The trend of factory relocation and challenges from the Covid-19 pandemic are posing problems for Industrial Zone infrastructure investors. Instead of creating a land fund, completing infrastructure, and attracting investors to rent land like the current activities, Industrial Zones need to be transformed in an intensive and multi-functional direction.
The Green transformation
At a recent conference on green transformation in Industrial Zones of Dong Nai Province, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh said that the impact of the Covid-19 pandemic and trade competition is on the rise that poses problems for Industrial Zones. Industrial Zones cannot follow the "ready-to-use" model, that is, create a land fund, complete the connection infrastructure, and attract businesses to rent land like the current activities, but it must switch to "tailoring" to suit each field and form a sustainable ecosystem. Mr. Thanh said that some countries in Southeast Asia have established specialized Industrial Zones; The Industrial Zones having houses, hospitals, and schools inside. If Vietnam also has specialized and multi-functional Industrial Zones, it will be an ideal condition to attract and retain the investors.
Agreeing with the above view, Deputy Director of VCCI, Ho Chi Minh City branch Nguyen Huu Nam said that during the stressful period of the Covid-19 epidemic, it was clear that the construction of a multi-functional Industrial Zones was necessary, for example building the Industrial Zones that could meet the demand of the "3-on-spot" production model of enterprises.
“Currently, a lot of investors are interested in green, environmentally friendly Industrial Zones to participate in free trade agreements and export green products, but the vast majority of Industrial Zones in Vietnam have not met the requirements. Industrial Zones should follow the new trends to increase their competitiveness, towards the sustainable development of Industrial Zones," said Mr. Nam.
Mr. Cao Viet Chuong, General Director of Nhon Trach 6 Industrial Zone Service Company Limited, said his company is very interested in and want to switch to an ecological Industrial Zone model. However, the current difficulty is that there are no specific guidelines on the policy for the development of eco-Industrial Zones, and the legal corridor is not synchronized and overlaps. In Dong Nai, there has not been a typical example to follow. In 2020, Amata Industrial Zone was selected to be the project to implement the eco-Industrial Zone in Vietnam following the approach from the global eco-Industrial Zone program, but so far there has been no clear change.
"We will convert a traditional Industrial Zone into an ecological Industrial Zone and build an industrial symbiotic network when the policies and guidelines for building an ecological Industrial Zone are issued and the State has technical solutions to support the transformation" - Mr. Chuong shared.
Reporters visit Nestlé coffee factory, in Amata Industrial
Zone
There are many bottlenecks
Although assessed as an inevitable trend in industrial development to achieve the goal of socio-economic harmony and environment, the transition to an ecological and multi-functional Industrial Zone model in Dong Nai still faces many challenges. In addition to legal issues, procedures, and example models, it is necessary to recognize that most of the Industrial Zones in the province were formed and achieved a high occupancy rate many years ago, and there is not much land area left. Environmental problems and the risk of environmental pollution in Industrial Zones are always existing, making it difficult to invest in utility projects such as houses, hospitals, and schools.
According to Mr. Nguyen Dinh Nam, Head of the Environment Management Division of Long Khanh Industrial Zone, in the past few years, the Industrial Zone has attracted investment quite significantly. By the end of 2021, the Industrial Zone has signed the land lease contracts with 44 investors, with a total leased area of more than 172ha, accounting for 97% of the leased land area. The outside area for lease has been planted with trees, built roads and the mutual infrastructure system for the whole Industrial Zone. Currently, the Industrial Zone is promoting the expansion of an area of 500ha. The expanded Industrial Zone can have in it the social works to meet the needs of workers according to the criteria of green Industrial Zones, but around the existing Industrial Zones, there are hospitals, schools, and parks; The workers are mainly local people who already have their own houses.
A representative of an infrastructure business in Bien Hoa City said that the green transformation in Industrial Zones in the direction of one enterprise linking with another enterprise to reduce emissions and recycle materials is very effective. However, the current environmental law clearly stipulates the difference between wastewater and garbage. Manufacturing enterprises must sign contracts with the licensed waste treatment companies. In case enterprises wish to reuse the waste, they must obtain a permit.
Director of Viet Nam Cleaner Production Centre Co., Ltd (Hanoi City) Le Xuan Thinh said that in order to switch to a green Industrial Zone model, infrastructure investors and businesses must have a strategy to prevent pollution, waste circulation, forming an industrial symbiosis model. Currently, some Industrial Zones have formed the symbiotic model, such as Tra Noc 2 Industrial Zone (Can Tho City), industrial wastewater after treatment is stored for fire prevention and fighting in the Industrial Zone; Type A wastewater from Vietnam Dairy Products Joint Stock Company is reused by Tay Do Steel Co., Ltd. to cool down the factory; Seafood processing enterprises cooperate with fertilizer factories to reuse shrimp shells, fish heads, etc. Viet Nam Cleaner Production Centre Co., Ltd has asked to pilot this model in Long Thanh Industrial Zone for treating the industrial wastewater.
Dong Nai Industrial Zones Authority said that, for many years, the province has always focused on investing in building Industrial Zone infrastructure in a synchronous and modern direction. The province is continuing to build and develop Industrial Zones in the direction of green and clean in order to increase production value and improve the investment environment. Currently, Dong Nai has specialized Industrial Zones such as Nhon Trach Textile and Garment Industrial Zone, and an Industrial Zone having houses in it such as Long Thanh Industrial Zone. Amata Industrial Zone is piloting the conversion to eco-Industrial Zone, this successful model will be replicated to other Industrial Zones in the province.
Author: Phan Anh
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