Illustrative image. (Source: VNA)

The Japan-Hai Phong Industrial Zone, formerly known as Nomura Hai Phong – one of the first industrial parks formed in the north in 1994, is facing problems in wastewater treatment, air pollution, industrial solid waste and the lack of green space.

Many other old industrial parks in Vietnam are now in the similar situation, failing to satisfy the current green standards. Statistics show that 29 industrial zones have no concentrated wastewater treatment systems due to inadequate infrastructure, low occupancy rate, and site clearance stagnation, among other factors.

Given the “greening requirements”, many of them wish to get a facelift, yet they have met barriers in investment capital and ability, notably unclear legal regulations.

Deputy General Director of Sao Do Group Tran Thi To Loan stressed the need for industrial parks and businesses to invest much in technology, machinery, equipment and waste treatment facilities.

Green and sustainable development would help enterprises protect themselves, consolidate their foothold, create breakthroughs amidst market volatility, and build brands for their environmentally friendly products, she said.

According to a survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) on over 10,000 domestic businesses, 56% of them have said they see opportunities from climate change. Of these, about 30% believed it is time to restructure and reorganise production, and 17% held that this is an opportunity to create new technology products and services and expand the market for available products.

The survey, however, showed that only 31.8% of private enterprises are well aware of environmental regulations, and 44% of domestic businesses and 38% of FDI firms admitted their non-compliance.

VCCI Vice President Nguyen Quang Vinh highlighted the role of the State, financial organisations and banks in untangling policy knots, encouraging enterprises to adopt changes, towards green development.

For businesses, they need to change their mindset, observe environmental regulations, reform production processes, and prioritise the use of environmentally friendly materials, he suggested.