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VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

VU THI LA

“DEVELOPMENT MANAGEMENT OF INDUSTRIAL
PARKS IN HUNG YEN PROVINCE TOWARDS
SUSTAINABILITY”

Major : Economic Management
Code : 9340410

ECONOMICS DOCTORAL THESIS SUMMARY

HANOI - 2019


THE THESIS IS COMPLETED AT
GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Advisors: 1. Associate Professor, PhD: Cu Chi Loi
2. Associate Professor, PhD: Vu Thanh Son

Opponency 1: Professor, PhD: Nguyen Quang Thai
Opponency 2: Associate Professor, PhD: Nguyen Duc Tuan
Opponency 3: Associate Professor, PhD: Phi Manh Hong

The thesis is protected at Doctoral Thesis Appraisal Council at
Graduate Academy of Social Sciences
At time, date ..... month ..... year 201

The Thesis can be referred at:
- National Library of Vietnam
- Library at Graduate Academy of Social Sciences


PREFACE
1. The neccessity of the thesis
Industrial parks (IPs) and export processing zones are formed and developed in association with the
renovation and opening of the national economy, orginating from proper guidelines of the Party and the
Government in building a breakthrough model for investment attraction, industrial growth and economic
restructuring towards industrialization and modernization. Industrial parks and export processing zones have
mobilized a big amount of investment capital from domestic and foreign economic sectors for nearly 30 years of
renovation. Foreign direct investment (FDI) into industrial parks and export processing zones accounts for 3540% out of total registered investment capital increase of the whole country; particularly, the industrial sector
presents for approximately 80% every year. IPs and export processing zones have also created a relatively
synchronous and long-term infrastructure system contributing modernization of the infrastructure system all over
the country. Especially, IPs and EPZs have made a quite big contribution to the industrial mannuafcturing growth
and enhanced export value as well as competitiveness of the economy which has taken a part in economic
restructuring of localities & the country towards industrialization and modernization, job creation, human resource
training, improvement of income & living standards and qualifications of laborers, and made positive
contributions to ecological environment protection.
The sustainable development is an inevitable trend in the development process of the world. Vietnam has
sustainable development strategies and considers the sustainable development as a through goal in the current and
future national development strategies. We are implementing the National Action Plan for implementation of the
UN 2030 Agenda for Sustainable Development (VSDGs), the green growth strategy and clean energy &
renewable energy development and environmental friendly production; the sustainable development of IPs is a
critical task for maintenance of the sustainable economic growth which is a priority choice in Vietnam's
sustainable development strategy.
Nevertheless, IPs management in coordination with the sustainable development of regions and
provinces in Vietnam still has a lot of outstanding problems in both policy mechanisms and
implementation methods, including Hung Yen.

Hung Yen is the province who plays an important role in the socio-economic development of the
Northern key economic region. The province always has high industrial mannufacturing value as a result of the
industrial park develoment. Hung Yen province has implemented IPs planning and development in the area
which has already been approved by Prime Minister to be included into the Master Plan of the industrial park
development in Vietnam with orientation until the year 2020 (with total 13 IPs and total area of 3,685 ha). IPs
have created stable jobs for some 37,000 laborers. In addition to those achievements, industrial park
management in Hung Yen also shows many weaknesses and a shortage of factors for sustainable development
assurance. Industrial park development in Hung Yen has just focused on economic objectives, but not yet
comprehensively considered environmental and social aspects as shown below:
- The IPs construction and planning quality has not been good, has had no long-term visions and has not
taken the region connection factors as well as conditions, potentials and advantages of each region in Hung Yen
into considerations. This is also one of the reasons for the low occupancy rate of industrial parks.
- Compensation for land acquisition and infrastructure construction in industrial parks has not been
implemented well.
- Investment attraction into industrial parks is still slow, not yet compatible with potentials and
advantages of the industrial zone development.
- Issues such as human resource training, housing, culture, spirit, education and health care for
workers working in industrial parks has not been much interested.
- Environmental pollution, water pollution, air pollution and solid waste from industrial parks have
still occured and no effective solution has been taken yet.
- The current industrial development policy system of Vietnam in general and of Hung Yen in
particular still has many problesm, particularly policies on employment, land, environment and investment,
etc. Ineffectiveness management of the State agencies has resulted into the situation that some foreign
enterprises run away from industrial parks.
These are the very urgent issues with big impacts on the sustainable development of Hung Yen
which should be concluded and researched, and then improvements shall be proposed. Thus, the research
of solutions for industrial park management in Hung Yen Province towards the sustainable development is
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an urgent issue which aims to make Hung Yen become an industrial province and promote the big role in
the Northern key economic region.
In considerations of the above issues, the author selected the subject "Management of Hung Yen
industrial park development in a sustainable way" as the doctoral thesis title.
2. Research purposes and tasks of the thesis
a. Overall objective:
The overall objectives of the thesis is to find out solutions for industrial park development management in
Hung Yen in towards sustainability with a vision to the year 2030 and make a contribution to theoretical and
practical terms of IPs development management towards sustainability in the local.
b. Specific objective:
- Systematize and interpret selectively theoretical bases of IPs Development Management in a
Sustainable Way;
- Make clear the factors affecting State management of the sustainable development of IPs and study
international and domestic experiences for the sustainable development management of industrial parks
and learn lessons for the IPs development management in Hung Yen Province towards sustainability;
- Analyze and evaluate the actual status of the sustainable development management of industrial
parks in Hung Yen in the past time, and then point out successes, outstanding problems and causes of
those problems;
- Propose basic solutions for finalization of State management towards the sustainable development
of industrial parks in Hung Yen with a vision to 2030.
3. Object and scope of the research
3.1 Research object of the thesis
Reseaarch object of the thesis is the State management towards the sustainable development of
industrial parks in Hung Yen.
3.2 Scope of the research
- Content: The research content of the thesis is to study the State management towards industrial park
development in Hung Yen Province towards sustainability in three aspects of economy, society and environment.
- Time: The research period of the thesis is from 2010 to 2016.
- Space: The research space of the thesis is the industrial zones in Hung Yen Province in the
development relationship with industrial parks in the Northern key economic region.

