IPs need green transition to attract investment

The new-generation FDI flow is focusing on green industrial parks (IPs), urging IPs in Vietnam to promote transformation to welcome new wave of green investment, heard the Vietnam Industrial Park Forum 2024.

The forum was held in Ho Chi Minh City on July 30 with the theme “Going Green for New Investment Waves”.

Many domestic and international large investors, particularly foreign investors like LEGO and Heineken, have shown a special interest in green production through the construction of carbon-neutral factories in Vietnam, as well as using renewable energy and green energy for manufacturing and business activities.

Therefore, eco-industrial parks have become a selection criterion for foreign investors with sustainable development goals and economic benefits alongside their community and social responsibilities, particularly in line with ESG (Environment, Social and Governance) criteria,  as required by supply chains. At the same time, they use renewable energy and green energy for production and business activities.

Mr. Hardy Diec, Managing Director of KCN Vietnam, said it was necessary to pay attention to the greenization trend. Many investors have shown interest in how to reduce carbon emission to contribute to the sustainable growth process, he said.

However, participants said, Vietnam is still at the early state of trialing the model of eco-industrial parks and implementing such model will still face numerous challenges such as lack of financial support for investors to carry out green transition and lack of specific regulations. The process of granting investment license should be simplified.

There were 425 IPs and export and processing zones nationwide as of May, 2024, covering a total area of 89,200 ha. By the end of 2023, they attracted 11,200 foreign-invested projects with a total registered capital of $251.6 billion.