Assessing the Feasibility of Eco-Industrial Parks in Developing Countries: A Case Study of Thang Long II Industrial Park in Vietnam

Abstract

Eco-industrial parks (EIPs) exemplify sustainable industrial development by maximizing resource efficiency through waste material reuse. However, their global implementation encounters challenges. This paper introduces two key contributions to the EIP literature. Firstly, it presents a simple, interdisciplinary framework for assessing the feasibility of transitioning to or establishing new EIPs. Secondly, it applies this framework to evaluate EIP development in Vietnam, focusing on Thang Long Industrial Park II (TLIPII) as a case study and drawing implications for other developing nations. TLIPII is remarkable for its adherence to national environmental standards, with a dual status of partial occupancy and ongoing infrastructure development. This study suggests the potential for a partial EIP transition in the occupied area and establishing a new EIP in the remaining portion. Yet substantial challenges persist due to institutional barriers like the absence of incentive policies, specific implementation guidance, and environmental regulations. TLIPIIs case underscores crucial success factors for EIP development: active stakeholder engagement, a comprehensive EIP management framework, clear stakeholder responsibilities, and the involvement of local-level actors. It also highlights the importance of flexible environmental regulations, incentives, robust stakeholder engagement, and well-defined policy frameworks. These lessons from TLIPII can inform actionable policy recommendations for other developing countries. By applying these insights, these nations can chart a roadmap for sustainable industrialization while addressing the challenges and opportunities of the EIP model.

1. Introduction

The concept of EIPs, originating from the seminal work of [1], has emerged as a cornerstone of sustainable industrial development. EIPs epitomize a paradigm shift where industrial ecosystems optimize resource consumption by reutilizing production process waste materials. This principle aligns EIPs with the vision of a zero-emissions economy, a central tenet of the circular economy concept. Institutions such as the [2] have endorsed EIPs as a promising strategy for advancing sustainable industrial development, particularly in areas like raw materials, energy, and waste management. The definitive characterization of EIPs, articulated by [3], is rooted in principles of industrial symbiosis, recycling practices, environmental stewardship, and the cultivation of robust social infrastructure within these industrial ecosystems. [4] emphasizes the role of EIPs in the holistic sustainability of industrial activities. The concept of industrial symbiosis, where co-located firms within an industrial park collaboratively share resources like input materials, water, waste streams, and even labor resources, lies at the heart of EIPs [3,5,6,7,8]. This intrinsic interconnectedness allows one firm’s waste, by-products, or output materials to seamlessly become another’s input—a testament to the profound economic, environmental, and social efficiencies that the EIP model seeks to foster [4,9,10,11,12,13,14].

While the advantages of the EIP model are apparent [4,5,10,11,15,16,17], its application faces challenges globally [5,17,18,19,20]. Achieving EIP success requires specific determinants, whether constructing a new EIP-based industrial park or transitioning a traditional industrial park into a sustainable-oriented one. However, few studies have proposed comprehensive, interdisciplinary feasibility assessment metrics for the EIP model, covering all aspects of the economy, society, and sustainability.

In Vietnam, Decree No. 82/2018/ND-CP and Decree No. 35/2022/ND-CP precisely define EIPs as industrial parks characterized by cleaner production practices, enhanced resource efficiency, and a commitment to fostering industrial symbiosis. This aligns with the core principles emphasized by [3] and underscores the strategic importance of industrial symbiosis within an industrial park’s boundary. The Vietnamese government’s commitment to EIP development and its vision for a circular economy provide a robust policy backdrop. With over 400 operational industrial parks, Vietnam envisions leveraging the EIP model to harness private sector resources, bolster green industrial solutions, ensure energy security, and contribute substantially to climate change mitigation [21,22] and sustainable growth. The Ministry of Planning and Investment has set ambitious targets, including transferring existing industrial parks into the EIP framework and developing new EIPs from the inception of construction planning.

Among Vietnam’s numerous IPs, TLIPII in Hung Yen province, established in 2006, stands as an exemplar. About 64.6% of the industrial land in TLIPII has been filled up (in phases I and II), and 35.4% of the industrial land is in the process of infrastructure construction and will start leasing in 2025. TLIPII is the second-largest IP in Hung Yen, accounting for nearly 12% of the province’s total investment in industrial park development. Since the early days of its establishment, TLIPII has emphasized environmentally friendly practices, forming the basis for developing the EIP model. Its bipolar status makes an original and critical case study for parallelly assessing the feasibility of the EIP model in the form of transition (i.e., the conversion from a “normal” IP to an EIP) and creation (i.e., the brand-new generation of an EIP) of “different parts in a single body.” Given the extreme similarity of stakeholders involved, determining which determinants act as drivers of barriers for TLIPII in its course of development toward the EIP model in any form is an interesting concern. Another crucial consideration is whether the Vietnamese government has created a favorable and incentive-based business environment to facilitate EIP development in the country and TLIPII specifically.

Recognizing the uniqueness of the case study on TLIPIIs EIP development can enrich the literature on EIPs and provide insights for Vietnam and developing countries in EIP development. This paper explores the prospects of TLIPIIs successful transition to the EIP model within its occupied areas and its potential to pioneer a new EIP in its upcoming phase III. To fulfill this research objective, the paper proposes an interdisciplinary scale for feasibility assessment containing five ecological indicators: management, economics, environment, social factors, and regulations. These indicators are derived from theories such as Industrial Ecology, Triple Bottom Line (TBL), Resource-Based View (RBV), Institutional Theory, and Social Capital, encompassing multifaceted criteria from literature reviews ranging from cases of developed countries to developing countries, offering a comprehensive assessment of the feasible application of the EIP model.