4. Methodology and research method of the thesis
4.1 Approach
- Systematic approach: Industrial park maangement consists of many different tasks such as
planning, investment attraction, and enterprise support in industrial parks, human resource training, and
housing for laborers, infrastructure construction and wastewater treatment in industrial zones. All these
issues will be recognized, analyzed and assessed by the author in a close relationship.
- The thesis approaches the research topic from the economic management perspective.
- Practical approach: The thesis applies the data showing the actual status of the sustainable
industrial park management in Hung Yen Province.
4.2 Research method
The research methodology means both qualitive and quantitive approaches, but mainly the qualitive one.
The research methodology is both qualitative and quantitative approaches, mainly qualitative.
- Qualitative research serves the purpose of systematization and selective interpretation of the
theoretical basis for Industrial Park Development Management in a Sustainable Way; Clarify the factors
affecting State management of the sustainable development of industrial parks and research international
and domestic experiences for the sustainable development of industrial parks, and learn lessons for IPs
development management in Hung Yen Province towards sustainability.
- Quantitative research aims to analyze the actual status of management of IPs development in Hung
Yen Province in a sustainable way, thereby clearl demonstrate successes, outstanding problems and causes
of the problems.
The applied research methods include the below:
- Desk research methods: The author collects and systemizes documents: Collect research works in
the form of reference books, articles and theses by domestic and foreign authors as the bases for research
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issues. Besides, the author also systematizes documents and policies on management of industrial parks,
especially the regulations with direct and indirect impacts on the sustainable development of industrial
parks. Analysis and comments on management policies of industrial parks in towards sustainability are
thereby given. The desk research methods include:

+ Comparison method: consists of both chain comparison and cross comparison used to calculate
some indices reflecting the sustainable development of industrial parks. This method is also applied to
analyze the actual status of IPs development management in Hung Yen Province in towards sustainability
in the past time and in relation to IPs in other provinces.
+ Statistical methods: the list of data taken from the collected reports and documents is made and
shown in tables, diagrams or charts over the years to illustrate and help the research results reflect more
clearly and effectively.
+ Analytical & synthetical methods: Based on the collected data the author analyzes and synthesizes
them according to the content of the title.
- Expert method: Used by the author to interview several policy makers, scientists and industrial
park managers at the central level, in Hung Yen Province and some other localities.
- Methods of investigation and actual survey of industrial park development management towards
sustainability in Hung Yen.
+ Investigated and surveyed areas are Pho Noi A Industrial Park, Pho Noi B Industrial Park, Thang
Long Industrial Park and Kim Dong Industrial Park.
+ Objects: Enterprises in the industrial park territory and the State management agencies
+ Scale: 208 votes.
4.3 Research questions
From the research objectives, the research questions which need to be answered by the thesis are:
1) What is management of industrial parks in a sustainable way? Which contents are included?
2) What are criteria on assessment of IPs development management towards sustainability?
3) Which factors affect IPs development management in a sustainable way?
4) How is the actual management of IPs development in Hung Yen?
5) What are solutions for IPs development management towards sustainability in Hung Yen Province?
4.4 Research sequence of solutions to issues mentioned in the thesis
Research of IPs development
management theory towards
sustainability

Expert methods

Theoretical frame of IPs
development management
towards sustainability

Expert methods
Documents
and data
collection

Stastical &
analytical
methods

Criteria on IPs
development management
towards sustainability

Expert methods

Actual status analysis of IPs development
management in Hung Yen towards sustainability

Proposed orientation and solutions for IPs development management in Hung Yen
towards sustainability

Figure 1.1: Sequences of reasearch and resolution of issues mentioned in the thesis
(Source: Proposed by the author)
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5. New scientific contributions of the thesis:
- The thesis adds theoretical bases and scientific arguments on industrial park development
managementtowards sustainability including the concept of industrial park development management
towards sustainability, contents of IPs development management in a sustainable way, a set of criteria
on assessment of industrial park development managementtowards sustainability, and the factors with
impacts on management of the industrial park development towards sustainability;
- Analyze management experiences of IPs development towards sustainability of some nations,
territories in the world and several provinces in Vietnam and then learn lessons which can be applied to
manage develop Hung Yen industrial parks in a sustainable way;
- Analyze and assess the existing situation of industrial parks development management in
Hung Yen Province towards sustainability including State management of industrial parks, evaluation
of management criteria of industrial park development in Hung Yen Province towards sustainability
and then give out achievements and limits of industrial park development management in Hung Yen
Province towards sustainability and the factors affecting industrial park development management in
Hung Yen Province towards sustainability;
- Propose points of view, orientations and solution systems for industrial park development
management in Hung Yen province towards sustainability until 2025 and a vision to 20130.
6. Theoretical and practical meanings of thesis
The thesis has already completed the the theoretical system with criteria on evaluation of
industrial park development managementin towards sustainabilityin the conditions of Vietnam. The
research results and solutions of the thesis are the reliable references for managers and policy makers
for mânement of industrial park development toward sustainability in Hung Yen Province in particular
and the reference source for other localities inVietnam in general.
7. Structures of the thesis
In addition to preface and conclusion, the thesis is divided into 4 following chapters:
Chapter 1: Overview of the research situation related to IPs development management towards
sustainability.
Chapter 2: Theoretical and practical bases for industrial park development management in a
sustainable way.

