Eco-industrial parks offer solution for foreign-led businesses amidst global volatility

Eco-industrial parks offer solution for foreign-led businesses amidst global volatility

Against the backdrop of evolving global geopolitical shifts and stricter ESG standards, the eco-industrial park model is emerging as a pivotal solution for foreign companies to ensure self-reliance and maintain their position in the global supply chain.

Over the past few years, foreign direct investment inflows in Vietnam have reached a turning point. Multinational investors shift their priorities from cost optimisation and tax incentives towards operational autonomy and long-term compliance in the face of geopolitical uncertainties and technical barriers from demanding markets such as the US and the EU.

According to Savills Vietnam, the geopolitical fluctuations, especially in the Middle East, highlight a longer‑term shift towards more diversified and resilient global supply chains. Following the pandemic, international firms have already begun reallocating production, with current geopolitical tensions likely to reinforce this trend.

The complicated geopolitical developments prompt multinational investors to reallocate production, prioritising destinations that ensure operational autonomy.

Against the backdrop, Vietnam emerges as a destination with the ability to balance cost, location, and trade connectivity. However, as capital flows shift to industries with higher added value, selection criteria also become more stringent while cost advantage is no longer the sole decisive factor.

Factors such as energy infrastructure, labour quality, the ability to ensure continuous operation, and environmental, social, and governance (ESG) standards are becoming prerequisites. In light of changes in investment trends, the eco-industrial park model is emerging as a strategic solution to geopolitical risks thanks to its strong self-sufficiency advantages.

Specifically, this model acts as a green passport, enabling investors to meet stringent traceability and circular economy requirements while enhancing their competitiveness and facilitating deeper integration into global value chains. Notably, it promotes industrial symbiosis that enables foreign-invested companies to enhance their resource autonomy.

Therefore, such companies can minimise dependence on external supply sources by turning one company's leftovers into another's input materials within the same park. The advantage of the eco-industrial park model lies in its robust on-site ecosystem, where close links with small- and medium-sized local enterprises not only optimise operating costs but also act as a shock absorber, enabling faster responses to unpredictable disruptions in the global market.

Prodezi pioneers

Seizing this trend, Prodezi Industrial Park is emerging as a bright spot in Vietnam’s southern industrial real estate market, with a clear ecological orientation to support the sustainable development goals of foreign investors.

To ease pressure from international standards, Prodezi extends beyond surface green aspects to sustainable technologies and solutions with its comprehensive infrastructure planning. A prime example is the tie-up with Chitose Group in sludge treatment, turning waste into valuable resources. The move empowers foreign-led companies to complete their ESG reports and gain green passports to the most demanding export markets.

To reduce the dependence on external sources, Prodezi is also developing a closely integrated industrial symbiosis network within the park, where resources are shared and materials are reused among factories in a closed-loop production cycle. This model not only ensures operational stability but also acts as a shield, helping businesses mitigate risks from unpredictable fluctuations in global raw material supply chains.

Eco-oriented industrial park models like Prodezi help foreign-led enterprises enhance their resilience

The strategy of boosting localisation through practical initiatives – such as Connecting with Suppliers 2026 and close collaboration with the Ho Chi Minh City Young Business Association – helps build a strong on-site support ecosystem. Establishing direct connections between foreign and domestic enterprises not only reduces logistics costs, but also greatly strengthens business flexibility and resilience to global geopolitical shocks.

Truong Khac Nguyen Minh, deputy general director of Prodezi Long An

Truong Khac Nguyen Minh, deputy general director of Prodezi Long An, said eco-industrial parks have become a prerequisite to attract high-quality foreign capital amidst the global volatility.

"This year, Prodezi will seamlessly incorporate ESG solutions into infrastructure, operation, and governance," Minh said. "We believe that early and comprehensive preparation will help tenants better meet the increasingly stringent requirements of global supply chains while also making a practical contribution to Vietnam's sustainable development orientation. In particular, it represents a smart defence strategy for companies facing global volatility."

VIR