Transforming Ho Chi Minh City: The Roadmap for Net Zero Industrial Precincts
In an ambitious move towards sustainability, Monash University’s Climateworks Centre has collaborated with the Ho Chi Minh Institute for Development Studies (HIDS) to launch a first-of-its-kind consultation focusing on transforming major industrial zones in Ho Chi Minh City into net zero industrial precincts (NZIPs). This initiative marks a significant step in addressing climate change while maintaining economic growth in one of Southeast Asia’s bustling metropolises.
The roadmap targets five pivotal industrial zones: Saigon Hi-Tech Park, Tan Thuan Export Processing Zone (EPZ), Tan Tao, Hiep Phuoc, and Dong Nam. Collectively, these zones are responsible for over 70 percent of Ho Chi Minh City’s industrial energy consumption and employ more than half of its industrial workforce. This concentrated focus suggests a strategic approach to significantly curtail emissions while fostering economic viability.
During the launch event, Climateworks Centre CEO Anna Skarbek emphasized the importance of this transformation for both market access and export competitiveness. She stated, “The roadmap can deliver a coordinated step-by-step, place-based framework for emissions reductions, attracting clean investment, and ensuring industries remain competitive in a world racing towards net zero emissions.” This sentiment highlights how industrial zones, while being significant contributors to Vietnam’s economy, are also pivotal in achieving national climate goals.
Ho Chi Minh City’s industrial sectors contribute an impressive $US7 billion annually in exports and attract billions in foreign direct investment. They also play a crucial role in producing goods integral to the global transition to net zero. As such, the development of a clear framework for these zones to operate sustainably is not merely an environmental imperative but an economic strategy.
Further supporting this vision, Climateworks Centre’s Head of International Programs and Engagement, Trang Nguyen, noted that the green industrial transition is vital for future competitiveness. “The roadmap can put Ho Chi Minh City at the forefront of Vietnam’s green manufacturing push and act as a foundation for a national model for industrial transformation,” she asserted. This illustrates an opportunity for Ho Chi Minh City to lead by example, showing how collective efforts can drive substantial change across the nation.
In pursuing this roadmap, quick win solutions such as increasing renewable energy usage and electrifying industrial processes are highlighted as essential steps. Focusing on decarbonizing pivotal sectors like steel, textiles, and plastics can create a ripple effect that promotes broader environmental benefits. The emphasis on renewable energy can mitigate reliance on fossil fuels, positioning the city as a frontrunner in sustainable practices.
Besides the technical strategies, Nguyen advocated for establishing a coordinating task force dedicated to accelerating this industrial transition. This group would blend energy solutions with green skills training, enhance export promotion, and attract green investments—critical components for the success of NZIPs. The collaborative nature of this task force would ideally unite industry stakeholders, government entities, and financial partners in implementing effective and sustainable practices.
The roadmap initiative is part of a broader program between Climateworks Centre and Ho Chi Minh City, aiming to foster green investment while contributing to national net zero emissions objectives. Launched last year with a Memorandum of Understanding at the Ho Chi Minh Economic Forum, this program illustrates a strong commitment to sustainable development.