Chapter 3: Actual situation of industrial park development management in Hung Yen Province in a
sustainable way.
Chapter 4: Solutions for industrial park development managementin Hung Yen Province towards
sustainability.
Chapter 1
OVERVIEW OF RESEARCH SITUATION RELATED TO INDUSTRIAL PARK
DEVELOPMENT MANAGEMENT TOWARDS SUSTAINABILITY
1.1. Foreign research works
IP is one of the specific models of the special economic zone (EZ) in the world.
The book Economic zones in the giant and Asean published by the Unido National Office in
Vietnam in 2015 writes about competitiveness of economic zones. It gives out overviews of ASEAN's
economic zones and recommendations for construction and development of Economic Zones in
ASEAN nations.
The article Development of Eco-efficient industrial parks in China clarifies China's efforts in
coordination and promotion of ecological and low-carbon industrial parks. The work China's special
economic zones an national industrial park – Door openers to economic reform is about economic opening
policies, effectiveness of State industrial parks, organizational structure of industrial parks, and specific
characteristics of industrial parks in China and industrial parks developing key industries of China.
The works "The application of industrial ecology principles and planning guidelines for the
development of eco-industrial parks: an Australian case study", the clean production journal by B.H
Roberts Elsevier introduces a new point of view in the sustainable development of industrial parks
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towards development of ecological industrial parks with specific criteria and evidences in the
conditions of Australia.
The International Conference on "Ecological Industrial Parks" held in Hyderabad, India on July
6-8, 2009 attracted participation of over 80 delegates from nations such as Germany, Tunisia and India,
Indonesia, Morocco and Philippines, etc. The main purpose of the Conference is to facilitate
experience exchange in the field of the sustainable management of industrial parks and strengthen

future cooperation of relevant parties in Asia, Africa and Europe. At this conference, researchers and
managers focused on concepts, legal aspects and policies related to industrial parks and ecological
industrial parks.
According to the "Manuals for development of ecological industrial parks for developing Asian
countries" by the Asian Development Bank (ADB), there are 7 basic principles for building an
industrial park in the direction of an ecological industrial park. (KCNST) includes: Harmony with
nature; Energy systems; Management of raw materials and waste; Water supply and drainage;
Effective management of KCNST; Construction / renovation; Integration with the local community.
Concentrated industrial park planning for attraction of investors to industrial park infrastructure
construction and application of preferential mechanisms for enterprises who invest and operate in
industrial parks shall facilitate local industrial production and enhance State management capabilities
for industrial parks.
1.2. Domestic research works
In the past time IPs development in Vietnam has attracted attention by the governement,
Ministries, sectors and locals. Many scientific confierences have been held and some IPs studies have
been posted on newspapers. Many studies have had deep assessments and highlighted special
characteristics and basis problems of IPs. Some other studies exploit new directions for the sustainable
development of IPs.
1.2.1 Research works for industrial park management
The first scientific works are the economic doctoral thesis by the author Le Tuyen Cu (2004)
under the theme "Development and finish measures of State management for industrial parks in
Vietnam".
The doctoral thesis by the author Le Hong Yen (2007) "Completion of policies and
organizational models of State management for the industrial park development in Vietnam (from the
practice of industrial parks in the North)".
Some researches have found out solutions to make sure social issues in IPs operation such as the
thesis "Dealing with housing problems for laborers in industrial parks. Studied in some North Central
provinces” by the author Bui Van Dung (2015)
Additionally, there are several studies by the authors Le Xuan Ba, Ngo Thang Loi and Vu
Thanh Huong on this issue like "Attraction mechanisms and policies of economic sectors into housing

construction for workers in industrial parks and export processing zones". These works have
systematized welfare issues for laborers in IPs and served as the important theoretical basis for the
author when analyzing one of the functions of industrial park management which is the sustainable
industrial park management in the social term.
The economic doctoral thesis by the author Phan Quoc Tuan (2012) "Supportive solution for
enterprises in industrial park development in Ho Chi Minh City until the year 2020" has pointed out the
theoretical aspects of supportive policies for enterprise development in IPs including supports from the
Government and supports from the Management Board of Industrial Parks.
Researches on support for enterprises in industrial parks have suggested many research ideas for
the PhD student in economic management of industrial parks. These studies concentrate on the
function of State management of industrial parks, paying much attention to mechanism and policies of
central and local industrial park management.
1.2.2 Research works on the sustainable development of industrial parks
The sustainable development of IPs is an urgent task after a hot development period of IPs
resulting into many environmental and social issues in the recent years.
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1.2.3 Research of ecological industrial parks
Construction and development of eco-industrial parks is a new direction in research and
development of IPs towards sustainability in Vietnam. Some typical authors in research of ecological
industrial parks are Nguyen Cao Lanh and Tran Thi My Dieu, etc.
Researches of eco-industrial park development have given out many useful recommendations
for the author in finding out new directions in IP management towards environmental sustainability in
a modern approach.
1.3 Basic theories for management of IPs development in towards sustainability
The thesis is carried out based on the following theories:
+ Theory of State management functions
+ Theory of industrial park development
+ Theory of the sustainable development

1.3.1 Theory of State management functions
State management function theory is the scientific foundation for the PhD student to access
State management functions including:
Orientation function: The State guides through plans, planning and policies.
Organizational functions: The State arranges and organizes activities within its management
scope.
Regulatory functions: The State regulates relations and distributes resources, policies and macro
management tools.
Inspection and supervision functions: This function makes sure activities subject to inspection
and supervision by the State in the proper direction for achievement of set goals.
1.3.2 Theory of industrial development
Industrial cluster theory
Industrial positioning theory
Theory of industrial development according to advantages
Center position theory
Theory of extreme growth
1.3.3 Theory of sustainable development
In Vietnam, according to the research by the Institute of Development Strategies, SD is
comprehensively understood "Sustainable development covers all aspects of social life, meaning that
economic development shall be associated with implementation of social progress and justice,
environmental preservation and improvement, socio-political stability maintenance, national defense
and security”. As such, it can be seen that the sustainable development is a harmonious development
among three major objectives: economic growth, social development, and environmental preservation
and improvement.
Contents of sustainable development
Contents of sustainable development consist of the sustainable economic development, the
sustainable social development and the sustainable environmental development.
The sustainable development is the basis and the standard for directing management of IPs
development towards the economic, social and environmental sustainability.
1.3.4 Application of theories into IPs development towards sustainability

