Remarks of Mr. Patrick J. Gilabert, UNIDO Viet Nam Representative, at the inception workshop project “Implementation of Eco-Industrial Park Initiative for Sustainable Industrial Zones in Viet Nam”

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Date: 17 October 2014
Venue: Melia Hotel, Hanoi, Viet Nam

It is a great pleasure for me to join you all in this important workshop to launch the implementation of the Eco-industrial park initiative for sustainable industrial zones in Viet Nam.

Let me start by welcoming all of you to this workshop which mark the first day of this important project for Viet Nam.

As you all know, 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. These challenges were identified by many studies and reports.

For example, in 2006 MOIT published a report on the “Real state of technological qualification of industrial branches” (TDCN-BCN). The report revealed miss match of technologies and lack of investments in several industry sectors. In 2012, the “Technology Needs Assessment for Climate Change Mitigation” in Viet Nam (TNA 2012) stated that energy use technologies are outdated, with old equipment and energy consumption 1.2 – 1.5 times higher than the regional standards.

Aware of this situation, Viet Namese Government approved in 2008 the “National Target Program to Respond to Climate Change” (NTP), where the goal of the program is to develop feasible action plans to respond to climate change and use of low-carbon technologies.

TTg) for the period 2011-2020 with vision to 2050. Green growth is seen as a mean to achieve the
low carbon economy and shall become a dominant trend in sustainable economic development.

The same year in 2012, the Viet Namese government approved the National target program on energy efficiency and conservation phase 2012-2015 (1427/QD-TTg). One important goal of the program is to improve the energy end-use efficiency in industrial manufacturing and to promote high performance equipment and facilities.

The “National program on sustainable consumption and production” (NPSCP) 2010-2020 should also be mentioned. Its priorities are the development of mechanisms and policy instruments related to the efficiency of energy, water and raw material use in the industry and promoting the 3R economy for effective use of resources and waste minimization.

Finally, the UN in Viet Nam and MPI approved the “One UN Plan 2012-2016”, signed in March 2012, the “eco-industrial park” is identified under Outcome 1.4 (programs for more efficient use of natural resources and environmental management, and to implement commitments under international conventions), output 1.4.1 (green economic development, natural resources management and cleaner production), key action 3 (Support to build more resource efficient and cleaner production models/technologies in industrial, agricultural and handicraft sectors).

Based on this framework, the objective of the project is to increase transfer, deployment and diffusion of clean and low-carbon technologies and practices for the minimization of gas emissions, POPs releases and water pollutants as well as improved water-efficiency and the sound management of chemicals in industrial zones (IZ) of Viet Nam.

In other words, the project aims at shifting from industrial zones to eco-industrial parks.

The project is designed to have long-term impact by promoting inclusive and sustainable industrial production practices in industrial zones (IZ) through company cooperation in the areas of improved energy systems, waste management, reduced water flows, industrial zone management and integration into the host community. The Project is structured into four technical components and six outcomes.

Component 1 will improve policy and guidelines to facilitate the transformation of industrial zones (IZ) into eco-industrial parks (EIP). Component 2 will strengthen capacity building on eco-industrial park (EIP) strategy and measures. Component 3 will identify eco-industrial parks (EIP) pilot projects, and component 4 will implementation pilot projects in industrial zones and community and information dissemination.

This large project has been developed thanks to the commitment of the Viet Namese Authorities, under leadership of MPI, the support from UNIDO and financial assistance from GEF5, SECO and local partners. This demonstrates our long term cooperation and partnership with GEF, Viet Nam/MPI and SECO.

Partnership with GEF : UNIDO in Viet Nam has implemented two projects funded by GEF4 cycle, one on industrial energy efficiency with MOIT and another one on POPs with MONRE for a total budget of 1,6 M USD and co-funding of 8 M USD. Within GEF5 cycle, 4 projects are being done, on energy efficiency and Minamata mercury assessment, (MOIT), and on reducing POPs and ODS emissions with MONRE for a total budget of 3,7 M USD cofounding of 13,2 M USD. The eco-industrial Park project is the fifth project funded by GEF5 cycle to UNIDO in Viet Nam.

Long term cooperation with MPI: UNIDO has a long standing cooperation with the Ministry of Planning and Investment, we have just completed our support in the field of cluster development with EDA and investment promotion with FIA, we recently launched the phase III of the business registration project with the NBRO. So we are glad to initiate this GEF funding to MPI, which demonstrate its dedication to implement the “Viet Nam Green Growth Strategy”.

Long term partnership with SECO: UNIDO and SECO have a global and strategic partnership agreement in which Viet Nam is a key. Here in Hanoi, SECO has funded UNIDO-UNEP Viet Nam Cleaner Production Center (opened in 1996). We are working together in 7 projects on important subjects such as business registration reform, resource efficiency and cleaner production (at a global and national level) and in trade capacity building for export. With a budget of 1 M USD to the eco- industrial park project, SECO indicates its commitment to continuing supporting cleaner production in Viet Nam.

Thanks to this strong partnership, we have developed an unique combination of financial resources from GEF5 (3,5 M USD), SECO (1 M USD), UNIDO, the National government (MPI, MOIT, MOST), Local Government (Can Tho, Danang and Ninh Binh provinces), Viet Nam Environment Protection Fund (VEPF) and Viet Nam development bank (VDB) with a total budget of 53,4 M USD.

With the leadership of MPI, we expect this budget will have a significant impact at national level and in targeted provinces in Can Tho, Danang and Ninh Binh provinces. I believe one factor of success will be to connect all partners: MPI, MOIT, MOST, MONRE, Da Nang People Committee, Can Tho People Committee, Ninh Binh People Committee to address one goal.

Let me conclude by wishing you good health and all the best for a successful workshop today and project implementation for the next 3 years.

Thank you.