Advancing Eco-Industrial Parks in Vietnam: A Sustainable Future

By Tuong Thuy

Date: Thu, September 15, 2022 | 6:19 pm GMT+7

In recent years, Vietnamese policymakers have been proactive in reforming the country’s legal framework to facilitate the development of eco-industrial parks (EIPs), in alignment with global sustainability trends. Deputy Minister of Planning and Investment Nguyen Bich Ngoc highlighted this initiative during a conference held in Ho Chi Minh City, emphasizing the importance of specific guidelines and regulations for the establishment of genuine EIPs.

Legislative Foundations

The government’s recent issuance of Decree No. 35 in May marks an important initial step in this endeavor. This decree focuses on the management of industrial parks and economic zones, though further detailed rules are necessary to simplify implementation. Currently, ambiguity in regulations poses various challenges for stakeholders involved in the establishment and operation of EIPs.

Understanding Eco-Industrial Parks

According to the United Nations Industrial Development Organization (UNIDO), an EIP is defined as a dedicated industrial area designed to ensure sustainability by integrating social, economic, and environmental considerations into its planning and management. Over time, the EIP concept has evolved to encompass a range of interrelated aspects, including:

• Resource-efficient production: Emphasizing the need for less waste in manufacturing processes.

• Industrial symbiosis: Encouraging cooperation among businesses to utilize each other’s by-products.

• Climate resilience: Designing parks to withstand environmental changes and reduce pollution.

The significance of these elements is increasingly recognized, as Vietnam seeks to create a modern, sustainable industrial landscape.

Groundbreaking Initiatives and Projects

To further these goals, a $1.8 million initiative supported by UNIDO and the Swiss government is being implemented from 2020 to 2023 across multiple cities in Vietnam, including Ho Chi Minh City, Hai Phong, Danang, Can Tho, and Dong Nai. This initiative aims to operationalize the eco-industrial park concept in several targeted industrial parks, such as:

• Hiep Phuoc in Ho Chi Minh City

• Deep C in Hai Phong

• Hoa Khanh in Danang

• Tra Noc 1 and 2 in Can Tho

• Amata in Dong Nai

These industrial parks have begun integrating practices essential for eco-friendliness, but they still encounter regulatory obstacles.

Challenges in Implementation

One of the key challenges discussed at the conference was the difficulty in obtaining necessary permits for environmentally friendly practices. For instance, Bruno Jaspaert, CEO of Deep C Industrial Zones, revealed that while his company has made significant strides in wastewater recycling and reuse, they have faced substantial delays in obtaining the necessary approvals to sell treated water. This reflects broader challenges in regulatory frameworks that often hinder innovation.

Similarly, Pham Anh Tuan from Amata Vietnam pointed out that although their parent company in Thailand has successfully implemented comprehensive wastewater recycling, the lack of clear regulations in Vietnam hampers similar efforts.

Need for Collaborative Frameworks

Collaboration between different stakeholders is crucial for the success of EIPs. Vu Anh Tu from the Ministry of Construction emphasized that achieving industrial symbiosis requires negotiation and compromise among businesses in the park. This also extends to providing adequate housing for workers and experts, as the current regulations are more suitable for traditional industrial parks.

Pham Hong Diep, chairman of Shinec JSC, noted that while establishing EIPs incurs higher initial costs compared to traditional parks, the long-term benefits are well worth the investment. However, a collaborative approach and strong political support are necessary to address these initial hurdles.

International Perspectives

During the conference, various international representatives shared their insights on the transition toward EIPs. For example, Alessandro Flammini from UNIDO Austria mentioned regulatory challenges in other countries, citing Indonesia’s restrictive laws around the reuse of industrial wastewater. Such regulations often delay the promotion of circular economies globally.

Moreover, Werner Bardill, the Swiss consul general in Ho Chi Minh City, underscored the critical need for strong political commitment from the Vietnamese government to achieve the desired advancements in this sector. He acknowledged that collaboration among various stakeholders at the conference demonstrated a significant step toward realizing these ambitious goals.

The Path Forward

In adapting to global trends and striving for sustainable growth, Vietnam’s government is working diligently to refine its legal framework governing eco-industrial parks. The Ministry of Planning and Investment (MPI) is actively completing social and economic indicators for EIPs, ensuring that they reflect the collective input of real estate developers and experts before final government submission.

With these collective efforts, Vietnam stands on the brink of significant advancements in eco-industrial development, a move that aligns closely with global sustainability objectives. The ongoing commitment from both the public and private sectors will be essential in shaping the future of industry in Vietnam, making it a pivotal player in the arena of sustainable economic growth.