Vietnam, one of the fastest growing economies in the world, did something extraordinary at the United Nations annual climate change conference, or COP26, last year: It pledged not to build any new coal projects beyond those already under development as it transitions towards clean energy.
To achieve its ambitious goal, the country is actively implementing several projects to develop renewable energy and promote the transition to clean energy and environment-friendly projects. One of them is the ground-breaking Son My I Industrial Park, a testament to the efforts and determination of the Vietnamese government to fulfil its commitment to fight climate change.
Located some 200km east of Ho Chi Minh City, the 1,070-hectare Son My I Industrial Park will be one of Vietnam’s biggest industrial parks and the first “green” industrial park site near the coast in the central region. It will prioritise high-tech and clean industries as well as feature the use of renewables such as wind, solar, and liquefied natural gas (LNG) to reduce its greenhouse gas emissions.
“Son My I Industrial Park and its seaport will play a strategic role in the region and become the new major economic force in Binh Thuan province as well as in the south-central Vietnam key economic zone,” Mr Le Quang Hieu, vice-chairman of developer IPICO, said at the project’s recent ground-breaking ceremony with the participation of Vietnam’s Prime Minister Pham Minh Chinh.
Equipped to meet the latest carbon emissions standards
IPICO, short for Son My Industrial Park Investment Construction and Trading Infrastructure Co. Ltd, was founded in 2017 to promote regional economic development, improve the lives of local communities and conserve the environment.
It is a pioneer in developing smart and green industrial parks and actively supports the Vietnam Government’s COP26 commitments. It also puts customers, partners and the community firmly in the centre of its development strategy.
No surprise, then, that Son My I Industrial Park, developed by IPICO, will feature world class infrastructure and innovative technology that meet the latest carbon emission standards. A key highlight will be two LNG power plants, Son My 1 and Son My 2, spread over 200 hectares and boasting a total capacity of 4,500 MW.
There will also be a 100-hectare LNG warehouse port and supporting industries built on some 430 hectares of land. Meanwhile over 30 per cent of the park’s total land area will be set aside for technical infrastructure, utility constructions, industrial service zones, as well as educational, training, medical, healthcare and office facilities for park workers.
Located in Binh Thuan province’s Ham Tan district, the industrial park is directly linked to major national transport networks including the National Highway 1A, the National Highway No. 55, and the Phan Thiet-Dau Giay Expressway. It is also easily accessible by airways as well as domestic and international waterways.
These infrastructure and connectivity will enable Son My I Industrial Park to become the centre of economic development for Binh Thuan as well as neighbouring areas. The multi-industry facility will focus on construction material manufacturing; electrical, electronic and information technology equipment; mechanical engineering industry; and consumer goods processing industries.
Targeting large-scale projects with investment capital of up to billions of US dollars, the project is expected to create job opportunities for thousands of workers and improve the quality of life for local communities.
An emerging industrial area in Vietnam
The park has received full support from the Vietnamese government as well as the local authorities, being one of nine industrial parks in Binh Thuan approved by Vietnam’s Prime Minister Pham Minh Chinh. The province is emerging as a potential destination for industrial real estate in light of dwindling land around Ho Chi Minh City. Mr Pham Minh Chinh has instructed relevant departments and central agencies to coordinate and strengthen efforts to support the province in facilitating the development of Son My I Industrial Park.
Although construction is scheduled to be complete by 2025, the park has already attracted leading global investors such as AES Group, one of the world’s top energy companies from the United States; a consortium comprising Électricité De France, Japan’s Sojitz Corporation and Kyushu Electric Power Co. Inc.; and Vietnam’s Pacific Corporation JSC and PetroVietnam Gas JSC, a unit of state-run Vietnam Oil and Gas Group.
Mr Le Tuan Phong, Chairman of Binh Thuan Provincial People's Committee, is bullish about Son My I Industrial Park’s prospects given its strategic location, international-quality infrastructure, and an open and favourable investment environment.
With the current investments and development of the park’s infrastructure, it is expected that there will be additional investments for future industrial projects.
“This will contribute to the province’s industrial development, build on its natural advantages, and reshape its economic structure by increasing the construction industry’s contribution to gross regional domestic product. These developments will be a driving force for socioeconomic growth in the southern region of the province,” he said at the ground-breaking ceremony.
Visit https://ipico.com.vn/ for more information.