Building green industrial zones to attract sustainable FDI capital

Green transformation, ESG-oriented development (environment, society and governance) and building eco-industrial parks are not only a trend, but have become an inevitable choice for large cities like Ho Chi Minh City.

Green manufacturing is the key for Ho Chi Minh City to retain investors and attract high-quality FDI capital. In the photo: electrical equipment manufacturing in Ho Chi Minh City - Photo: QUANG DINH

According to experts, this is a new growth driver, creating room to attract high-quality FDI capital flows, screening out inappropriate FDI projects, moving towards green industries, circular economy and sustainable growth.

ESG as a competitive advantage

For a megacity that needs to balance economic development and quality of life like Ho Chi Minh City, greening the economy is no longer a trend but a survival strategy, including prioritizing the development of green and ecological industrial parks (IPs). This is an IP model where businesses can optimize the use of energy, water and materials, minimizing waste and pollution.

Meanwhile, ESG standards act as an important filter and "green passport" in attracting foreign investment.

The world's leading investment funds and multinational corporations are increasingly including ESG as a top criterion when making investment decisions, prioritizing locations and partners with strong commitments to reducing carbon emissions and using renewable energy...

Speaking with Tuoi Tre , Mr. Truong Khac Nguyen Minh, Deputy General Director of Prodezi Long An , said that the new generation of investors, especially multinational corporations, are not only looking for production premises, but are also more interested in sustainability, connectivity and flexibility of infrastructure.

That requires new generation industrial parks to transform from the "land leasing" model to an integrated ecological - smart model, meeting international standards on emissions, energy and environment.

"A modern industrial park cannot lack criteria such as an international standard wastewater treatment and reuse system, renewable energy, green space, and the ability to industrial symbiosis, optimizing the flow of energy, water and materials between businesses within the area to reduce waste and emissions. In addition, it is necessary to meet technical infrastructure and smart services, synchronous logistics, data centers, and an ecosystem for living, working and resting for experts and workers," said Mr. Minh.

Mr. Nguyen Thanh Chuong, General Director of Thanh Thanh Cong Industrial Real Estate Corporation, said that after the industrial parks were 95-98% full, the company continued to develop in the warehouse and logistics sector in Ho Chi Minh City with green criteria. High-quality FDI capital requires products and services provided by Vietnam to meet new needs, from institutions, infrastructure, to labor resources and especially to ensure green criteria.

According to Mr. Chuong, in the past two years, there has been a clear shift towards the high-tech sector, semiconductor chips have penetrated the Vietnamese market more and are an opportunity for industrial real estate.

"To attract the high-end segment, we also have to change, meeting customers' requirements on ecological environment, ESG standards, synchronous infrastructure investment and sustainable ecosystem connection," said Mr. Chuong.

Investors spend more money on green industrial parks

Mr. Hardy Diec, CEO of Vietnam Industrial Park Group, commented that Vietnam in general and Ho Chi Minh City in particular are making great strides to be ready to welcome large-scale investors.

Notably, FDI capital flows are now not only pouring into traditional manufacturing industries but have also shifted to areas with high technology content and added value. This shows that Vietnam is gradually shifting from the role of a "factory" to a "strategic production center" in the global supply chain.

"The core factor that we need to pay special attention to is still cost. Investors coming to Vietnam always calculate very carefully about the ability to recover capital and profit, and at the same time set higher requirements for infrastructure, green and sustainable development. Besides, they also hope that tax policies and administrative procedures will continue to be improved, creating a truly favorable and transparent investment environment," he said.

According to Mr. Hardy, the reality of recent years shows that the choice of businesses, both FDI and domestic, is changing significantly. Instead of only paying attention to area and rental price as before, in recent years, the factors of deployment speed, green standards and operating support ecosystem are the top priorities of FDI investors.

Tenants increasingly favor pre-built factory and warehouse models that meet international standards, helping to shorten start-up time, reduce initial investment costs and flexibly expand production scale.

Meanwhile, according to Mr. Truong Khac Nguyen Minh, Vietnam in general and Ho Chi Minh City in particular still maintain many competitive advantages in attracting FDI capital flows when possessing a strategic location, located in the connection network of large global supply chains...

In addition, a young workforce, competitive costs and a strong commitment to the goal of net zero emissions by 2050 are making Vietnam an attractive destination for investors pursuing a green growth and sustainable development strategy.

However, to maintain attractiveness in the context of increasing regional competition, Mr. Minh said it is necessary to continue to improve transport and logistics infrastructure, make legal procedures, land and environment transparent, and expand access to green capital, and develop regionally connected industrial land funds.

"Promoting the model of ecological, integrated, and smart industrial parks will help Vietnam improve its competitiveness and welcome green and high-tech FDI capital flows in the coming period," said Mr. Minh.

Mr. Truong An Duong, CEO of industrial and residential real estate at Frasers Property Vietnam (Singapore), said that applying ESG standards or green certifications (such as LEED, EDGE) to industrial real estate is an advantage in attracting investment in Ho Chi Minh City and industrial parks in Vietnam. Applying ESG standards and green certifications helps optimize energy, water and waste, thereby reducing operating costs.

Advantages of accessing international capital

According to Mr. Truong An Duong, many multinational enterprises prioritize renting in green-standard industrial parks, because they are consistent with sustainable development strategies and ESG, so this will be an advantage to increase attractiveness to international tenants.

"Green-certified industrial parks often increase investment value and are highly appreciated in the international market, while affirming the investor's commitment to sustainable development. In addition, applying ESG helps businesses comply with environmental and social standards, reduce the risk of fines and improve access to international capital," Mr. Duong affirmed.

Mr. Huong Xuan Tan (Sales Director of Hiep Phuoc Industrial Park, Ho Chi Minh City):

Build ecological industrial parks to increase competitiveness

The global supply chain has shifted dramatically after the COVID-19 pandemic and trade tensions, causing most businesses to prioritize investing in industrial parks with complete infrastructure and convenient logistics connections to ensure continuous production and optimize costs.

Instead of just focusing on rental price or area, businesses increasingly prioritize infrastructure quality, strategic location and sustainable environmental factors.

Accordingly, investors prioritize choosing industrial land with completed infrastructure, high-standard factories, near ports and highways, with stable power sources, integrated renewable energy and meeting green standards (ESG). In particular, ecological industrial parks are becoming an important criterion in the decisions of many investors.

Ecological industrial park is also the direction of Hiep Phuoc Industrial Park. We are building a circular ecological industrial park model, with a green factory system, using renewable energy and having effective environmental management solutions to create competitiveness in the region.

Ms. Le Thi Huyen Trang (General Director of JLL Vietnam):

Need to upgrade the investment environment

Vietnam has three key economic zones attracting investment capital. Of which, the Southern region is leading in total supply of industrial land, factories and warehouses.

This area, especially Ho Chi Minh City, is shifting strongly to the high-tech sector, focusing on green criteria and sustainable development.

In which, sustainable development is no longer an option, but a mandatory requirement.

FDI enterprises with Net Zero commitments only choose green and smart industrial parks to meet the global supply chain, so Ho Chi Minh City must transform to meet these new requirements.

To maintain and enhance competitiveness, Vietnam in general and Ho Chi Minh City in particular need to improve the quality of the investment environment, infrastructure and support services, along with improving industrial real estate products.

NGOC HIEN

Source: https://tuoitre.vn/lam-khu-cong-nghiep-xanh-thu-hut-von-fdi-ben-vung-20251114080453988.htm