1.4 Research orientation of the thesis
1.4.1Assessment of previous resesearches to point out research gaps
a. Oversea researches
Foreign researches pointed out and criticized limitations of traditional management of industrial
parks, resulting into environmental pollution and social issues in industrial parks. The studies
supported the ecological industrial park model and call on countries to apply this model to look
forward to the sustainable development. However, the research by D.Gibbs and P. Deutz only
researched SD of industrial parks in terms of economy and environment, but not took social issues into
satisfactory considerations. Susan M. Walcott's work reviewed the role of high-tech industrial parks
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but not yet attached these high-tech IPs to the sustainable regional and national development issues.
b. Domestic researches
In general, domestic researches have helped strengthen the theoretical bases for the development
of IPs towards sustainability and given out many practical experience as well as solutions for
development of industrial parks towards sustainability. Nevertheless, these researches still focused on
resource employment for IPs development. No thesis directly studied management of IPs development
in towards sustainability in the province. Especially, there is no set of criteria for assessesment of the
sustainability in industrial park development management.
1.4.2 Research orientation
Pursuant to the gaps from the previous researches and research objectives, the thesis focuses on
evaluation, analysis and proposed solutions for IPs development management towards sustainability
based on three criteria (1) Sustainable development management of IPs in economic term, (2)
Sustainable development management of IPs in social term and (3) Sustainable development
management of IPs in environmental term. This is the theoretical research framework for all analyses
and evaluation of actual management of IPs development towards sustainability in Hung Yen Province
and serves as the basis for proposed solutions. The thesis shall concentrate on clarification of some
following issues:
Clarify theoretical issues and international & domestic experiences related to industrial park

development managementin a sustainable way.
Analyze and make clear the existing status of industrial park development management Hung
Yen Province towards sustainability and then evaluate achievements, limitations and find out causes of
limitations in industrial park development management in Hung Yen towards sustainability.
Propose points of view, orientations and solutions for industrial park development management
in Hung Yen Province in a sustainable way.
Chapter 2
THEORETICAL AND PRACTICAL BASES FOR INDUSTRIAL PARK DEVELOPMENT
MANAGEMENT TOWARDS SUSTAINABILITY
2. Theoretical basis for industrial park development management towards sustainability
2.1.1 Some basic concepts
a. Industrial park concept
After studying the IP concepts in the world and in Vietnam, according to the author of the
thesis, the industrial park is a part of the national territory with defined geographical boundaries and an
appropriately built infrastructure for industrial production, is a concentration area of enterprises
specialized in manufacturing industrial goods and providing services for industrial production with
defined boundaries and without residents.
b. Development concept
According to the Vietnamese dictionary, "development" is understood as the process of
movement, progresstowards increase. As specified in the Literally Encyclopedic Dictionary of
Vietnam, "development is a philosophical category that indicates the nature of the transformations
taking place in the world. Development is an attribute of matter. Everything and phenomena of reality
do not exist in a different State from the time of appearance to the time of death ... the origin of
development is the unity and struggle between opposites. "
Development is not consistent with the concept of "movement" (alteration) in general, it is not a
mere transformation of quantity or cycle alteration that is repeated in the old substance but existence
and nonstop movement, changes in scale and quality towards increasing completion of things at higher
and higher levels.
c. Industrial park development concept
Industrial park development is an increasing process in terms of quantity, quality and system

development inside industrial parks. Industrial park development consists of two aspects.
- Development of infrastructure (technical infrastructure) for industrial parks.
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- Development of production and business in industrial parks
Infrastructure development for industrial parks is an increase in the number of infrastructure for
industrial parks to maximize the use of resources for industrial parks, mainly land sources, to fill industrial
parks with projects with suitable scale and field to the functional orientation planning of each IP
The production and business development in industrial parks in terms of quantity is an increase
in the production and business enterprises in the industrial park.
d. Management concept
There are many ways to divide management functions based on different approaches. According
to the author, management has 4 basic functions: making plans (planning), organization, leading and
inspection. Managers shall perform well these four functions so as to ensure completion of
management objectives.
Planning: “Is the process of goal identification and way selection for achievement of those
goals”. Naturally, planning is a subjective, conscious, organized activity of human beings on the basis
of awareness and application of objective laws in order to determine the goals to be achieved and plan
to achieve that goal.
Organization is the plan implementation process which is a function of governance including
assurance of organizational structure and personnel for organization's operation.
Leadership is determination of guidelines, purposes, properties, operational principles of a
system under certain environmental conditions. Common leadership methods are methods of
education, advocacy and propaganda; administrative methods; economic methods; and modern
leadership methods.
Testing is the activity review process to help activities more effective and at the same time
inspection for detection of any mistakes and deviations in order to take corrective measures to ensure
proper operation.
e. IPs development management concept

- Industrial park development management is the organized operation by the State laws on the
development of industrial parks to make sure that the industrial park can promote its role in compliance
with the orientation of the State and ensure enterprises' objectives in the IP and socio-economic
development of the local and the nation. Industrial park development management includes 4 below
contents:
- Industrial park development planning including planning of location, scale and investment
attraction field.
- Industrial park infrastructure construction: There are two forms of investment industrial park
that is invested by the State or private (domestic or foreign). Each form of investment has its own
advantages and disadvantages which can affect the sustainable development of industrial parks to
which management shall pay attention.
- Business and production development includes creation of incentive mechanisms and policies
and investment promotion activities
- Evaluation, inspection and supervision.
f. Sustainable development concept
Sustainable development is understood as a development way which harmonizes three main
objectives of (1) high, stable & long-term economic growth, and reasonable and efficient use of
available resources, (2) social issue settlement towards progress and fairness, (3) environmental
protection towards ecological diversity maintenance and mitigation of negative impacts on the
environment.
g. Concept of IPs development towards sustainability
Industrial park development managementin towards sustainability is an organized impact in
compliance with the State laws on the quantity, quality and development of systems inside industrial
parks for the sustainable development objectives including the sustainable economic, social and
environmental development.
2.1.2 Role of IPs development management towards sustainability
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2.1.2.1 Role of IPs in socio-economic development Vai trò của KCN đối với phát triển kinh tế xã hội

