Promoting Green Growth in Industrial Zones

Project Summary:

Vietnam’s consumption of electricity has increased by 400% over the last decade, in part due to low efficiency, obsolete industrial technologies. Government studies show that the cement, textile, steel, and food processing sectors could use at least 20% less energy if managed efficiently. Using examples from Korea and International Finance Corporation (IFC) experience in Bangladesh and China, the KGGTF’s two-year USD $750,000 program is creating a scalable model for Vietnam’s industrial zones. The program team will demonstrate clean, efficient energy usage in multiple neighboring factories to show local authorities, the private sector, zone management companies, and Vietnam’s Ministry of Planning and Investment how to create low-carbon industrial parks. Through workshops with these stakeholders, the program will share case studies and raise awareness about innovative technologies for greening industrial parks. Interventions planned for pilot cities will reduce CO2 emissions by 100,000 metric tons while decreasing freshwater use by 500,000 m3 annually.  

List of Activities:

• Developing firm-level demonstration projects that can serve as models of manufacturing green growth
• Developing Industrial Zone level demonstration projects that can serve as models of infrastructure green growth and raising awareness
• Providing technical advice to MPI for EIP development in Vietnam that is consistent with the national green growth strategy for the country
• Facilitating implementation and replication of clean technology solutions and international best practices via audits, feasibility studies, and multi-stakeholder engagement

Outcomes:

Output 1: Firm-Level Intervention

• Number of factories that implement IFC recommended changes or projects: Fifteen (15)

Output 2: IZ Level Intervention

• Number of IZs that implement IFC recommended changes or projects: Four (4)

Output 3: Advice to MPI

• Number of procedures/standards/guidelines developed by IFC: One (1)

Outcomes:

This multi-sector project is expected to demonstrate a scalable, replicable model for green growth in industrial zones (IZs) in Vietnam by systematically developing energy/resource efficiency (REF) and clean energy (CE) projects in targeted IZs. It is intended to leverage a new type of aggregator – IZ Management and Infrastructure Companies – to drive change from the business-as-usual scenario and promote green growth. Based on the planned interventions, this activity will avoid 100,000 metric tons of CO2-equivalent per year and avoid freshwater use of 500,000 m3 per year.

Collaboration with K-Partners and Others:

The project leveraged on the partnership with the Korea Industrial Complex Corporation (KICOX) to benefit from their successful EIP experience in Korea, as well as to tap into opportunities for knowledge exchange and other activities during project implementation.