With the advent of Lego World, investment in green industry is accelerating | Economy

Hanoi (VNA) – Lego World Group’s decision to open a factory in Vietnam is a clear demonstration of the potential of the country in general and the national industry in particular. This marks a turning point in the direction of green and sustainable economic development of the country.

With the advent of Lego World, investment in the green industry is accelerating hinh anh 1Memorandum of Understanding signing ceremony for the construction of a new LEGO Group factory in Vietnam. Photo: VGP

The trend towards sustainable development or green industry is clearer than ever. Only in March 2022, the Danish children’s toy manufacturer LEGO officially entered Vietnam with a project to build a factory with a total investment of 1.06 billion US dollars in Binh Duong Province (South). It is the sixth Lego factory in the world and the second in Asia. The group’s agreement was an important step in attracting “clean” investment capital to Vietnam.

Le Hui Dong, director of industrial services at Savills Hanoi, said: “Vietnam is at the threshold of development, with great potential to advance further on the world map. However, the industry of our country should learn from other countries of the region and the world. To avoid repeating the same mistakes, Vietnam should consider the environmental factor as a necessary condition for industrial development.

To achieve lasting results in the industry, Dong said much of the effort will come from government policies and decisions. Currently, all companies listed on the Vietnam Stock Exchange are required to submit an annual environmental, social and governance (ESG) report.

The industry is changing, favoring investment capital in manufacturing due to increasingly clean high technologies. These are high value-added industries such as the manufacturing and assembly of electronic equipment and components.

In addition, the government has introduced policies aimed at encouraging investment and the use of renewable and alternative energy sources such as wind, solar, thermal or hydroelectric power.

Many benefits

With the advent of Lego World, investment in the green industry is accelerating hinh anh 2Industrial park. Photo: CTV/CVN

The Savills expert shared that more and more industrial property developers are focusing on environmental factors. First of all, the green model will help them control and maintain the technical system of the industrial park.

To avoid overloading the system due to congestion, industrial park operators often ask companies to share their production processes and resources. From there, the investor can assess the suitability of this manufacturing industry in his industrial park.

In addition, they also encourage companies to invest in their own processing system before joining the overall system. Overloading will lead to pollution of water sources, especially household sources of neighboring settlements, and stagnation of the production process of the entire territory.

Then a clean and modern industrial park is necessary to attract a quality workforce. Many companies are paying more attention to the simultaneous development of internal infrastructure and improving the work environment in order to retain employees.

Investments in the waste recycling system, as well as greening of the landscape of the industrial park will contribute to improving the quality of life within the project. This is also a factor that convinces foreign experts to come and work in Vietnam. “Projects with environmental standards are in demand by many parties, not only domestic but also foreign investors. This will be a competitive advantage for real estate developers who can meet these conditions,” Dong said.

In Vietnam, many investors own projects with green building certificates such as VSIP or DEEP C. They use rooftop solar systems to supply electricity to part of the industrial park.

In addition to the benefits received, tenants of these industrial zones will face some challenges related to investing in equipment and technology to meet environmental standards. This will increase business costs. Therefore, for foreign companies, the investment decision will be a balance between the profit from the business environment in Vietnam and the cost difference to guarantee the green industry regulations. – CVN/VNA