Vietnam should build clear legal framework for green industrial parks: Phu My 3 IP chairwoman

Vietnam should build a clear legal framework to facilitate the green growth of industrial parks, such as penalizing investors for failing to meet their green growth requirements, said Nguyen Thi Thao Nhi, chairwoman of industrial real estate developer Thanh Binh Phu My JSC.

Nhi made the statement at the Vietnam Industrial Park Forum 2023: Towards Green Growth hosted by The Investor on Thursday, while giving recommendations based on the success of Phu My 3 Specialized Industrial Park (PM3 SIP) as a green industrial park in the southern coastal province of Ba Ria-Vung Tau.

Presenting Phu My 3 Specialized Industrial Park's development over the past decade, amid the unclear legal framework on eco-industrial park, Nhi highlighted that PM3 SIP's strategy is to accompany and ensure that investors follow green requirements. For example, PM3 SIP enforces a rule of cutting off water suppliers to investors that break environmental regulations.

Besides, local authorities should update their requirements on green growth, green economy and green industry, the executive added.

Nhi highlighted PM3 SIP’s achievements, including the Prime Minister’s approval for its establishment in 2014, the support of the Japan International Cooperation Agency (JICA), attraction of $3 billion from 41 investors since 2017, and its utilization of the province’s strengths, and others.

Attracting major investors is not an easy task, Nhi noted, suggesting that industrial park developers should focus on connecting investors with local authorities in order to gain their appreciation and allure more investment.

"The critical point is we must understand investors and accompany them on their path," she said.

At the forum, Kazama Toshio, deputy CEO of Thanh Binh Phu My JSC, noted Phu My 3 Specialized Industrial Park's advantages for investors, including its proximity to Cai Mep-Thi Vai seaport and expressways, stable supplies of water and electricity, the gas pipeline, single-window services, and others.

Investment in the industrial park is expected to grow from the current $3 billion to $5.5 billion in 2026, or $8-9 million per hectare on average, he said.