(1) First IPs makes a big role in promotion of industrialization and modernization of the country.
(2) Positively affect economic sructure adjustment proces.
Investment into IPs construction and development is alledged the main method to promote
economic restructuring towards industrial proportion increase and agricultural proportion reduction.
(3) Stimulate development of services: IPs help to promote industrial production services,
facilitate development support services.
(4) Promote modernization of infrastructure system and be the nuclear of formation of new
urban areas
(5) Enhance export, increase revenues and reduce foreign currency spendings which contribute
increase in State budget
(6) IPs are the basis for receipt of advanced techniques & technologies, modern management
methods and stimulate the development of supporting industries and domestic enterprises.
(7) Create jobs; reduce poverty and human resource development
(8) IPs development makes a significant contribution to international integration.
Negative impacts
Firstly, IP development impacts the residential community where the industrial park is located,
resulting into social problems.
Secondly, IPs development negatively affects the socio-economic development conditions and
environment.
Thirdly, IPs development causes negative impacts on the environment.
2.1.2.2 Role of management of IPs development toward sustainability
2.1.3 Contents of management of IPs development in towards sustainability
2.1.3.1 Management of IPs development towards economic sustainability
IPs planning: Reasonable development planning of IPs according to general development
planning of the whole country aims to promote advantages and attract investment. IPs planning shall
have to homogenous with socio-economic development planning of the locality and the country, and
promote potentials of the locality in industrial park development. Planning an environmentally friendly
industrial park is IP development planning towards sustainability.
Investment promotion and attraction: Effective management of investment promotion and
attraction of investment projects into IPs by deep and long-term strategies. Build streamlines & highly

effective legal institutions & corridors and enhance IP occupancy rate. IPs management boards should
maximize the active, flexible and creative role in implementation of investment promotion, attraction
& support activities. Frequently enhance the quality of services, infrastructures, and promote
connection to improve production and business efficiency of enterprises.
Technology transfer promotion: This is an important direction and work to make sure the
sustainable development of industrial parks, especially in the current period when the technology
transfer is meaningful for the technological level enhancement for the local and the nation and it will
spread impacts on enterprises in the IPs and outside the IPs.
2.1.3.2 Management of IPs development towards social sustainability
In order to manage industrial park development towards social sustainability, management
should carry out:
Policies on compensation and land acquisition: The policies on compensation and land
acquisition shall ensure benefit harmonization between the State and residents by price compensation
policies, resettlement policies and livelihood compensation for residents
Local labor use policies: Job & income creation for local laborers, especially the residents
whose land is acquired as IPs is the top task of the locality in addition to investment promotion and
attraction policies. Normally, when building industrial parks in a certain locality, there will be a large
part of local residents who have lost their farming land and have no jobs. Therefore, in order to avoid
the situation that local residents after a short time of land compensation are unemployed and have no
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income, the policies on development and employment of local laborers in the industrial parks are the
most urgent social requirement.
Policies on human resource training and development in the direction of labor demand approach
of industrial parks in accordance with scientific and technical changes
Ensure benefit harmonization between employees and employers: It is necessary to organize law
education and propaganda programs for laborers and enterprises parties can fulfill their responsibilities
and obligations as regulated by Laws. Strengthen the role of trade unions and IPs Management Board
in order to ensure interests of workers

Encourage enterprises to implement social responsibilities: Regulate and supervise checking
the the employer's responsibilities for employees of the enterprise in terms of working conditions,
wage policies, bonuses, remuneration and access of employees for social services and encourage
enterprises to share, take social responsibilities firstly for the locality where the enterprise operates
through the social activities of the enterprise.
Ensure laborers in industrial parks can have access to social security services such as houses,
kindergartens, schools, market systems, parks to ensure that workers in industrial zones have access to
one full way of social services, security, education and training. IPs development shall be carried out at
the same time with social infrastructure development.
2.1.3.3 IPs development management towards environmental sustainability
IPs development management towards environmental sustainability shall be associated with the local
environment quality maintenance and improvement of the local where IPs are located. Environmentally
sustainable system shall maintain a stable resource base and avoid over-exploitation of renewable resource
systems or potential movements of the environment and exploitation of non-renewable resources exceed the
level of investment for a full replacement. This includes biodiversity maintenance, atmospheric stability and
other ecological activities which are often not considered economic resources.
For IPs development towards environmental sustainability, it is required to:
+ Complete the legal mechanism of environmental protection in IPs
+ Environmental planning in IPs and eco-industrial park planning for industrial parks not yet
formed
+ Accomplish management and encourage industrial parks to build concentrated waste
treatment areas
+ Well implement inspection and supervision of waste treatment activities of enterprises in the IPs
2.1.4 Factors affecting IPs development management towards sustainability
2.1.4.1 Factors belonging to IPs State management tools
a, Legal and political system for management of industrial zones development
b, State management policies and regimes for sustainable development of industrial parks
c. Industrial park development planning
d. Management organization of industrial parks from the central to local levels
2.1.4.2 Factor group belonging to the local authority

a. Local socio-economic development plan
b. Local industrial park planning
c. Local policies in IPs management
2.1.4.3 Factors belonging to enterprises in industrial parks
a. Enterprises's awareness of the role of sustainable development
b. Capacity of an enterprise includes:
c. Request by the market and partners outside enterprises
2.1.5 Evaluation criteria on IPs development management towards sustainability
Evaluation criteria for the industrial park development managementin towards sustainability are
criteria for evaluation of industrial park development towards sustainability. Results and effectiveness
of the State management of industrial parks are the development of industrial parks towards
sustainability at present and in the future. Criteria for development of industrial parks towards
sustainability are divided into 3 groups: (1) assessment of the sustainable economic development, (2)
- 10 -


assessment of the sustainable social development, (3) assessment of the sustainable environment
development. In which, each index group is divided into 2 sub-groups, which are indices of sustainable
development assessment in the IPs and assessment of the spread of IPs to the locality where the IP is
located. Results of indices in these 3 criteria groups reflect effectiveness of State management for
sustainable development of industrial parks, as follows:
- Suitability of strategy, planning and State management policies for industrial parks.
- Feasibility of policies and State management measures for industrial parks.
- Validity of policies and State management measures for industrial parks.
- Effectiveness of policies and State measures for industrial parks.
2.1.5.1 Indices for evaluation of IPs development management towards economic sustainability
a. Indices for assessment of IPs development management towards economic sustainability inside IPs
Industrial zone planning quality
Occupancy rate of industrial parks
Total registered capital, implemented investment capital