The paper is organized into four sections. Following the introduction, the second part presents theoretical considerations and research methodology. The subsequent section evaluates TLIPIIs readiness for transitioning to the EIP paradigm and its capacity to establish a new EIP based on five ecological indicators: management, economics, society, environment, and regulation. Finally, the paper offers recommendations for stakeholders to facilitate the transition of existing industrial parks to the EIP model and create an enabling environment to establish new EIPs.

2. Theoretical Considerations and Research Methodology

2.1. Theoretical Considerations

Ecological Indicators for the Successful Application of the Eco-Industrial Park Model

The Eco-Industrial Park (EIP) model places significant emphasis on technological advancement and eco-friendly practices, thereby enhancing business competitiveness through investments in green technologies and resource-efficient processes [5,11,15,16,17]. Furthermore, EIPs offer shared infrastructure, reducing initial costs for companies. EIPs play a pivotal role in addressing societal and environmental challenges, reducing fossil fuel consumption, promoting sustainable development at both national and international levels, and positively impacting the communities in their vicinity [4,10]. They foster stakeholder connectivity, encourage collaboration and knowledge exchange, and contribute to a more sustainable economic ecosystem [16].

The practical implementation of EIPs faces significant challenges, including businesses lacking the necessary knowledge, skills, and technology and conflicts with legal frameworks, especially environmental regulations [5,18,20]. Fully operational industrial parks may encounter difficulties when attempting to alter business relationships, particularly when waste and resource management costs represent a small portion of their overall expenses. Subsidies for essential energy sources may deter participation, and the collaborative nature introduces financial risks and extended returns on investment, potentially constraining the technological upgrades necessary for competitiveness [17,19].

In the effort to bridge the gap between theoretical promise and real-world challenges in the feasibility assessment of the EIP model, this paper proposes five ecological indicators rooted in a multifaceted theoretical framework encompassing Industrial Ecology, TBL, RBV, Institutional Theory, and Social Capital Theory to analyze EIPs [5,11,15]. These indicators evaluate multiple aspects of management, economics, environment, social factors, and regulations, offering a comprehensive assessment of EIP potential. Ecological indicators rooted in Industrial Ecology emphasize resource efficiency and industrial symbiosis [23]. TBL theory evaluates economic profitability, environmental sustainability, and social well-being [24] within EIPs. RBV theory assesses the strategic management of ecological resources toward EIP development [25]. Institutional Theory examines interactions between external (for example, economic and regulatory factors) and firms’ management practices [26]. Finally, Social Capital Theory gauges stakeholder engagement and collaboration. Each ecological indicator covers various criteria compiled from the empirical findings of different case studies and regulations in Vietnam on the EIP model (Figure 1).

From a management perspective, the formation and transition of an EIP depend on several key factors. These factors include (1) the strategy and vision of the industrial park developer [11,20,27,28,29,30,31,32,33,34,35], the arrangement of the industrial park aimed at facilitating industrial symbiosis [4,11,30,34,35], (2) the location and degree of infrastructure completion within the industrial zone, which collectively result in advantages for attracting higher-quality investment capital and selecting businesses suitable for the eco-industrial park model [11,20,30,36]. Furthermore, (3) the ability to enforce and monitor compliance with environmental and social regulations [25,34,35] and (4) the availability of operational information from firms within the industrial park [25,37] are also fundamental determinants for forming a new eco-industrial park or the transition process of a standard industrial park.

From an economic perspective, three conditions contribute to forming or transitioning toward an eco-industrial park. Firstly, (5) the industrial structure within an industrial park must facilitate industrial symbiosis activities [11,38]. Secondly, (6) firms within an industrial park should participate in the industrial recycling system and supply chain [34,35,36]. Thirdly, (7) ecological potentials and technical possibilities within an industrial park that allow a group of firms in the same industry with similar production activities to participate in the industrial recycling system [8,39] and create linkages in the use of energy and materials [36].

From an environmental standpoint, the successful implementation of an EIP model requires two crucial conditions: (8) the ability of firms within an industrial park to implement green-clean production solutions [4,8,20,34,35,40,41] and their awareness of environmental issues [8,40], which are necessary conditions for targeting the EIP model. In addition, (9) industrial park infrastructure investment and development companies that strictly monitor, archive, and enforce ecological compliance issues [4,34,35] play an essential role in implementing the EIP model.

The EIP model must have significant positive social impacts. (10) An EIP model may positively result in job creation, higher-than-average wages, social responsibility such as contributions, and improvements in the quality of workers’ living conditions in the industrial park [34,35], along with a solid commitment to social issues [4]. These positive benefits of the EIP are expected to spill over both outside and inside the industrial park [8].

Regarding policy and regulatory considerations, two essential factors significantly contribute to the establishment or transition toward an EIP: (11) the consciousness of firms within the industrial park about their responsibility to the environment and society [26,37,42], and (12) the willingness of stakeholders such as businesses, management, communities [38], training institutions, experts, non-profit organizations, etc., to target the EIP model, which dramatically facilitates the creation or transition to the EIP model [26,28,29,37,42].

