DEEP C: Foreign investors are committed long-term in Vietnam

We live in a strange and fast changing world, but we should not despair. The future bodes well for Vietnam. Its geographical location, economic incentives, policies, and political stability ensure that it has become a safe haven for investors to set up their newest production facilities.

Prime Minister Pham Minh Chinh chaired the conference. Photo: Nhat Bac

Our company, DEEP C Industrial Zones, has been lucky enough to ride that wave of investments coming in. We could never have done this without working closely with the authorities and having the crucial support of the government. I believe that today is not only the moment to ask for your continuous support, but also to say thank you. Thank you for making a difference and for your determination.

Vietnam is unique. Having worked in multiple countries, I never cease to be amazed how fast the authorities can execute successfully once the government has come to a conclusion. Many of our foreign investors have told us that they will come to here with a long-term commitment to this country and its future.

We take pride in stating we are building the future, a future that is bound to be sustainable. At COP26, Vietnam made a commitment to the world to seek carbon neutrality by 2050. The first steps are being made and more is to come.

Today, I would like to take the opportunity to ask for more. DEEP C has become first-hand proof that transforming towards an alternative sustainable investment location is a valid strategic path to take. It is my personal belief that this can be extended to the whole of Vietnam.

Bruno Jaspaert, general director of DEEP C Industrial Zones, speaking at the conference. Photo: Nhat Bac

For this to happen, there are still many steps to take, but I can only urge you to not be afraid when making radical choices to realise this paradigm change. The moment is now. We need to get our head around alternative energy sources quickly. An overhaul of the existing framework regarding circular economy and recycling is urgently due.

Today we cannot resell treated wastewater due to lacking the necessary framework, so we are asked to dump it in the nearest river or sea. This kind of half measure and the lack of guidance for local authorities make it very difficult for foreign-led companies to fully understand the current position Vietnam takes on sustainability.

Many of those firms have adopted new environmental, social, and governance reporting standards, so those rules will have a profound impact on the future of business. This can offer the opportunity for Vietnam to incorporate these at an early stage in a novel non-financial reporting system.

It might impact new investors, but it would make this country a sustainability pioneer, and we all know that trendsetters attract even more investments.

Not many people know that Vietnam, under the guidance of the Ministry of Planning and Investment and support of the United Nations Industrial Development Organization, has created green trends for sustainable development with its pioneering eco-industrial park programme.

Over the last three months alone, DEEP C IZs have received delegations from the Ivory Coast, Indonesia, and Australia to study the impact this go-green approach can have. It is proof that strategic choices can make a huge difference, and that Vietnam can set an example for other countries to follow.

It proves a necessity for the PM and the Vietnamese government to consider incentivising the eco-park model by offering longer lease terms to those zones that are willing to subscribe to these standards. Then, a special tax could be levied on any zones that cannot or do not want to comply, and that money could be used for the authorities to set up a fund for future sustainable growth.

The DEEP C IZ complex has become clear evidence that transforming towards a sustainable investment location is a meaningful strategic direction. Photo Quoc Huy

The global investment climate is already tilting towards a more sustainable and holistic approach. Vietnam should aim to receive investors with a long-term, sustainable approach. Those that are aiming to take advantage of short-term tax benefits, low-cost labour, or underdeveloped environmental laws are not here to stay.

So many steps in the right direction have been taken already, but the road to carbon neutrality is still long. A pragmatic strategy needs to be devised, allowing industrial zone developers and foreign investors to become a motor for change to reach this target.

For example, today Vietnam faces a shortage of land reclamation materials. In Europe, big dykes are built to shield infrastructure instead of raising the land.

It would be wise for Vietnam to greenlight the use of European designs, so the roads become flood evacuation outlets instead of raising the level of the land. Such designs can be integrated into a national climate change plan by raising dykes, which can still be cost-effective as the land can remain low.

DEEP C is willing to trial this concept while also using waste material from dredging activities or other non-toxic waste to fill in the land.

It is important to think of ways to incentivise those investors and agree on non-financial reporting standards. DEEP C is open to sharing its experiences and working together with relevant ministries on new solutions.

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