Transforming the Industrial Landscape in Vietnam: Insights from Key Leaders

Introduction to KCN Vietnam

Hardy Diec, the Chief Operating Officer of KCN Vietnam, emphasizes a commitment to investor satisfaction. The organization aims to align its offerings with evolving customer needs, focusing on introducing new product types, including ready-built factories (RBFs) and advanced warehouses. These initiatives are increasingly crucial as the industrial real estate sector shifts toward sustainability.

Embracing Sustainable Development

As Hardy notes, the green factor is becoming a competitive advantage in attracting manufacturers and investors. The rising demand for eco-friendly facilities—characterized by green building certifications and minimal carbon emissions—reflects a broader shift towards environmental consciousness among tenants and investors alike. Prominent government regulations are also propelling this shift, making sustainability an essential aspect of industrial real estate development in Vietnam.

Emerging Trends in Industrial Property

The future holds exciting prospects for specialized industrial properties, including bonded warehouses and cold storage facilities. Beyond traditional RBFs, there’s a growing need for automated systems integrated with the Internet of Things (IoT), which can enhance operational efficiency through data-driven analytics.

Moreover, eco-compounds are gaining traction, offering value-added services such as all-inclusive facility management, logistics support, and even amenities like housing and recreation for workforce development. KCN Vietnam plans to diversify its offerings in anticipation of these trends, ensuring its relevance in an evolving market landscape.

Commitment to Green Certifications

KCN Vietnam is dedicated to pursuing LEED or equivalent certifications for future projects, which reflects a long-term commitment to sustainability. Initiatives like the recent ground-breaking for a second phase of an RBF and warehouse at DEEP C Industrial Zone in Haiphong underscore this commitment.

Navigating Challenges

While striving for green certification presents challenges—such as resource constraints and the need for skilled professionals—the benefits it portends for the environment, economy, and community are immense, according to Hardy. The long-term gains clearly outweigh the initial hurdles, not just for KCN but for the community and the nation as a whole.

Insights from Industry Leaders: Paul Tonkes of Indochina Kajima Development

Transitioning from KCN, Paul Tonkes, the Industrial Deputy Director of Indochina Kajima Development, echoes the sentiments of prioritizing sustainable industrial facilities. Leading Core5 Haiphong, the company offers high-quality ready-built factories, emphasizing how green factory designs can attract foreign investors while aligning with Vietnam’s commitment to reducing greenhouse gas emissions.

ESG Implementation: Pham Hong Diep of Shinec

Pham Hong Diep, Chairman of Shinec, further discusses the role of Environmental, Social, and Governance (ESG) standards in developing sustainable industrial parks. The recent publication of an ESG report for Nam Cau Kien Industrial Park illustrates Shinec’s dedication to transparency and sustainability, positioning itself as a leader in the circular economy.

The Complexity of ESG Reporting

Diep notes the complexity and cost that come with creating comprehensive reports, but he asserts that they are crucial for achieving long-term sustainability goals. His commitment to integrating ESG into the business strategy reflects a growing trend among Vietnam’s industrial players to adopt frameworks that resonate with environmentally conscious investors.

NS BlueScope Vietnam’s Sustainability Journey

Truong Anh Hai, Vice President for Environment, Health, Safety, and Community at NS BlueScope Vietnam, highlights the need for businesses to embed sustainability into their operations from the get-go. By adopting an ESG framework tailored to the steel industry, NS BlueScope reflects a proactive stance in integrating environmental considerations into all facets of its operations.

Challenges of Implementation

Despite the broad ESG criteria, Hai emphasizes the importance of each department working collaboratively toward sustainable goals. This approach not only promotes individual accountability but also fosters an integrated organizational culture around sustainability.

Tien Phong Plastic’s Commitment to Green Production

Tran Nhat Ninh, Deputy General Director of Engineering at Tien Phong Plastic, articulates a long-term strategy focused on producing recyclable, socially responsible products. The company’s investment in renewable energy technologies reflects a broader commitment to achieving net-zero carbon emissions in its production processes.

Community and Regulatory Collaborations

Ninh points out that collaborative efforts among stakeholders—governments, businesses, and communities—are vital for achieving sustainability goals. His emphasis on green production extended from supply chains to packaging illustrates the interconnected nature of modern industrial practices.

The Role of Infrastructure in Attracting Investment

Truong An Duong, General Manager of North Vietnam and Residential at Frasers Property Vietnam, discusses how Vietnam’s robust infrastructure investments have boosted foreign direct investment (FDI) in the manufacturing sector. Improved logistics infrastructure—including roads, seaports, and energy networks—positions Vietnam as a competitive player in the global market.

Competing in a Global Arena

Given the competitive landscape in Southeast Asia, Vietnam is actively leveraging free trade agreements to enhance its attractiveness for FDI. However, Duong notes the importance of recognizing competitors in the region, such as Thailand and Malaysia, and their specific strengths in various industries.

Soilbuild International: Green Building Innovations

Finally, Ben Ding Khoon Yew, General Director of Soilbuild International (Vietnam), underlines the company’s commitment to green practices. With nearly five decades of experience, Soilbuild is extending its successful model from Singapore to the Vietnamese market, integrating advanced technologies that prioritize sustainability.

Future Aspirations

Soilbuild’s projects aim for net-zero and positive energy buildings, showcasing the potential for future developments in Vietnam’s industrial sector. The adoption of innovative building technologies signifies a step forward in ensuring that sustainability remains integrated into building designs.

Closing Thoughts

The insights shared by these industry leaders paint a clear picture of an industrial sector undergoing transformative change in Vietnam. Sustainability, driven by technological integration, evolving standards, and community involvement, is at the forefront of this shift. Each company, from KCN Vietnam to Soilbuild, reflects a commitment not just to economic success but to a sustainable future for Vietnam and beyond.