Over 400 eco-industrial zones recorded nationwide
Illustrative photo (Source: VNA) |
The cost of building a green industrial zone is typically around 30% higher than that of a traditional zone, Rooney explained. Therefore, additional incentive policies, along with credit support for investors, are necessary to help alleviate the initial financial burden.
According to data from the Ministry of Planning and Investment, by 2030, approximately 40-50% of provinces and centrally-run cities nationwide will have plans to convert existing industrial zones into eco-industrial ones, with 8-10% of them expected to establish new eco-industrial zones.
Leading this trend in Vietnam are VSIP and DEEP C industrial zones, which are utilising rooftop solar energy systems to supply electricity to parts of their operations.
Based on primary data from their working sessions with clients, Savills reports that around 80-85% of foreign-invested enterprises have high demands for ESG (environmental, social, and governance) standards when selecting factory locations, prioritising sustainability.
To effectively compete with neighbouring markets such as Thailand, the Philippines, and Indonesia, which have successfully developed several green industrial zone projects, Rooney said Vietnam needs to meet this demand. This would enhance its appeal to foreign investors and strengthen the position of its industrial zones in the global market.
According to Savills, with FDI continuously increasing in Vietnam, foreign companies will have high demand for space and warehouses to support their production and business activities. As a result, industrial real estate is expected to remain a bright spot for attracting investors in the market.
The professional service firm KPMG's survey involving 200 FDI enterprises notes that aside from factors such as location, labour availability, and logistics infrastructure, industrial zones meeting green criteria are becoming a top priority for many foreign-funded companies when choosing investment locations in Vietnam.
Furthermore, the Vietnamese government has set goals to become a developed nation by 2045 and achieve net-zero emissions by 2050. Green industrial zones in Vietnam have advantages over traditional ones due to prioritised support in terms of technology, export, branding, value chains, and preferential loans under the decree on the management of industrial and economic zones.
In Vietnam, the eco-industrial zone model has been developed since 2014 with the support of international organisations. From 2015 to 2019, the Ministry of Planning and Investment, in collaboration with the United Nations Industrial Development Organisation (UNIDO), implemented the conversion of four pilot industrial zones into eco-industrial ones. From 2020 to 2024, this model has been expanded in Hai Phong, Dong Nai, and Ho Chi Minh City, contributing to GDP growth and emissions reduction./.
See also
Ministry proposes incentives for renewable energy projects
16:17 | 20/12/2024 Energy
The Era of Advancement for Vietnam Industrial Park
17:15 | 19/12/2024 Industry
Vietnamese coffee sector working to meet EU Deforestation Regulation
16:38 | 18/12/2024 Industry
Construction industry expands at the highest rate since 2020: ministry
09:38 | 18/12/2024 Industry
Viet Nam's semiconductor industry revenue estimated at over US$18 billion in 2024
15:47 | 17/12/2024 Industry
Small nuclear reactors could power Vietnam’s net-zero future: experts
09:16 | 17/12/2024 Energy
See more news
Vietnam home to 174 FDI projects in semiconductor sector
09:11 | 17/12/2024 Industry
Garment industry urged to gain self-sufficiency in raw materials for UK expansion
15:23 | 13/12/2024 Industry
Vietnam’s industrial production rises by 8.4% in 11 months
16:29 | 09/12/2024 Industry
Việt Nam needs a competitive energy market: experts
16:59 | 08/12/2024 Energy
Việt Nam resumes nuclear power project amid rising energy demands
17:07 | 07/12/2024 Energy
Việt Nam's supporting industry for electronics needs more support
16:58 | 07/12/2024 Support industries
Vietnam’s automotive industry seizes golden opportunities from global supply chain
13:17 | 06/12/2024 Support industries
Rubber industry adaptive to EU Deforestation Regulation
17:03 | 04/12/2024 Industry
Localities prioritize supporting industry development
07:20 | 04/12/2024 Support industries
Reviving nuclear power programme believed a correct policy
09:09 | 02/12/2024 Energy
Viet Nam back as ASEAN’s growth star: HSBC
16:02 | 21/12/2024 Economy
Gov't targets to gradually make English second language at schools by 2030