Results and performance of industrial parks
Production integration activities of enterprises in the IP
Index of investors' satisfaction
b. Indices for assessment of IPs development manangement towards economic sustainability of
the region where IPs are located
This criterion shows IP spread to the local economy.
Contribution of industrial parks to local economic growth
Economic restructuring of the local where the IP is located
Impact of IPs on local infrastructure
2.1.5.2 Assessment criteria for IPs development management towards social sustainability.
One of the important indices for the sustainable development is the social evaluation criteria.
The social development is to demonstrate positive change tendency in social issues of the locality
where industrial parks are located.
Jo creation and income increase for local laborers
Contribution to local labor restructuring
Social responsibility of enterprises
Ability to ensure social security surrounding the industrial zone
2.1.5.3 Evaluation criteria for industrial park development management towards environmental
sustainability
This criterion is shown via the ability to well resolve environmental pollution problems caused
by manufacturing and show negative impacts onto the living environment and human health and
environmental protection. Key indices assess the sustainable development including waste water
treatment, solid waste and air pollution.
Indices for wastewater treatment assessment in IPs
Indices for solid waste treatment evaluation in industrial parks
Evaluation criteria for air pollution and noise in industrial parks
Resource saving ability and renewable energy use
2.2 Domestic and foreign experiences of IPs development management towards economic
sustainability and lessons for Hung Yen
- IPs planning

- IPs infrastructure completion
- Investment environment improvement
Experiences in management of IPs development towards social sustainability
Chapter 3
ACTUAL SITUATION OF MANAGEMENT OF IP DEVELOPMENT IN HUNG YEN
PROVINCE TOWARDS SUSTAINABILITY
- 11 -


3.1 Overview of establishment and development of IPs in Hung Yen Province
3.1.1 Overview of natural conditions and socio-economic conditions in Hung Yen Province
Hung Yen is the province in the Northern Delta which is located in the center of the Red River Delta
and one of 7 provinces and cities in the Northern key economic region located in the low plain of the Red
River Delta.
Hung Yen has 23 km of the 5A national road with 4 lanes, and 26 km of the 5B national road with 6
lanes running from the west to the east and connecting Hanoi with Dinh Vu Port. Besides, it has 56 km of
the 38 national road from Bac Ninh and Hung Yen, and 43km between the 5 national road and the 1
national road in Hanam Province, the provincial roads such as the 202 PR, the 200 PR, the 203 PR, THE
195 pr and the connecting road between the 5B national road and Cau Gie-Ninh Binh highway. The Hanoi
- Hai Phong railway running through the Hung Yen territory is 17 km long, considered an important point
for economic connection with other localities. It can be said that in addition to favorable geographical
locations, the transportation system of Hung Yen has many advantages for socio-economic development
and investment attraction. Hung Yen province has 10 district-level administrative units, including 1 town,
09 districts and 07 wards, 09 towns and 145 communes.
In 2016, GDP increased by 8.1%; agricultural and aquaculture production value raised by
2.53%; Industrial production index increased by 8.5%. Industrial production index increased by 8.5%;
Total per capita products reached 44.5%; export turnover reached 3,197 million USD; Total budget
revenue is estimated at 9,009 billion.
The natural population growth rate is 0.92%; the poverty rate is expected to be 5%; the rate of
trained workers is 56%, creating new jobs for 2,180,000 laborers.

3.1.2 Overview of IPs in Hung Yen Province
Hung Yen has 10 IPs with total area of 2,481ha approved by Prime Minister to be added in the List
of Master Plan of IPs Development in the whole country.
Table 3.2: Area of IPs planned in Hung Yen
No.
Name of IPs
Planned area
1
Pho Noi A IP
596,44 ha
2
Pho Noi Textile and Garment IP
21,81 ha
3
Thang Long II IP
345,2 ha
4
Minh Duc IP
198 ha
5
Yen My II IP
190 ha
6
Minh Quang IP
150 ha
7
Kim Dong IP
100 ha
8
Tan Dan IP

200 ha
9
Ngoc Long IP
100 ha
10
Ly Thuong Kiet IP
300 ha
Source: IPs Management Board, 2016
3.2 Actual status of management of IPs development in Hung Yen Province towards sustainability
3.2.1 Actual status of management of IPs development in Hung Yen Province towards economic
sustainability
3.2.1.1 Management of IPs development in Hung Yen Province towards economic sustainability
a. IPs development planning
IPs accepted for planning shall comply with regulations on industrial park planning and have
coordination with the provincial socio-economic development planning. The locations of industrial
parks have convenient traffic and near the locations where labor resources are abundant and services
for laborers' life are supplied. The planned industrial parks have satisfactory infrastructure facilities
such as frontage roads and traffic interchanges with provincial roads and national road. Actual
construction and implementation of planning, adjustment and supplementation of planning for 3 times
shows that industrial park planning is still spreading, short-term, high latency as compared to reality.
The planning quality has been positively changed according to the industrial planning demands.
Industrial parks are planned at the first stage, typically Pho Noi Industrial Park has low quality
- 12 -


planning, infrastructure is not synchronous and modern, especially lack of modern waste treatment
system, unsatisfactory green environment and water surface, missing sustainable development factors,
however the planned industrial parks after that have overcome these limitations. Thang Long Industrial
Park II is a typical example for modern and sustainable industrial park planning. Planning has
sufficient technical infrastructure works including available site areas for construction of factories,

power and water systems with large capacity, modern drainage system, and waste water treatment
system with a total capacity of 3,000m3/day and night, telephone and internet systems in accordance
with international standards, especially the greenery and water environment with a high rate.
The planning process of industrial parks of Hung Yen has changed from spreading to narrowing
in the direction of key planning. However, a lot of land areas planned for industrial parks are
abandoned, narrowing land fund for agriculture and wasting land resource use.
b. IPs infrastructure construction
Economic infrastructure construction in industrial parks plays an important role in the sustainable
development of industrial parks. In Hung Yen, local authorities and the Management Board of
Industrial Parks in Hung Yen province have faciliated infrastructure construction companies in land
acquisition and and infrastructure construction of IPs. However, infrastructure construction in
industrial parks in Hung Yen still has many shortcomings.
Infrastructure construction in industrial parks in Hung Yen province is all funded by private entities.
With the policy of no mass land acquisition avoiding any wild land which can affect production
of local residents, Hung Yen province selects some IPs with favorable conditions, quick attraction to
investment and capable investors for investment project implementation.
It can be seen that IPs infrastructure development in Hung Yen still have many limitations in
implementation that make a waste of land planning for industrial parks wasted, lack of sustainable
factors in industrial park development.
c. Investment attraction at IPs in Hung Yen Province
Provincial People's Committee has directed the renovation of investment attraction in Hung Yen
IPs in the direction of selection, effectiveness and no attraction at all costs. The province has selected a
number of IPs with favorable conditions, ability to attract investment quickly and the owners who are
capable of investment project implementation.
For effectiveness of investment attraction, the province determined to well implement land
acquisition and infrastruction completion at IPs in order to ensure sufficient site areas for receipt of
investment projects. Specifically, the province supported industrial parks such Pho Noi A Industrial
Park, Pho Noi Textile and Garment Industrial Park and Thang Long II Industrial Park in quick and
strong implementation of land acquisition. Early handover of land by industrial parks is a favorable
basis for investors to push up progress of investment in synchronous construction of technical