Among these twelve conditions, conditions numbers (2), (5), (3), (6), (7), and (12) are the core conditions for a standard industrial park to be considered an EIP. Criterion (2) represents the advantage of the industrial park in attracting and selecting high-quality investors. In contrast, criterion (5) forms the foundation for building and developing the industrial symbiosis network, considered a symbol of the EIP model. Conditions (3) and (6) lay the foundation for consensus among enterprises within the industrial park to collaborate to form industrial symbiotic relationships and adopt cleaner technology. Condition number (7) is essential for establishing symbiotic industrial relationships among enterprises, often developing spontaneously in the initial stage. Conditions (11) and (12) represent the management and supervision capacity of the infrastructure investment and development company during the construction and transformation of a standard industrial park into an EIP model.

2.2. Research Methodology

Case studies have emerged as a prevalent and adaptable approach in the realm of feasibility assessments for EIPs [43,44,45,46,47,48,49], especially for their key component of industrial symbiosis [50]. These case studies hold particular value due to their flexibility in addressing various research objectives across multiple locations and industries [50].

Diverse data collection methods and analytical techniques are employed in such studies, including interviews with experts, companies, government departments, and local stakeholders [8,25,27,28,29,37,39,40,51], site visits [8,18,27,28,29,37,38,39,51,52,53] involving direct observations [29,37], and questionnaires [38,52]. These methods contribute to a holistic understanding of EIPs. The paper, explicitly focusing on the case study of TLIPII, employs a multi-phased data collection approach to comprehensively assess the feasibility of transitioning TLIPII into the EIP model.

This research commences with a literature review encompassing relevant papers, Vietnamese governmental and provincial records, and pertinent background materials. This initial phase provides essential context for this study, centered on TLIPIIs economic, environmental, managerial, and social performance and the planning and implementation processes of the EIP model. Subsequently, from March 2021 to April 2021, this paper engaged with diverse participants, including 55 enterprises based in TLIPII, 5 governmental officials, 15 experts, employees, and leaders from TLIPII Infrastructure Development Company, as well as leaders from departments under the Management Board of Industrial Parks in Hung Yen Province.

The survey phase aims to collect foundational information about the EIP landscape in Vietnam. An open-ended questionnaire is administered to the five governmental officials from the Department of Management of Economic Zones at the Ministry of Planning and Investment. This approach seeks to gain insights into the broader context and framework of EIPs within the country, thus laying the groundwork for understanding the crucial aspects of EIPs and their practical implementation.

The subsequent phase focuses on gathering opinions from 15 experts and key stakeholders, such as employees, leaders from TLIPII infrastructure development company, and leaders from departments under the Management Board of Industrial Parks in Hung Yen Province, regarding the extent to which TLIPII aligns with the criteria for the EIP model during its transformation stage within Vietnam’s pilot IPs. This is achieved through face-to-face discussions and interviews. An open-ended questionnaire is employed in these interactions to delve into their perspectives, experiences, and insights concerning the conversion of pilot IPs into EIPs. These interviews yield valuable qualitative data that deepens comprehension of the challenges, opportunities, and considerations tied to the transformation process.

Additionally, a survey is conducted among enterprises operating within TLIPII, seeking to capture their opinions and experiences regarding the ecological indicators of the EIP model. The questionnaire, grounded in the theoretical framework of EIPs and their key dimensions, contains a wide range of questions that strictly align with the five ecological indicators explained in the previous section. It is employed to gather insights on awareness of the EIP model, environmental sustainability, resource efficiency, and eco-friendly practices from the vantage point of businesses within the industrial park. Of the 55 questionnaires disseminated, 54 valid responses were collected, forming a representative sample for subsequent analysis.

Furthermore, it is important to note that a qualitative approach is employed in the data analysis process. This qualitative approach is well-suited for fulfilling the research objective of identifying barriers and drivers for the transition and creation of an EIP [8,54,55]. It supports the assessment in five key aspects: quality of management, economic performance, environmental performance [18,56], social contributions, and regulatory issues. This methodological choice enhances the research’s capacity to provide comprehensive insights into the feasibility of transitioning TLIPII into the EIP model and the broader implications for industrial parks in similar contexts.

3. Feasibility Evaluation of the EIP Development in TLIPII

3.1. Management Perspective

Regarding strategy and vision, the TLIPII infrastructure development company has strategically allocated enterprises during phase I and II planning stages based on their priority for land leasing and considerations related to pollution isolation and the operational environment. Its primary goal of profitability aligns with common practices in many industrial parks in Vietnam. On the one hand, this profitability-focused approach led to success in client attraction and quick full occupancy of the leasing area. In addition, TLIPII successfully attracted businesses that share a culture similar to Japan’s and operate in less-polluted, high-tech domains that may partly facilitate the park in alignment with the EIP model’s principles of environment [57]. On the other hand, this strategy has challenged the reconfiguration of enterprises to promote closed-circle industrial symbiosis.

“Enterprises within TLIPII can be categorized into two groups: a majority constitute suppliers of electronic equipment to automobile and motorcycle assembly and manufacturing companies, as well as electronic component manufacturing and assembly entities. For industrial zones, the objective revolves around infrastructure development and cultivating favorable partnerships with technologically, financially, and culturally aligned businesses. This criterion will persist through phase III of TLIPIIs evolution.”

Interviews with employees and leaders from TLIPII Infrastructure Development Company were conducted on 10 April 2022.

TLIPIIs layout plan indicates a mix of industrial and commercial zones, typical for many industrial parks [58]. While this layout can facilitate diverse industrial activities, it may not be optimized for industrial symbiosis, a fundamental aspect of the EIP model. The plan does not explicitly show arrangements or infrastructure to promote industrial symbiosis (Figure 2).

