Driving innovation to boost investment in Vietnam's industrial park network

Seizing upon global trends, Western Pacific Group has invested in the development of the logistics industrial cluster (LIC) model, a strategic direction aimed at promoting the sustainable development of industrial parks (IPs) and increasing value for both domestic and international investors.

In today’s digital age, the rapid advancement of science and technology, fuelled by the Fourth Industrial Revolution, has brought about profound changes with far-reaching effects across the globe and within individual nations and regions.

Innovation is increasingly asserting its vital role in scientific and technological development and is a core factor in national development strategies to enhance competitiveness on the international stage.

Furthermore, innovation serves as a key driver of digital transformation, green initiatives, and sustainable growth, all of which are critical to fostering global progress in this new era.

During the Vietnam Innovation Day 2024, marking the fifth anniversary of the National Innovation Centre (NIC), the government highlighted Vietnam's innovation as consistently highly regarded by the international community. According to the World Intellectual Property Organisation, Vietnam's Global Innovation Index for 2024 ranked 44^th out of 133 countries (up two places from 2023 and four places from 2022).

For Vietnam, a potential market for foreign direct investment (FDI), developing infrastructure, logistics, and investor-friendly policies is necessary. However, the reality shows that Vietnam’s investment environment still has bottlenecks, such as infrastructure limitations, high logistics costs, and an increasing risk of energy shortages, which somewhat affect multinational corporations' decisions to expand their investments in Vietnam.

To effectively attract FDI, a favourable business environment is not enough; businesses must also understand trends and adapt flexibly to new market demands. Understanding the needs and expectations of investors, Western Pacific Group has rapidly developed the LIC model, flexibly combining industrial park infrastructure, logistics infrastructure, and integrated logistics operations to provide a comprehensive solution that enhances efficiency and addresses infrastructure challenges.

The Logistics Industrial Cluster (LIC) model implemented by Western Pacific. Photo: Western Pacific

Development potential of the LIC model in Vietnam

The flexibility and creativity in developing integrated IPs with logistics by Western Pacific has optimised their management and operation, making them more attractive to foreign investors.

One of the standout values that the LIC model brings is the ability to optimise logistics efficiency. LIC projects are typically located near airports, ports, highways, and national roads, carefully positioned to meet the geographical needs of localities and flexibly serve investor demands. By integrating logistics centres with IPs and a synchronised infrastructure system, investors can optimise their operations, from production to goods delivery. This reduces costs and enhances operational efficiency, creating a competitive advantage in the market, especially in high-tech industries, manufacturing, and production.

In the context of increasing international attention on emissions reduction and sustainable development, the LIC model also helps investors meet environmental standards. By optimising transportation routes and incorporating renewable energy and smart technology in logistics operations, businesses can reduce carbon emissions, contributing to local health and environmental protection.

The Pacific Japan Logistics Centre (Binh Duong) with solar panel roofing implemented by Western Pacific. Photo: Western Pacific

The LIC model also has great potential to connect businesses in Vietnam.

With an integrated logistics system and connectivity between IPs, businesses can easily exchange goods, services, and technology, creating a sustainable development ecosystem. This enhances the competitiveness of businesses and contributes to the sustainable growth of Vietnam’s economy.

In Vietnam, Western Pacific has developed an ecosystem of LIC with a network of projects in key economic areas, such as Yen Phong II-A IP (Bac Ninh province) and Yen Lenh IC (Ha Nam province), and is continuing to expand LIC with Yen Lu IP (Bac Giang province) and Dong Van V IP (Ha Nam).

The combination of industrial infrastructure development and integrated logistics services in the LIC model has created synergy, helping Western Pacific attract the attention of domestic and international investors. Particularly, as Vietnam is becoming an attractive destination for high-tech and manufacturing enterprises, the LIC model has proven to play an important role in promoting economic development and attracting FDI.

Alongside the nation's innovation strategy, LIC is not only a solution for the present but also a sustainable path for the future, promising to be a pioneering solution, opening new doors for high-tech and manufacturing businesses looking to invest in Vietnam.

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