RECYCLING INDUSTRIAL PARKS AND CLUSTERS: FORMATION AND DEVELOPMENT IN VIETNAM

The issuance of a unique identifier code (HS code) for environmental goods under the Harmonized Tariff Schedule, combined with incentives, preferential policies, and investment support, is a key step in forming and developing recycling industrial parks and clusters. This is the foundation that will lead and promote the growth of Vietnam’s environmental industry.

According to the Program for the Development of Vietnam’s Environmental Industry for the 2025–2030 period, signed and issued by Deputy Prime Minister Tran Hong Ha under Decision No. 1894/QD-TTg on September 4, 2025, the goal by 2030 is to complete the legal framework, promote the establishment of environmental industrial centers and clusters, and prepare a government decree on the development of the environmental industry.

FORMING INTERNATIONAL-STANDARD ENVIRONMENTAL SERVICE COMPANIES

According to the program’s objectives, the industry aims to achieve the following:

Wastewater treatment: Meet 70–80% of domestic demand and move toward exporting.
Emissions treatment: Meet 60–70% of domestic demand.
Solid and hazardous waste treatment: Achieve 50–60% of collection, transportation, and sorting capacity, and 60–70% of recycling capacity.
Environmental monitoring equipment: Supply 20% of domestic demand.
Waste-to-energy technology: Develop this sector to contribute to the restructuring of the green economy.

Notably, the program emphasizes developing environmental service companies that meet international standards. These companies should be capable of stably operating waste treatment facilities and plants, performing equipment maintenance and repair, and forming a diverse ecosystem with the participation of various economic sectors.

KEY POLICY SOLUTIONS

Completing the Legal System and Policy Mechanisms

Develop and issue technical standards and regulations for environmental industrial goods and services that align with international norms.
Review and supplement preferential tax policies to encourage technology transfer, production, and commercialization of environmental industrial products.
Add environmental industry statistical indicators to the national statistical system.

Prioritized Technology and Products

Waste-to-energy, urban and industrial wastewater treatment, recycling of waste from renewable energy sources (solar panels, wind turbine blades), bioplastics, green materials, and smart monitoring systems.
Study and add waste treatment equipment to the List of Key Mechanical Products.

Market and Enterprise Development

The government will place orders and use designated bidding to support domestic companies.
Promote trade, eco-labeling, and develop a sustainable market for environmental industrial goods.
Encourage public-private partnerships (PPPs) in the research, production, and commercialization of new equipment and products.

Regarding the development of the environmental industrial goods market, the program emphasizes building and expanding market demand for environmental industrial equipment, technology, and products through government orders and designated bidding for domestic companies. It also aims to enhance the supply capacity of these companies, support small and medium-sized enterprises (SMEs), and establish a network of environmental industry business incubators in industrial parks, high-tech zones, and key training institutions.

The program also includes priority activities such as eco-labeling of industry products, promoting sustainable market development for these goods, and regulating quality standards and sustainable development policies. It will also organize trade promotion events to attract investment into the environmental industry.

Furthermore, the program specifies the formation and development of several environmental industrial companies under state-owned corporations and enterprises, such as Petrovietnam, Vinachem, Vinacomin, Vinaincon, and Veam. This leverages existing financial and human resources to meet the industry’s development goals.

Investment Support and International Cooperation

Implement policies that encourage companies to receive technology transfers, buy patents, and hire domestic and foreign experts.
Attract selective FDI linked to technology transfer and the export of environmental industrial products.

The policy also explicitly states the need to research, apply, and pilot advanced technology, and to transfer it to certain companies and research facilities in the environmental industry. It will also issue policies to support companies in receiving technology transfers, buying patent rights and software, and hiring domestic and foreign experts. International cooperation in training, research, and technology transfer is also a key component.

RESEARCHING THE DEVELOPMENT OF A NATIONAL-LEVEL ENVIRONMENTAL INDUSTRIAL CENTER

A major focus is to build national-level Environmental Industrial Centers, which will concentrate capabilities in research, production, technology transfer, innovation, and digital transformation. These centers will be the nucleus for Vietnam to:

Master advanced waste treatment technology. Research, apply, and develop waste treatment technologies, especially for waste from the renewable energy industry, based on the principles of reduction, recovery, reuse, and recycling. This will minimize waste and utilize discarded materials as a source of raw materials for other economic sectors. It will also accelerate the adoption of management systems and productivity improvement tools, especially smart manufacturing and smart service tools.
Promote the application of CAD/CAM, mechatronics, and intelligent control systems in equipment manufacturing. Increase innovation and digital transformation by providing technical support for companies to adopt internationally standardized management systems and management systems that meet the requirements of global production chains.
Manufacture biosensors and biotechnology equipment for the environmental industry. Support companies in the sector to apply sustainable models, including energy-efficient models, sustainable production and consumption models, and circular economy models.
Develop circular economy models, smart production, and sustainable consumption.

IMPORTANT NOTES FOR IMPLEMENTATION

Investment Resources: It is necessary to mobilize state budgets, ODA, private capital, and FDI.
Enterprise Capacity: Companies must meet international standards for operations, environmental safety, and production management.
Digital Transformation and Innovation: These are crucial for competitiveness and avoiding falling behind the region.
Public-Private Partnership (PPP): The state plays a creative role, while companies take the initiative in implementation.
Monitoring and Supervision: Establish a transparent monitoring and reporting system to ensure effective policy implementation.

Based on Vneconomy and Decision No. 1894/QD-TTg dated September 4, 2025