In the pursuit of investment attraction and effective operation of TLIPII, the infrastructure development company continues to adhere to two fundamental principles in phase III: (1) Drawing upon prior experiences in Vietnam to identify new clientele with a business culture akin to Japan’s, and (2) Keeping service infrastructure quality in alignment with Japanese standards [59]. As a result, the potential to generate a new EIP seems tiny, given the advantage of environmental aspects.

Regarding the availability of operating information, TLIPII Infrastructure Development Company nurtures a robust rapport with the enterprises within the park. The company convenes monthly customer conferences to solicit feedback from the firms. These forums also serve as platforms for conveying the latest legal regulations, ensuring tranquility in their production and business endeavors. A total of 34 out of 54 enterprises within the industrial zones voluntarily participate in business associations, facilitating the exchange of insights on labor, investment, pandemic mitigation, and more. However, TLIPII faces challenges in developing a comprehensive database concerning suppliers, raw materials, input and output products, waste, wastewater, and related aspects of industrial symbiosis due to businesses’ reluctance to share information, primarily concerning proprietary business data. Regrettably, the modest interconnectedness between enterprises creates barriers to the EIP development of TLIPII, causing many businesses to abstain from linking and sharing information with their counterparts due to a lack of accessibility to information (13 out of 20) or a lack of interest (7 out of 20). Enhancing information accessibility and fostering interest among businesses to share data are critical steps toward realizing TLIPIIs aspiration of becoming an eco-industrial park.

In terms of infrastructure and location, given its alignment with Japanese service quality benchmarks and environmental preservation, TLIPII holds significant appeal for Japanese enterprises, both established and newly invested in Vietnam. Most firms rate the service quality and connectivity offered by the TLIPII infrastructure development company as ranging from very good to good (Figure 3).

Regarding environmental and social regulation compliance, TLIPIIs commitment to environmental compliance and service quality may contribute positively to EIP development. However, exploring the relationship between the industrial park (IP) and the relevant authorities, conducted through in-depth interviews, has revealed an absence of pronounced accountability linkage between the two entities. The TLIPII infrastructure development company is primarily positioned as a provider of infrastructure services and experiences discernibly limited coordination mechanisms in place vis-à-vis functional agencies such as the Department of Industry and Trade, the Department of Natural Resources and Environment, the Department of Labor, Invalids, and Social Affairs, the Department of Natural Resources and Environment Environmental Police, Fire Prevention and Fighting Police, the Department of Food Safety and Hygiene, and others engaged in inspection activities. This shortfall engenders inconveniences in the operational landscape for enterprises operating within the IP and impedes EIP development.

3.2. Economic Perspective

Based on the data provided by the TLIPII infrastructure development company, it is discernible that TLIPII has attained its capacity threshold. The aggregate registered investment capital stemming from enterprises within TLIPII has culminated at an impressive $3 billion, constituting approximately 50% of the overall registered foreign direct investment (FDI) capital in the province of Hung Yen. This substantial investment infusion has been orchestrated by a consortium of 73 investors, featuring prominent global entities such as Kyocera, Panasonic, Hoya, Toyota, Nestle, Daikin, and TOTO.

Scrutinizing the scale of these enterprises as delineated according to the capital thresholds outlined in Decree 80/2021/ND-CP, it is evident that a substantial segment of the entities within TLIPII can be classified as large-scale corporations, constituting a noteworthy 63% of the collective. Furthermore, these enterprises are inclined toward capital-intensive operations. Demographically, foreign direct investment firms dominate the landscape, commanding an overwhelming majority of over 96%. Among these, Japanese, Swiss, and Korean entities collectively account for 97%, leaving the residual 4% as joint ventures. This demographic composition augments TLIPIIs prospects for transitioning into the EIP model, given the superior capacity of foreign direct investment enterprises to assimilate advanced technologies compared to their domestic counterparts.

At TLIPII, diverse businesses operate within its premises, theoretically facilitating opportunities for industrial symbiosis. However, a deeper analysis reveals certain limitations to the extent of such collaboration [11]. Despite the presence of various sectors, which theoretically augment opportunities for ecologically collaborative endeavors, the existence of a concentrated industrial configuration that genuinely facilitates resource sharing remains limited.

Figure 4 illustrates the industry structure of TLIPII, measured by the number of projects, showcasing the distribution of various industries within the park. While there are commendable levels of industrial concentration, particularly in sectors like mechanical engineering, substantial resource sharing, including waste recycling, remains constrained due to industries with heightened toxicity or low recycling proclivity.

Furthermore, compatibility in input and output among enterprises within the park is modest, primarily due to the autonomous operational mode adopted by most firms, which operate independently of a comprehensive supply chain structure within the park [34,36]. This absence of an integrated supply chain compels enterprises to seek symbiotic opportunities beyond the park’s confines. Therefore, while TLIPII demonstrates the potential for industrial symbiosis, it faces challenges in achieving a tightly-knit network structure, a crucial aspect of the eco-industrial park model.

“Mutual product utilization is already evident within the industrial park. For example, several enterprises specialize in producing industrial gases, which are subsequently supplied to businesses with substantial demand. Japanese businesses tend to favor Japanese suppliers when sourcing goods and services. An illustrative example is the presence of a Japanese company within the park that offers packaging and logistics services. However, it’s worth noting that the availability of enterprises capable of providing such services within the park is currently limited.”

(The interview with the TLIPII Infrastructure Company, April 2022)

Consequently, the durability of these symbiotic relationships is noticeably curtailed, thereby impeding a seamless transition towards realizing a holistic EIP model for the industrial park, as stated in the insights conveyed by the Thang Long II Industrial Park Infrastructure Company in a pertinent interview.

