The Double Benefits of Eco-Industrial Parks

The eco-industrial park is a visionary concept that goes beyond cost-saving and emissions reduction. It offers investors a unique opportunity to deeply engage in the global value chain. By adopting sustainable practices, businesses can enhance their competitive advantage and create long-lasting value. This forward-thinking approach not only benefits the environment but also opens doors to new markets and collaborations, fostering innovation and growth.

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Intrinsic needs…

Known as a leading company in the field of high-tech and environmentally friendly plastic production in Southeast Asia, in 2018, An Phat Holdings Group expanded its business to industrial real estate. Currently, the Group has 02 projects being implemented, namely An Phat Complex and An Phat 1 (Hai Duong) industrial parks.

Mr. Pham Van Tuan, Vice President of An Phat Holdings, shared that from the beginning of the project implementation, the company’s management board has set a clear development strategy, which is to turn the industrial parks into model industrial parks and pioneers in Hai Duong in applying ESG (Environmental – Social – Enterprise Governance) standards in the management and development of IPs.

When put into commercial operation, An Phat Complex and An Phat 1 encourage their partner enterprises to follow the path of green and sustainable production. In particular, priority is given to customers in the manufacturing, processing, and manufacturing industries, which do not cause environmental pollution.

This right decision not only contributes to the realization of the government’s commitment to net zero emissions but also helps An Phat Holdings’ IPs attract “green” FDI inflows into Vietnam. Currently, the two IPs of An Phat Holdings have become “ace cards” in attracting investment in Hai Duong province, while becoming a model of IPs with high-quality infrastructure, investment environment, and sustainable development, thereby creating a breakthrough in socio-economic development locally.

Officially transformed from the end of 2019, Nam Cau Kien IP is also developing in the direction of an ecological and intelligent IP, effectively carrying out circular economic activities.

The IP has planted more than 1 million green trees, accounting for 33% of the IP land area. The automatic waste source monitoring system operates continuously, transmitting information to the Hai Phong Department of Natural Resources and Environment 24/24 hours a day, every day of the week; 81.4 kWh of electricity is generated from the rooftop solar power project and is used in the operation of the IP. 25% of the treated wastewater in the IP is reused for tree irrigation and road washing, reducing the amount discharged into the environment, saving VND 600 million/year in clean water costs…

Not only building an ecological IP as a “nest” for investors, Mr. Pham Hong Diep, Chairman of the Board of Directors of Shinec JSC, the investor of Nam Cau Kien IP, said that the company has developed and expanded symbiotic links in the Nam Cau Kien business community. Currently, the IP has formed 3 industrial symbiosis chains following the circular economic model (metallurgy – mechanics; plastics and plastic products; auxiliary electricity – electronics), bringing great value to businesses. Since 2021, up to now, enterprises in Nam Cau Kien IP have contributed to the city budget of more than VND 1,000 billion/year..,

Another unit that persistently pursues the ecological IP model from the beginning is DEEP C IP, which has now affirmed its position as one of the leading IPs in promoting sustainable development in Vietnam. Moreover, DEEP C investors also encourage customers/secondary investors to apply energy-saving and clean production solutions.

In 2023, 15 customers in DEEP C IP implemented solutions in the Resource Efficiency and Cleaner Production (RECP) program to use water resources efficiently and optimize energy. These efforts have saved about 5.8 million kWh of electricity, 90,000 m3 of water, and reduced 10,588 tons of CO2 equivalent.

Tesa Site Hai Phong One-Member Limited Liability Company (a secondary investor in DEEP C IP) is the first unit in the IP to successfully build a Wadi design (small water pond to help limit flooding on bad weather days) in the infrastructure. DEEP C is encouraging other customers in the IP, especially new customers, to apply this design in the process of building infrastructure.

Competitive advantage

According to Dr. Ngo Cong Thanh, Vice President of the Institute of International Investment Research (ISC), Vice President of the Finance Association of Vietnam IPs (VIPFA), there are still 1/3 of the approved IPs that are under construction, while the occupancy rate of operating IPs has reached over 74%. However, in ecological IPs, the occupancy rate is almost absolute, although the rent is not cheap.

Sharing the secret to attracting investors, Mr. Bruno Jaspaert, General Director of DEEP C IP, admitted that the rent at DEEP C is almost the highest.

“Our current development principles are geared towards ensuring that investors want to invest because we provide them with access to ESG-related services, carbon certificates, and initiatives for investors to report to their management that their investments are effective, not only in terms of profitability but also in fulfilling social responsibilities…”, shared Mr. Bruno Jaspaert.

Along with the representative of DEEP C IP, enterprises in the US and Europe this year must follow a new ESG reporting standard, and they have no choice but to implement it, even when they buy export products from Vietnam, they must prove that in the production process, the production unit cares about people and localizes raw materials…

“Currently, Vietnam is not ready to meet these standards. But when investors come to DEEP C, we have prepared a lot of work for them, so they can include this content in their reports. We have implemented sustainable development initiatives, and investors just need to focus on production, they can consider participating in our initiatives such as registering to participate in the DEEP C Care program, or participating in part in the DEEP C Farm project, or participating in the waste recycling and treatment chain of DEEP C. They just need to do this to include it in their ESG report…,” said Mr. Bruno Jaspaert.

According to Ms. Vuong Thi Minh Hieu, Deputy Director of the Department of Management of Economic Zones, Ministry of Planning and Investment, ecological IPs are becoming a criterion for foreign direct investment (FDI) selection with the goal of sustainable development, economic benefits, and responsibility to the community and society.

According to the Department of Management of Economic Zones, Ministry of Planning and Investment, as of the end of July 2024, the country has had 431 export processing zones and industrial parks established, of which 301 IPs have been put into operation. Of these, about 10 IPs have been converted/developed according to the ecological IP model. The Ministry of Planning and Investment assesses that the strong development of ecological IPs in the framework of international cooperation projects in the past time has had a significant meaning, raising awareness of sustainable development for many localities and enterprises investing in IP infrastructure in Vietnam…

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