Vietnam's Green Industrial Parks: IFC & Becamex Lead ESG Shift

Vietnam’s industrial real estate sector is evolving at an unprecedented pace, driven by a landmark alliance between the International Finance Corporation (IFC), part of the World Bank Group, and Becamex IDC, one of Vietnam’s most influential developers of industrial infrastructure. On July 16, 2025, the two entities solidified their partnership, ushering in a new chapter focused on embedding global sustainability practices within industrial park operations. This collaboration is a vital leap forward in Vietnam’s aspiration to become a regional epicentre for green manufacturing and a magnet for ESG-driven capital.

Global Frameworks to Guide Local Development

Under this strategic collaboration, up to five of Becamex’s industrial parks will be evaluated using the Global Eco-Industrial Parks Programme (GEIPP) certification model. This rigorous framework will assess key operational areas such as environmental impact, social engagement, governance structures, and economic inclusivity. The goal is to identify performance gaps and provide a pathway for Becamex to meet international environmental, social, and governance (ESG) benchmarks. These assessments build upon earlier pilot initiatives carried out at Bau Bang and Cay Truong Industrial Parks, both of which now serve as templates for clean, high-tech industrial ecosystems.

Sustainability as a Business Imperative

Nguyen Hoan Vu, CEO of Becamex IDC, has underscored the centrality of the Eco-Industrial Park (EIP) model in the company’s strategic roadmap. By embracing renewable energy solutions, resource recycling systems, and digital technologies, Becamex is not only reducing its ecological footprint but also laying the groundwork for sustained profitability. A prime example is the 700-hectare Cay Truong Industrial Park, which recently secured an investment of $208.7 million. Designed for clean, innovation-led industries, the park is projected to achieve annual operational savings of 2–3% through reduced energy use and waste minimization.

A Magnet for ESG-Driven Investment

What makes this partnership especially transformative is its alignment with the investment criteria of global ESG funds. As multinational corporations sharpen their focus on building sustainable supply chains, industrial parks that meet international certification standards are becoming vital components of their sourcing strategies. Through its adoption of the GEIPP framework, Becamex is boosting its attractiveness to these corporations while simultaneously gaining access to green financing tools that are increasingly shaping the capital markets.

Redefining the Investment Proposition

For investors eyeing Vietnam’s industrial real estate, the opportunity is no longer confined to favourable land prices or strategic locations. The real value now lies in aligning with the world’s accelerating shift toward low-carbon economies. Although developing an Eco-Industrial Park entails a roughly 10% higher initial investment compared to conventional models, the long-term payoffs, lower operating expenses, tax advantages, and eligibility for green bonds, make the proposition both financially sound and future-proof.

IFC’s Role in Building Investor Confidence

The IFC’s participation adds a layer of institutional trust to the project. Known globally for its role in sustainable development financing, the IFC’s involvement provides reassurance to private equity firms and institutional backers who may otherwise be cautious due to Vietnam’s infrastructural and regulatory challenges. With the IFC onboard, these industrial developments become less risky and more aligned with international compliance standards, attracting a broader pool of responsible investment capital.

National Policies Fueling the Momentum

Vietnam’s policy environment further supports this green industrial transition. The national pledge to reach net-zero emissions by 2050 and Ho Chi Minh City’s ambitious plan to develop a green urban-industrial ecosystem create a strong policy backdrop for this initiative. Local government leaders, such as Vice Chairman Nguyen Van Dung, have publicly hailed the IFC-Becamex collaboration as a milestone in attracting foreign direct investment and advancing Vietnam’s smart city and climate resilience agendas.

A Gateway to the Green Manufacturing Supply Chain

This partnership is not occurring in isolation, it dovetails with Vietnam’s broader economic ambitions. By upgrading its industrial zones with sustainable infrastructure and technology, the country is positioning itself as a central node in the global green manufacturing value chain. This emerging sector is expected to experience exponential growth in the coming years, offering investors diversified exposure across both high-tech industry clusters and next-generation infrastructure assets.