TOWARD ECO-INDUSTRIAL PARK

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1 DVIZ/2018/EIPs 18/10/2018 Page 1 Eco Industry Park Seminar for Vietnam Ho Chi Minh City 08/11/2018 TOWARD ECO-INDUSTRIAL PARK MSc. Do Quang Hung Haiphong City People s Committee First Deputy Director of Dinh Vu Industrial Zones LOGO

2 DVIZ/2018/EIPs 18/10/2018 Page 2 CONTENTS Hai Phong City overview Legal Basis for establishment of Eco Industrial Parks Dinh Vu IZ and Deep C IPs Orientation for developing Eco Industrial Parks (EIPs) Initiatives in developing Eco Industrial Parks (EIPs) Recommendations

3 DVIZ/2018/EIPs 18/10/2018 Page 3 HAI PHONG MAP

4 DVIZ/2018/EIPs 18/10/2018 Page 4 HAI PHONG PORT CITY Owns the largest gateway port in the North and the second in Vietnam Cargo throughput 78.9 million tons (9 months of 2018); estimated 109 million tons in km distance from Hanoi by road/railways, 150 km by inland waterway. 200 km from Chinese border. Links with all main international ports

5 HAI PHONG PORT CITY GDP rapid growth with average GDP growth rate more than 10%/year Seaports Rapid development and expansion Challenges Climate change and sea level rise Air and water pollution Rapid urbanization Traffic congestion Waste recycling Vulnerable to natural disasters and epidemics Overload infrastructure Source: Green development in Hai Phong, OECD, 2016 DVIZ/2018/EIPs 18/10/2018 Page 5

6 LEGAL BASIS FOR DEVELOPMENT OF ECO-INDUSTRIAL PARK (EIP) DVIZ/2018/EIPs 18/10/2018 Page 6

7 DVIZ/2018/EIPs 18/10/2018 Page 7 Legal basis: Decision 821 Prime Minister s Decision 821/QD-TTg dated 06/07/2018 approving the adjustment and supplement to the master plan on socio-economic development of Hai Phong city up to 2025, vision to 2030 To build and develop Hai Phong city toward a green and smart seaport city with unique architecture and synchronous socioeconomic infrastructure system.

8 DVIZ/2018/EIPs 18/10/2018 Page 8 Legal basis: Decree No 82/2018/ND-CP dated 22/05/2018 on management of EPs and IZs (Article 41) Encouragement policies on development of eco-industrial parks Development of IZ infrastructure to transform into eco-industrial parks Improvement of the management and operation process, innovation and application of cleaner production technology Enterprises collaborate to reduce costs, improve operational efficiency and competitiveness Create favorable conditions for enterprises to perform industrial symbiosis Develop a database system for efficient use of natural resources in the industrial zone

9 DVIZ/2018/EIPs 18/10/2018 Page 9 Criteria for building EIPs Provide full range of basic industrial services in accordance with regulations on electricity, water supply, communication, fire fighting and related services 25% of total land area for green zone, transportation and service infrastructure At least one linkage of industrial symbiosis and 10% of factories planned join Ensure social housing and other social, cultural and sports facilities Monitor the inputs and outputs of energy use Make annual reports on environmental protection Comply with applicable laws and apply appropriate ISO standard production and environmental management system 90% of enterprises are aware of and 20% of enterprises apply solutions on efficient use of resources and cleaner production.

10 DVIZ/2018/EIPs 18/10/2018 Page 10 IZ development model Assoc. Prof. Dr. Nguyen Van Thanh s model for smart city development 2018 Factories scattered in residential areas Industrial points - factories gather in one area, without proper shared infrastructure Industrial parks with synchronous infrastructures and facilities invested by IZ developer Eco Industrial parks - environment friendly, symbiotic Smart Industrial Parks in Industry 4.0 Sources of waste, air, noise, water pollution Waste, waste water is treated by IP companies Pollution is minimum reduced Concentrated pollution, not treated Pollution is controlled, reduces CO2; harmony with residentials

