The new race in developing green and smart industrial parks

VCN - Vietnam is an attractive destination for foreign investors in the fields of high-tech equipment manufacturing. Accordingly, along with digital transformation, the transformation of the model from simple industrial parks to green industrial parks and ecological industrial parks is being focused on implementation by localities.
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The new race in developing green and smart industrial parks
The transformation of the traditional industrial park model into an ecological and smart industrial park is being focused on by localities. Photo: Ban Mai

Benefiting from clean production

Developing a green economy and an environmentally friendly circular economy is a major policy of the Party and State. According to Director of the Department of Economic Zones Management, Ministry of Planning and Investment Le Thanh Quan, the eco-industrial park model plays an important role in efforts to solve the problem of climate change and mobilize regional resources. private sector for green industrial solutions, ensuring energy security and demonstrating political commitment to Vietnam's sustainable development goals and response to climate change.

In order to support the conversion of existing industrial parks into eco-industrial parks, since 2020, the Ministry of Planning and Investment has coordinated with the United Nations Industrial Development Organization (UNIDO) to implement the project "Implementation of eco-industrial parks" in Vietnam following the approach from the global eco-industrial park program" with 603 cleaner and resource efficient production (RECP) solutions. In particular, promoting the implementation of industrial symbiosis models is considered an innovative form to increase resource use productivity and is one of the approaches to realizing a circular and sustainable economy to achieve green growth. The total implementation cost is more than US $1.8 million sponsored by the Swiss Federal Department of Economic Affairs (SECO) in industrial parks including: Hiep Phuoc (HCMC), Amata - Bien Hoa (Dong Nai), Dinh Vu - Deep C ( Hai Phong), Hoa Khanh (Da Nang) and Tra Noc 1&2 (Can Tho).

Information at the project summary conference recently held in Ho Chi Minh City (April 12, 2024), the Ministry of Planning and Investment said that after four years of project implementation, the conversion to the eco-industrial park model Initially, it brought economic, social and environmental benefits. At the same time, large resources from the private sector are mobilized for green industrial solutions, ensuring energy security, sustainable development and responding to climate change.

In Hiep Phuoc Industrial Park, applying this model has brought economic benefits of nearly VND 24 billion per year, thanks to reducing electricity consumption by 7,000 MWh/year and nearly 160,000 m3/year... Thanks to that, the industrial park has reduced emissions by nearly 6,000 tons of CO2 per year. Similarly, at Deep C Industrial Park, this model has brought economic benefits of about 7.6 billion VND. In particular, electricity consumption has been reduced by more than 1,600 MWh/year, and water consumption by more than 75,700 m3/year... thereby reducing nearly 1,500 tons of CO2 emissions. Revenue from water sales alone due to the application of water recycling and reuse in this industrial park brings in VND 17.7 billion per year.

Unlock financial resources

With the Government's strong commitment to Net Zero by 2050, the requirements of integration and partners, in addition to preparing and changing infrastructure to meet demand, attract domestic and foreign investors. international, local, and industrial real estate investors have been entering a race to develop green, smart industrial parks.

With over 30 operating industrial clusters and parks, Binh Duong is currently aiming to gradually convert traditional industrial parks to smart and ecological ones, to create a competitive advantage. Mr. Nguyen Trung Tin, Head of the Management Board of Binh Duong Industrial Parks, said that the province is planning the period 2021-2030, with a visio to 2050, and is expected to continue new investment and expansion of existing industrial parks but with a vision to 2050. to higher standards in science and technology, environmental protection, focusing on attracting industries that bring high added value and meet the increasingly strict standards of international investors. The recent establishment of VSIP III Industrial Park demonstrates the determination to build a new industrial ecosystem.

According to experts, despite achieving positive results, converting a simple industrial park model to a green industrial park or eco-industrial park requires a process of change in technology, human resources and production processes. Lack of financial resources makes many real estate developers reluctant to convert.

Mr. Vu Quang Hung, Head of the Management Board of High Industrial Parks and Industrial Parks in Da Nang, said that with the economy still gradually recovering, the impact of supply chain disruption is expected to affect operations production of enterprises in the coming years, the lack of green financial sources will be a barrier for enterprises wanting to innovate production lines. While capital to support technological innovation is very limited, procedures are still complicated, do not really creating motivation for businesses to change production technology. In that context, many green financial funds such as Green Credit Trust Fund, Green Growth Support Fund, National Technology Innovation Fund, Environmental Protection Fund... have temporarily suspended loans to support industrial innovation. technology or tighten lending policies and subjects.

According to the report of the Department of Credit for Economic Sectors, State Bank, as of December 31, 2023, the total green credit balance reached VND 620,984 billion, an increase of 24% compared to the end of 2022. However, Dr. Can Van Luc, Chief Economist of BIDV Bank, said that although green finance has been deployed in Vietnam for more than ten years, the scale is small (green credit only accounts for about 4.5% of total outstanding loans, There are very few green bonds...). In particular, the implementation of green credit still has many obstacles such as no legal framework or overall policy while the loan capital sources of credit institutions are often short- and medium-term mobilized capital and the borrower requires preferential interest rates...

Therefore, without timely investment capital, it is difficult for the eco-industrial park model to develop in reality and this may cause Vietnam to miss the wave of green investment that is increasingly becoming a central trend. of international investors.

Data from the Ministry of Planning and Investment shows that, with ecological industrial park models that enhance the effective implementation of cleaner production resources and industrial symbiosis, in the period 2020 - 2024, 88 enterprises have implemented More than 600 energy saving and cleaner production solutions, saving VND 69.2 billion /year, cutting 8,910 tons of CO2 annually. Typically, as recorded in three industrial parks, Deep C (Hai Phong), Amata (Dong Nai) and Hiep Phuoc (HCMC), when applying the RECP model, there is more and more interest in promoting cooperation between industrial parks and surrounding cities thanks to the economic and social benefits brought.

By Thu Diu/ Quynh Lan

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