Phát triển khu công nghiệp sinh thái ở việt nam tt tiếng anh

Promoting the development of IZs in a sustainable direction, applying the approach of industrial ecology, realizing the circular economy in production, specifically the development of IZ

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

TRAN DUY DONG

THE DEVELOPMENT OF

ECO-INDUSTRIAL PARKS IN VIETNAM

MANAGEMENT ECONOMICS DOCTORAL THESIS SUMMARY

HANOI – 2020

The thesis is commenced at:

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Supervisors:

1 Associate Professor, PhD Nguyen Bich Dat

2 PhD Nguyen Dinh Chuc

The Thesis is available at:

- The Academy of Social Sciences’ Library

- The Hanoi National Library

OPENING

1 Rationality of the research subject

The system of industrial zones, IZ(s), in Vietnam plays an important role in implementing the strategy of liberating the economy, attracting foreign direct investment, developing industry and encouraging exports By the end of 2019, the whole country has established 335 industrial zones, of which 260 industrial zones were put into operation and 75 industrial zones were in the process of land compensation and clearing They mostly concentrated in key economic regions of the Southeast and the River Delta Hong, and South West Tenants in the industrial park have contributed greatly to the enhancement of industrial production value, and actively contributed to the state budget, exporting portion and jobs creation According to the statistics of the Ministry of Planning and Investment, in

2019 sorely, the industrial zones generated a total value of about 219 billion USD, of which the export turnover was equivalent to 59% of the production value The export turnover in IZs reached nearly 130 billion USD, contributing nearly 50% of the total export turnover of the country Also during this period, enterprises in the industrial park contributes 128 trillion dong to the state budget Annually, enterprises in industrial zones create about 40-45% of the national industrial production value and created jobs for more than 3.5 million workers (accumulated total)

In addition to the mentioned positive contributions, the rapid development IZ system is causing many challenges to the environment Nationwide, there are 29 industrial IZs, equivalent to 11% of the in-operation IZs, are in operating without a centralized wastewater treatment system Wastewater from several IZs is discharged directly to receiving sources without being treated, causing pollution to surface water as well as aquatic ecosystems, also, causing negative impacts on agriculture, fishery and drinking water resources The amount of solid waste discharged by enterprises in IZs is also increasing, in which, hazardous solid waste accounting for 20% of total waste In addition, air pollution is becoming more serious in such areas that use outdated technologies and do not have exhale treatment systems Occupational diseases related to low respiratory system

and senses are also common among workers and employees who are directly exposed to polluted environments in IZs Moreover, there has not been proper attention given by enterprises in the IZs and the IZ infrastructure developers

to deal with sharing infrastructure services, reusing waste, wastewater and by-products to use energy more efficiently and apply cleaner production methods, increase competitiveness

It is revealed that, in addition to continuing to maintain and promote the positive contributions of IZs to economic growth, focus on handling inside and outside IZ environmental issues, reducing waste and emissions in, recycling and byproducts reusing, efficiently using of resources and energy are crucial for all IZs Promoting the development of IZs in a sustainable direction, applying the approach of industrial ecology, realizing the circular economy in production, specifically the development of IZs, are the very approaches that contribute to solving environmental problems in the industrial production process Eco-industrial park(s) (EIP(s)) can be newly formed or transformed from existing IZs; they encourage the efficient use of energy resources, water, raw materials, reuse waste, reduce waste and encourage linkage among inside and outside IZ’s companies

