Scaling up eco-industrial parks to promote circular economy in Vietnam

A ceremony themed "Scaling up eco-industrial park approaches to promote a circular economy in Vietnam" was held by the Ministry of Planning and Investment (MPI), the United Nations Industrial Development Organization (UNIDO), and the Embassy of Switzerland in Vietnam took place on November 15.

Signing ceremony on "Scaling up eco-industrial park approaches to promote circular economy in Vietnam". Source: MPI

This ceremony marks a key milestone for Vietnam as it transitions from demonstrating the benefits of eco-industrial parks (EIPs) to actively promoting and expanding EIP approaches. This will enhance the model's standing and support its sustainable development national.

The project aims to promote the implementation of a circular economy within enterprises in IPs, reduce the environmental impacts of industrial production, and help IPs adapt to climate change. The project will continue to scale up the implementation of EIPs, focusing on improving resource efficiency, minimizing waste, promoting recycling, and enhancing the economic, environmental, and social performance of businesses, thereby contributing to the sustainable and inclusive development of the industrial sector.

Through the project, the MPI will receive $3.346 million from Switzerland through the Swiss State Secretariat for Economic Affairs to promote a circular economy and mitigate climate change impacts in IPs across Vietnam.

This funding will facilitate the national scale-up of the EIP model by building on the successes of the 2014-2024 phase to promote circular economy practices in the industrial sector and within IPs, minimise the environmental impacts of industrial activities, and support IPs in adaptation to climate change.

At the signing ceremony, Deputy Minister of Planning and Investment Do Thanh Trung highly appreciated SECO and UNIDO selected Vietnam as one among five countries under the Global Eco-Industrial Parks Program phase II (2024-2028) to enjoy an official development aid of $3,346 million to develop more EIPs in the country.

"Under the support of SECO, Vietnam has changed four IPs to EIPs (in 2015-2019) and three are on the way to change (in 2020-2024," Trung said.

Some outgoings are to integrate regulations on EIPs into legal documents related to IPs, environmental protection, and sustainable development; deploy solutions of EIPs at businesses in IPs like reducing water, power, and material consumption, mitigating carbon emissions, applying circular economy; build technical guidance on EIPs; improve awareness and train on EIPs.

With the sustainable cooperation in 2025-2028, Switzerland's side affirms the commitment to Vietnam in carrying out sustainable development tasks.

"By supporting the transformation of industrial parks into eco-industrial parks as part of our Economic Cooperation Development Program in Vietnam, we aim to address both the opportunities and challenges facing Vietnam's industrial growth. Switzerland's vision is to bolster Vietnam's journey towards high-income status and its commitment to net zero. Through this partnership, we hope to make a meaningful contribution to modernizing Vietnam's industrial landscape, creating jobs, attracting investment and preserving the environment for future generations," said Thomas Gass, Ambassador of Switzerland to Vietnam.

The industrial sector is a cornerstone of the economy. IPs not only attract foreign investment but also drive the growth of domestic businesses, enhance import-export activities, develop key industries, and contribute to the modernization of urban infrastructure.

Currently, Vietnam has 436 IPs, which attract approximately 35-40 per cent of the total foreign direct investment each year. Over 300 of these parks are operational, providing jobs for more than 4.16 million direct employees and accounting for over 50 per cent of the country's total export turnover.

With dedicated efforts to implement the National Green Growth Strategy for 2021-2030, vision 2050, the commitment to net-zero emissions by 2050, the Circular Economy Development Programme in Vietnam and other initiatives aimed at achieving sustainable development goals, the transition of IPs to EIPs and the establishment of new EIPs within the IP system will make a significant contribution to achieving green growth targets and advancing Vietnam's international commitments to sustainable development and climate change adaptation.

Le Thi Thanh Thao, UNIDO's country representative in Vietnam, shared, "Vietnam is a leading country in Asia in terms of industrial competitiveness and continues to strengthen its position in the global value chains. Sustainable industrial development should go hand in hand with protecting environmental and social interests. Eco-industrial parks minimise negative environmental impacts and optimise resource use, lower production costs, and enhance competitiveness. UNIDO remains committed to supporting Vietnam in transitioning from traditional industrial park models to eco-industrial parks, building the foundation for a green, sustainable industrial sector that ensures long-term benefits for communities and future generations."

The Global Eco-Industrial Park Programme, an initiative by UNIDO, is advancing sustainable industrial growth in developing countries by implementing EIP models. These models aim to enhance resource efficiency, improve economic, environmental, and social performance, and boost the competitiveness and productivity of industries, especially small- and medium-sized enterprises.

In Vietnam, the EIP model has been implemented since 2014, and is supported by international donors such as SECO and the Global Environment Facility.

DEEP C implements large-scale eco-industrial park model DEEP C Industrial Zones has scored laudable achievements after many years pursuing an eco-industrial park (eco-IP) model.

Prodezi and HVH launch 400-hectare eco-industrial park in Long An province Productand Huong Viet (HVH) launched Prodezi Eco-Industrial Park (Prodezi EIP) on October 1 in Long An province.

Deal signed for sustainable development at Prodezi Eco-Industrial Park On October 23, Prodezi and Huong Viet signed a MoU with Chitose Group and TA Vital on collaboration in providing wastewater treatment solutions for Prodezi Ecological Industrial Park (eco-IP).