The primary potential for industrial symbiosis within the industrial park lies in its substantial mechanical enterprise segment, which accounts for over 41% of the total composition (Survey conducted at TLIPII, April 2022). In transitioning to the EIP model, TLIPII can efficiently reuse treated wastewater from the centralized wastewater treatment plant (WWTP) to serve this cluster of enterprises, following best practices in eco-industrial park development [8].

In conclusion, while TLIPII exhibits potential for forming an eco-industrial park, there are significant challenges to achieving a robust industrial symbiosis network. The industrial structure shows promise, but a more integrated supply chain and enhanced resource sharing are essential for a successful transition to the EIP model.

3.3. Environmental Perspective

According to the Environmental impact assessment report of Thang Long II Industrial Park Company conducted in 2023, TLIPII has shown remarkable performance in environmental aspects. Most of TLIPIIs environmental indicators have not exceeded allowable thresholds. This achievement can be attributed to the park’s investment attraction policy, which selectively attracts investors committed to using clean technologies and complying with environmental regulations.

A significant majority of firms within TLIPII, over 83%, have connected their wastewater systems to the centralized wastewater treatment plant (WWTP), and more than 87% of them have engaged licensed wastewater treatment companies. Notably, firms that do not connect to WWTP or use licensed waste treatment companies mainly engage in non-emission industries. They have implemented wastewater treatment systems that meet standards for direct discharge into the environment or wastewater recycling.

The survey results (Figure 5) further demonstrate that most enterprises in TLIPII direct their products to foreign markets or engage in combined domestic and foreign market sales. Additionally, a substantial proportion of enterprises in TLIPII actively participate in the global supply chain (Figure 6). These export-oriented and Global Value Chains (GVCs) engagements are advantageous for TLIPII as they necessitate compliance with international requirements related to employment, social responsibility, and environmental protection [60].

As evidenced by Figure 7, nearly 100% of firms in TLIPII apply for international certificates such as ISO 14001:2015 (Environmental Management System) [61], OHSAS 18001:2007 (Occupational Health and Safety Management System) [62], and ISO 45001:2018 (Safety-Health-Occupation Management System) [63]. These certifications enhance the competitiveness of TLIPIIs products in the global market (Figure 7).

Regarding resource optimization and energy conservation, the survey highlights a prevailing trend among businesses in TLIPII to adopt strategies to enhance energy efficiency and environmental preservation. This proactive stance aligns with international certification frameworks as enterprises seek to integrate these strategies for cost savings and operational efficacy. Among the spectrum of viable strategies, enhancing machinery performance emerges as the most widely embraced approach, with 48% of enterprises confirming its implementation. Furthermore, certain enterprises are actively pursuing initiatives centered around wastewater reuse (9%), efficient wastewater management (15%), and harnessing renewable energy sources (4%) (Box 1).

Box 1. Green Initiatives in TLIPII.

TLIPII constantly implements green projects. One such initiative is deploying solar panels over an expanse of 13,300 square meters, with a peak capacity of 1 MW and an anticipated energy yield of 4 million kWh. Spearheaded by the Thang Long II Industrial Park Infrastructure Company, this endeavor aims to significantly curb power consumption and mitigate electricity shortages during peak demand. The generated solar energy will be directly supplied to enterprises within the industrial park that exhibit substantial electricity requirements.

As part of its progressive trajectory, this initiative is slated for future expansion, encompassing the roof spaces of the permanent tenant enterprises. This expansion aims to incentivize these businesses to adopt this sustainable energy alternative. Concurrently, the Thang Long II Industrial Park Infrastructure Company is actively engaged in research and investment endeavors geared towards a system that harnesses a segment of wastewater—comprising rainwater and treated wastewater—for recycling.

Source: The interview with the TLIPII Infrastructure Company, April 2022.

In conclusion, TLIPII enjoys a significant environmental advantage due to its high environmental quality, strict control of environmental factors by the industrial park developer, and a high level of environmental awareness among firms operating within the park. However, it is important to note that TLIPII also faces environmental limitations. The primary source of water for production activities is mainly drilled water from underground wells, and industrial symbiosis is not yet widespread, posing challenges for a complete transition to the EIP model.

3.4. Social Perspective

From a social perspective, TLIPII has substantially contributed by creating job opportunities for approximately 27,900 people. According to survey results conducted at TLIPII, a significant proportion of firms, 39%, reported that the average salary of their employees falls within the range of 5 to 7 million VND per month, while 59% indicated that this figure exceeds 7 million VND per month. Notably, these wage levels exceed the average income per capita in Hung Yen province in 2020 (4 million VND per month) and the national average (4.3 million VND per month).

Job creation stands out as the most significant social contribution of TLIPII to the local community. The influx of local workers has led to the development of the surrounding area, as these workers require various services for their daily needs. Moreover, businesses within TLIPII actively participate in supporting the local community. This includes assistance to single-parent families, contributions to this study promotion fund, and the organization of cultural exchanges and sports festivals. The TLIPII infrastructure company has also established a Community Responsibility Committee (SRC) to implement local development support programs, such as awarding scholarships and providing support during epidemics. These initiatives have positively contributed to creating favorable living conditions for workers from other provinces.

Table 1. The percentage of enterprises in TLIPII confirmed their contribution to local development.