In the world, many countries have placed a focus on sustainable development of IZs on all three aspects of economy, society and environment Those countries have actively built mechanisms and policies to support enterprises in the IZs to share infrastructure services, reuse waste, wastewater and by-products to reduce production costs and increase competitiveness through promoting the EIP model The theoretical foundation of the EIP is built from the IZ development practice of IZs, industrial clusters, industrial production chains all around the world There have been many studies that share correlation to IZs such as industrial ecology, industrial symbiosis, industrial transformation or circular economy, but either in different times, or mentioned the connection among these concepts incomprehensively Those research have not place proper attention

to such countries that have similar development conditions to Vietnam

From the country’s sustainable development perspective, it is becoming increasingly imperation to minimize the negative impacts of the

development of IZs, promote efficient use of energy, promote cooperation between enterprises, and enhance economic benefits for enterprises The above-mentioned objectives can be achieved through the establishment and development of EIP system, which promotes the ability to combine with reduce waste and emissions as well as recycling and reuse of products/byproducts, efficient use of resources and energy solutions at the enterprise

From the state governance perception, the Government has issued a number of strategies in which sustainable development is a cross-cutting standpoint such as: Socio-economic Development Strategy 2010-2020, Green Growth Strategy 2010-2020, Sustainable Development Strategy for the implementation of the millennium goals (Agenda21) And, for the first time, the EIP model has been institutionalized in Decree No 82/2018 / ND-

CP dated 22nd May 2018 by the Government However, in order to implement this model, in practice, it is necessary to concretize technical criteria in all 3 pillars of economy, environment and society, and to order the conditions to transform traditional IZs to EIPs It is to admit that enforcements at the central level (lack of mechanisms and policies, conflicts exist among legal regulations, yet to facilitate the formation and development of EIPs, ), and

at the local level (unclear determination about duties of the Provincial People's Committee, the Management Board of the IZ, coordination mechanisms and possible incentives,…); More importantly, it is necessary to concretize the specific tasks to the IZ infrastructure developers and tenants, two direct beneficiaries These are urgent requirements that need to be sought out and settled after the Government has issued Decree No 82 to realize the EIP model

For both the potential and necessity in development need and gaps

in the legal system and state management for EIPs in Vietnam, PhD

Candidate have preferred: “The Development of Eco-Industrial Parks in

Vietnam” as management economics Ph.D thesis topic

2 Research objectives and contents of the thesis

2.1 Research objectives

The thesis aims to review and summarize understanding from theoretical studies and practical experiences in countries about EIPs and assess the current status of (E)IPs development in Vietnam to clarify the rationality, and thereby put on and propose solutions to establish and develop EIPs in Vietnam

- From the basis of theory, international experience and the current status of IZ development in Vietnam, proposing a number of policies and management solutions to promote the establishment and development of EIPs in Vietnam

3 Research object and scope

3.1 Research object

The thesis studies the development of EIPs from the transformation

of traditional existing IZs

3.2 Research Scope

- The thesis examines solutions to acknowledge EIPs from the perspective of state governance, focusing on sets of solutions: on governing and planning, institution and policies, and supporting measures for the development of EIP

- The thesis researches and propose solutions to develop EIPs in Vietnam, nationwide

- The thesis limits its time bound from 2011 to 2017 when assessing the current status of IP development in Vietnam and for 2020-2025 with vision to 2030 when proposing solutions and recommendations for implementation

4 Research method and methodology of the thesis

4.1 Research methodology

The thesis uses the dialectical materialistic methodology and examines the development of the EIPs according to the pairs of categories Nature - Phenomenon, Common - Unique, Content - Form, Ability - Reality and Cause - Result The contents of the thesis are the summary and reflection

of practical points, systematic views and historical views of thesis author on research object, it is the development of the EIPs

4.2 Detail research methods

Desk study and literature review: Collect and analyze research data

including domestic and foreign literatures and topics that have been done They are primary studies, basic studies, theoretical and practical researches related to the contents of the thesis This method helps to review domestic and foreign studies on EIPs, generalizes the theoretical system of EIPs, the issues posed in the development of EIPs as well as experiences of other

countries in transforming traditional IZs to become EIPs

Systematic analysis: EIP is a concept related to many industries and

fields; from economic to environmental, social and community administrative and governance The systematic analysis method considers the research object, EIP, as a system When analyzing the its components and elements, this helps to detect the integrity of the system, the elemental factors are studied as a "subset" So that, it helps also to analyze and have an understanding of the management solutions with more specific systems The thesis combines this method with the other results by qualitative methods to

discuss, propose mechanisms and policies to build and develop EIPs in Vietnam that are mentioned in Chapter 3 and Chapter 4 of the thesis

