On December 10, 2024, within the framework of the 3rd Circular Economy Forum organized by the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) in collaboration with international organizations, under the theme “Promoting Circular Economy in Viet Nam – From Plan to Action,” UNIDO facilitated an in-depth discussion on “Circular Design in Industrial Parks.” The session brought together key stakeholders, including the Ministry of Planning and Investment (MPI), The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), The Management Board of Eco-Industrial Parks (EIP), DEEP C Industrial Park (IP), Lam Thach Cement Company, and representatives from different international organizations and enterprises.

As Viet Nam faces intertwined challenges such as biodiversity loss, climate change, and unsustainable growth, the circular economy (CE) has emerged as a vital solution to minimize resource waste, safeguard the environment, and enhance economic benefits. This discussion aimed to exchange insights, share experiences and innovations, and explore practical applications of CE circular economy principles in EIP through industrial synergies solutions, highlighting their advantages in addressing current challenges.

 Mr Hoang Anh Phu, from the Department for Economic Zones Management, MPI, presented the legal framework for promoting industrial synergies during the discussion

At the discussion, Mr Hoang Anh Phu from the Department for Economic Zones Management, MPI, presented the legal framework for promoting industrial synergies. He emphasized the policy foundation already established to support the transition of existing IP to the EIP.

Mr. Christian Susan, Global Project Manager for EIP at UNIDO, delivered a presentation on industrial synergies activities worldwide, highlighting successful examples from EIP across the globe. He emphasized, “The way EIPs are designed naturally fits with the circular economy model. These parks aim to strike a balance between economic, environmental, and social goals, including optimizing resource use—recycling waste into materials and reducing the demand for new resources; lowering greenhouse gas emissions by leveraging renewable energy and green technologies to help IPs meet international standards; and enhancing economic efficiency by reducing operational and production costs while improving competitiveness in the global market.”

 From left to right, representatives from UNIDO, MIP, GIZ, DEEP C IP, and Lam Thach Cement Company participated in the discussion.

Representatives from the private sector, including IPs and enterprises, collectively agreed that adopting a circular economy approach is one of the most effective solutions to optimize resources, reduce emissions, improve economic efficiency, and promote sustainable industrial development.

Mr Bruno Jaspaert, CEO of DEEP C IP in Hai Phong, said: “Switching to the eco-industrial park model is the perfect solution to all the challenges Viet Nam is dealing with right now. The more sustainable the design, the more profitable the park can be. Sure, the initial investment is higher, but its absolutely worth it in the long run.”

Mr To Hoang, a representative from Lam Thach Cement Company, shared: “The cement industry was previously regarded as one of the most polluting sectors, contributing up to 7% of global emissions. In response, we have adopted co-processing technology, an advanced and comprehensive waste treatment solution that is widely applied worldwide. This technology essentially transforms waste into materials for cement production. Instead of extracting natural resources, we contribute to addressing environmental challenges by turning waste into new materials. Plus, it cuts down on coal use in cement production, which means less reliance on fossil fuels. The economic and environmental benefits are clear, but there are still big barriers to accessing stable sources of waste materials. We really need more support to secure a steady supply.”

Scaling successful CE models to achieve greater impact remains a challenge, particularly in terms of financial solutions. According to Mr. Dennis Quennet, Director of the Sustainable Economic Development Program at GIZ, sustainability and economics must be addressed simultaneously. “An unstable economy makes achieving sustainability goals difficult, but unsustainable economic growth leaves long-term consequences for the environment and society” he said.

During the discussion, delegates emphasized the crucial role of the government in removing barriers and encouraging businesses to transition to sustainable production models. For effective implementation, the government needs to refine the legal framework and establish mechanisms to incentivize investments in green technologies and circular production. At the same time, financial support policies, tax incentives, and training programs must be enhanced to strengthen businesses capacity for execution.

Mr. Ta Van Trung, representative of the EIP Project Management Board, MPI, emphasized: “Transitioning to the EIP model and applying CE principles require synchronized collaboration among stakeholders. The government should take a leading role in finalizing the legal framework and issuing supportive policies. Businesses must innovate technologies and adopt industrial synergies solutions. Meanwhile, international organizations can provide technical, financial, and training support while researchers and financial institutions should focus on advancing green technologies and increasing access to affordable financing options.”

Delegates agreed that close collaboration among stakeholders is key to overcoming existing barriers and accelerating the shift towards the EIP and CE models, contributing to sustainable development goals.

Ms Adrianna Mariana, representative of UNIDO Global, reaffirmed the organizations commitment to supporting Viet Nam in developing policies and regulations to advance EIPs within the CE framework and continued assistance in expanding EIPs, providing training and mobilizing international resources to promote CE practices in Viet Nams industrial sector.

 

An overview of the discussion program “Circular Design in Industrial Parks.”

Concluding the discussion, Ms Nguyen Tram Anh, representative of UNIDO Viet Nam and coordinator of the session, emphasized that while much work remains to advance the CE in Viet Nam, particularly within IP, the growing consensus and awareness of the importance of this transition is a positive sign.

Ms Tram Anh noted that the collective action among stakeholders has paved the way for a transformative shift in businesses and IPs. She expressed optimism that, with unwavering commitment, Viet Nam will soon achieve its goal of establishing a circular economy and moving toward sustainable development in the near future.