Vietnam's industrial property sector shifts towards green growth

Stavian Hung Yen Industrial Cluster by Stavian IP

According to a report by MB Securities on July 23, policy reforms aimed at attracting both domestic and foreign investment into high-tech industries mark a structural shift in the industrial sector, from traditional industrial parks (IPs) towards eco-IPs.

Resolution No.10-NQ/TW, issued on June 8, identifies the foreign-invested sector (direct and indirect) as a key channel for capital, advanced technology, modern management practices and productive capabilities, supporting science and technology, innovation, digital and green transformation, and greater strategic self-reliance.

The core of Resolution 10 is a shift from quantity-driven to quality-driven investment attraction. This transformation is reflected in four key dimensions: elevating the role of the foreign-invested sector; reshaping the country’s new investment landscape; introducing new incentive policies; and positioning the foreign-invested sector as a driver of value creation and economic spillovers.

The resolution is particularly significant as the next generation of global investment increasingly targets destinations that meet more stringent environmental, social, and governance (ESG) standards, requiring Vietnam to adapt and strengthen its competitiveness.

The report pointed out that the next-generation IP model is becoming the new standard. ESG requirements, net-zero commitments, and the EU's Carbon Border Adjustment Mechanism are compelling developers to change their strategies. Next-generation industrial parks are expected to integrate renewable energy, circular water systems, digital infrastructure, and green spaces to meet the requirements of high-tech, semiconductor, electronics, and EV manufacturers.

In Vietnam, the transition towards eco-IPs based on international frameworks has been underway since 2014. To date, five IPs have been selected for the pilot programme, including DEEP C in Haiphong, Amata in Dong Nai, Hiep Phuoc in Ho Chi Minh City, Hoa Khanh in Damang, and Tra Noc 1 & 2 in Can Tho. During the initial implementation phase, DEEP C and Amata achieved encouraging results and are expected to make further progress towards meeting eco-IP criteria in the coming years.

Other players have also jumped on the bandwagon. Stavian IP is building a nationwide network of green, smart, and sustainable IPs in Vietnam. Its flagship projects include Stavian Hung Yen Industrial Cluster and Stavian Phu Tho IP.

Likewise, Sembcorp Development, co-developer of the VSIPs, is looking to scale the low-carbon industrial development in Vietnam. To facilitate the goal, the company has achieved pre-certification for Vietnam's first LEED Volume prototype for ready-built facilities, enabling faster deployment of green industrial buildings.

Meanwhile, Soilbuild is incorporating ESG practices into its ready-built ventures in Vietnam, such as Spectrum Hung Yen and Spectrum Nghe An. These ESG integration include LEED-certified designs, green energy solutions, and sustainable operations. Thus, tenants can meet global standards while optimising costs through efficient supply chain integration.

Stavian IP chief on building sustainable industrial ecosystems Stavian Industrial Park is expanding its network of green, smart, and sustainable industrial parks across Vietnam. General director Nguyen Tuan Anh shared the company's strategy and growth plans with VIR's Thanh Van.

Sembcorp achieves Vietnam's first LEED Volume prototype pre-certification Sembcorp Development, a wholly owned subsidiary of Sembcorp Industries, has achieved pre-certification for Vietnam's first LEED Volume prototype for ready-built facilities, enabling faster deployment of green industrial buildings.

Soilbuild offerings strengthen Vietnam’s standing Soilbuild International (Vietnam), a subsidiary of Singapore’s Soilbuild Group Holdings, is making headways in Vietnam’s industrial real estate market with Spectrum Hung Yen. General director Ben Ding Khoon Yew shared with VIR’s Thanh Van how the project embodies Soilbuild’s vision for flexible, high-quality industrial development.