HANOI, Vietnam, Nov. 29, 2022 (GLOBE NEWSWIRE) -- As Vietnam speeds up the transformation toward a sustainable development model following the National Green Growth Strategy, domestic and foreign investors are paying attention to its circular economy development strategy and policies for building eco-industrial parks.
There are nearly 400 industrial parks and economic zones in Vietnam, attracting approximately US$12 billion in foreign direct investment capital, which accounted for 80-90% of foreign-invested projects in the manufacturing sector.
Vietnam is accelerating the establishment of social-eco industrial parks to meet the demand and catch up with global trends. Not only increasing economic efficiency, but the transformation of traditional industrial parks into ecological ones also opens up opportunities to attract high-quality investment capital and increase competitiveness for enterprises.
The recent Decree 35 aims to promote specialized, modern, green, clean industrial parks and provide a clearer direction for investors. It means the transformation of existing industrial parks into eco-industrial parks with complete infrastructure, higher local quality jobs through improving working conditions and enhancing cohesion, social benefits, and responsibilities towards the community.
Vietnamese government targets that by 2030, 40-50% of provinces will plan to convert traditional industrial parks into eco-industrial parks.
On November 2022, the LEGO Group kicked off the construction of the US$1 billion first carbon-neutral factory in Binh Duong Province. In a statement, the company aims to achieve 100% energy consumption through solar panels on its roof and nearby farm.
With strong government support, Vietnam is on its way to establishing itself as a global leader in renewable energy production and becoming an ideal destination for many leading global corporations such as Samsung, Canon, LG, Apple, Dell, Sumitomo, Foxconn, and Pegatron to set up manufacturing facilities. These big manufacturers are looking for high-quality real estate facilities that meet the condition of a sustainable industrial park.
Among industrial real estate developers engaging in the trend, Aurora IP, developed by one of Vietnam's leading real estate developers Cat Tuong Group, is oriented to become an eco-smart textile industrial park.
To ensure green and clean factors, the industrial park is equipped with a wastewater treatment system of 110,000 m3/day night and a surface clean water system of 170,000 m3/day night, meeting the strict requirements of the textile dyeing process.
Regarding human resources, Aurora IP will have 10,000 local workers with high school graduates or basic training, while 130,000 people aged 21-35 are available in surrounding districts.
As a socio-industrial park, Aurora IP also provides other supporting items and facilities to ensure stable, comfortable and safe accommodation for workers and officials in the industrial park, with complete telecommunications infrastructure, co-working space, and electric vehicles, bringing a new industrial lifestyle for workers.
Many large foreign investors recognized Aurora IP’s effort. Previously, it signed two large-scale projects with total investment capital of $210 million with TOPT Textile Ltd and Jehong Textile Co., Ltd. Accompany Aurora IP on the journey to promote sustainable growth for Vietnam's textile and garment industry, Jehong Textile was recently awarded three green-related ISO certifications by the British Standards Institution.
Last month, Aurora IP signed another contract with a Hong Kong-based top textile company Partner Corporation, increasing the total foreign investment capital into Aurora IP to $300 million. Once operated, these projects’ production capacity is expected to reach nearly 90 million meters of fabric annually and create 4,000 jobs.
"It's time to transform from traditional industrial zones to more sustainable ones," said Mr. Tran Quoc Viet-Chairman & CEO of Cat Tuong Group. "Our mission is to provide a socio-ecological industrial park in compliance with local and international green building certifications to reduce industrial and commercial carbon footprint and ensure a good human resource for manufacturers."