Criteria	Percentage of Enterprises
Direct job creation	79.6%
Indirect job creation	14.8%
Donating to road construction	11.1%
Donating to school construction	1.9%
Supporting needy families	7.4%
Contributing to study promotion fund	22.2%
Sport and cultural exchange	11.1%
Joining the Social Responsibility Committee	11.1%

Source: Survey conducted at TLIPII (April 2022).

provides an overview of the percentage of enterprises in TLIPII that confirmed their contributions to local development, showcasing the extent of their involvement in various social initiatives. These efforts reflect TLIPIIs commitment to sustainable development and embody the principles of Japanese corporate culture.

Regarding the quality of workers’ lives, most of the social infrastructure within TLIPII meets the basic needs of the workforce. However, one notable exception is access to social housing, which remains limited. This situation is not unique to TLIPII but is a common issue in many industrial parks in Vietnam. Historically, the daily lives of workers have not been a primary concern for firms and industrial park infrastructure development companies.

Furthermore, firms within TLIPII have encountered local labor shortages, leading them to seek labor sources from other provinces. This scarcity of local labor is due to limited supply and competition among firms. While this phenomenon has promoted regional economic development by providing services for the daily needs of the workforce, it has also resulted in an imbalance in social infrastructure between localities and a migrant labor force. This imbalance can affect investment efficiency and sustainable development, potentially leading to social issues and insecurity.

Table 2. The percentage of enterprises in TLIPII confirmed their employees have access to social infrastructure.

Criteria	Percentage of Enterprises
Social housing	11.1%
Boarding house	57.4%
Canteen	50.0%
Kindergarten	42.6%
School	42.6%
Playground	31.5%
Sport area	27.8%
Cultural centre	33.3%
Medical station	55.6%

Source: Survey conducted at TLIPII (April 2022).

illustrates the percentage of enterprises in TLIPII confirming their employees’ access to various social infrastructures, shedding light on the availability of these facilities within the industrial park.

Overall, TLIPIIs firms have made significant social contributions, which can be advantageous when transitioning to the EIP model. However, there is still room for improvement in employees’ living conditions, particularly regarding social infrastructure. Unfortunately, investment in social infrastructure remains unattractive to many foreign direct investment (FDI) enterprises in Vietnam, posing a challenge to further enhancing workers’ quality of life.

3.5. The Perspective of Policies and Regulations

Regulatory and policy factors can pose significant barriers to implementing industrial symbiosis within an EIP. The legal framework often imposes restrictions or prohibitions on businesses regarding exchanging waste, wastewater, and hazardous materials [4]. Regulatory agencies may discourage businesses from sharing shared infrastructure due to management, inspection, and testing complexities, which can affect operational transparency [4,34,35].

In-depth interviews conducted with TLIPII Infrastructure Company and the Management Board of Industrial Parks in Hung Yen Province have highlighted that regulatory issues related to industrial parks pose significant barriers to the transition to the eco-industrial park model for several reasons:

Firstly, there is a deficiency in legal provisions specifically related to industrial symbiosis, resulting in challenges for businesses to comply with environmental regulations that inhibit the implementation of industrial symbiosis. An example is Circular No. 36/2015/TT-BTNMT on hazardous waste management [66], which has hindered industrial symbiosis by obligating businesses to reuse waste solely within their premises [34,35].

Secondly, the EIP model is relatively new in Vietnam. As a result, no specific circulars or guidelines provide clear instructions on the division of management and operational mechanisms for EIPs. This lack of clarity regarding responsibilities for particular tasks, such as social housing construction within EIPs, creates uncertainty [4,34,35].

Thirdly, central and local governments have not yet established concrete mechanisms and preferential policies tailored to the eco-industrial park model. Consequently, firms that invest substantial time and resources in building EIP models receive the same general investment incentives as other businesses. This lack of specific incentives can reduce the motivation for firms to transition to the EIP model, especially considering the challenges involved in such a transformation [4,34,35].

Fourth, a survey conducted among enterprises in TLIPII revealed that 29 out of 54 firms surveyed had no awareness of the EIP model due to a lack of access to information (28 out of 29 firms) and general indifference (1 out of 29). The limited understanding among TLIPIIs firms serves as a significant barrier to transitioning to the EIP model. International experiences have shown that a successful transition to an eco-industrial park model necessitates that firms within the industrial park have comprehensive knowledge of its importance and fundamental principles.

In summary, regulatory and policy factors can challenge the implementation of industrial symbiosis and the transition to an EIP model. These challenges include the absence of specific legal provisions, the lack of guidance, limited government support, and the need for increased awareness among firms within industrial parks regarding the EIP model’s significance. Addressing these regulatory and policy issues will be crucial for facilitating the successful establishment of EIPs in the future.

3.6. Assessing the Ability to Convert to an Eco-Industrial Park Model of TLIPII

TLIPII stands as a noteworthy industrial park model in Hung Yen, known for its cleanliness and adherence to environmental regulations. This analysis examines its potential transition to an EIP model, comparing it to other industrial parks. While TLIPIIs phases I and II are fully occupied, limiting opportunities for industrial symbiosis, there is room for focusing on environmental compliance and resource efficiency. The possibility of transitioning to an EIP model in phase III of infrastructure construction is explored, emphasizing information sharing and database formation for targeted investment attraction based on EIP classifications.

Comparing the conditions for successful EIP transformation outlined in Section 2 with TLIPIIs current status, the probability of success appears moderate. TLIPII meets 4 of 12 essential and 3 of 6 core criteria (

Table 3. The ability to meet the conditions to convert to an eco-industrial park model of Thang Long Industrial Park II.

