Mr. Tran Thien Long: "Green and Digital - Two Solutions in the Equation for Sustainable Development in Vietnam’s Industrial Parks"

1. At this juncture, how does Thien Long assess the role of eco-industrial parks and smart factories in driving sustainable and green development in Vietnam, especially amid digital and green transformation?

Mr. Tran Thien Long: Eco-industrial parks and smart factories are essential in shaping Vietnam’s sustainable development future. Eco-industrial parks not only minimize environmental impact but also create sustainable production ecosystems, where businesses share resources, reduce waste, and optimize energy use. Smart factories, leveraging Industry 4.0 technologies from artificial intelligence to the Internet of Things (IoT) - are becoming central to enhancing production efficiency, lowering operational costs, and conserving resources.

Digital transformation and green transition are the twin strategic pillars for Vietnamese enterprises to meet sustainability requirements and enhance competitiveness on an international scale.

2. As Executive Vice President of VIREA, what does Long identify as the biggest challenges faced by manufacturers in IPs when transitioning to green production models?

Mr. Tran Thien Long: The greatest challenge for businesses transitioning to green production is the upfront investment cost and a shift in mindset. Investing in green technologies, such as renewable energy systems or advanced waste management, requires substantial capital, while many companies remain hesitant due to concerns about payback periods. Additionally, many businesses fail to see the long-term benefits of this transition, leading to a lack of motivation to change.

Another challenge lies in the regulatory framework and government support, which need to foster a favorable environment for businesses to adopt these models.

3. What barriers exist in developing renewable energy, particularly rooftop solar power, within factories and IPs? Could Long share his experience in promoting the adoption of this technology in IPs?

Mr. Tran Thien Long: The development of rooftop solar power in IPs faces obstacles including legal procedures, initial costs, and technical infrastructure. Some businesses are concerned about the stability of energy supply from renewable sources and the complexity of system installation and maintenance.

To promote adoption, IPs need to collaborate with energy service providers and the government to simplify legal procedures, offer financial support packages, and advance public-private partnership (PPP) models to ease initial financial burdens. Experiences from developed nations show that with government support and business commitment, renewable energy deployment can yield significant economic and environmental benefits.

4. What does Thien Long think about creating green financing models to support businesses, and what conditions are necessary to encourage green investments in IPs?

Mr. Tran Thien Long: Green financing models are crucial to enabling businesses to access capital for sustainable production solutions. To foster green investments, it is essential to build a transparent and flexible financial mechanism while offering tax incentives and interest rate subsidies for green projects. Necessary conditions include establishing a system to evaluate projects based on sustainability criteria and fostering close cooperation between banks, investment funds, and government agencies. This ensures that funds are used effectively and deliver maximum impact.

5. With your experience in the field of innovative startups, what do you see as the best way to support startups in industrial parks (IPs) so they can innovate in their production and business activities?

Mr. Tran Thien Long: Startups in IPs require comprehensive support, from infrastructure to legal environments. First, it is crucial to build a startup ecosystem within the IPs where young enterprises can access support services such as financing, technical expertise, and human resources. Encouraging collaboration between established corporations and startups is another key factor in fostering innovation.

Additionally, IPs should emphasize the role of business incubators and research and development (R&D) centers to help startups test and develop new ideas. These measures would create an environment conducive to innovation and sustainable growth.

6. The establishment of the Green Development and Investment Cooperation Center at this time is necessary and meaningful. Could you share the upcoming operational directions of the Center?

Mr. Tran Thien Long: The Center was established with the mission of creating value and connecting the green development ecosystem to support businesses, agencies, and organizations in achieving more sustainable development in line with international integration trends. The Center's specific activities include providing consultation and training to enhance the effective implementation of ESG (Environmental, Social, and Governance) practices for businesses, particularly manufacturing and export-oriented enterprises; building and assembling a team of skilled and experienced experts to offer in-depth consultancy for businesses; partnering with international organizations to certify green transition efforts of businesses; promoting and supporting green financing to motivate sustainable business development; and organizing green investment promotion in key sectors such as industry, agriculture, transportation, infrastructure, and the environment, with special attention to investments in sustainable forest development projects.

