In Vietnam, industrial zones (IZs) have made positive contributions to economic growth, but they have not contributed much to green and sustainable growth due to their impacts on the ecosystem. In the face of the sustainable development trend and green growth, which is a prevailing global trend and arises from domestic practical requirements, the conversion and development of sustainable IZs in Vietnam is one of the urgent solutions that need to be prioritized.

So far, sustainable industrial zones (IZs) have been recognized from four perspectives, including:

(i) Sustainability within the IZs through the use of advanced production technologies, measures to reduce emissions, and waste treatment before discharge into the environment;

(ii) Symbiosis with other businesses to ensure a closed-loop, circular economy and utilize each other's natural resources, minimizing waste in the production process that affects the environment;

(iii) Ensuring harmonious relationships between businesses and state management agencies in fulfilling tax obligations and other duties;

(iv) Ensuring relationships with the local community by effectively implementing the corporate social responsibility of businesses within the IZs.

Therefore, the role of sustainable industrial zones (IZs) in promoting green growth is recognized in all three pillars as follows:

For the economy: The development of sustainable IZs stimulates local and national economic growth, especially by promoting the development of supporting technologies and enhancing technology applications in small and medium-sized enterprises (SMEs). Consequently, the efficiency of operations of enterprises within sustainable IZs increases due to leveraging the inherent advantages of sustainable IZs. Enterprises within sustainable IZs save costs through interlinked and circular production with other enterprises.

For society: Sustainable IZs attract domestic and foreign investment, creating new jobs in industrial and service sectors. Additionally, they motivate the improvement of the quality of the local workforce, based on the demand for skilled and high-quality labor, directly training this workforce both in expertise and vocational skills. Development projects for housing, infrastructure renovation, and upgrades ensure the livelihoods of workers and social welfare.

For the environment: Sustainable IZs play a crucial role in environmental protection by reducing sources of pollution, industrial waste, energy consumption, and efficient use of natural resources. They implement advanced waste management systems and use renewable materials. Moreover, they apply high-tech, environmentally friendly production and waste treatment technologies.

Internationally, many countries have implemented the model of sustainable IZs in the form of ecological IZs and industrial-urban-service complexes. However, in Vietnam, this model is still relatively new and is only being piloted in some IZs. The implementation of the sustainable IZ model in Vietnam involves transitioning from traditional IZs to ecological IZ models by focusing on the criteria of ecological IZs. This approach differs from other countries where ecological IZs are formed and developed from the outset.

There are several barriers to the conversion of industrial zones (IZs) in Vietnam into ecological or industrial-urban-service complex models

Regarding policy mechanisms and management mechanisms:

Although the Government has issued Decree No. 35/2022/ND-CP, its legal force remains weak due to its lack of specificity and susceptibility to being replaced by other sectoral laws and decrees. In practice, the development of industrial zones (IZs) towards sustainability through ecological IZ models or industrial-urban-service complex models involves various sectors of the economy. Moreover, the management mechanism for sustainable IZs operates under the supervision of multiple authorities from central to local levels. This complicates the operations of businesses within the IZs.

Regarding planning and infrastructure development for IZs:

Building sustainable IZ models from existing IZs requires adjustments to planning and investment plans for infrastructure development, posing several challenges. Sustainable IZ development necessitates comprehensive planning from the outset to prepare necessary resources, especially land resources, as interconnected IZs need to ensure industrial symbiosis. Therefore, sustainable IZs should be strategically located, facilitating connectivity and the development of supporting industrial clusters to minimize transportation costs, enhance product exchange, and efficiently utilize shared services, energy, and resources. Planning work must have a long-term, holistic vision for the common development of a region or area, accompanied by efficient investment resource management.

Regarding capital sources and the awareness of industry collaboration among businesses within sustainable IZs:

Transitioning towards sustainable IZs requires businesses within the IZs to have good management capabilities and forecasting skills, along with abundant financial resources for investing in modern equipment, machinery, and advanced technologies, especially waste treatment systems. However, Vietnam lacks specific financial incentives for projects implementing sustainable IZ initiatives, creating significant barriers for businesses during the transition process. Moreover, the mindset of collaboration and industrial symbiosis among businesses within IZs still faces invisible barriers, including psychological reluctance to change due to the perceived complexity of participating in additional processes compared to non-participation.

Solution to promote sustainable industrial park development

To promote the development of sustainable industrial parks in the coming period, it is necessary to implement synchronized solutions from various stakeholders, including:

Firstly, government agencies should advise the Government in formulating policies aimed at continuing to build and improve the legal framework to promote the rapid development of sustainable industrial parks (SIPs). First and foremost, it is necessary to establish a separate legal framework for SIPs to create a legal corridor for all stakeholders participating in this model. This framework should provide clear direction and a roadmap for the development of SIPs, along with incentive policies to attract investment as well as economic, environmental, and social policies related to sustainable development. Particularly, there should be mechanisms and policies to encourage and support businesses in improving technologies and production lines to ensure cleanliness and efficient resource utilization, as well as fostering eco-industrial symbiosis among companies in various production stages towards sustainable development.

Secondly, the Government needs to develop a comprehensive master plan for the sustainable development of industrial parks with a broader vision, including regional and interregional scales. Local authorities need to assess the potential for transforming industrial parks into sustainable models to develop specific conversion roadmaps, avoiding disruptions to business operations. Additionally, they should adequately prepare land resources, provide support for relocation, and other services. It should be noted that, during the transition to sustainable industrial park models, priority should be given to selecting companies with complementary or interrelated business sectors within the same industrial park based on the local industrial restructuring orientation.

Thirdly, it is essential to intensify information, communication, and dissemination efforts to businesses and the public regarding the development of sustainable industrial parks and their benefits for green growth and sustainable economic development. Government agencies need to increase regular contact and exchange with businesses to promptly identify any challenges encountered during the transition to sustainable industrial park models, thereby providing solutions and accompanying enterprises.

Huy Dinh, compiled from Tap chi tai chinh (The financial Magazine)