No.	Criteria	TLIPII
1	Strategy and vision of the industrial park developer
2	Industrial zone planning
3	Ability to enforce and monitor compliance with environmental and social regulations
4	The availability of operating information for firms
5	Industry structure inside an industrial park facilitates industrial symbiosis activities
6	Firms inside an industrial park participate in the industrial recycling system and the supply chain
7	Ecological potentials and technical possibilities inside an industrial park
8	The ability of firms inside an IP to implement green-clean production solutions
9	IP infrastructure investment and development companies strictly monitor, archive, and enforce ecological compliance issues
10	Job creation, higher-than-average wages, social responsibility
11	The consciousness of firms inside the IP about their responsibility to the environment and society
12	The willingness of stakeholders

Source: Authors’ compilation. Note: The circle’s fill represents the implementation rate of TLIPII for each criterion.

). While it partially fulfills 3 out of 12 criteria, it achieves modest performance in another 3 out of 12. Therefore, TLIPII might consider pursuing either the clean industrial park model or a partial EIP transformation in phase III.

Based on the analysis of the current situation of TLIPII mentioned above, the authors give the strengths and weaknesses of this IP when converting to an eco-industrial park model as follows (

Table 4. The SWOT analysis of the application of the EIP model in TLIPII.

Strengths	Weaknesses
Infrastructure and occupancy: TLIPII boasts well-established infrastructure and is fully occupied, indicating strong interest and a solid industrial base. Investor diversity: The park has attracted diverse investors, including major global corporations, which can contribute to various expertise and technologies. Environmental compliance: Many firms in TLIPII already adhere to environmental regulations and have wastewater treatment systems, making them more amenable to EIP practices. Labor force: TLIPII has created many jobs, ensuring a readily available labor force for potential EIP initiatives. Social engagement: The park has a positive social impact, engaging in various community support programs and initiatives.	Limited space: TLIPII is already fully occupied, limiting the space available for new eco-industrial practices and potentially hindering the creation of industrial symbiotic relationships. Industrial diversity: The concentration of specific industries with limited recycling potential can restrict resource sharing and waste exchange opportunities. Supply chain autonomy: Firms within TLIPII often operate independently within their supply chains, reducing compatibility and hindering industrial symbiosis. Lack of EIP awareness: Many firms in TLIPII may have limited awareness and understanding of the EIP model, potentially making it challenging to transition.
Opportunities	Threats
Phase III development: Consider implementing EIP practices during the phase III development of TLIPII, allowing for better planning and integration. Industrial diversity: Encourage a more diversified industrial base that lends itself to resource sharing and industrial symbiosis. Environmental track record: Leverage TLIPIIs good environmental compliance track record to attract eco-conscious investors. Global supply chains: Tap into the global supply chain integration trend, making TLIPII more attractive to firms seeking sustainable practices. Policy support: Advocate for specific policies and incentives at both local and national levels to promote EIP adoption.	Regulatory hurdles: Overcoming legal barriers, such as waste and wastewater exchange restrictions, can be challenging and time-consuming. Infrastructure retrofitting: Adapting existing infrastructure to support EIP practices may require significant investments and modifications. Limited awareness: Increasing awareness and understanding of the EIP model among firms and stakeholders within TLIPII may be an uphill task. Supply chain integration: Encouraging firms to integrate into supply chains within the park can be challenging, especially for those accustomed to autonomy. Space constraints: Finding space for new EIP initiatives within a fully occupied industrial park can be a significant constraint.

Source: Author’s compilation.

):

The current assessment of TLIPII indicates the potential for a partial transition to the EIP model in phases I and II. This is due to the park’s near full occupancy, limited industrial symbiosis, and challenges associated with recycling highly toxic industrial waste during these phases. However, in phase III, TLIPII exhibits significant potential for full-scale EIP implementation, provided the industrial park developer embraces the strategies and vision required for EIP adoption.

Additionally, the survey process has highlighted institutional barriers as a significant obstacle to EIP implementation. Despite formally adopting the eco-industrial park concept, the government has yet to issue incentive policies, specific implementation guidance circulars, and environmental regulations. This absence of regulatory support hinders the formation of industrial symbiosis among firms.

Therefore, the successful development of the eco-industrial park model necessitates a dual approach that combines both top-down and bottom-up strategies. Engaging all stakeholders, including businesses, workers, scientists, the local community, and local and central governing bodies, is imperative for facilitating the transformation process.

4. Policy Recommendations and Conclusions

The paper has diligently addressed its research objectives by thoroughly evaluating TLIPIIs readiness for transitioning to the EIP model and its potential to establish a new EIP. The introduction of five ecological indicators, deeply rooted in various theoretical frameworks, has laid a robust foundation for assessing the EIP model’s feasibility.

TLIPII stands out as an exemplar of environmental responsibility within the industrial landscape, consistently showcasing a solid commitment to Vietnamese environmental regulations and policies. This commendable dedication places TLIPII among the elite group of industrial parks in Vietnam with substantial potential for successful EIP transformation. Nevertheless, it is imperative to acknowledge that TLIPIIs proactive environmental stance and favorable positioning also highlight the importance of addressing specific challenges and obstacles unique to industrial parks with such a remarkable compliance record. Effectively tackling these distinctive hurdles is essential to clearing the path for broader adoption of the EIP model nationwide, ensuring a smoother transition process for parks akin to TLIPII, and fortifying the overall sustainability of Vietnam’s industrial landscape.

Therefore, the analysis of TLIPII yields several noteworthy takeaways, and the lessons derived from TLIPII underscore the critical importance of stakeholder engagement, the development of robust policy frameworks, and the comprehensive involvement of local-level actors.