11 DVIZ/2018/EIPs 18/10/2018 Page 11 Benefits of EIPs State o Motivation for regional socio-economic development o Attraction of investment o Reduction of the cost due to remediation of environmental consequences Community o Mitigate the impact of pollution o Create new jobs in the field of industry and services o Opportunity to develop or maintain residential areas in harmony with EIPs IPs-tenants o Use renewable energy, reduce energy consumption, reduce costs, environmentally friendly with high added value o Products preferred by the community o More attractive to investors in EIPs o Prioritize loans and financial support, technical assistance and investment promotion, information on technology markets for industrial symbiosis

12 DINH VU INDUSTRIAL ZONE (DVIZ) AND DEEP C IPs DVIZ/2018/EIPs 18/10/2018 Page 12

13 Dinh Vu Industrial Zone and Deep C IZs DVIZ/2018/EIPs 18/10/2018 Page 13

14 DVIZ/2018/EIPs 18/10/2018 Page 14 ABOUT DEEP C IPs Zone DEEP C I Phase 1 DEEP C I Phase 2 Total area (ha) Leased out area (ha) Percentage of occupied area (%) Potential area for lease (ha) 131,6 131,6 100% - 316,71 276,4 87% 40,28 DEEP C 2A 513,4 17,4 3% 495,99 DEEP C 2B 132,7 16,03 12% 116,66 DEEP C III (Cat Hai) 497-0%

15 DVIZ/2018/EIPs 18/10/2018 Page 15 DVIZ Business information Establishment year: Implemented investment capital for industrial zones million USD Capital attraction 75 projects ~ 2,9 billion USD Expected capital attraction: 2018: 7 projects ~ 100 billion USD 2019: 5 projects ~ 300 billion USD

16 DVIZ/2018/EIPs 18/10/2018 Page 16 Dinh Vu industrial zone 71 projects Number of companies in the IZ labors Creating jobs Number of factories expected to come into operation 1. By end of 2018: 5 projects : 4 projects Products of factories in the IZ 1. Chemical Petrochemical 2. Solar panels 3. Logistics services 4. Mechanical fabrication 5. Feed mill

17 DVIZ/2018/EIPs 18/10/2018 Page 17 IZ Utilities services Power 626 MVA 110kV/22kV 2 sources: National and local Underground cable system Water and wastewater treatment Water supply of 20,000 m 3 per day Supply demineralized water, steam, drinking water on request WWTP with capacity of 6,000 m 3 /day night, able to be upgraded to 24,000 m 3 per day The first factory achieving ISO 9001 & Firefighting water FF water underground pipeline Pressure: 5 7 bars 117 fire hoses along 30km of internal roads Maximum capacity: 480 m 3 /h Drainage Drainage channel system with automatic closing flap gate Capacity: 77,000 m 3

18 Project pictures in Dinh Vu Industrial Zone DVIZ/2018/EIPs 18/10/2018 Page 18

19 DVIZ/2018/EIPs 18/10/2018 Page 19 Tenants in Dinh Vu IZs

20 Orientation for developing Eco Industrial Parks (EIPs) DVIZ/2018/EIPs 18/10/2018 Page 20

21 Target: Building EIPs in harmony with existing village DVIZ/2018/EIPs 18/10/2018 Page 21

22 DVIZ/2018/EIPs 18/10/2018 Page 22 Target: Ecological town

23 DVIZ/2018/EIPs 18/10/2018 Page 23 Target: Smart factory Make effective industrial symbiosis: start with treated waste water to water trees, cooling systems Encourage usage of robots in every production process Produce renewable energy (solar, wind power, waste to energy) supply for tenants

24 Renewable Energy EVN Thermal and Hydro Power Plants 626 MVA Wind energy Target 60MW DVIZ/2018/EIPs 18/10/2018 Page 24 Solar power Target 30MW Waste-toenergy Target 10MV

