Eco-industrial parks seen as catalyst for higher-quality FDI

The eco-industrial park model will help Vietnam meet international environmental standards while creating opportunities to improve growth quality and economic competitiveness. Many multinational corporations now view green standards, emissions reduction and energy efficiency as key conditions when selecting investment destinations.

Hanoi (VNA) – Vietnam is accelerating the shift toward green and eco-industrial parks as part of efforts to improve the quality of foreign direct investment (FDI), enhance competitiveness and strengthen its position in global supply chains.

According to the Ministry of Finance (MoF), the country currently has 478 industrial parks, including 324 already operational and 153 under development. Vietnam has also attracted more than 45,000 FDI projects with combined registered capital surpassing 530 billion USD.

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A production line for camera modules and export-oriented electronic components at the factory of MCNEX VINA Co., Ltd. in Phuc Son Industrial Park, Ninh Binh province. (Photo: VNA)

Do Van Su, Director General of the MoF’s Foreign Investment Agency, said FDI inflows into industrial and export processing zones have remained on a positive trajectory, contributing significantly to industrial growth, exports and economic restructuring.

He noted that Vietnam is increasingly prioritising quality over quantity in attracting FDI, with rising additional investment flowing into existing projects, reflecting investors’ long-term confidence. Investment trends are also shifting toward high-tech industries, advanced manufacturing and smart production.

Despite these gains, Su said challenges remain, including uneven project quality, limited spillover effects and weak linkages between foreign-invested enterprises and domestic firms. Infrastructure constraints, shortages of high-quality labour and imbalanced industrial park planning also continue to hinder development.

Against the backdrop of global supply chain restructuring, Vietnam faces mounting pressure to improve investment quality. Investors are paying greater attention to innovation, technology, workforce skills and the business environment, while ESG standards, green transition, energy efficiency and digital transformation are becoming increasingly important in investment decisions.

In this context, industrial parks are being redefined not only as manufacturing hubs but also as integrated ecosystems capable of generating higher added value and strengthening supply chain connectivity. Developing green, smart and eco-industrial parks is therefore becoming essential for Vietnam to integrate more deeply into next-generation global supply chains.

However, awareness of eco-industrial park models remains relatively low. A survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) across 118 industrial parks found that nearly half of businesses had little or no understanding of sustainable industrial park concepts. Only around 30% were familiar with eco-industrial parks, while just 20% fully understood the need to balance economic, environmental, social and governance objectives.

To support the transition, Decree No. 35/2022/ND-CP dated May 28, 2022 established a legal framework for eco-industrial parks, followed by Circular No. 05/2025/TT-BKHDT issued in early 2025 by the former Ministry of Planning and Investment (now the MoF), providing further implementation guidelines.

As more countries tighten carbon reduction commitments and strengthen environmental standards on imports, the transition from traditional industrial parks to eco-industrial models is becoming increasingly urgent.

Hanoi currently operates nine industrial parks covering approximately 1,348 ha, most of which were established around 20 years ago, including three converted from smaller industrial clusters.

Many of these parks are now facing ageing infrastructure, deteriorating facilities and shortcomings in meeting updated fire safety and environmental standards, highlighting the need for comprehensive transformation.

Le Thanh Son, deputy head of the Hanoi High-Tech and Industrial Parks, warned that without timely reform, industrial land risks becoming locked into outdated growth models or serving as a destination for obsolete technologies, weakening the capital’s competitiveness and attractiveness to investors.

The authority is drafting a roadmap to transform existing industrial parks into green, smart and eco-industrial zones, alongside a comprehensive evaluation framework covering planning, digital and technical infrastructure, environment, energy, industrial structure, circular economy, social infrastructure and governance.

According to Son, the criteria are intended not only to assess industrial parks but also to screen investment projects, improve land-use efficiency, raise production value and promote sustainable growth.

Economic experts said the eco-industrial park model would help Vietnam meet international environmental standards while creating opportunities to improve growth quality and economic competitiveness. Many multinational corporations now view green standards, emissions reduction and energy efficiency as key conditions when selecting investment destinations.

For Vietnam, eco-industrial parks could also enhance resource efficiency, reduce production costs through circular economy models and improve working conditions for employees. The transition is aligned with the country’s net-zero emissions commitment by 2050 announced at COP26./.

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