Transition to an Eco-Industrial Park Model: A Business Perspective

Việt NamViệt Nam25/08/2024



DNVN – Mr. Pham Hong Diep – Chairman of the Board of Directors of Shinec Joint Stock Company, Investor of Nam Cau Kien Industrial Park (Hai Phong) said that the process of converting to an ecological industrial park model not only inspires investors in the industrial park but also brings this model to invest in other provinces.

The model of export processing zones and industrial parks (IPs) in Vietnam was born in 1991, based on the Party's renovation policy, aiming to implement the policy of opening up and attracting resources from economic sectors. This model is being promoted to be perfected to adapt to the new context. In particular, the transition to an ecological IP model is a trend and an inevitable requirement for the development of a green economy and a circular economy.

According to the report of 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. There are 301 industrial parks in operation, attracting a large amount of investment capital. In recent years, FDI capital in industrial parks and economic zones has accounted for about 35 - 40% of the total registered FDI capital increase of the whole country.

Nam Cau Kien is one of the pioneering industrial parks in the transition to ecology.

Vietnam has piloted the conversion of some traditional industrial parks into eco-industrial parks. During the period 2014 - 2019, the Ministry of Planning and Investment coordinated with the United Nations Industrial Development Organization (UNIDO) to support the conversion of 4 pilot industrial parks. Including: Khanh Phu Industrial Park, Gian Khau Industrial Park (Ninh Binh); Hoa Khanh Industrial Park (Da Nang), Tra Noc Industrial Park 1, 2 (Can Tho).

In the period of 2020 - 2024, with financial support from the Swiss Government, the Ministry of Planning and Investment continued to coordinate with UNIDO to replicate the conversion process to the ecological industrial park model in 3 more localities: Hai Phong, Dong Nai, Ho Chi Minh City and achieved very encouraging results.

By the end of May 2024, the Ministry of Planning and Investment and UNIDO had supported 90 enterprises 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 these, 429 solutions have been implemented, contributing to saving energy, water, reducing CO2 emissions and bringing economic benefits to enterprises.

The Ministry of Planning and Investment is also proposing to implement 62 industrial symbiosis and industrial-urban symbiosis opportunities 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.

Sharing with the press during a field trip for the press on the topic of "Converting traditional industrial parks to ecological industrial parks", on August 21, Mr. Pham Van Tuan - Deputy General Director of An Phat Holdings Group (Investor of An Phat Complex Industrial Park and An Phat 1 Industrial Park, Hai Duong) said that building sustainable, environmentally friendly industrial parks according to environmental, social and governance (ESG) standards has become a top priority in the group's long-term development strategy.

Factories in An Phat Industrial Park are built in a green and clean direction.

This is not only a factor that helps An Phat Industrial Park attract “green” FDI capital but also actively contributes to the process of realizing the Government’s commitment to bring net emissions to 0 (Net Zero) by 2050. Right from the beginning of project implementation, An Phat Holdings’ Board of Directors has required factories to be built in a green and clean direction.

At the same time, factories are required to have waste treatment systems, exhaust gas and water sources that meet standards; not affecting the lives of people and the ecosystem surrounding the industrial park. In particular, An Phat Holdings encourages and supports businesses to build green buildings, using renewable energy to save electricity.

According to Mr. Pham Hong Diep - Chairman of the Board of Directors of Shinec Joint Stock Company (investor of Nam Cau Kien Industrial Park, Hai Phong - a place considered typical in the process of converting to an ecological model): "What we take from the land, we return to the land. Not only inspiring investors in the industrial park, we want to bring this model to invest in other provinces".

Shinec Joint Stock Company has invested in a Japanese organic waste decomposition machine to treat waste at Nam Cau Kien Industrial Park. Shinec's goal is to strive to achieve "zero waste" in the industrial park by the end of 2024, with 100% of waste being treated.

In an interview with the press, Mr. Bruno Jaspaert – General Director of DEEP C Industrial Park (Hai Phong) emphasized that the journey to an ecological industrial park still has many new things. This process requires perseverance, capital as well as preferential policies.

“At this point, I have not seen any incentives for eco-industrial parks. The difference between conventional investment and sustainable investment is a matter of time. To get the same amount of revenue, sustainable investment will take more time.

Therefore, the best way in the preferential policy for infrastructure investors is for the Government to consider that if investors successfully build ecological industrial parks, the project duration will be extended to 70 years (instead of 50 years as currently regulated). This will help investors have a longer time to allocate depreciation costs," Mr. Bruno Jaspaert suggested.


Hoai Anh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/chuyen-doi-sang-mo-hinh-khu-cong-nghiep-sinh-thai-goc-nhin-tu-doanh-nghiep/20240825111649761


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