infrastructure, ensuring sufficient areas for receipt of investment projects.
Hung Yen is active in investment environment improvement
Investment encouragement policies
Incentives on investment capital and credit:
Preferential policies on import tax exemption and reduction, corporate income tax:
Investment support policies
Preferential investment in industrial park infrastructure construction.
Incentive on advertising information and mobilization of investment in IZs:
3.2.1.2 Assessment of criteria on management of IPs development in Hung Yen Province towards
economic sustainability
a. Criteria on assessment of management of IPs development in Hung Yen towards
sustainability inside IP
(1) Planning quality and IPs occupancy rate
* IPs planning quality
Most of IPs in Hung Yen are planned at the areas with favorable geohraphical conditions on big
traffic roads which are convinient for goods conveyance from Hung Yen to airports, ports and vice versa.
- 13 -


IPs are mainly concentrated in the northern areas of the province such as in Yen My and My
Hao districts. Of which,Yen My has 6 out of 11 IPs in the whole province and My Hao has 5 out of 11
IPs in the whole province. The high concentration of industrial parks in some districts puts great
pressure on social and environmental issues in localities with dense industrial park content. Prices in
Yen My and My Hao Districts are often much higher than other localities in the province. Especially,
demands in kindergartens and schools are big due to crowded workers while the current situation
cannot meed those demands yet. Industrial parks are too close together resulting into fiercer
competition among enterprises. There has been a phenomenon that some enterprises are concerned
about difficulties into workers recruitment, so they do not dare to continue investtment in the IPs.
IPs occupancy rate
Table 3.4. Summary table of IPs in Hung Yen

No.
1
2
3
4

Name of IPs
Pho Noi A
Pho Noi Textile and Garment
Thang Long II
Minh Đuc (according to Planning)
Total

Occupancy rate (%)
73.94
52.97
85.33
29.33
68.1%

Source: IPs Management Board, 2016
(2) Total registerd capital, implemented investment, average investment/project,
investment/ha of land use
Table 3.5. Total registerd capital, implemented investment at IPs in Hung Yen up to 2016
Registere
d
projects

Projects
in

operatio
n

Total
registere
d
investme
nt
(millions
USD)

Total
implement
ed
investment
(millions
USD)

596

170

148

1,391

1,155

8.19

121

78

64

183

143

345

31

18

1,848

198

31

25

65

Area
Nam of IPs
e of accordin
IPs

g to
planning
Phố
Nối
A
Dệt
may
Phố
Nối
Thăn
g
Long
II
Minh
Đức
Total

1,260

310

255

3,488

Registered
investment/1
ha of land
use

Implement
ed
capital/1ha
of land use
(millions
USD)

7.80

2.33

1.94

2.35

2,23

1.52

1.18

1,503

59.60

83.52

5.36

4.36

42

2.10

1.67

0.33

0.21

11.25

11.15

2.77

2.26

Average
Average
investment/registe
investment/operat
red project
ed project
(millions USD) (millions USD)

2,842

Source: Conclusion Report of the year 2016 and main tasks of the year 2017 by IPs

Management Board in Hung Yen Province
(3) Results and effeciency of IPs operation
Revenue/1 land unit of IPs (comparision): Total rented industrial land area at IPs in current
operation is 619 ha. Revenue/1 IP land unit in 2016 are 3.51 millions USD/ha.
Revenue and labor productivity of IPs in Hung Yen have increased year by year. It proves that
effeciency of operation by IPs has been increasingly enhanced. Revenue has risen to 1,268,57 millions
USD between 2010 and 2016, equivalent to 241%; labor productivity has increased to 17,424.27
millions USD/capita/yeat, corresponding to 166%.
Source: IPs Management Board in Hung Yen in 2016
Production connection among enterprises at IPs
Production connection among enterprises at IPs is a criterion on evaluation of long-term &
effective planning quality of IPs. Hung Yen also develops production connection and region
- 14 -


connection with other locals such as Bac Ninh, Hai Duong and Hanoi. Nevertheless, production
connection among enterprises at IPs in Hung Yen is still limited. The number of the enterprises with
production connection in the IPs in Hung Yen is very few. The number of enterprises with demoestic
production connection is very few, mainly focusing on some multinational groups who develop
domestic suppliers.
b. Criteria on evaluation of management of IPs development in Hung Yen towards
economic sustainability
Hung Yen is a merely agricultural province in the Red River Delta. However, the socioeconomic situation of the province has positive changes since appearance and development of IPs.
Contributions to the ecnomic growth of the local
During the past years IPs in Hung Yen have played an important role in the GDP growth of the
local.
IPs in Hung Yen have played a major part into industrial production value of the province and
increasingly promoted this value. Enterprises in IPs have increasingly made bigger contributions to the
State budget of Hung Yen Province. The tax amount submitted to the State budget by enterprises in IPs
in Hung Yen Province have reached 900billions VND which have raised to nearly VND1,500billions

