Eco-industrial park model the right path for Nam Cau Kien: Shinec chairman

Nam Cau Kien Industrial Park was originally designed for the shipbuilding support industry. Why has your company shifted to an eco-industrial park model?

Our initial development orientation was to invest in industrial cluster infrastructure on an area of more than 268 hectares, serving the shipbuilding and mechanical industries, along with handicrafts. The shipbuilding industry in Hai Phong used to be very developed, but more than a decade ago, it plummeted when products were left unsold, resulting in losses, debt, and unemployment. The industry seriously declined and investment in shipbuilding stalled, so infrastructure investors like us were indirectly affected.

On the basis of assessing the potential and advantages of the locality, we decided to try and attract secondary investors in the direction of building green and eco-industrial parks for more environmentally friendly industries. That decision has removed many difficulties and brought positive effects in many areas.

Despite not being included on the list of industrial parks piloted as eco-industrial parks, Nam Cau Kien has transformed itself into one nonetheless. How has the park completed the criteria for this model?

Realizing the socio-economic and environmental benefits of the eco-industrial park model, many industrial parks have begun to switch to this model. In 2018, the government issued Decree 82 (now Decree 35/2022/ND-CP) on "regulations for the management of industrial parks and economic zones", which includes criteria for eco-industrial parks. This is a legal document in Vietnam that lays the foundation for the conversion of conventional industrial parks to ecological ones.

At that time, there were large projects funded by global eco-industrial park programs organized by the Ministry of Planning and Investment in coordination with the United Nations Industrial Development Organization (UNIDO) and Switzerland’s State Secretariat of Economic Affairs (SECO) to build pilot eco-industrial parks in Vietnam.

Because it was so new, the implementation was extremely difficult and full of challenges and risks. In addition to lacking experience, there were many problems related to costs and interests between developers and secondary investors; between businesses in the cyclical symbiotic chain model; between waste treatment and new energy production capacity; and between advanced technology, policies and mechanisms.

Fully aware of these difficulties, even though it was not included in the list of projects receiving conversion support, Shinec JSC - the investor of Nam Cau Kien Industrial Park, decided to pilot the construction of an eco-industrial park. This project will promote green development in Hai Phong. If successful, it will become a model to be applied in industrial parks nationwide.

Where did Nam Cau Kien source the technology from to build this eco-industrial park?

Through studying advanced models from developed countries, Nam Cau Kien chose to learn from Japan’s Kitakyushu Eco-town Project to build its eco-industrial park. In 2019, we sent environmental officers to learn from the Environment Agency of Kitakyushu. Representatives of the industrial park along with leaders of 11 investors in the park went to Kitakyushu city to study the model and a number of waste recycling facilities, and work with the Kitakyushu Asia Center for Carbon Neutrality, asking them to transfer technology to help turn Nam Cau Kien into an eco-industrial park.

Nam Cau Kien has worked to build infrastructure, develop human resources, and organize investment promotions, as well as providing green technology transformation solutions for businesses, gradually reducing carbon operations, and contributing to realizing Vietnam's zero carbon goal by 2050.

How attractive is the eco-industrial park model? To develop an eco-industrial park, the investor must reduce the area of industrial land and increase the area of green trees and landscapes, which means revenue from land rentals will decrease. How does Nam Cau Kien compensate for this loss?

Revenue is partially reduced in the short term, but it will be effective in the long term. An eco-industrial park will help minimize investment in projects and provide an investment environment with many advantages.

Nam Cau Kien provides an ideal working environment for businesses, with a focus on finding investment opportunities associated with environmental protection. The production and business environment is also a factor that customers look at. This is also the priority for Nam Cau Kien in looking for investment, higher land rentals than the market average, rising real estate prices and after-sales services, and extra revenues.

Shifting to the eco-industrial park model, how has Nam Cau Kien's attraction to secondary investors improved?

Eco-industrial parks are attractive to investment businesses because in addition to good services and convenient transportation infrastructure, they also create a sustainable business environment with special benefits. Specifically, the eco-Industrial park model complies with strict environmental regulations and standards, ensuring production and business activities while minimizing negative impacts on the environment. Investing in an eco-industrial park will help businesses build a sustainable image and meet customers' environmental requirements.

We have programs to exchange learning and experience at home and abroad, connecting technology solutions and technical applications for businesses to improve production, reduce CO2, and exploit solar power for conversion. gradually switching to green energy. This helps reduce production and operating costs, creating competitive advantages and attracting the attention of businesses looking to save resources.

We have organized experience exchange programs at home and abroad, connected technology solutions and technical applications for businesses to improve production, reduce CO2, and utilize solar power for gradually switching to green energy. This helps reduce production and operating costs of enterprises, creating competitive advantages and attracting the attention of companies targeting resources saving.

Nam Cau Kien Eco-Industrial Park has formed symbiotic chains. How are they operating?

Deploying an industrial symbiotic chain is the process of building and managing a tight supply network between businesses and organizations in the industry. We collect data, boost connections and exchanges, search for potential markets, and look to expand the symbiotic network of each industry with new customers or form regional links and connections among industrial parks.

Each symbiotic circle has different characteristics, strengths, and potential. The effective management of symbiotic circles will build relationships and contracts with many partners. I think the role of an industrial park developer is very important as it plays a responsible role in the business community network, looks for opportunities, and sets the most appropriate criteria for effective management to help develop the industrial park and improve the brand.

What do symbiotic chains in eco-industrial parks bring to secondary investors as well as meet environmental protection requirements?

Deploying an industrial symbiosis chain brings many important benefits to businesses and organizations in the industrial sector. It helps increase the efficiency of production and supply of goods thanks to the cooperation of businesses engaging in the symbiotic production cycle, taking advantage of each other’s available experience and technology, and reducing costs for real estate investment of each project.

It also helps reduce wastefulness during the production and supply of goods, minimize unnecessary inventory, avoid product waste and increase competitiveness. Thanks to close cooperation between supply chain partners, it helps control the quality of the entire production process. Waste is collected and treated on the same day, helping businesses save money from not investing in storage space and reduce treatment costs.

The industrial symbiotic chain helps improve enterprises’ competitiveness. Businesses can provide products and services with lower prices and faster delivery. They will find it more favourble to export goods to major demanding markets because they fully meet the standards and conditions for sustainable development.

Nam Cau Kien Eco-Industrial Park is not only associated with circular economy but always focuses on developing ecological space. How does this help reduce emissions in industrial production?

We build green and ecological infrastructure along with the responsibility to protect the environment, creating motivation for businesses to join in the process. Ecological space is not only in businesses and industrial parks but also connects with surrounding communities. Developing eco-industrial parks helps with economic development while preserving the regional ecological environment.

Along with good management and supervision of businesses, the IP has invested in trees, water surfaces, environmental protection works and green energy. We have promoted activities to save natural resources such as recycling water resources and waste, helping control the secondary environment effectively. We have also encouraged businesses to use renewable energy, and closely monitored the transportation of materials and waste.

"Doing business on the land - Giving back to the land" is the criterion that Nam Cau Kien is pursuing. Will the trees and scenery in the industrial park be an affirmation for its economic development associated with environmental protection?

In Nam Cau Kien Eco-Industrial Park, there are currently 17 main sub-ecosystems belonging to terrestrial and inland water groups, with 1,200 species. The terrestrial ecosystem has a series of green gardens and green trees in business premises.

Entering the IP, you will feel the fresh air, with flowers along the routes and shady trees and green buildings, creating harmony between "industry" and "ecology". This can be considered a proof of a clean environment, ensuring the health of workers in the industrial park as well as in the residential community.