Eco-industrial park – a model for sustainable industrial development of the Government of Viet Nam

The Ministry of Planning and Investment (MPI) in collaboration with the United Nations Industrial Development Organization (UNIDO) and the State Secretariat for Economic Affairs of Switzerland officially launched the Project “Eco-industrial Park Intervention in Vietnam - Perspective from the Global Eco-Industrial Parks Programme” at the inception workshop in Ho Chi Minh City on 22 Nov. 2020. The development of Eco-industrial park (EIP) will make significant contributions to improving the environmental, economic and social performance of industries in Viet Nam and will create premise to improve policies and regulation about EIP in particular and to integrate EIP model in the legal framework about environment and industries as well as relevant policies.

The Project has a total budget of USD 1,821,800, out of which USD 1,638,000 is official development assistance from the Government of Switzerland, through its Swiss State Secretariat for Economic Affairs (SECO), and a co-funding of USD 138,800 from the Ministry of Planning and Investment. The Project will be implemented in Hanoi and 5 provinces/cities, namely Ho Chi Minh City, Can Tho, Dong Nai, Da Nang and Hai Phong in 36 months.

Over the past years, industrial parks significantly contributed to the socio-economic development of Viet Nam, however, they are facing a number of environmental challenges. Therefore, a more sustainable model is needed and it should be in conformity with the national Strategy for Green Growth and the Government’s commitments to achieving the UN Strategic Development Goals by 2030 and the Paris Agreement on Climate Change.

The Ministry of Planning and Investment and UNIDO, with the support of a number of donors, implemented the eco-industrial park initiative in the period 2014 – 2019 and gained significant impact on policy development as well as in demonstrating innovative technologies and practices. The EIP model has been mentioned in Decree 82/2018/ND-CP dated 22 May 2018 of the Government on the management of industrial zones and economic zones.

Various solutions for resource efficient and cleaner production were implemented under the framework of the pilot initiative. They led to an avoided annual demand of over 22.000 MWh of electricity, 600,000 m3 of freshwater, 140 TJ of fossil fuel and nearly 3,600 tons of chemicals and waste, through resource efficient and cleaner production (RECP) and industrial symbiosis solutions. These solutions also led to an avoided emission of 32 kt of CO2 every year.

Addressing the inception workshop, Vice Minister of the Ministry of Planning and Investment Mr Tran Duy Dong stressed: “The EIP model can only contribute to the national sustainable development strategy when it is replicated nationwide with supports of relevant policies, technologies, financial schemes, information and mechanism  to gain a close collaboration of all parties concerned.”

The project “Eco-industrial Park Intervention in Vietnam - Perspective from the Global Eco-Industrial Parks Programme” is the continuation of the successful implementation of the pilot initiative and, at the same time, will create the foundation for the replication of this model across the country in the coming years. The project has 2 components: (i) enhancing policies and instructions for the implementation of EIPs and (ii) implementing technical interventions to transform selected industrial parks in EIPs. The Project will help improve the legal framework and develop information and technical database to connect businesses and to support implementation of solutions to transform industrial parks into EIPs.

Country Representative of UNIDO Office in Vietnam, Ms Le Thi Thanh Thao told the inception workshop: “Reality has proved that  by saving a huge amount of water, energy and resources  inputs as well as by implementing  industrial symbiosis , businesses  can reduce their production costs,  minimize waste  and GHG emission, and therefore increase their competitiveness  and contribute to  protecting the environment. This is also the goal of  the project  - Eco-industrial park intervention in Vietnam – Perspective from the Global Eco-Industrial Parks Programme., which was launched today”

For his part, the Swiss Ambassador in Vietnam, Mr Ivo Sieber confirmed: “Internationally, Switzerland is proud to partner with UNIDO in promoting resource efficiency and cleaner production solutions in Vietnam. The viability and benefits of an eco-industrial park model will contribute to improving the economic, environmental and social performance of industries in Vietnam - which is very responsive to the government’s vision of a green economy.“

Ministry of Planning and Investment, UNIDO, SECO and other relavant agencies of Vietnam hope that the outcomes of the Project will lay the foundation for Government agencies and donors to continue mainstreaming the EIP concept throughout the country.