7. As the former Deputy Director of the Worker Support Fund in Ho Chi Minh City, what is your perspective on creating welfare programs for workers in partnership with businesses and brands? How does this affect workforce quality in IPs?

Mr. Tran Thien Long: Worker welfare is a decisive factor in maintaining and developing a stable and sustainable labor force in IPs. Well-executed welfare programs improve worker morale and productivity while reducing turnover rates.

Partnerships between businesses and brands in worker welfare should go beyond providing insurance packages or subsidies. They should include activities such as skill development training, career advancement opportunities, and healthcare services. This sustainable approach helps retain high-quality labor and creates a more attractive work environment in IPs.

8. Regarding the restructuring of IPs towards high-tech and eco-industrial models, what progress has Vietnam made, and what challenges remain in this process?

Mr. Tran Thien Long: Vietnam has made notable progress in transitioning IPs toward high-tech and eco-industrial models, particularly in major parks like Hiep Phuoc IP and Long Hau IP. However, the biggest challenge lies in synchronizing technology and planning. Upgrading infrastructure and integrating new technologies require significant investment and close cooperation among stakeholders, including the government, businesses, and international investors.

Moreover, developing eco-industrial parks faces obstacles related to awareness and commitment from businesses in adopting sustainable solutions.

9. Promoting investment and international exchange in eco-industrial parks is a prominent trend. What does Long think Vietnam needs to prepare to fully capitalize on this opportunity and enhance its global competitiveness?

Mr. Tran Thien Long: To maximize opportunities in investment promotion and international exchange, Vietnam must continue improving its legal framework and administrative procedures, ensuring transparency and simplifying processes for investors. Enhancing the quality of the workforce, particularly in technology and environmental management, is critical for boosting competitiveness.

Vietnam should also develop public-private partnership (PPP) models to create a favorable and stable investment environment for international enterprises. Moreover, advancing bilateral cooperation with countries experienced in eco-industrial park development - such as Japan, South Korea, and European nations - will provide valuable insights and opportunities to learn from successful models.

10. With your experience in various organizations, how do you view the importance of fostering international relations to learn from and apply successful IP models from developed countries?

Mr. Tran Thien Long: Fostering international relations in IP development is crucial, especially in the context of globalization and the accelerating green transition. Developed countries have extensive experience in building and operating efficient eco-industrial parks. Learning from them not only shortens Vietnam’s development timeline but also helps avoid unnecessary mistakes.

For instance, eco-industrial park models in Japan and Nordic countries have proven that resource recycling and energy-saving practices can coexist with economic growth. International collaboration also enables Vietnam to access preferential funding and advanced technologies, improving investment efficiency and sustainability in domestic IPs.

11. Digital transformation is considered vital for manufacturing enterprises in IPs. What solutions or digital transformation models in Vietnam does Long believe to be the most successful?

Mr. Tran Thien Long: Digital transformation is an irreversible trend and a decisive factor for the survival of enterprises in IPs. Successful digital transformation models in Vietnam include implementing advanced manufacturing execution systems (MES) in factories and using AI and IoT to optimize production processes and supply chain management.

For example, major IPs like Hiep Phuoc and Nam Tan Uyen have seen enterprises adopting digital technologies to monitor labor productivity, minimize waste, and manage resources efficiently. Companies are also digitizing remote management processes and integrating data from different departments to make quicker and more precise decisions.

To ensure successful digital transformation, it is essential to synchronize technical infrastructure, raise awareness among businesses about its importance, and train a high-tech workforce.

12. What development trends does Long predict will shape the future of IPs in Vietnam, especially given the increasing pressure for sustainable development and environmental protection?

Mr. Tran Thien Long: The future of IPs in Vietnam will be shaped by three main trends: high technology, eco-friendliness, and automation. Industry 4.0 technologies will continue to play a key role, with businesses adopting more automation, AI, and IoT to optimize operations. Eco-industrial parks will become an inevitable trend as businesses and investors increasingly prioritize sustainability and minimizing environmental impact.

Vietnam will also face growing pressure from international standards on environmental protection and carbon emissions. This requires IPs to transition to cleaner production models, adopt renewable energy, and implement circular production solutions.

Finally, international collaboration will continue to expand as Vietnam seeks strategic partners to learn from and adopt advanced IP development models from other countries.

Le Van Hy executes