IFC and Becamex IDC Boost Vietnam's Green Growth with Eco-Industrial Parks Initiative

The International Finance Corporation (IFC), the private finance arm of the World Bank, has made a significant advancement in supporting Vietnam's transition to sustainable industrial development. In collaboration with Vietnam's Becamex IDC and Singapore's VSIP, IFC has agreed to implement a comprehensive eco-industrial park (EIP) assessment programme across various industrial and urban zones in Vietnam. This landmark agreement marks a pivotal step in Vietnam's pursuit of green growth and enhanced environmental sustainability.

The agreement between IFC and Becamex IDC, a leading Vietnamese industrial and urban real estate developer, underlines a strategic effort to establish a robust Environmental, Social, and Governance (ESG) framework for eco-industrial parks throughout Vietnam. Building upon collaborations since 2022, this expanded partnership includes technical assistance programmes and feasibility studies for Vietnam's first Eco-Industrial Park model. With the aim of meeting global standards, this initiative will facilitate broader access to green financing, a crucial component for sustainable industry development.

Through the Global Eco-Industrial Parks Assessment and Certification (GEIPAC) program, IFC will conduct preliminary assessments of up to five parks based on international standards. These evaluations will identify strengths and gaps in management and performance, offering actionable insights for improvement. The goal is to optimize operations, attract investment, and stimulate sustainable growth, all while reinforcing Vietnam’s competitiveness on the global stage.

The collaboration is poised to scale pilot models that meet global standards, strengthening the ESG foundation for development in Ho Chi Minh City and other key economic regions. Nguyen Hoan Vu, CEO of Becamex, emphasized the group's commitment to embedding international sustainability standards across its operations. This effort is anticipated to enhance ESG competencies, facilitating access to green financial resources and supporting inclusive growth.

Enhancing Vietnam's green competitiveness involves more than environmental impact reduction; it aims to attract high-quality investments and create better jobs. Accordingly, IFC's Senior Manager for Innovation and Business Development, Climate Business, Diep Nguyen van-Houtte, highlighted the critical role eco-industrial parks play in this transformation. By reducing greenhouse gas emissions, these parks are instrumental in global supply chain positioning, enabling Vietnam to become a key player in the industrial green transition.

The Vice Chairman of Ho Chi Minh City People’s Committee, Nguyen Van Dung, noted the strategic alignment of the IFC-Becamex partnership with national resolutions, particularly the establishment of Vietnam International Financial Centers. Through such collaboration, Ho Chi Minh City can enhance its capacity to mobilize resources and implement impactful projects, embodying its role as a model for sustainable urban-industrial development.

The push towards eco-industrial park models presents a strategic opportunity for Vietnam to optimize costs and enhance its global competitiveness. Users have stated that by adopting these models, industrial areas can reduce operational expenses and strengthen cooperative arrangements within the parks. Notably, the upfront investment for establishing an eco-industrial park is approximately 10% higher than traditional models. Yet, this is offset by annual savings of 2-3% on operations and business costs, demonstrating financial viability for companies participating in the transition.

Moreover, eco-industrial parks are essential in accelerating initiatives like green transportation. As hubs for logistics, factories, and industrial services, these parks enable efficient infrastructure utilization, benefiting from policy incentives under green growth frameworks. The transition to electric vehicles and sustainable mobility solutions within these parks is underway, bolstered by advances in EV infrastructure planning.

In summary, the strategic alliance between IFC and Becamex IDC represents a decisive move towards sustainable development in Vietnam, encapsulating a vision of eco-friendly industrial transition. With international collaboration and expert insights, Vietnam is positioned to advance its role in global supply chains and environmental responsibility, demonstrating a commitment to sustainable growth and competitiveness.