Hanoi (VNA) – The Lego World Group’s decision to set up a factory in Vietnam is a clear demonstration of the potential of the country in general and the national industry in particular. This marks a turning point in the direction of the country’s green and sustainable economic development.
The trend towards sustainable development or green industry is becoming more evident than ever. It was only in March 2022 that the Danish children’s toy manufacturer LEGO officially entered Vietnam with a project to build a factory with a total investment of US$1.06 billion in Binh Duong Province (south). This is the 6th Lego factory in the world and the 2nd in Asia. The group’s deal was an important step in attracting “clean” investment capital to Vietnam.
Le Huy Dong, Director of Industrial Services at Savills Hanoi, said: “Vietnam is on the cusp of development, with great potential to move further on the world map. However, the industry of our country should learn from other countries in the region and the world. In order not to repeat the same mistakes, Vietnam must consider the green factor as a necessary condition for industrial development.”
To achieve sustainable results in the industry, most of the effort will come from government policies and decisions, Dong said. Currently, all companies listed on the Vietnam Stock Exchange are required to submit an annual Environmental, Social and Governance (ESG) report.
The industry is changing, favoring manufacturing investment capital through increasingly cleaner high technology. These are high value-added industries such as the manufacturing and assembly of electronic equipment and components.
In addition, the government has adopted policies to encourage investment and the use of renewable and alternative energy sources such as wind, solar, thermal or hydroelectric power.
The Savills expert shared that more and more industrial property developers are focusing on environmental factors. First of all, the green model will help them control and maintain the technical system of the industrial park.
In addition, they also encourage companies to invest in their own processing system before joining a common system. Overloading will lead to pollution of water sources, especially household sources of neighboring residential areas, and stagnation of the production process of the entire territory.
Then a clean and modern industrial park is needed to attract a quality workforce. Many companies are paying more attention to the synchronous development of internal infrastructure and improving the working environment for employee retention.
Investments in the waste management system, as well as greening the landscape of the industrial park, will contribute to improving the quality of life within the framework of the project. This is also a factor that encourages foreign professionals to come to work in Vietnam. “Projects with environmental standards are in demand by many parties, not only domestic, but also foreign investors. This will be a competitive advantage for developers who can meet these conditions,” Dong said.
In Vietnam, many investors own projects with green building certifications such as VSIP or DEEP C. They use rooftop solar systems to power part of an industrial park.
In addition to the benefits, the tenants of these industrial estates will face some challenges in investing in equipment and technology to meet environmental standards. This will increase the cost of business inputs. Thus, for foreign companies, the investment decision will lie in the balance between the profit of the business environment in Vietnam and the difference in cost, in order to guarantee the green industry rules. – TsVN/VNA