Comparison and differentiation: The thesis studies the object at two

or more different times or at different locations in order to find differences, changing trends and factors affecting changes The thesis uses this method in comparing and contrasting the experiences of the development of EIPs in the world to draw lessons for its development in Vietnam and to capture the current development status of IPs in Vietnam to determine transformation

potential

Descriptive statistics: The thesis uses descriptive statistics to present

and analyze different types of data collected from reality and from previous studies and investigations, such as the national statistical database on business investigation started from 2001 to present, the database on IZs in the period 2011-2017 of the Ministry of Planning and Investment (MPI), the database of studies on IZs in recent years The thesis also collects and describes the statistics of the pilot EIPs through official data sets of the

General Statistics Office and the MPI

Cost-Benefit Analysis: is a systematic method to calculate and

compare the benefits and costs of implementing an activity (e.g project, policy, intervention, investment .) and to determine the correctness and feasibility of performing such activity The thesis applies this method to review the transformation in 04 industrial zones in Ninh Binh province, Da Nang city and Can Tho province through the evaluation of financial investment costs and economic, environmental benefits obtained from the implementation of EIP initiatives, thereby giving out suggestions for the

expansion of transformation and scale up national level

SWOT analysis: This is a useful tool to identify and evaluate the

intrinsic capabilities and potentials (Strengths - Weaknesses) and evaluate prices of external factors affecting research subjects (Opportunities - Threats) In the scope of the thesis, the author exploits the traditional SWOT method by identifying strengths, weaknesses, opportunities and challenges and weaknesses that affects EIP transitions in Vietnam before proposing a

roadmap and transition solution

Survey and expert consultation: The thesis uses this method to

collect information about the piloting IPs At the same time, the thesis also employs expert opinions for sound analysis and policy proposals for the development of EIPs in Vietnam From the results, the thesis draws and highlights the assessments to come to conclusions The thesis implements and uses data collected from 3 surveys to:

1) Get basic information about the pilot IPs

2) Consult with experts on the transition potential of EIPS

3) Understand the compliance toward EIP criteria of piloting IPs

5 New scientific contributions of the thesis

On the ground of generalization, analysis of the current situation, assessment transformation potential and collecting opinions of experts on IPs development and their transformation into EIPs Vietnam, the thesis contributes new academic points as well as scientific arguments as follows: i) Clarified the theoretical foundation of Eco-Industrial Parks (EIPs) development; systematized the theory of EIPs as a basis for the assessment; and analyzed the possibility of transformation and development of EIPs in Vietnam; ii) Synthesized and proposed a more completed concept of EIPs; identified and systematized the factors affecting EIP development and initially addressed the structure of standards and classification for EIPs in Vietnam; iii) Pointed out important lessons from practices of different countries that may contribute to the establishment and development of EIPs

in Vietnam; iv) Analyzed and assessed the development progress of industrial zones in Vietnam during the period 2011-2017 from the EIP view points: v) Proposed some fundamental solutions for the establishment and development

of EIPs in Vietnam;

6 The theoretical and practical significance of the thesis

The thesis has deepened the theoretical basis of EIP that is applied in the world and deployed in Vietnam recently The thesis has evaluated the advantages and limitations in the development of IZs in Vietnam in terms of economy, society and environment aspects Since, it lays the foundation for

the proposed development of EIPs as a solution towards the sustainable development of IZs The analysis and evaluation of the thesis contribute to the works of researchers, policy-makers and managers in providing an overall view of the causes, current status and solutions for EIP development from the current status of IZ development in Vietnam

