### Vietnam’s Industrial Parks: A Double-Edged Sword
Over three decades after establishing its first export processing zone, Vietnam has transformed dramatically. Today, the nation is home to hundreds of large-scale industrial parks, which employ millions and significantly contribute to the national output. These zones have become critical engines of economic growth and modernization. However, this remarkable success comes at a significant cost—environmental degradation. Many businesses have failed to prioritize environmental protection, resulting in rising pollution levels and regulatory failures.
### Growth vs. Environmental Protection
For many provinces in Vietnam, industrial parks symbolize progress and economic pride. Take Bac Giang, for example, which has emerged as a national manufacturing hub. With 12 approved industrial zones, eight of which are operational and nearing a 60% occupancy rate, the area’s growth is palpable. However, this rapid expansion brings challenges, particularly in waste management. The daily discharge of wastewater and solid waste has overwhelmed centralized treatment infrastructure, raising red flags about the sustainability of such growth.
### The Shortcomings of Environmental Monitoring
Despite many industrial parks reporting the existence of wastewater treatment plants and Environmental Impact Assessment (EIA) reports, these measures often exist only as formalities. Many EIAs were completed during the initial phases of investment but have not been updated even as companies expand operations significantly. For instance, Risesun New Material Vietnam Co., Ltd. faced a $15,300 fine for constructing additional factories without updating its EIA—a glaring example of an imbalanced industrial model where economic gain takes precedence over environmental accountability.
### Deteriorating Air and Water Quality
In Dong Nai province, the Bien Hoa 1 Industrial Park operates with outdated infrastructure that poses significant environmental risks. Monitoring reports indicate moderate water pollution levels, coupled with frequent organic and microbial contamination. Air quality also shows alarming levels of particulate matter and lead, which exceed national safety standards by as much as 2.45 times. Such degradation raises urgent questions about the long-term viability of these industrial zones.
### Hazardous Waste and the Outsourcing Dilemma
One key issue plaguing industrial parks is hazardous waste management. In Quang Chau Industrial Park, over 22,000 tons of hazardous waste and 37,000 tons of solid waste were generated in 2024, marking the highest figures in Bac Giang province. Unfortunately, most industrial zones lack dedicated storage or treatment facilities, compelling companies to outsource waste management. This “delegated responsibility” creates a façade of legal compliance amid real challenges in waste disposal, leading to hidden environmental costs.
### Bureaucratic Hurdles in Transitioning to Eco-Industrial Models
The 2020 Environmental Protection Law provided a glimmer of hope for eco-industrial models and circular economy initiatives. However, bureaucratic entanglements and inconsistent procedures have thwarted progress. Overlapping authority has created confusion; for instance, the Hai Phong Economic Zone Authority has found itself unable to assess environmental procedures due to restrictive laws. This fragmented governance complicates the one-stop-shop model aimed at promoting green growth in industrial parks.
### Legal Inconsistencies Hampering Compliance
Despite the push for eco-industrial zones, legal inconsistencies remain a significant barrier. Mr. Vu Van Tuong, Deputy Director of Bac Giang’s Department of Agriculture and Environment, pointed out the challenges posed by Article 31(3) of the Environmental Protection Law. This article requires separate EIAs for each project, even within industrial zones planned in phases. As a result, projects that comply with practical needs often face rejection during the EIA review process, stalling necessary developments.
### The Elusive Eco-Industrial Park
Although the legal framework for eco-industrial zones exists, there are no binding requirements for compliance. Local authorities often lack the enforcement power to implement these standards, leaving businesses confused about regulations and support systems. There’s also a lack of financial mechanisms tailored for industrial park enterprises; without standardized procedures for risk assessments or environmental scoring for loans, many small and medium enterprises struggle to fulfill environmental requirements. The capital needed for upgrades to sustainable infrastructure often leads to high-interest loans that discourage investment.
### Inadequate Planning and Workforce Challenges
Most industrial parks do not employ cluster-based planning or value chain integration, resulting in wasted opportunities for resource reuse. The absence of infrastructure to connect enterprises means waste cycles rarely close, and advanced circular management systems are notably absent. Environmental staff within authorities are often overwhelmed; in some jurisdictions, just one officer oversees multiple parks, while environmental responsibilities are typically supplementary roles for administrative personnel.
### Prioritizing Environmental Protection
This systemic challenge highlights a critical issue: environmental protection is not yet a core priority at all levels within industrial management. Until a fundamental shift occurs toward treating environmental stewardship as essential to business operations, the cycle of degradation will likely continue, adversely impacting communities and ecosystems.