According to experts, industrial parks that adhere to ESG (Environmental, Social, and Governance) norms would gain a competitive edge in attracting Foreign Direct Investment (FDI) and obtaining affordable environmentally-friendly funding. Implementing digital transformation is a method that can assist industrial parks in promptly achieving ESG criteria.
Smart solutions to approach ESG
ROX iPark (formerly TNI Holdings Vietnam), which invested in and developed Quang Minh Industrial Park (Hanoi), has applied smart industrial park solutions in response to the need to improve operational management efficiency.
During the initial month of usage, there has been a notable increase in work productivity. By enabling the power to turn on or off as required, the automatic control cabinet sensor system effectively reduces electricity usage. The presence of a camera network and an automated anomaly detection system significantly improves security monitoring. An automated sampling system, operating continuously throughout the day or as needed, enhances the quality management of wastewater. This system analyzes samples and provides quick results. Therefore, the system will instantly identify and prevent any index exceeding the permissible threshold.
Quang Minh Industrial Park applies T.SIE
According to Mr. Ho Anh Thang, the Director of TNTech Solutions, a technology company within the ROX Group (formerly TNG Holdings Vietnam), the use of digital transformation solutions in operational management at Quang Minh Industrial Park has two main benefits. Firstly, it improves the efficiency of operational process management and reduces costs. Secondly, it aligns with ESG standards (environment, society, governance), which not only creates economic value but also helps minimize negative environmental impacts, combat climate change, and contribute to sustainable development goals.
Amidst the growing worldwide trend of green development and sustainable practices, the implementation of ESG (Environmental, Social, and Governance) practices in industrial parks will provide chances to enhance their capacity to attract high-quality foreign direct investment and secure affordable environmentally-friendly funding.
Double benefits
Currently, several governments and enterprises worldwide have embraced sustainable development by integrating ESG factors into their business and management plans. Thailand and Singapore are leading the way in promoting ESG norms in industrial parks, even within the region.
Vietnam now has a total of 563 industrial parks, with 292 of them currently operational. Hence, it is imperative to advocate for the implementation of intelligent industrial park solutions in order to swiftly progress towards ESG criteria.
Quang Minh Industrial Park has successfully achieved a substantial decrease in operating expenses, with expenditures lowered by as much as 30–40% per square meter. Implementing smart industrial park solutions has enhanced Quang Minh's market competitiveness by attracting and maintaining customers and partners that prioritize sustainable growth.
New Best Wire VietNam is one of the investors in Quang Minh Industrial Park, with a total investment of 60 million USD. This company is a 100% owned subsidiary of the New Best Wire Taiwan Headquarters. It has obtained many certifications, like ISO 9001:2008, ISO / TS 16949, OHSAS 18001, and others. Another FDI firm currently operating at this location is DH Logistics Property Minh Quang Vietnam Co., Ltd., which has invested a total of 26.3 million USD.
Applying smart technology in operations management helps industrial parks quickly meet ESG standards.
Mr. Ho Anh Thang suggests that in order to efficiently oversee infrastructure and technology in industrial parks, as well as provide excellent customer care in accordance with ESG standards, investors should prioritize various aspects, including enhancing operational management, ensuring the security and safety of industrial parks, and actively managing carbon emissions to achieve optimal results. The implementation of smart industrial park products pursues the following objectives: Currently, engineers at TNTech have successfully constructed a comprehensive framework for managing operations in industrial parks. This architectural design allows applications to be deployed quickly and cost-effectively in any industrial park.
Given that sustainable development is an unavoidable trajectory, organizations must adapt by incorporating sustainability considerations into their management and operations. This element will boost competitiveness and broaden the reach of green investment funds, enabling the funding of projects and activities with positive environmental impacts.
Vietnam has implemented many green financing projects with the aim of attaining net zero greenhouse gas emissions by 2050. Between 2016 and 2020, there were precisely four instances of green bond issuances, with a combined value of 284 million USD. Vietnam issued approximately 1.16 billion USD worth of green bonds between 2019 and 2023.
The International Finance Corporation (IFC) conducted research that shows climate financing in Vietnam currently stands at around 5% of the entire bank loan portfolio, equivalent to 10.3 billion USD. The research also predicts substantial growth in climate finance in the upcoming years.
Therefore, companies that allocate resources towards implementing digital transformation solutions in order to develop efficient processes and manufacture environmentally friendly products will have a competitive advantage when seeking financial support from funds and investors.