What is an eco-industrial park?

Following the trend and requirements of the world, circular industry, green industry is the future destination to contribute to the development of a sustainable economy, reducing adverse impacts on the global climate. The term eco-industrial park has also gradually gained attention in recent years. So what is an eco-industrial park? What do enterprises gain and lose when operating in an eco-industrial park? Current status of eco-industrial parks in Vietnam.

1. What is an eco-industrial park?

According to Decree No. 82/2018/ND-CP of the Government, “Eco-industrial park” is defined as an industrial park, in which there are enterprises in the industrial park engaged in cleaner production and effectively use resources, have linkage and cooperation in production to carry out industrial symbiosis activities in order to improve economic, environmental and social efficiency of enterprises. In a word, eco-industrial parks operate on the principle of industrialization and economic development and must pay attention to ensuring the quality of the environment.

The construction of eco-industrial parks is considered as a solution that not only overcomes the limitations and inadequacies of environmental problems, reduces waste of resources, but also promotes sustainable growth and contributes to the direction of sustainable development. net emissions reduction target of zero.

2. Advantages of enterprises operating in the Eco-Industrial Park:

Linking production with environmental protection activities may cost more effort and costs for enterprises, but in recent years, climate change has become more and more complicated and enterprises need to shows its responsibility in making efforts to reduce the environmental impacts caused by its production activities.
In fact, it is difficult for enterprises to participate in the eco-industrial park model in the initial stage of construction or transformation, but with the current trend of “greening” and sustainable development of the world, the benefits in the long run The long term of the enterprises will be guaranteed if there is early anticipation and preparation. Some of the benefits include:

  • Reduce input costs:

Symbiotic relationships, circular industrial models, and technologies and processes of eco-industrial parks can help enterprises take advantage of natural resources, cheap raw materials, cutting operating costs and reducing CO2 emissions during operation, thereby cutting a part of input costs for production activities.

An FDI enterprise from Hong Kong with the scented candle manufacturing industry participating in the eco-industrial park model in Dong Nai said: After 1 year of implementation, the enterprise has saved more than 294 thousand kWh of electricity, 36 thousand liters of oil, nearly 2.7 thousand m3 of water and reduced emissions of 343 tons of CO2, equivalent to 1.5 billion VND.

  • Increased competitiveness:

Products made by enterprises operating under the eco-industrial park model are more appreciated by customers for being environmentally friendly. Especially for fastidious international markets such as Europe, the United States, Japan, etc., the export of manufactured goods and goods not only has to ensure quality, but the production unit also has to be responsible. Responsible for ensuring environmental sustainability such as requirements for greenness, commitment to reduce CO2 emissions,…

  • Receive many incentives and support from organizations and the Government:

Enterprises engaged in green production have the opportunity to receive help in the application of science and technology, facilitating the export of goods as well as promoting their brands from social non-profit organizations. In addition, these enterprises are also prioritized by the Government and banks with preferential loans as well as special policies in investment and operation.

In order to have advantages over enterprises, it is necessary to have basic conditions and criteria in production activities such as:

  • Invest in machinery and equipment to operate efficiently and avoid waste
  • Use energy efficiently, especially incorporating renewable energy
  • Control waste as well as have a recycling system, waste water treatment – exhaust gas
  • Set aside at least 25% of the land fund for public works such as trees, traffic, public service infrastructure, in addition to social, cultural and sports facilities in the enterprise.
  • There is a symbiotic association with enterprises in the same model
  • Publish environmental protection reports with specific orientations and roadmaps

For enterprises that plan to participate and operate in this model, building factories according to green building standards (LEED, EDGE or LOTUS, ..) is a solution worth considering. These standards have a built-in legal framework and requirements, helping enterprise owners to easily manage and meet operating conditions in the eco-industrial park.

Read more: What is the LEED standard? Advantages and disadvantages of the LEED green building rating system.

3. Current status of eco-industrial parks in Vietnam

Currently, Vietnam is focusing on the goal of industrialization and modernization of the country, especially focusing on the industrial economy with strides in service development.

For this stage, Vietnam has nearly 400 industrial parks and economic zones, attracting a total foreign direct investment capital of about 12 billion USD, accounting for about 80-90% of foreign-invested projects in the manufacturing sector. However, some industrial parks have not completed the construction of wastewater treatment plants, threatening people’s health and lives due to water pollution, air pollution, and hazardous waste. The number of eco-industrial parks compared to the total number of industrial parks in the country is very small and insignificant, a number of new eco-industrial parks have just been established or are in pilot operation, such as:

  • Dinh Vu Industrial Park (DeepC – Hai Phong)
  • Hoa Khanh Industrial Park (Da Nang)
  • Amata Industrial Park (Dong Nai)
  • Nhon Trach 2 Industrial Park (Dong Nai) (Read more: Rooftop Solar System – Nhon Trach)
  • Hiep Phuoc Industrial Park (Ho Chi Minh City). HCM)
  • Linh Trung Export Processing Zone 1 (HCMC)
  • Tra Noc Industrial Park (Can Tho)

A reason of the limitation in the number of eco-industrial parks in Vietnam is due to the incomplete legal framework, some Mechanisms are not clearly regulated, incentives are not attractive enough to make enterprises and investors excited to participate in development

Currently, the Institute of Strategy and Policy on Natural Resources and Environment is preparing to develop a national action plan on circular economy, expected to submit to the Government by the end of 2023. The plan will indicate which categories will be included in each category. pilot application in which there are priorities to expect to soon reap the success of the circular economy model.

Source: Government Newspaper, Website of the Party Committee of Ho Chi Minh City. Ho Chi Minh City, Dong Nai Newspaper.