25 Initiative in developing Eco Industrial Parks (EIPs) DVIZ/2018/EIPs 18/10/2018 Page 25

26 DVIZ/2018/EIPs 18/10/2018 Page 26 Initiative EIPs Appointing Director of Eco-industrial Park development; Establish the EIP development department Outsourcing consultants to design ecological models; Cooperating with Ministry of Planning and Investment (MPI), UNIDO to implement the project "Implementation of eco-industrial zone initiatives toward sustainable industrial development in Vietnam" Share experience, data/research; Connect with other ECOPARK to improve IP standards in Vietnam; Promoting ECOPARK-ECOFIRM brands; Benefit from financial and legal support; Implement the project of Eco-Industrial Zone - Phase II. 2017: People's Committee of Hai Phong City approved in principle for Dinh Vu IZ to develop W2E project in Dinh Vu landfill. Negotiate with potential partners for a joint venture to build a waste-toenergy plant at Dinh Vu landfill. Looking for international cooperation and expertise.

27 Initiative EIPs (cont ) Research and develop renewable energy projects Installation 02 Wind Measurement Masts at Deep C2 and Deep C 3(2017). Pilot solar cells: at the wastewater treatment plant with capacity of 4KWh (2016). Phao quây dầu tràn DVIZ/2018/EIPs 18/10/2018 Page 27

28 DVIZ/2018/EIPs 18/10/2018 Page 28 Initiative EIPs (cont ) With approval from Ministry of Environment of Japan (April 2018), DVIZ cooperates with Kitakyushu City to study on FS W2E project in Dinh Vu landfill. Wind driven desalination

29 Initiative EIPs (cont ) More areas for green zone Plant nursery; Reuse treated waste water to plant nursery; Use compost as organic fertilizer for nursery area. DVIZ/2018/EIPs 18/10/2018 Page 29

30 DVIZ/2018/EIPs 18/10/2018 Page 30 RECOMMENDATIONS FOR EIPs 1. Issue the process for registration and certification of eco-industrial parks and ecological enterprises. 2. Guide the procedures for registration to receive financial and technical incentives. 3. Guide the registration and use of products with ecological labels manufactured by factories in eco-industrial zone. 4. Issue guidelines on EIPs symbiosis and the adjacent ecological residential areas. 5. Provide instruction for registration dossier for certification of ecoindustrial parks (Clause 1, Article 44); 6. Provide instruction for construction standards of eco-industrial parks (Ministry of Construction - Clause 4, Article 50). 7. Guide the criteria for master planning industrial ecology. 8. Guide the conversion of existing industrial zones into EIPs.

31 DVIZ/2018/EIPs 18/10/2018 Page 31 RECOMMENDATIONS FOR EIPs 9. Guide the criteria of 25% green space. 10. Permit to build wind power plant in industrial zone. 11. Issue standards for the use of treated wastewater for cooling the factories and watering plants. 12. Issue standards for the use of industrial waste as inputs for the IZ factories. 13. Issue regulations on the power acquisition for EVN from renewable energy sources. 14. Promulgate regulations on price support for incinerating wastes for waste-to-energy plants. 15. Technical support for experts to help survey, develop, verify, evaluate and issue certificates for EIPs and ecological enterprises. 16. Provide guidelines on reuse of wastes, waste materials and residual energy in EIPs (Ministry of Natural Resources and Environment, Ministry of Science and Technology);

32 DVIZ/2018/EIPs 18/10/2018 Page 32 Such rapid development of industrialization creates the need of a new industrial park model that meets advanced standards for greenhouse gases, waste treatment and green space, encouraging technologies for recycling, reuse of energy and waste. Therefore, the eco-industrial park (EIP) is a right direction towards a productive environment with care, society and sustainable development, linking economic benefits and environmental protection and the harmony with residential areas. LOGO

33 DVIZ/2018/EIPs 18/10/2018 Page 33 Contact: MSc. Do Quang Hung Haiphong City People s Committee First Deputy General Director of Dinh Vu Industrial Zone Doquang.hung@dinhvu.com ubndtphaiphong@gmail.com