The challenges of implementing ESG in industrial zones.

DNVN - In the context of global supply chain integration, compliance with ESG standards is no longer an option but a survival requirement. However, the journey from traditional models to eco-industrial parks is facing many obstacles.

ESG is a set of three standards: Environmental, Social, and Governance, used to assess the level of sustainability and responsibility of a business, not only based on profit but also considering the impact of the company's production activities on the environment and society.

Ms. Tran To Loan - Vice President of Sao Do Group, the investor of Nam Dinh Vu Industrial Park, Hai Phong . Photo: Business Forum Newspaper.

Valid in Europe but violates green economy regulations in Vietnam.

At the Nam Dinh Vu Industrial Park (Hai Phong), the transition to an eco-industrial park model is progressing rapidly with the goal of cleaner production and industrial symbiosis. However, Ms. Tran To Loan, a representative of the investor from Sao Do Group, frankly shared the difficulties caused by policy barriers and inconsistencies in legal regulations.

According to Ms. Loan, despite years of effort to transform the industrial park, it has only achieved about 16 out of 23 indicators according to the national ecological industrial park index. Notably, many indicators have not been met "not because businesses are unwilling to do it, but because of bureaucratic obstacles."

A prime example is the story of "recycled plastic pellets." A business imports virgin plastic pellets – new plastic pellets that haven't undergone any recycling process – and uses advanced technology for production. According to European standards, this type of plastic pellet is a valid input material for the green economy and is no longer considered recycled. However, in Vietnam, this project is classified as a "recycling activity" and is denied a permit to operate in an industrial park due to concerns about pollution, even though their technology is very clean and expensive.

In addition, there is the issue of resource recycling. The reuse of treated wastewater for irrigation or firefighting purposes is not yet permitted. According to regulations, all wastewater in industrial zones must be discharged into the environment through an automated monitoring and treatment system, meaning that wastewater within industrial zones cannot be reused.

Regarding energy use, previous regulations on rooftop solar power did not allow for a self-consumption mechanism to be transmitted throughout the entire area, hindering the centralized use of clean energy. However, there have recently been positive signs on this issue.

"If the output (waste/by-products) of one enterprise cannot become the input of another due to regulations, the industrial symbiosis model will be very difficult to realize, hindering the green transformation of industrial parks," Ms. Loan emphasized.

Overwhelming pressure

Not only Sao Do Group, but the manufacturing business community in general is facing unprecedented pressure. Experts believe that ESG (Environmental, Social, and Governance) has now become a mandatory "passport" to participate in the global value chain.

Ms. Nguy Thi Giang, Head of the ESG Committee of the Hanoi Association of Key Industrial Products Manufacturers (HAMI) and Chairwoman of the Board of Directors of GREEN IN, stated that to date, more than 35 countries have committed to and enacted regulations on ESG disclosure, including key markets such as Europe, Japan, and South Korea. Approximately 140 countries have committed to NetZero, 186 countries are signatories to the Stockholm Convention on Toxic Chemicals, and over 130 countries have separate laws on consumer protection.

Under pressure from import markets, many businesses have recognized the importance of transitioning to ESG. According to Mr. Phung Manh Ngoc, Director of the Chemical Department (Ministry of Industry and Trade), 89% of businesses have plans to commit to ESG, but the number actually implementing these initiatives is only 44%.

According to Ms. Nguyen Thi Bich Ngoc, Head of the Proptech Community Village and Founder of Sen Vang Group, most industrial parks currently do not pay enough attention to buffer zones and symbiotic criteria, and Vietnam still does not have any industrial parks officially certified as eco-industrial parks in accordance with the regulations of Decree 35/2022/ND-CP.

Expert's solution: From mindset to technical approach

To overcome these difficulties and accelerate this process, experts and managers have proposed specific solutions, focusing on both policy and technical aspects.

Regarding policy, Associate Professor Dr. Nguyen Dinh Tho emphasized that what businesses need most right now is a clear, transparent, and stable legal framework, rather than direct financial support. He argued that businesses must comply with international standards such as GRI, implement sustainability reporting, and ensure traceability. The transition to a circular economy must begin right from the design stage to eliminate waste and pollution at the source.

From a technical perspective, Architect Tran Thanh Vu (Edeec Company) affirms that the environmental factor (the letter E in ESG) plays a crucial role, with energy control of buildings and construction materials being of decisive importance. Green building standards such as LEED (currently the only system certifying urban and industrial areas) or LOTUS (the first set of green building criteria developed specifically for the Vietnamese market) have clearly identified fundamental solution groups: reducing energy consumption, especially for heating and cooling systems and water circulation; using low-carbon construction materials with good thermal and sound insulation; controlling the overall operating costs of the building, etc.

Furthermore, industrial park development needs to be closely linked to transportation infrastructure, seaports, and spatial organization based on a symbiotic model to reduce logistics costs and increase waste treatment efficiency.

The transition to green buildings is a major challenge, but it is also a mandatory requirement for businesses to practice ESG. Instead of viewing ESG as a cost burden, Ms. Nguy Thi Giang recommends that businesses consider it an investment in the future. Businesses that practice ESG well are often valued 20% higher and have easier access to green financing. The Ministry of Industry and Trade also commits to supporting businesses in developing internationally compliant basic standards to enhance competitiveness.

Implementing ESG in industrial parks today is like trying to install a new, modern operating system on outdated hardware. Even if the software (international standards, green technologies) is excellent, if the "hardware" (infrastructure, legal framework, licensing regulations) is not upgraded accordingly, the system will malfunction and operate sluggishly.

For this economic machine to run smoothly, it requires not only "installation" efforts from businesses but also a drastic "upgrade" of mechanisms from policymakers, ensuring seamless connections between businesses (symbiosis).

Peaceful

Source: https://doanhnghiepvn.vn/doanh-nhan/gian-nan-ap-dung-esg-tai-khu-cong-nghiep/20260210082900681