Industrial park (IP) developers and businesses in Vietnam may face many challenges if they do not keep up with the current digital transformation trend.
50% of IPs have not heard of sustainable development
The nation currently has 418 industrial parks, with a total land area of approximately 129.9 thousand hectares. In particular, 298 industrial parks are operational, while 120 are under development. Operational industrial parks have an occupancy rate of around 72.5%.
Mr. Nguyen Quang Vinh, Vice President of VCCI, stated that enterprises in industrial parks account for approximately 50% of the nation's total export turnover, playing a crucial role in transforming Vietnam's trade balance from a deficit to equilibrium and subsequently to a surplus, as well as enhancing budget revenue and facilitating Vietnam's integration into the global supply chain.
Notwithstanding several beneficial contributions to economic growth, the recent advancement of Vietnam's industrial parks has lacked true sustainability and failed to establish a balance among economic, social, and environmental factors, stated Mr. Nguyen Quang Vinh.
VCCI conducted a study assessing the status of 118 industrial parks nationwide, utilizing the economic, environmental, social, and governance (ESG) framework with 19 primary indicator groups. The study revealed that 50% of respondents were unfamiliar with the term “industrial park with sustainable development. Furthermore, only 22% of industrial parks possess international management system certifications, while 77% lack enterprise-level audit data regarding financial, social, and environmental dimensions.
IPs around the world are moving towards ESG
The competitive advantage of Vietnam's industrial parks relative to other regional countries was based on cost, labor, and geographical considerations. However, with technological advancements, the emergence of green management, and sustainable development, such criteria appear to be obsolete.
Sustainable development is an unavoidable trend; thus, businesses must adapt by incorporating sustainable development aspects (ESG) into their management and operations to enhance competitiveness and facilitate access to green investment funds.
Currently, several nations and enterprises worldwide are aligning with sustainable development by integrating ESG into their business and management plans. Countries like Thailand and Singapore are leading the promotion of ESG principles in industrial parks within the region.
Ms. Van Nguyen, Senior Director of the Northern Trading Market at JLL Vietnam, asserted during the recent Investment Review talkshow called Industrial Real Estate: New Investment Trends that modern industrial parks worldwide prioritize high-tech production. Nonetheless, the current surge in investment has shifted, with new investors more focused on enhancing output and introducing advanced technology to Vietnam. Investors prioritize the development of industrial parks to reduce pollution, create a favorable work environment, and protect the living conditions of employees and surrounding communities.
As a result, the implementation of ESG principles and green growth in industrial parks will provide enterprises with several development opportunities, including the generation of sustainable economic value, the provision of long-term advantages, and the attraction of foreign direct investment (FDI) capital.
Technology is the key to domestic IPs
A consensus among experts indicates that the ongoing advancement of 4.0 technology, particularly through smart industrial park solutions utilizing information technology, artificial intelligence (AI), Big Data, and automation, will augment operational efficiency and bolster sustainable competitiveness for enterprises. This not only advances supply chain optimization but also establishes the groundwork for the era of smart manufacturing.
The T.SIE TNTech Smart Industrial Ecosystem, developed by TNTech, is regarded as a holistic Smart Industrial Park solution that functions on a centralized data management platform, integrating technology, infrastructure, and intelligent services to enhance the quality and efficiency of industrial parks.
The T.SIE TNTech Smart Industrial Ecosystem's practical implementation at Quang Minh Industrial Park (Me Linh, Hanoi), Dong Van II Industrial Park (Ha Nam), among other locations, showcases how industrial parks function as a closed system. This system encompasses a cycle of operations that includes safety and security management, internal traffic regulation, area oversight, and fire prevention and response supervision. All activities within the industrial park are overseen by sensors, drones, production robots, cameras, ect., which monitor, collect, and transmit data to the Operations Center. This information is subsequently analyzed and processed using Big Data and AI technologies to enhance management support, optimize operational costs, reduce labor requirements, and improve service quality.
Presently, several industrial parks under the ROX Group ecosystem, such as Tan Truong, Nam Sach (Hai Duong), and Bim Son A (Thanh Hoa), are preparing to implement the T.SIE TNTech Smart Industrial Ecosystem. If extensively implemented, technology will serve as a potent instrument for industrial parks to enhance ESG standards, thus augmenting brand attractiveness and competitiveness in the contemporary digital era.