Eco-Industrial Park

Initiative for Sustainable

Industrial Zones in Vietnam
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
 Industrial Zones in Vietnam
Over the last ten years, Vietnam has experienced rapid economic growth
driven mainly by the processing and manufacturing sectors. To facilitate the
establishment of new industries, the government created industrial zones
(IZs), which account for 40% of the national industrial output and 49% of
the total export value of the country. However, industrial activities have also
caused negative impacts on the environment and on human health. Inefficient
management of resources has increased greenhouse gas (GHG) emissions and
has caused water and soil pollution. Despite efforts made by the Vietnamese
government, many barriers have yet to be overcome to address industrial
pollution in the country.

20%
70% of the effluent of industrial
discharged from waste is
industrial zones hazardous
In 2014,
in Vietnam is
Ministry of Planning and Investment there were 295
of Vietnam
untreated
industrial zones
in Vietnam

Disclaimer:

This document has been produced without formal United Nations editing. The designations employed and the
presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of
the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of
any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries,
or its economic system or degree of development. Designations such as “developed”, “industrialized” and
“developing” are intended for statistical convenience and do not necessarily express a judgment about the stage
reached by a particular country or area in the development process. Mention of firm names or commercial products
does not constitute an endorsement by UNIDO. The selection of projects to illustrate UNIDO’s engagement aims at
demonstrating their geographic and thematic variety and scope and is not endorsed by UNIDO.

Design: red hot 'n' cool, Vienna / Illustration: dollarphotoclub.com

Eco-Industrial Park Initiative 01 02
Policy & Capacity
legislation building
Project Overview
Budget: USD 4.5 million
Donors: Global Environment Facility (GEF), Swiss State Secretariat for
Economic Affairs SECO and United Nations Industrial Development
Organization (UNIDO)
Project
Main partners: Ministry of Planning and Investment (MPI) of Vietnam,
relevant Ministries and provincial authorities of Ninh Binh, 05 components 03
Da Nang, Can Tho
Strategic
Monitoring plans for IZ
Duration: 3 years
& evaluation transformation
The project aims to transform existing IZs into eco-industrial parks (EIP), in
which companies cooperate with each other and with the local community to
reduce environmental impacts and production costs. In addition, clean and
low-carbon technologies and practices will be demonstrated within the
04
industries to minimize GHG emissions, the release of persistent organic
EIP demonstrations
pollutants (POPs) and land based water pollution. & awareness raising
Shifting from Industrial Zones…
 Location of Beneficiaries
Hanoi
project activities Companies and industries
Workers and employees
The industrial zones (IZs) are located within Local communities
Ninh Binh the catchment areas of the two largest rivers in Environment
(Khanh Phu industrial zone) Vietnam, namely the Mekong River and Red River,
National and local government
representing a threat to their rich biodiversity and

to the subsistence of riparian communities.

Benefits of the project

Danang
(Hoa Khanh industrial zone)
↗ Improved resource efficiency through the reduction of the use
of raw materials, water and energy

Reduced production costs ↘

↗ Improved competitiveness and profitability

Minimized GHG emissions, release

of POPs and use of toxic chemicals
↘
Reduced waste through the promotion
of Cleaner Production and the 3 R’s
(Reduce, Reuse and Recycle)
↘
↗ New and more employment opportunities
Can Tho
(Tra Noc 1&2 industrial zone)
↗ Improved workers' health and safety as well
as quality of life of communities

↗ Better access to new technologies and

financial instruments
 Available Financial Models
Financial mechanisms Form of Assistance

Participating companies are supported in accessing

· Partial refund if environmental
financial resources when implementing clean & low Green Credit Trust
targets achieved
carbon technologies. The project has partnered with four Fund
institutions that offer preferential access to financial
· C ollateral guarantor
resources, such as investment aid and loans:
Vietnam Environment
· Low interest
Protection Fund
Loan rate
Vietnam (soft loan, · L ong payment
Development Bank investment terms
credit)
National Technology · L ow own
Innovation Fund capital

Green Credit Trust Fund: Vietnam Environment

Promoting long-term investments Protection Fund: Companies are additionally encouraged to consider other
in cleaner technology Mobilizing financial resources available government funding or local bank technology
for environmental protection investment schemes. The project also aims for a close
partnership with the International Finance Cooperation (IFC),
so that companies and IZ developers can benefit from the IFC
funding mechanism.

For more information about the four financial mechanisms:

Green Credit Trust Fund:
http://gctf.vn/en/
Vietnam Environment Protection Fund:
Vietnam National Technology http://www.vepf.vn/?lang=vi-VN
Development Bank: Innovation Fund:
Vietnam Development Bank:
Providing financial services for Providing preferential loans for
http://vdb.gov.vn/Trangchu.aspx
small- medium sized enterprises technology innovation
National Technology Innovation Fund:
http://www.most.gov.vn/Desktop.aspx/Home-EN
Eco-Industrial Park Initiative for
Sustainable Industrial Zones in Vietnam

For more information on the project,

please contact:

Mr. TRAN DUY Dong

National Project Director
General Director of Department for Economic Zones Management
Ministry of Planning and Investment
Tel: +84 80 44886
Fax: +84 80 44887
6B Hoang Dieu, Ba Dinh District, Hanoi, Vietnam

Ms. Tran Thanh Phuong

National Project Manager
Email: [email protected]
Phone: +84 4 3232 1214
Fax: +84 4 3232 1213
Room 202, Van Phuc Building,
2 Nui Truc, Ba Dinh District, Hanoi, Viet Nam

Vienna International Centre · P.O. Box 300 · 1400 Vienna · Austria

Tel.: (+43-1) 26026-o · [email protected]
www.unido.org