Localities leverage funding for high-tech ventures
Localities leverage funding for high-tech ventures
Many localities from north to south are boosting development of modern industrial parks to attract high-tech foreign-invested projects.
At last week’s forum on comprehensive green solutions for industrial parks (IPs) and investment in the northern province of Vinh Phuc, organised by Vinh Phuc People’s Committee and the Vietnam IP Finance Association, five registration certificates were granted and two MoUs were inked. The total registered funding for these seven proposed projects is estimated at $640 million.
Forum on Comprehensive Green Solutions for Industrial Parks and Investment Promotion in Vinh Phuc Province, source: baodautu.vn |
At the event, Vinh Phuc People’s Committee and Thang Long Vinh Phuc IP signed an MoU to consider a complex with expected capital of $300 million. Besides that, the province and BH Flex Vina signed an MoU to expand a plant to manufacture electronic components and circuit boards. The remaining projects will produce electronic parts and components.
“Attracting high-quality foreign capital influx is one of the province’s priorities. Thus, the province will study the policies to develop green and ecological IPs, and simultaneously improve the investment environment to create the best conditions. We understand that green and sustainable IPs are the priority selection of foreign investors due to their economic benefits and social responsibility,” said Tran Duy Dong, Chairman of Vinh Phuc People’s Committee.
Situated next to Vinh Phuc, Hanoi is also leveraging opportunities to promote funding in the high-tech sector, especially the emerging semiconductor industry. The capital priorities administrative reforms to enhance the business climate, putting money into highly skilled workers and expanding key infrastructure, especially in industrial areas focused on IT and high-tech industries.
“As part of our strategy, we aim to develop high-tech zones that draw in selective, environmentally friendly investments,” said Nguyen Tran Quang, deputy director of Hanoi Promotion Agency at a seminar two weeks ago. “Specifically, Hoa Lac High-tech Park is fully equipped with the necessary infrastructure, functional zones, and skilled workforce to connect researchers, businesses, and educational institutions, making it well-positioned to attract semiconductor development projects.”
Hanoi has been developing the technology hub into a hotspot for overseas funding in new and high-tech industries with great potential.
Meanwhile, also near Hanoi, Bac Ninh province aims to build green carbon-neutral IPs with using solar energy and waste and water treatment systems, in collaboration with industrial waste recycling tech. Several consulting units and investors have visited the province to discuss plans to develop green IPs and clusters.
In 2025, Bac Ninh will give further support in completing administrative procedures and resolving pending issues as part of the province’s efforts on developing the green economy and green consumption.
Many others, including Binh Duong and Dong Nai provinces in the south, are also on the road to converting traditional IPs to green ones.
Dong Nai is calling for investors to build at least three green IPs that reach net-zero standards, and three high-tech parks, encompassing a high-tech park in Cam My district, an IT park, and an innovation park in Long Thanh district. Besides that, Japan’s Sojitz Corporation and the province agreed to work together to develop a model for green, smart IPs.
Meanwhile, Binh Duong is following the global trend of developing green eco-IPs. The most difficult challenge will be to modernise old IPs, and provincial authorities have asked developers to ensure that at least 25 per cent of an IP area is reserved for greenery. At least 20 per cent of the enterprises in the IPs will use resources for clean production, and at least 10 per cent will participate in industrial symbiosis.
Truong Van Phong, deputy head of Binh Duong IP Management Board, said, “To expand IPs, Binh Duong will submit plans that give priority to developing IPs in its northern districts. The province’s orientation is to develop green IPs. It plans to establish a park belt in the north and move projects located near residential areas in the south to the north.”
According to the Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organization, the conversion of existing parks into eco-IPs contributed to savings of nearly VND70 billion ($2.8 million) annually in Vietnam during the past four years. Over 600 projects have been implemented in IPs across the country to convert existing facilities to be greener and more resource-efficient during the period, which has helped reduce CO2 emissions by 8,900 tonnes per year.
According to the MPI, by 2030, 40-50 per cent of localities will have plans to convert existing industrial areas to eco-IPs and up to 10 per cent of localities have orientations to build new eco-IPs to pull in investment.
Tran Quoc Trung, deputy director of the Department of Economic Zone Management under the MPI, assessed that the new generation of overseas capital sets requirements for developing IPs in the direction of green and sustainable development.
“Moving towards a model of industrial symbiosis cooperation between enterprises to effectively use raw materials and energy resources is becoming an important criterion in the selection of foreign investors when deciding on locations,” Trung said.
“Green and sustainable IPs not only need to develop both qualitatively and quantitatively, with a shift of structure to applying high technology and innovating models in a more environmentally friendly manner, closely linked with regional development, and connecting neighbouring areas.”
