Green Transformation and Development of New Industrial Parks

The development of ecological industrial parks (IPs) and green IPs is not only a common trend but also an important contribution to realizing commitments towards net zero goals by 2050, the National Strategy on Green Growth for the 2021 - 2030 period, with a vision 2050, and many other important policies of Vietnam.

Many outstanding results

Green growth, sustainable development, and circular economy are becoming a megatrend and a top choice of many countries in the world. With the support of international organizations and experts and the effort and determination of the Government, Vietnam has piloted transforming some traditional IPs to ecological IPs by promoting cleaner production and resource-efficient production cooperation.

In 2015 - 2019, the Eco-Industrial Park initiative was piloted in Ninh Binh, Da Nang and Can Tho. After more than four years of supporting the transformation of four pilot industrial parks (Khanh Phu and Gian Khau in Ninh Binh, Hoa Khanh in Da Nang and Tra Noc Industrial Park 1&2 in Can Tho), solutions for efficient use of resources and cleaner production have helped 72 tenants reduce 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 and over VND76 billion a year; mobilized over VND207 billion from the private sector for implementation; cut energy, water and chemicals and waste; and diminished 32 Kt of CO2 a year.

From 2020 to 2024, with financial support from the Swiss Government, the Ministry of Planning and Investment continued to coordinate with UNIDO to replicate the eco-industrial park model in Hai Phong, Dong Nai, Ho Chi Minh City and achieved very encouraging results. By the end of May 2024, as many as 90 companies had been supported with 889 Resource Efficient and Cleaner Production (RECP) solutions in four industrial parks: Hiep Phuoc (Ho Chi Minh City), Amata (Dong Nai), Dinh Vu (Hai Phong) and Hoa Khanh (Da Nang). Among them, 429 solutions have been implemented, helping reduce energy, water and CO2 emissions and bring commercial interests to enterprises. department many as 62 industrial symbiosis and industrial-urban symbiosis opportunities are proposed for implementation in three industrial parks (Hiep Phuoc, Amata and Dinh Vu) with 18 highly feasible cases, contributing to optimizing waste reuse and implementing the circular economy.

In the 2024 - 2028 period, based on positive achievements, the Swiss Government has committed to further siding with UNIDO with Vietnam to promote eco-industrial parks coupled with the circular economy. The document on the US$3.6 million Project "Scaling up eco-industrial park approach to foster circular economy in Vietnam" sponsored by the Swiss State Secretariat for Economic Affairs was approved by the Minister of Planning and Investment in August 2024, thus further promoting eco-industrial parks in Hai Phong, Bac Ninh, Dong Nai, Ho Chi Minh City and Long An.

In addition, within the cooperation framework with other international organizations, the Ministry of Planning and Investment is coordinating with the World Bank (WB) to support the construction of eco-industrial parks in Binh Duong; applying circular water networks for some IPs with a high concentration of textile and garment manufacturing in Hung Yen and Thua Thien Hue; and continuing to expand cooperation with the European Union (EU) Delegation and the Vietnam Sustainable Trade Initiative of the Netherlands (IDH), hence boosting support for tenants in IPs to carry out circular economy, meet sustainability requirements and join global value chains.

Removing bottlenecks

Remarking on opportunities and challenges in developing green industrial parks in the coming time, Ms. Vuong Thi Minh Hieu, Deputy Director of the Department of Economic Zone Management under the Ministry of Planning and Investment, said: The world is witnessing a strong transformation in the order and structure of trade and investment. This is both an opportunity and a challenge for businesses to make breakthroughs, especially in attracting investment fund and joining value chains of new industries such as green energy and semiconductor industry. To realize these sustainable development goals, IPs need to have breakthrough solutions, suitable for the new trends, in the coming time.

Accordingly, industrial parks need to boldly lead new IP development models and focus on promoting eco-IP and green IP development models. They need to plan the formation of technology and innovation zones, aiming to make "Vietnam's Silicon Valley" and place science, technology and innovation as pillars for future development.

They need to further promote selective investment attraction, actively contact and closely approach the world's leading corporations in the industries and fields that Vietnam prioritizes; develop production, industry and services that conserve and effectively use land resources in the context of regional development connectivity and form industrial clusters; and not build IPs on agricultural land with stable productivity (especially rice land) and in areas with difficult land compensation and site clearance.

Furthermore, economic development must go together with social infrastructure development; ensure environmental sustainability; plan and implement solutions to build accommodations, service facilities and public utilities for workers in industrial parks and economic zones; perfect the industrial - urban - service ecosystem; and ensure the sustainable development of IPs and EZs.

In particular, they need to enhance the competitiveness and attractiveness of local IPs and EZs by improving infrastructure (transportation, seaports, airports and logistics services) and boosting scientific and technological research and innovation.

The Ministry of Planning and Investment will continue to closely coordinate with localities and provide the most favorable conditions for IPs and EZs across the country to develop quickly, sustainably and effectively, especially for new IP models like eco-IPs. In particular, there will be a need for researching and developing the Law on Industrial Parks and Economic Zones to ensure increased international competitiveness of IP and EZ models.

By Thu Ha, Vietnam Business Forum