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Last updated: 11/11/2014, 11:34 SA - View: 2537
Ministry of planning and Investment receives 4,554,000 USD non-refundable aid from GEF and SECO VIA UNIDO to develop and Implement pilot models of eco-industrial zone in Viet Nam

On 17 October 2014, The Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organization (UNIDO) have officially launched the Project “Implementation of Eco-Industrial Park Initiative for Sustainable Industrial Zones in Vietnam” with a total non-refundable aid of USD 4,554,000 from the Global Environment Fund (GEF), the Swiss State Secretariat for Economic Affairs (SECO) and UNIDO.

 Over the recent years the system of economic zones (EZs) has positively contributed to socio-economic development of Viet Nam. The development of EZs at high speed has caused a number of challenges to the environment, requiring the establishment of a new development model which is more sustainable and friendly towards the eco-environment and its surrounding communities.

In an effort to convert the existing EZs into eco-industrial zones to concretize the National Strategy on Green Growth, on 28 August 2014, the Prime Minister  approved the Project “Implementation of Eco-Industrial Park Initiative for Sustainable Industrial Zones in Vietnam” in his Decision 1526/QĐ-TTg with an aim to promote the transfer, application, and dissemination of technologies and cleaner production methods so as to minimize hazardous waste, greenhouse gas emission as well as water pollutants and to properly manage chemicals in industrial zones of Viet Nam. The project will be implemented over a period of 36 months in the cities/provinces of Ha Noi, Ninh Binh, Da Nang, and Can Tho.

The total budget of the project is USD 53,229,265 of which the non-refundable ODA from GEF, SECO and UNIDO is USD 4,554,000 USD; the counterpart contribution from the Ministry of Planning and Investment is USD 108,000 USD; the in-kind co-financing from Vietnamese implementing partners and UNIDO is USD 38,797,265; the potential co-financing in cash and preferential credit for technological innovation activities of enterprises is USD 9,770,000 from the Green Credit Fund (GTCF) of SECO, the Vietnam Environment Protection Fund, and the Vietnam Development Bank. The co-financing from the concerned agencies will be contributed through projects and programs currently implemented in Viet Nam, not provided directly to this project.

With its six main components, the project is expected to achieve the following main outcomes: policies and guidelines to meet the criteria of an eco-industrial zone (EIZ) in related fields; to strengthen capacity in EIZ planning and management for EIZ management agencies at central and local levels, to increase the technical competence of state management agencies in charge of EZs and enterprises situated in EZs for transfer of technologies and application of clean and low-carbon technologies as well as safe and resource-efficient production methods; to identify at least 45 potential enterprises in EZs in Ninh Binh, Da Nang and Can Tho that are capable of participating in applying clean and resource-efficient technologies; implementing, on a pilot basis, projects on conversion into EIZs; and increasing community awareness about EIZ development.

Participating enterprises in the following EZs namely Khanh Phu (Ninh Binh), Hoa Khanh (Da Nang), Tra Noc 1&2 (Can Tho) will receive training on cleaner production and consultative support on technology transfer so as to use energy efficiently and reduce discharge of waste into the environment following a comprehensive cycle including preparation of loan application documentation, supporting loan with preferential interest rates, and potential reimbursement part of the loan from the Green Credit Fund of SECO.

With regard to technical criteria, the project will help reduce greenhouse gas emission by about 182,000 tons/year; reduce waste water by 6 million m3/year; and ensure that the quality of waste water reaches the international standards.  

In his keynote address in the Inception Workshop, Mr. Nguyen The Phuong, Vice Minister of the Ministry of Planning and Investment noted that industrial parks in Vietnam has become a investment destination for numerous world-class brand-names. Industrial parks’ shares in the country’s gross industrial output and export revenue by 2013 were 39% and 34% respectively, creating employment for more than 2.3 million workers. However, the industrialization process and the fast development of IPs have brought out major challenges in terms of environmental pollution with wastewater, solid wastes and gaseous wastes.

In regard to wastewater pollution, despite intensified and aggressive efforts of the government, ministries, line agencies and local government in promoting the development of  centralized effluent treatment plants (CETP)for IPs, the set target for IP environment in the socioeconomic master plan for 2011-2015 of 100% of IPs in operation having CETP has been achieved only by about 80%. In addition, the solid waste and gaseous waste issues in industrial parks also gain insufficient attention and need more efective regulation.

For that, he acknowledged the Project’s launching ceremony to be a monumental event that highlights the close partnership between Viet Nam and its donors towards the sustainability of industrial park development.

Mr. Patrick Gilabert, UNIDO Representative in Viet Nam highlighted that “Environment challenges faced by industrial zones in Viet Nam are many and complex. These challenges start from lack of investment, supply and use of resources, handling of different types of solid waste, air emissions and effluents discharges”. He also noted that the project was designed to leave a long-term legacy by promoting inclusive and sustainable industrial production practices in IZs through company cooperation in the areas of improved energy systems, waste management, reduced water flows, industrial zone management and integration into the host community.

“We wish to improve our management skills and get technical support to better monitor and evaluate the impacts of IZs on the environment, thereby offering solutions to improve the effectiveness and efficiency of the IZs,” said Vu Hoai Chuong, Deputy General Director from Ninh Binh IZ Management Board.

When industrial development is oriented environmental sustainability and efficient use of resources, energy is the common and modern development trend in many countries in the world, the EIZ model is significant for sustainable industrial development in Viet Nam. The Ministry of Planning and Investment, UNIDO, and concerned agencies of Viet Nam expect that the project outcomes will form the foundation for state management agencies and donors to continue replicating the EIZ model throughout the country.

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