15:45 | 21/12/2024 Policy
Additional Vietnamese fruits given green-light to enter US and Australia
15:32 | 21/12/2024 Trade
Ha Giang Province promotes sales of local products through e-commerce
15:24 | 21/12/2024 Trade
PM's Certificate of Merit presented to Japanese prefecture's governor
14:22 | 21/12/2024 Cooperation
Multimedia
Total FDI registered in Vietnam hits 31.4 billion USD in January-November
09:02 | 17/12/2024 Infographic
First 11 months of 2024: Import-export turnover increases 15.4%
10:55 | 16/12/2024 Infographic
11-month agro-forestry-fishery exports exceed yearly target
19:55 | 15/12/2024 Infographic
Hanoi achieves or exceeds 23/24 socio-economic targets for 2024
08:57 | 13/12/2024 Infographic
Quang Trach – Pho Noi 500kV circuit-3 power transmission line: Miracle in infrastructure development
09:05 | 12/12/2024 Infographic
Gov't targets to gradually make English second language at schools by 2030
15:45 | 21/12/2024 Policy
Nine newly-adopted laws made public
16:42 | 20/12/2024 Policy
Resolution on construction of North-South high-speed railway issued
11:42 | 19/12/2024 Policy
PM requests no one be left behind in apparatus restructuring
09:16 | 18/12/2024 Policy
Ministry proposes incentives for renewable energy projects
16:17 | 20/12/2024 Energy
The Era of Advancement for Vietnam Industrial Park
17:15 | 19/12/2024 Industry
Vietnamese coffee sector working to meet EU Deforestation Regulation
16:38 | 18/12/2024 Industry
Construction industry expands at the highest rate since 2020: ministry
09:38 | 18/12/2024 Industry
Nghe An Southeast Economic Zone aims to attract 1 billion USD in FDI in 2025
12:33 | 21/12/2024 Investment
Boeing aims to expand investment and cooperation in Vietnam’s defense sector
17:00 | 19/12/2024 Investment
Can Tho attracts non-state investment
10:21 | 17/12/2024 Investment
FDI remains vital contributor to boost economic growth
09:06 | 13/12/2024 Investment
Year-end surge in property bond issuance amid financial challenges
09:39 | 20/12/2024 Finance-Banking
Vietcombank named most valuable brand in Vietnam
16:43 | 18/12/2024 Finance-Banking
Many banks increase deposit interest rates in year-end period
16:56 | 16/12/2024 Finance-Banking
Deputy PM urges extra efforts to remove Vietnam from money laundering grey list
15:16 | 13/12/2024 Finance-Banking
Vietnam likely to face continued turbulent weather systems in 2025
14:26 | 19/12/2024 Environment
Nature-based projects help Mekong Delta fight climate change
16:31 | 18/12/2024 Environment
11 rare monkeys released back into wild in Nghe An
09:27 | 18/12/2024 Environment
Master Plan on Sustainable Exploitation and Use of Coastal Resources announced
11:26 | 16/12/2024 Environment
Vietnam can partner with UK in developing nuclear power: Expert
12:43 | 21/12/2024 Science - Technology
Vinaphone launches fastest 5G service in Vietnam
12:38 | 21/12/2024 Science - Technology
Vietnam cooperates with Google to launch “Official Government Apps" feature
17:13 | 20/12/2024 Science - Technology
Two VNA newspapers rated "excellent" in digital transformation maturity
14:29 | 17/12/2024 Science - Technology
How will green transformation roadmap for Ho Chi Minh City public transport be applied?
12:19 | 21/12/2024 Society
Vietnam aims high with global education integration scheme until 2030
16:36 | 20/12/2024 Society
HCMC - Trung Luong - My Thuan Expressway to be expanded
15:46 | 18/12/2024 Society
Metro line 1 begins commercial operations this weekend
10:45 | 18/12/2024 Society
Viettel's hi-tech products meets standards for supply to Malaysia
13:19 | 21/12/2024 Vietnamese Brands
Hanoi promotes key industrial products
12:57 | 15/12/2024 Vietnamese Brands
Building a strong brand for Ha Giang’s thick-skinned orange
14:31 | 12/12/2024 Vietnamese Brands
2024 Vietnam Business Day opens shop in Japan
14:49 | 04/12/2024 Vietnamese Brands
Enduring tradition of Ha Nhi ethnic minority group's costumes
13:14 | 21/12/2024 Culture
Legendary band Boney M to thrill Vietnamese audiences this Christmas
14:49 | 17/12/2024 Culture
Ten prominent cultural, sports, tourism events in 2024 announced
14:39 | 17/12/2024 Culture
Argentine culture moves closer to Vietnam with Tango dance
15:15 | 16/12/2024 Culture
Two VNese destinations among cheapest places to live for digital nomads
13:10 | 21/12/2024 Tourism
Vietnam among top 3 destinations appealing to Australians
14:34 | 17/12/2024 Tourism
Ha Long Bay celebrates 30 years as a world heritage site
15:16 | 16/12/2024 Tourism
“Biet dong Sai Gon - Legendary Tunnels" tour launched
15:10 | 16/12/2024 Tourism