urgent need to create sustainable competitive advantages. Eco-industrial parks will contribute significantly to efforts to respond to climate change, mobilize resources from the private sector for green industrial solutions, ensure energy security, and demonstrate the political determination of the Government in implementing sustainable development commitments…”, said a representative of the Department of Economic Zone Management.

Industrial park development associated with sustainable development, green growth, circular economy

According to the representative of the Department of Economic Zones Management, sustainable development is no longer a slogan but is actually becoming an inevitable trend, a core value of enterprises, helping enterprises determine their vision and business strategy. This is both an opportunity and a challenge for Vietnamese enterprises to develop breakthroughs and participate deeply in the global value chain.

“To realize the goal of sustainable development, industrial parks in the coming time need to have breakthrough solutions, suitable for new trends…”, Ms. Vuong Thi Minh Hieu affirmed, while emphasizing the focus.

Firstly, boldly pioneer in changing the development direction of new industrial park models. Accordingly, focus on promoting the development of ecological industrial park and green industrial park models, in which it is necessary to plan the formation of Technology and Innovation zones, aiming to build “Vietnam’s Silicon Valley”.

Secondly, take science, technology and innovation as the pillars for future development. In particular, shift to proactively creating and creating an environment for technology enterprises and start-ups to form and develop. Allocate land and resources for RD projects, research and testing of new products, application of high technology, digital transformation, energy saving, etc.

Third, selectively attract investment, proactively contact, and closely follow the world’s leading corporations in industries and fields that Vietnam prioritizes.

Fourth, develop production, industry and services based on the principle of saving and effectively using land resources, associated with regional development linkages, forming industry clusters; limit the development of industrial parks on agricultural land with stable productivity (especially rice land) and in areas where compensation and site clearance are difficult.

Fifth, economic development must go hand in hand with social infrastructure development; ensure environmental sustainability; plan and implement solutions to build housing and service works, public utilities for workers in industrial parks and economic zones; complete the industrial – urban – service ecosystem, ensuring sustainable development of industrial parks and economic zones.

Sixth, strengthen inspection and supervision of the implementation of legal regulations on environmental protection and construction of wastewater treatment plants; strongly reform administrative procedures, effectively implement one-stop procedures at the Management Board of Industrial Parks and Economic Zones, promptly support and remove difficulties for investors in industrial parks and economic zones.

Seventh, enhance the competitiveness and attractiveness of local industrial parks and economic zones through: Improving infrastructure (transportation, seaports, airports, logistics services); Strengthening scientific and technological research and innovation.

“Looking back at the country’s development over the past 35 years, it can be affirmed that the model of industrial parks and economic zones has, is and will continue to play an increasingly important role and position, as a driving force for growth and the process of industrialization and modernization of the country; a channel to attract domestic and foreign investment resources, contributing to improving the business environment and enhancing competitiveness, ensuring sustainable development. In the coming time, the Ministry of Planning and Investment will continue to closely coordinate with localities, creating the most favorable conditions for industrial parks and economic zones across the country to develop quickly, sustainably and effectively, especially for new industrial park models such as ecological industrial parks. In particular, researching and developing the Law on Industrial Parks and Economic Zones to ensure the enhancement of international competitiveness of industrial park and economic zone models is one of the key tasks that the Ministry of Planning and Investment will, together with ministries, branches and localities, implement in the coming time…” – The representative of the Department of Economic Zone Management added.