Over three decades after its first export processing zone was established, Vietnam is now home to hundreds of large-scale industrial parks, employing millions and significantly contributing to national output.

However, this success has come at a cost: many businesses have failed to invest adequately in environmental protection, resulting in mounting pollution and regulatory failures.

When development expands, the environment contracts

For many provinces, industrial parks are symbols of modernization and economic pride. Bac Giang has emerged as a national manufacturing hub, with 12 approved industrial zones - 8 already operational with an occupancy rate nearing 60%.

Yet, this growth has brought massive daily discharges of wastewater and solid waste, severely straining centralized treatment infrastructure.

The speed of industrial expansion is far outpacing investment in environmental treatment systems. While many parks report having wastewater treatment plants, automatic monitoring systems, and Environmental Impact Assessment (EIA) reports, these are often formalities on paper.

Many EIAs were completed during the initial stages of investment and have not been updated, despite companies having expanded operations two to threefold.

In one recent case, Risesun New Material Vietnam Co., Ltd., operating in Hoa Phu Industrial Park, was fined USD 15,300 for building additional factories without updating its approved EIA.

This is not an isolated case but symptomatic of an imbalanced industrial model - where economic gain trumps environmental accountability, and communities shoulder the hidden costs.

In Dong Nai province, Bien Hoa 1 Industrial Park continues to operate despite outdated infrastructure. Monitoring reports show moderate water pollution levels, with frequent organic and microbial contamination.

Air quality is also deteriorating, with particulate matter and lead levels exceeding national standards by 1.01–2.45 times.

Hazardous waste and the outsourcing problem

In Quang Chau Industrial Park (Bac Giang), 2024 saw over 22,000 tons of hazardous waste and 37,000 tons of solid waste generated - the highest in the province.

Yet, most industrial zones lack designated storage or treatment facilities, forcing companies to contract external firms.

This "delegated responsibility" often results in legal compliance on paper while real waste management remains opaque.

Companies, despite reaping billions in profit, often view environmental treatment costs as burdensome and underinvest accordingly.

The lack of clear legal accountability and enforcement means pollution continues unchecked.

Obstacles in transforming to eco-industrial zones

The 2020 Environmental Protection Law raised hopes for eco-industrial models and circular economy incentives. But bureaucratic entanglements and procedural inconsistencies have hindered progress.

One major issue is overlapping authority and unclear delegation under Decree 35/2022/ND-CP, which conflicts with existing administrative laws.

According to Hai Phong Economic Zone Authority, they cannot legally assess or inspect environmental procedures for projects under their jurisdiction due to current laws limiting authority to provincial governments or their departments.

This fragmented governance undermines the one-stop-shop model meant to facilitate investment and green development in industrial parks.

Investors must navigate multiple agencies, prolonging project approvals and eroding confidence.

Legal inconsistencies block environmental compliance

Mr. Vu Van Tuong, Deputy Director of Bac Giang’s Department of Agriculture and Environment, noted challenges with Article 31(3) of the Environmental Protection Law, which requires a separate EIA for every project.

However, many industrial zones are built in phases under master plans approved by the central government. While infrastructure such as wastewater treatment plants is shared, regulations do not currently allow collective EIAs for phased projects.

This legal gap causes project rejections during EIA review, despite their compliance with practical needs. Even when local governments are ready to authorize projects, environmental licenses still fall under central jurisdiction, causing further delays.

The elusive goal of eco-industrial parks

Although the concept of eco-industrial zones is codified in law, there are no binding requirements. Without mandates, local authorities cannot enforce compliance, and businesses are left unclear on standards, scope, or available support.

Crucially, there is no true green credit mechanism tailored for industrial park businesses. No standardized procedures exist for risk assessments, no intermediary institutions provide financial support, and no risk-based environmental scoring exists for loan approvals.

Most small and medium enterprises, which dominate industrial parks, lack collateral or capacity to meet loan application demands.

Even infrastructure investors must turn to commercial loans with high interest rates to fund environmental upgrades such as solar installations or wastewater system improvements.

A lack of symbiotic planning and skilled workforce

Most parks do not follow cluster-based planning or value chain integration. As a result, materials discharged by one business could be reused by another - but there is no infrastructure to connect them.

Waste cycles are not closed, and advanced monitoring and circular management systems are absent.

Environmental staff within industrial park authorities are overstretched - some jurisdictions have just one environmental officer overseeing multiple parks.

At the enterprise level, environmental responsibilities are typically an additional role for admin personnel.

This highlights a systemic issue: environmental protection is not yet a core priority across all levels of industrial management.

Nhan Dan