A greener tomorrow with sustainable industrial parks
Investing in sustainable industrial parks is not just an investment in the future; it is an investment in the collective wellbeing of our communities, our environment, and our shared tomorrow, writes RMIT lecturer Dr. Scott McDonald.
 
  RMIT lecturer Dr Scott McDonald. Photo courtesy of RMIT.
The concept of sustainable industrial parks (SIPs) and eco-industrial parks (EIPs) has been gaining traction in Vietnam, aligned with the country's commitment to combat climate pollution when joining the UN Environment Programme's (UNEP) Climate and Clean Air Coalition in 2017. Several initiatives have been taken to establish and promote sustainable practices within industrial parks, and to complete the legal framework for investment in such facilities.
What does a sustainable industrial park look like?
SIPs/EIPs are designed to minimize environmental impact, promote resource efficiency, and exercise sustainable practices among industries operating within their boundaries. These parks focus on integrating environmental, social, and economic considerations into their design, operations, and management.
There are many examples from around the world that we could model after here in Vietnam, such as the Kalundborg Eco-Industrial Park in Denmark. For a small coastal community, it affords the city of Kalundborg €24 million ($26.23 million) in bottom-line savings annually. But the savings aren’t just financial - this process saves 635,000 tons of CO2, 3.6 million cubic metres of water, 100 GWh of energy, and 87,000 tonnes of solid materials – not bad for a town of only 16,000 people.
 
  VSIP Industrial Park in Nghe An province, central Vietnam. Photo courtesy of VSIP.
Future SIPs/EIPs in Vietnam can aim to include an environmentally friendly infrastructure, incorporating renewable energy sources, efficient water management systems, waste recycling facilities, and green spaces to reduce environmental impact.
These parks should also emphasize resource efficiency by promoting cleaner production methods, reducing energy consumption (thus reducing the carbon emissions), optimizing water usage, and minimizing waste generation through recycling and circular economy principles.
Another key feature may be to target green certifications, such as LEED (Leadership in Energy and Environmental Design) or EDGE (Excellence in Design for Greater Efficiencies) issued by the Green Building Certification Institute (GBCI), demonstrating compliance with environmental standards and sustainable practices.
Beyond the obvious environmental aspects, SIPs/EIPs may aim to contribute to social development by providing job opportunities, enhancing skills training, and improving on-site living conditions for workers.
They can also collaborate with various government ministries, private sector stakeholders, international organisations, and local communities to jointly implement sustainability initiatives, share best practices, and promote innovation.
Why invest in sustainable industrial parks?
Investing in SIPs/EIPs in Vietnam offers advantages for investors, blending financial gains with sustainable development.
On the financial front, investors in these parks may reap the rewards of diverse incentives, tax benefits, and government support. These can include reduced land lease rates, tax exemptions, favourable loan terms, and grants aimed at supporting eco-friendly technologies.
Investors also stand to gain access to potential green financing options and sustainable investment funds, developing multiple avenues for growth.
Sustainable eco-industrial parks place a premium on resource efficiency and waste reduction. This can help ensure substantial, long-term cost savings as in the Kalundborg example provided earlier.
Moreover, conforming to international environmental standards also enhances an investor's global reputation and facilitates engagement in markets with stringent environmental regulations.
Committing to eco-friendly practices not only underlines an investor's dedication to corporate social responsibility and sustainability but also enhances their brand image. This can potentially broaden their market reach and bolster sales figures.
Ultimately, involvement in SIPs/EIPs builds community engagement and strengthens stakeholder relations, creating potential synergies and mutual support among the diverse entities involved.
The Vietnamese government has shown support for sustainable industrial development by introducing decrees and/or policies, but many still await more clearly presented special incentives for investors that encourage industries and businesses within SIPs/EIPs to adopt sustainable practices and operate within environmentally friendly frameworks.
Challenges certainly do exist when it comes to integrating these practices in industries, such as balancing economic growth with environmental sustainability, and overcoming initial investment barriers. These are not easily overcome, but with the effort in place from the government to lead this initiative it is possible to begin seeing more SIPs/EIPs taking shape in the months and years to come.
- Read More
Vietnam mulls opening door for private investment in small modular reactors
Vietnam’s Ministry of Industry and Trade has drafted a parliamentary resolution that, for the first time, would allow private companies to participate in the development of small modular nuclear reactors (SMRs).
Energy - Fri, October 17, 2025 | 4:37 pm GMT+7
Kido seeks buyer for remaining 49% stake in frozen food affiliate
Kido Group (HoSE: KDC), a leading food company in Vietnam, has approved a plan to divest the firm's remaining 49% stake in its affiliate Kido Frozen Food JSC (Kido Foods).
Companies - Fri, October 17, 2025 | 4:25 pm GMT+7
Le Ngoc Quang appointed Danang city's Party chief
Le Ngoc Quang, a Party Central Committee member and Party chief of Quang Tri province, has been appointed Party chief of Danang for the 2025-2030 term - the highest position in the city, central Vietnam's economic hub.
Politics - Fri, October 17, 2025 | 4:17 pm GMT+7
T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects
Multi-sector conglomerate T&T Group is developing a model eco-urban complex in Ha Tinh province and plans to build a massive 236-hectare urban area in neighboring Nghe An, with an aim to reshape north-central Vietnam's urban landscape.
Investing - Fri, October 17, 2025 | 2:44 pm GMT+7
Toyota plans $359 mln plant expansion in northern Vietnam
Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.
Investing - Fri, October 17, 2025 | 2:09 pm GMT+7
PVI Insurance sees 9-month profit before tax more than doubling
PVI Insurance has reaffirmed its position as the No. 1 non-life insurer in Vietnam, with total revenue increasing nearly 1.4 times in the first nine months of 2025 and pre-tax profit more than doubling year-on-year - surpassing its full-year targets for both revenue and profit.
Companies - Fri, October 17, 2025 | 9:08 am GMT+7
Vingroup to develop 4,600ha coastal urban project in northern Vietnam
A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.
Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7
Indonesia resumes int’l carbon trading after 4-year hiatus
Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.
Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7
Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles
Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.
Energy - Thu, October 16, 2025 | 9:04 pm GMT+7
Vietnam to soon raise taxpayers' personal deduction: official
The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.
Finance - Thu, October 16, 2025 | 6:25 pm GMT+7
Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam
The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.
Economy - Thu, October 16, 2025 | 4:36 pm GMT+7
Vietnam's stock market watchdog suspends two Grant Thornton auditors
Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.
Finance - Thu, October 16, 2025 | 3:35 pm GMT+7
Law No. 56 a major policy breakthrough for Vietnam's stock market development
The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.
Finance - Thu, October 16, 2025 | 2:30 pm GMT+7
WHA Group breaks ground on smart technology industrial zone in central Vietnam
Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.
Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7
Vietnam a key partner in Murphy Oil’s global strategy: exec
Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.
Companies - Thu, October 16, 2025 | 12:06 pm GMT+7
VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center
State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.
Companies - Thu, October 16, 2025 | 8:41 am GMT+7
- Travel
-  
                 
                Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam
- 
                Hilton signs strategic partnership with Sun Group to develop 5 hotels in Vietnam
- 
                Long Thanh airport to handle 80% of int’l flights to HCMC area, Tan Son Nhat airport 20%
- 
                New train helps tourists explore landmarks of Hanoi, Bac Ninh province
- 
                Cam Ranh airport in central Vietnam tourism hub set to be among country’s largest
- 
                VAFIE hosts second 'Golf Club for Business' outing
 
             
 
                    




