The thesis is considered as a systematic reference for developing policies and proposing an institutional and management system for EIP development Vietnam And moreover, the researches and analysis of the thesis have provided reference value for teaching, fostering and policy making for both research and policy-making institutions in the field of IZ in general and EIP particular in general in Vietnam

7 Thesis structure

Beside the Introduction, Conclusion, the Thesis includes 4 chapters

as follows:

Chapter 1 Literature review

Chapter 2 Theoretical foundation and international experience on the development of EIPs

Chapter 3 Current status of IZ development in Vietnam from the EIP characteristics

Chapter 4 Viewpoints, orientations, and recommendations for the establishment and development of EIPs in Vietnam

1.1 International literature review

EIP definition: is formed from a new approach in dealing with environmental problems arising from production activities in IZs Industrial production and how humans meet their needs, both bring about better physical conditions for humans and also cause environmental and social problems that need to be addressed Around such an approach, a series of authors such as Cote (1995, 1998), Lowe, Ernest and Laurence Evans (1995)

and Roberts (2004) have proposed EIP concept in which the connotations revolve around the association of enterprises in the industrial park to optimize the production ecosystem, self-improvement towards resource efficiency and

a suitable technical and service infrastructure for a symbiotic ecosystem

Among them, Lowe gave the definition of EIP, which is commonly

used by international organizations: “An eco-industrial park or estate is a

community of manufacturing and service businesses located together on a common property Member businesses seek enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues By working together, the community of businesses seeks a collective benefit that is greater than the sum of individual benefits each company would realize by only optimizing its individual performance”

EIP characteristics: Such authors as Tibbs (1992), Chertow (2007)

and Park (2016) pointed out that IPs are based on industrial ecological principles (IE), in which industrial systems can operate like natural ecology, which mobilizes the participation of separate industries in a collective approach, thereby improving economic efficiency while the ecological footprint decreases EIPs are divided into 5 categories according to geographical regions and quality and level of exchange activities, including: (1) Waste exchange; (2) Exchange among several enterprises in a same IZ; (3) Exchange within an IZ; (4) Exchange among enterprises that are close to each other but not in the same IZ; and (5) Large spatial exchanges According

to Frosch (1994), the activities of IZs also have to face with difficulties, especially: (1) technical barriers; (2) lack of information; (3) organizational

obstacles; and (4) regulatory and legal obstacles

EIP establishment: Lowe's research (1996) showed that there are 3

ways to form an EIP, including: (1) Designing and building on a completely new location; (2) Transforming from operating traditional IZ and rehabilitation of polluted areas; and (3) Renovation and expansion of existing production areas With each chosen method, there are challenges in both the establishment, construction and operation phases Therefore, there must always be a balance between the benefits and the costs; and need to determine

whether the challenge can be overcome Other studies by Lowe et al in 1996 and 2001 also emphasized the organization of appropriate functional space and specific principles of EIP, including: (1) harmony with nature; (2) energy system assurance; (3) material and waste flow management; (4) water supply and drainage management; (5) effective EIP management; (6) combine build and renovate; (7) integration with the local community On the basis of these principles, many specific guidelines for the planning, design and implementation of EIP were also given

Affecting factors to EIP development: Factors contributing to the

success of EIPs include: (1) Development of supporting policies for EIP; (2) Establish monitoring and evaluation systems for EIP on a regular basis; (3) Formulate sectoral development strategies; and (4) Encourage stakeholder cooperation or (should) start with pilot models Detail contents were mentioned by Sertyesilisik in his 2016 study

1.2 Domestic literature review

EIP definition: EIP with the theoretical background of IE is a new

concept in Vietnam IE is mentioned in two documents: lecture paper on IE

of the University of Civil Engineering (2010) and thesis on ecological development at Hue University by Van Thiep (2010) Both of these documents covered very generally the concept of IE The definition of EIP is only specified in Article 2 of Decree 82/2018/ND-CP for the first time and become the only official definition in effect in Vietnam so far According to

this Decree, “EIP is an industrial park, in which enterprises in the park

participate in cleaner production and resources effective activities, with connection and cooperation in production to implement industrial symbiosis activities that aimed at improving economic, environmental and social efficiency of enterprises”

