Ho Chi Minh City to lead Vietnam’s industrial transformation

Monash University’s Climateworks Centre and the Ho Chi Minh Institute for Development Studies (HIDS) have launched a consultation on the first-of-its-kind roadmap for transforming Ho Chi Minh City’s major industrial zones into net zero industrial precincts (NZIPs).

The roadmap outlines a plan to transition five of the city’s most socially, economically important and energy-intensive industrial zones – Saigon Hi-Tech Park, Tan Thuan EPZ, Tan Tao, Hiep Phuoc and Dong Nam – which collectively account for over 70 per cent of the city’s industrial energy use and employ more than half of its industrial workforce. 

Climateworks Centre CEO Anna Skarbek, in Ho Chi Minh City for the event, said transforming the city’s industrial zones into NZIPs is key to promoting future market access and export competitiveness.

‘The roadmap can deliver a coordinated step-by-step, place-based framework for emissions reductions, attracting clean investment and ensuring industries remain competitive in a world racing towards net zero emissions.’ 

‘Industrial zones are the engine of Vietnam’s impressive economic growth and they also play an important role in helping Vietnam to achieve its net zero ambitions.’

Ho Chi Minh City’s industrial zones contribute $US7 billion in annual exports, attract billions more in foreign direct investment and manufacture products crucial to the global net zero transformation. 

Climateworks Centre Head of International Programs and Engagement Trang Nguyen said green industrial transition is the key to future economic competitiveness. 

‘The roadmap can put Ho Chi Minh City at the forefront of Vietnam’s green manufacturing push and act as a foundation for a national model for industrial transformation.’ 

‘The city can set the benchmark for Vietnam’s green industrial and manufacturing future, showcasing how industry, government and finance can work together to build resilient, competitive NZIPs.’ 

‘Ho Chi Minh City has significant opportunities to pilot NZIPs through ‘quick win solutions’ such as scaling up renewable energy adoption and electrified processes to decarbonise key sectors like steel, textiles and plastics.’ 

‘At the same time, Climateworks recommends a coordinating taskforce to accelerate industrial transition at a city level to combine energy solutions with green skills training, export promotion and attracting green investment,’ added Ms Nguyen.

The roadmap is part of a program launched by Climateworks Centre and Ho Chi Minh City to accelerate the city’s ambitions of attracting green investment while contributing to national net zero emissions goals.

The program was launched last year with a Memorandum of Understanding signed by Climateworks and HiDS at the Ho Chi Minh Economic Forum.

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