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Eco-industrial Park - The key to green industrial zones in Việt Nam

01/07/2016

   Eco-industrial park is a new model, creating incentives for local, regional and territorial industrial economic development, which not only attracts investments, creates jobs but also reduces costs and enhances manufacturing efficiency from materials and energy saving, recycling and reuse, creating a new appearance and a clean and attractive environment for industrial zones. This is the sharing of Mr. Trần Duy Đông – Director General of the Department for Economic Zones Management, Ministry of Planning and Investment (MPI) with Environment Magazine at the workshop introducing the project “Implementation of Eco-Industrial Park Initiative for Sustainable Industrial Zones in Vit Nam”.

Mr. Trần Duy Đông

Director - Department for Economic Zones Management, Ministry of Planning and Investment

   Can you introduce activities of the project implemented in Vit Nam?

   Mr. Trần Duy Đông: Currently, the Prime Minister orients the country development towards sustainable development based on three pillars: economic, social and environmental; industrial zones should be one of those moving towards that direction. Since 2012, MPI collaborated with the United Nations Industrial Development Organisation (UNIDO) to develop the project “Implementation of eco-industrial park initiative for sustainable industrial zones in Việt Nam” and by August 2014, the project was approved by the Prime Minister with the grant of more than 4.5 million USD from the Global Environment Facility (GEF) and the Swiss State Secretariat for Economic Affairs (SECO). The project aims to convert existing industrial zones to become eco-industrial zones (EIZ); piloting in Khánh Phú industrial zone (Ninh Bình), Hòa Khánh industrial zone (Đà Nẵng) and Trà Nóc 1, 2 industrial zone (Cần Thơ). The project will support enterprises to convert technologies and to apply cleaner production processes so as to reduce greenhouse gas emission and to use energy efficiently, particularly to connect enterprises together, contributing to reduce environmental impacts and manufacturing costs. Currently, the project has finalized the re-assessment of manufacturing activities and technologies status of enterprises that are potential to participate in the project, prepared the handbook to guide the access to the green credit fund for enterprises participating in the project and is promoting the rapid implementation of subsequent activities.

   With 5 components, in the upcoming time, the project will focus on following activities: development of policies, regulations and criteria of an eco-industrial zone; capacity building in EIZ planning and management for EIZ management agencies at central and local levels; promotion of technology transfer and application of clean and low-carbon technologies as well as safe and resource-efficient production methods for enterprises located in EZs; technical assistance and soft loans access to invest in clean and resource-efficient technologies for enterprises in piloted industrial zones; implementation of, on a pilot basis, EIZ conversion projects; and increasing community awareness about EIZ development.

   Can you tell us the reason why the project selects three industrial parks: Khánh Phú (Ninh Bình), Hòa Khánh (Đà Nng), Trà Nóc 1, 2 (Cn Thơ) to participate in the eco-industrial park initiative and what criteria do these industrial zones need to meet?

   Mr. Trần Duy Đông: Before the selection of industrial parks in three provinces, MPI and UNIDO have carried out studies and assessments during the project preparation and realized that these industrial zones have different types of enterprises so they can apply cleaner production methods in different fields. The survey of enterprises in three industrial zones shows that all enterprises have potentials to implement technology transfer towards sustainability and reduction of waste and wastewater discharge and the project identified 3 industrial zones: Khánh Phú, Hòa Khánh and Trà Nóc 1, 2 as typical industrial zones for implementation. The project commits to collaborate and support enterprises in the provision of information and consultancy to access advanced manufacturing technologies and preferential interest rate loans and implementation of the conversion at an appropriate cost. As a result, this will support enterprises in industrial zones to meet the objectives of revenue increase linked with sustainable development, competition enhancement and global development.

   Currently, the concept of eco-industrial park is still new in Việt Nam, regulations and legal documents on eco-industrial parks are almost not available; therefore, in addition to enterprises’ benefits, the project also organizes trainings for relevant state management staff at the same time develops specific plans to convert old industrial zones into eco-industrial parks. We hope that from the pilots in these above three industrial zones, legal documents on eco-industrial park can be developed and promulgated, including the definition of eco-industrial park, specific conditions for converting to eco-industrial parks, policies and mechanisms to encourage enterprises and industrial zone infrastructure development companies to convert into eco-industrial parks.

Wastewater treatment plant of Hoa Khanh Industrial zone (Đà Nẵng)

   For the current situation, the conversion of eco-industrial parks will not be easy. Facing financial, technical and capacity difficulties by enterprises, what are the solutions of the projects to address these issues?

   Mr. Trần Duy Đông: we have taken into account of current difficulties and challenges. It could be seen that, in developed countries, the conversion of industrial zones into eco-industrial parks brings many benefits; enterprises in industrial zones cooperate to achieve the efficiency in production, trading, economic development and environmental protection through effective management of energy, water and materials, reduction in manufacturing costs, reduction of waste discharge, collection, recycling and reuse of waste and waste exchange, solutions for environmentally friendly waste treatment. In Việt Nam, the current challenge is how to persuade enterprises in industrial zones to participate in the project and carry out cleaner production methods. To achieve this, national and international experts of the project will advise, guide and support enterprises to show them the benefits of participating in the project; particularly on the methods and procedures to access preferential interest rate loans to invest in cleaner technologies and resource-efficient use. This is also a method to support Vietnamese enterprises to access the international playground, at the same time to enhance the competitiveness capacity and stance of enterprises in the global enterprise network.

   Thank you!

Phương Tâm

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