One pivotal recommendation gleaned from the case of TLIPII pertains to the necessity of establishing a comprehensive EIP management framework at the highest political level. The Ministry of Planning and Investment is the central agency for general IP management. However, businesses operating within the IPs are concurrently subject to oversight from various other agencies, such as the Ministry of Natural Resources and Environment, the Ministry of Construction, the Ministry of Public Security, and the Ministry of Finance. To streamline the transition process and reduce policy-driven barriers, these agencies must align in terms of objectives, determination, and direction. A more effective mechanism, led by a ministry dedicated to EIP implementation, particularly the Ministry of Planning and Investment, is essential for ensuring a cohesive approach to EIP management, thus enhancing decision-making and mitigating bureaucratic hurdles. In essence, effective management is critical for overall IP enhancement.

Furthermore, the absence of specific guidelines outlining stakeholder responsibilities presents a significant hurdle for IPs aiming to embrace the EIP model proactively. The government must issue precise regulations and legal documents delineating the roles and responsibilities of stakeholders involved in EIP operations, including the management boards of industrial parks, infrastructure companies, enterprises, and other relevant agencies. The current decentralized management structure appears ineffective, and a shift toward prioritizing select vital stakeholders, such as the management boards of IPs and infrastructure companies, would significantly enhance the EIP transition process.

Another vital implication derived from the TLIPII case study is that Vietnam’s EIP development efforts lack the comprehensive involvement of all relevant local-level actors, including authorities, infrastructure companies, businesses, communities, experts, and non-governmental organizations. The only initiative supporting EIP development in the country, funded by UNIDO, selected only four IPs out of over four hundred as pilot projects. Consequently, most IPs receive no support beyond general incentives to attract investment. Survey results emphasize the critical need for a specific mechanism that encourages enterprises and infrastructure companies to actively participate in building and transitioning to an EIP model. This mechanism should offer incentives that surpass those available for conventional investment, making participation enticing for businesses. Additionally, a “carrot-and-stick” policy approach is recommended. Enterprises with expired projects or those operating in areas with high toxicity or labor-intensive sectors should be mandated to implement waste and wastewater recycling measures or seek opportunities for industrial symbiosis with other IP enterprises to maintain their business operations.

In environmental regulations, the government must fundamentally shift its approach. As illustrated in the case of TLIPII, existing environmental regulations pose obstacles to industrial symbiosis within IPs, discouraging firms from investing in IP social infrastructure. To facilitate the conversion of existing IPs into eco-industrial park models, the government should adopt a more flexible stance on industrial waste treatment, promote industrial symbiosis, and introduce preferential policies or mandatory requirements for social infrastructure construction when establishing industrial zones. While a relaxation of regulations could heighten environmental risks due to limited control over symbiotic activities, stringent regulations risk wasting valuable resources such as industrial waste and reusable wastewater. Therefore, the government should devise a mechanism for provincial authorities to closely monitor enterprise industrial symbiosis activities while maintaining the legal provisions necessary to facilitate symbiotic activities. This would involve local governments taking on a more direct coordinating role, thereby reducing reliance on a network of inspections and examinations across several ministries.

The findings and insights from the TLIPII case study hold significant value for shaping actionable policy recommendations for Vietnam and other developing countries aspiring to establish EIPs. First, TLIPII serves as a replicable model for other industrial parks. Policymakers can use it to transform existing industrial zones into EIPs. They should encourage parks to gradually adopt eco-friendly practices and align their development with resource optimization and sustainability principles. Then, other practical implications suggest that the government should:

-

Establish a dedicated ministry or agency responsible for EIP management and development. This central authority should coordinate efforts, streamline regulations, and provide consistent guidance to ensure EIPs align with national sustainability goals.

-

Develop and communicate clear roles and responsibilities for all stakeholders, including government bodies, industrial park operators, businesses, and local communities. This clarity can enhance cooperation and facilitate the smooth implementation of EIP initiatives.

-

Encourage flexibility in environmental regulations, particularly for industrial waste treatment and symbiotic activities. This flexibility should balance environmental protection with economic growth, fostering a supportive environment for EIP adoption.

-

Introduce a mix of incentives and mandates to motivate businesses within industrial parks to adopt eco-friendly practices. Incentives can include tax benefits for sustainable investments, while mandates ensure compliance with essential environmental standards.

-

Promote knowledge sharing and capacity building among industrial park stakeholders. This can involve training programs, workshops, and information dissemination to equip them with the necessary skills and awareness to implement sustainable practices effectively.

-

Establish robust monitoring and enforcement mechanisms to ensure compliance with environmental regulations and EIP standards [4,34]. Local governments should play an active role in overseeing industrial symbiosis activities and environmental performance.

-

Seek international collaboration and support from organizations like UNIDO. International partnerships can provide valuable resources, expertise, and best practices for EIP development, enhancing the success of these initiatives.

-

Develop a comprehensive, long-term vision for EIP development that aligns with the country’s sustainability and circular economy objectives. Policymakers should consistently adapt policies and initiatives to meet evolving environmental and economic challenges.

In conclusion, TLIPII offers profound implications for developing countries seeking to enhance their industrial development strategies. These nations can expedite their transition toward sustainable and resource-efficient industrial models by prioritizing environmental compliance, capitalizing on existing infrastructure, fostering stakeholder engagement, and crafting comprehensive policy frameworks. TLIPIIs experience furnishes a roadmap for successful industrial transformation, empowering developing countries to glean valuable insights and tailor their approaches accordingly.