FDI attraction aims for “green” standards

The flow of FDI investment capital into Binh Duong has recently improved remarkably in terms of quality. Many investors in fields of high technology, electronics, renewable energy... have chosen Binh Duong as a destination. There are projects with a scale of up to billions of dollars, for example, Lego Group, contributing to making Binh Duong's economic development more sustainably and "greener".

Provincial leaders congratulate Lego Group (Denmark) on starting the project at VSIP 3 in Tan Uyen Town, Binh Duong.

Breakthrough from a billion-dollar project

Lego has five production factories globally, thus as choosing Binh Duong as a destination for their new factory (investment capital of 1.3 billion USD) is a great success in FDI attraction of Vietnam in general and Binh Duong in particular.

According to Preben Elef, Vice President of Lego Group, this is also Lego's first carbon-neutral factory developed in a green, sustainable and environmentally friendly manner. The factory has no carbon emissions, electricity used is renewable energy supplied from a solar panel system from a battery field right next to the factory, thus positively impacting the environment and ecosystem. In particular, the factory was built to meet Leed Gold standards - a globally recognized green building certificate, contributing to the group's goal of reducing absolute carbon emissions by 37% by 2032.

After the "push" from Lego, many investors are also interested in learning and investing in better and greener projects in Binh Duong. For example, Pandora Group (Denmark) also decided to invest a US$100 million project in Binh Duong. This project is also expected to use 100% renewable energy, create more than 6,000 jobs, and will also meet Leed Gold standards. Or recently, SEP Group (Korea) also came to Binh Duong to learn and want to invest more than 200 million USD to establish a carbon-neutral industrial complex specializing in footwear industry and the first carbon-reducing infrastructure in Vietnam on an area of 180 hectares at Tam Lap 2 Industrial Cluster, Phu Giao District.

Quality capital flow outlook

Recently, Becamex IDC and Sembcorp Development Company (Singapore) have signed a memorandum of understanding on cooperation in the formation and development of five industrial parks in the direction of green, smart and sustainable IPs in Vietnam, with a total investment of about 1 billion USD. Through this signing of this memorandum of understanding, once again Binh Duong and businesses in the province demonstrate their commitment to meet green, smart and sustainable standards, use 4.0 technology in infrastructure development and management to run businesses more efficiently.

According to Jaya Ratnam, Singapore's ambassador to Vietnam, the green economy is one of the three areas attracting Singaporean investors in Vietnam, besides logistics and digital economy. Singapore businesses look forward to working with Vietnam to increase investment in sustainable infrastructure and renewable energy with an ambitious goal of achieving net zero carbon emissions by 2050.

In order to concretize cooperation agreements, recently, at a meeting with Binh Duong provincial leaders, Kelvin Teo, CEO of Semncorp Development Group, shared that the group promised to develop many projects in VSIPs in Binh Duong, especially, develop VSIP 3 to become the first green, smart and zero-waste industrial park of the group.

VSIP 3 with an area of 1,000 ha in Tan Uyen Town, is designed for green and sustainable development, integrates smart technology, and uses real-time monitoring devices in the industrial park's activities. The project is eligible to be granted a Green Mark (Green Mark) of the Singapore Construction Authority for industrial zones. A strength of VSIP 3 is a 50-hectare solar farm that will provide electricity for the entire IP. In addition, Sembcorp Group also invests in the application of 4.0 technology at Eastern International University (EIU) with the desire to attract talents, train high-quality human resources to meet production business needs of smart factories in Binh Duong.

The move towards green production has become an inevitable trend and is considered a link in the green growth strategy. Green economy is also the driving force to maintain growth and attract investment. In the coming time, the province will continue to enhance the development of a green and sustainable economy, creating a driving force to attract new investment capital flows.

Recently, when discussing with provincial leaders about the desire to invest in a carbon-neutral industrial complex in Binh Duong, Hyun Dong-Hoon, Professor of Korea University of Technology, Chairman of SEP Group, said that "greening" production is a global trend that businesses must implement to achieve sustainable development goals. Therefore, SEP Group wants to invest more than US$200 million to establish Vietnam's first carbon-neutral shoe industry and infrastructure complex in Binh Duong.

“With the hope that by 2024, we will introduce a carbon neutral model to industrial zones in Binh Duong. This footwear industry’s first carbon-neutral industrial complex can calculate scope 1,2,3 and carbon emissions as required by foreign partners such as Nike," said Hyun Dong-Hoon. 

Vo Van Minh, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee: Lego's project is a new "green milestone" of FDI flows into Vietnam in general and of Binh Duong province in particular. The fact that a reputable enterprise like Lego chooses Binh Duong as a strategic destination is important in stimulating FDI growth and heightening Binh Duong's reputation among investors, especially investors from Europe.

Reported by Ngoc Thanh - Translated by Ngoc Huynh