EIP characteristics: Some authors as Gioi (2008), Dinh Tai (2013),

Chi Binh (2013) and Nguyet (2015) mentioned the essential characteristic of EIPs such as linkage by industries and businesses, linkage by geographic regions and production chain, linkage by geography proximity

Affecting factors to EIP development: currently, in Vietnam, there

is no research that clearly mentions the factors affecting EIP However, it is possible to refer to the research works published by the Ministry of Construction (1998), the Vietnam Science and Technology Center (2006) and by Cao Lanh (2012) to have a rough idea of some affecting factors to EIP development in 3 dimensions: economy, society and environment

EIP development experience: Vietnam is considered a descendant country in the development of EIP model, so the researches on this topic focuses a lot on reviewing world experiences like in papers of Ngoc Anh (2011) and the MPI (2019) that referred to the experiences of Denmark, China, Thailand, Italy, Korea and Cao Luan (2014) and the MPI (2019) mentioned EIP cases in Vietnam such as of Ninh Binh, Da Nang and Can Tho

1.3 Literature review conclusion

The international and domestic literature review result has pointed

out the gaps in research, including: Firstly, the studies in Vietnam just halt at

the generalize some international studies to give recommendations on the

development of EIPs; Secondly, there is a lack of analysis on the institutional

system, legal regulations, policies to encourage and support the development, and mechanisms of EIP in the sense of transformation from traditional IZ to

EIP model; Thirdly, the specific criteria to evaluate and identify the IP has

not been researched and built

CHAPTER 2

THEORETICAL FOUNDATION AND INTERNATIONAL EXPERIENCE ON THE DEVELOPMENT OF EIPS

2.1 Definition

2.1.1 Circular economy: The circular economy is a multi-level and social

concept that can be seen as a systemic change, a new set of tools, an industry with an overarching one Elements of the circular economy act as measurements that can help reduce the business activities’ impacts on the

ecosystem, to the extent that overall resilience is achieved on the planet Circular economy is a concept or idea that is currently in development, with changeable nature, and with open boundaries The circular economy shares its origins with the concepts of sustainable production and sustainable consumption, but is complemented by different concepts, including industrial ecology With such an approach, the circular economy can be considered to

be broader, encompassing industrial ecology, and covered some relevant concepts of sustainable industrial development and environmental protection away from the impacts of industrial activities such as industrial symbiosis and EIP

2.1.2 Industrial Ecology (IE): The fundamental task of the IE is to harmonize the inputs and outputs of industrial activities up to the limitations

of the biosphere With a systematic and comprehensive approach, IE is one

of the foundations for the sustainable industry and sustainable society development The back ground of IE is philosophy of a closed system, similar

to natural ecosystems with 6 characteristics: (1) Similar to biological systems; (2) The systematic viewpoint; (3) Change in technology; (4) The role of companies; (5) Reducing the use of raw materials and ecological efficiency; and (6) Non-stop evolving

2.1.3 Industrial symbiosis (IS): is a simulation of a natural ecological model

of a symbiotic relationship where the exchange of materials and resources of

an organism take place in a reciprocal way IS aims for lasting changes in the way that business networks take place and operate IS is the participation of diverse organizations in a network to promote ecological change and lasting cultural change, create and share knowledge for multilateral benefits Decree

No 82/2018 / ND-CP of the Government, for the first time, defines

“Industrial symbiosis in IZ is a cooperative activity between enterprises in

an IZ or with enterprises in different IZs to optimize the use of inputs and outputs such as raw materials, water, energy, waste, scrap in the business process Through cooperation, enterprises form an exchange network of production factors, common use of infrastructure and services for production, improve technological processes and improve production efficiency of business activity" There are 5 types of ISs summarized via