Ho Chi Minh City to develop first eco-industrial park in Q1

Phu My 3 Specialised Industrial Park is to become Ho Chi Minh City's first eco-industrial park (IP), with recognition expected in the first quarter of the year.

According to Bui Minh Tri, head of Ho Chi Minh City Export Processing and Industrial Zones Management Authority (HEPZA), the park was selected as a pilot site for the eco-industrial park model under an initiative developing smart industrial parks guided by ecological principles and the application of IT.

The initiative is funded by the Japan International Cooperation Agency (JICA) and was launched in late 2023.

“We have received the relevant dossiers and are consulting ministries and agencies as a basis for advising the City People's Committee to recognise this as Ho Chi Minh City's first eco-IP,” Tri said at a technical meeting on eco-industrial park development in Ho Chi Minh City on January 28.

Phu My 3 spans nearly 1,000 hectares and is so far the only specialised IP in Vietnam established under a cooperation agreement between the governments of Vietnam and Japan, signed in December 2014. The land-lease term extends up to 70 years, providing a stable, long-term foundation for businesses to invest and expand.

To date, Phu My 3 has attracted more than 50 projects with registered investment capital of up to $7 billion, with an average investment density of around $9-10 million per hectare.

Luong Thi Thanh Thao, head of Environmental Management Department at Thanh Binh Phu My JSC, the developer of Phu My 3, said that the park had invested in a power substation with fully underground infrastructure to ensure a stable energy supply; an industrial gas supply station delivering gas directly to factory boundaries; and a large-capacity centralised wastewater treatment plant.

The site also integrates the Phu My Inland Container Depot and a chemical warehousing system to optimise operations for specialised industries to help to reduce CO₂ emissions.

The IP has also developed a smart management and monitoring system. Operated through a centralised control centre, the system enables real-time data collection and analysis of electricity and water consumption, wastewater discharge, and CO₂ emissions for every company.

Concrete outcomes from this digital platform include the identification of nine industrial symbiosis models involving waste sharing and shared infrastructure.

Twenty-four enterprises are participating in reporting and applying cleaner production practices. The platform also accurately tracks wastewater recycling rates and monitors greenhouse gas emissions.

Hieda Shunsuke, head of JICA's Eco-Industrial Park Advisory Team, emphasized the role of eco-IPs in enhancing competitiveness.

"Since the pandemic, we have witnessed profound changes across all aspects of life. Countries need to become more self-reliant, particularly in energy and logistics, to avoid sudden disruptions to supply chains," Shunsuke said.

The eco-IP model's practical approach will make a significant contribution to enhancing the competitiveness of Vietnamese enterprises, he added.

JICA also warns that from 2027, companies that fail adequately to manage human rights and labour risks in their operations in Vietnam could face legal exclusion from the EU market.

As such, locating operations within an eco-IP effectively serves as a 'golden passport,' helping to ensure continuity in trade with EU partners and global Tier-1 customers. This is not merely a compliance issue, but a safeguard for companies' positioning within high-end supply chains.

Well-performing enterprises may receive priority suppliers from European brands, reduce audits and compliance costs, and enhance their credibility with global buyers.

In addition, strategic alignment with Vietnam's green standards opens up access to 'green credit' facilities while attracting high-quality foreign investment from institutional investors focused on sustainable development.