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Home Vietnam

Vietnam scales up eco-industrial parks to promote sustainable development

WNAM: by WNAM:
March 8, 2025
in Vietnam
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Vietnam scales up eco-industrial parks to promote sustainable development
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WNAM REPORT:  The eco-industrial park (EIP) model is emerging as a key driver of Vietnam’s industrial and economic development. This approach not only delivers economic benefits to businesses and communities but also plays a crucial role in environmental protection and enhancing workers’ quality of life.

By 2030, approximately 40-50% of provinces and cities are expected to convert existing industrial parks into EIPs, while 8-10% of localities plan to develop new ones.

A survey by Savills Vietnam indicates that although the number of EIPs remains limited, demand for this type of industrial real estate is set to rise significantly in the future.

Thomas Rooney, Senior Manager of Industrial Services at Savills Hanoi, observed that most industrial zones still follow traditional development models with few sustainability-focused design solutions. He emphasised that the transition to green industrial zones is still in its early stages and will require a long-term commitment.

Experts agreed that eco-industrial parks are essential for achieving sustainable development by balancing three key pillars: economic growth, social progress, and environmental protection. As sustainability becomes a global priority, green and circular economies are emerging as preferred development models worldwide.

Vuong Thi Minh Hieu, Deputy Director General of the Department of Economic Zone Management under the Ministry of Finance — formed by merging the Ministry of Planning and Investment (MPI) and the former Ministry of Finance — highlighted that the EIP model has been successfully implemented since the 1990s in countries such as Denmark, Japan, and China. In Vietnam, the government strongly supports green and circular economic development, integrating these principles into major national policies.

Since 2014, the MPI has collaborated with international organisations and foreign partners to promote sustainable eco-industrial zones. The ministry worked with the United Nations Industrial Development Organisation (UNIDO), with funding from Switzerland’s State Secretariat for Economic Affairs (SECO), the Global Environment Facility (GEF), and the United Nations Development Programme (UNDP), to pilot EIPs in Ninh Binh, Da Nang, and Can Tho.

With financial backing from the Swiss government, MPI and UNIDO expanded the initiative to Hai Phong, Dong Nai, and Ho Chi Minh City from 2020 to 2024, achieving promising results.

The eco-industrial park model is now being scaled up across multiple provinces. Businesses have responded positively, with many infrastructure developers proactively incorporating sustainability commitments into zoning plans, investment proposals, and strategies to attract secondary investors.

Phan Van Chinh, Deputy General Director of IDICO Corporation, stated that with 25 years of experience, IDICO currently operates 12 industrial zones nationwide, covering nearly 4,000 hectares, and has attracted over 400 enterprises, including major investors such as Suntory Pepsico, Fujiya, Hyosung, and Messer.

Kingspan, a leading Irish investor and strategic partner of IDICO at Phu My II Industrial Park, recently installed a solar power system across its entire factory roof. This initiative represents a significant step toward sustainability, aligning with Kingspan’s global Planet Passionate programme to combat climate change. The solar energy system is expected to reduce over 1,000 tonnes of CO2 emissions annually and significantly contribute to on-site energy production, with an initial target of 20% self-sufficiency. Given its geographical advantages, Kingspan Phu My anticipates surpassing 50% of this target.

Kingspan’s project exemplifies a broader commitment to environmental sustainability and the long-term partnership between industrial park investors and businesses in Vietnam

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