in 2015 and VND1,700billions in 2016.
Contributions to industrial production value
3.2.2 Actual status of management of IPs development in Hung Yen towards social sustainability
3.2.2.1 Actual status of management of IPs development in Hung Yen towards social sustainability
a. Actual status of compensation, land acquisition and resettlement for residents when land
acquisition for IP construction
For compensation management, land acquisition and resettlement for residents when land
accquition for IP construction, Hung Yen Province Peoples's Committe has already abided legal
regulations on land acquisition and supported resettlement for residents and also make many law
documents in order to create legal corridors for implementation by the relevant agencies.
Ađitionally, Hung Yen Province proactively propagandized benefits of construction and
development of IPs by media and meetings among State agencies, the owner and the residents whose
land is acquired, persuaded the residents to comply with the State's policies on land acquisition. Of
which, it is affirmed that the State policy on implementation of the land acquisition task for IPs
construction for the socio-economic development demands, but not negotiation on land sales between
residents and enterprises.
b. Career training, human resource development and local laborer encouragement by
enterprises
For human resource development at IPs, Hung Yen Province People's Committe has carried out
simplization of land fund support policies and administrative procedures, etc. so that investors, schools
and career training centers can feel comformtable to invest into business of career training filed for the
purpose of skilled human resource supply for many enterprises in IPs. Hung Yen Province also
regulated enterprises who use land acquired from residents to facilitate jobs for those residents.
One of the enterpise attraction goals into IPs is the hope to create jobs for local residents. Hung
Yen Province career center usually holds job festivals as a bridge between enterprises at IPs and
laborers. IPs Management Board is the contact person between enterprises and career centers for
laborers.
Nevertheles, most of enterprises at IPs are lack of laborers, mainly workers due to few supply
sources, limitted high skilled laborers, and the relevant agencies have failed to stop this status despite
of having taken many measures.

c. Actual management of social infrastructure development at IPs in Hung Yen
Social infrastructure development at IPs in Hung Yen, especially housing which is very critical
for IPs development towards social sustainability because laborers will feel comfortable to work only
when their lives are stable. Hung Yen Province faciliates development of housing development
projects, especially compensation and land acquisition for the owner. Management of workers'
- 15 -


accommodation at IPs is a difficult problem for the State agencies in Hung Yen. Accommodation areas
of workers have polluted the environment and damaged architectural landscape of the rural areas.
Many workers resign from work after each holiday which affects production and business of
enterprises. Work resgination by workers is caused by many factors, but mainly caused by
unsatisfactory accommodation.
Besides, accommodation management for laboreers and commercial, sport & helathcare work
management for laborers in Hung Yen are still very limitted, Social infrastructure planning at IPs in
hung Yen Province abuses social infrastructure outside IPs.
d. Actual status of encouragement and support of IPs enterprises in implementation of benefit
harmonization relationship between employees and employers at IPs
During the period between 2000 and 2013 enterperises who invest into IPs in Hung Yen are
mainly capable domestic ones. Moreover, some new enterprises have not ensured beneifts of laborers
Labor law propaganda for employers and employees at enterprises has been paid attention by
the State agencies. For enterprises whose trade unions were established, IPs trade union shall have to
frequently coordinate with enterprise owener and the enterprise's trade union officials in organization
of meaningful activities.
e. Security and social order control at IPs in Hung Yen Province
Security and social order situation at IPs in Hung Yen Province is always a hot issue for the
relevant agencies. Foreigners working at IPs are now crowded (about 470 foreigners in Hung Yen), but
the number of those foreigners register temporary residence are limited. Besides, some enterprises are
bankrupted, so workers are unemployed. Other enterprises abuse law gaps to loose benefits of laborers
which leads to strikes by workers.

3.2.2.2 Evaluation of criteria on management of IPs development in Hung Yen towards social
sustainability
(1) Job creation and income increase for local laborers
Hung Yen currently has 2,631 enterprises, corresponding to 153,596 laborers; of which, IPs of
the province have only 310 enterprises (accounting for 11.8%), but the current number of laborers are
42,500, presenting for 27.7%. That shows that IPs have attracted a large number of laborers of the
province. Esspecially, FDI enterprises are only 172 (accounting for 6.5% of the province), but the
number of laborers are 30,114, corresponding to 19.6% of the province and 70.9% of IPs).
Average income per person for laborers in IPs is much higher than residents in the province.
This income has annualy increased during the past years and has been higher than region minimum
wage as regulated by the State. It proves that living standards of residents have been improved.
(2) Labor restructuring by industries
According to stastics, up to 2015, the whole province has 153,196 laborers at enterprises.
Laborers at FDI enterprises have increased 3 times between 2011 and 2015. Laborers in IPs have
raised by 3.1 times, thereby making laborers in the whole privince increasds by 1.58 times. Of which,
laborers for engineering industry have rasied by 1.8 times.
(3) Assessment of improvement of local resident's living standard
IPs are formed and developed, so resident's living standards are improved. Ability to access
healthcare services is enhanced and average number of doctors per ten thousands of residents and
number of patient beds per ten thousands of residents have increased. The number of cases suffered
from diseases has reduced strongly.
(4) Ability to ensure security of the locality where IPs are located
With development of IPs, along with attraction results of FDI projects into IPs, residents' living
standards have been improved. However, some negative impacts like social security have occured.
3.2.3 Actual management of IPs development in Hung Yen towards environmental sustainability
3.2.3.1 Management of IPs development in Hung Yen towards environmental sustainability
a. Environment management mechanisim
Summary and making Report of environmental protection of IPs has had many difficulties
because of totally depending on reports monitoring reports and results by infrastructure companies and
- 16 -

enterprises in IPs while many enterprises have not well implemented periodical monitoring works and
submitted the reports to Management Board. Regarding pollution control, Hung Yen has actively built
and completed environmental pollution control documents at IPs in terms of air quality, environmental
pollution control activities and environment monitoring activities.
b. Actual status of waste water treatment at IPs
Good management of waste water treatment at IPs is one of covontralized waste water treatment
works with câpcity the decisive issue of SD. IPs all have concentralized waste water treatment work
with capacity of over 16,000m3/day+night . Despite the State agencies in Hung Yen have made their
efforts to enhance effeciency of these activities, enterprises still violate regulations on waste treatment.
c. Actual status of solid waste treatment at IPs
Hung Yen has focused on proposing mechanisims and policies and found out resources and
solutions for solid waste treatment in the province, mainly at IPs. The province made Decision No.
300/QĐ-UBND dated 01/2/2013 on Approval of solid waste management in Hung Yen until 2015 with
policy on solid waste management at IPs such as planning of classification system, collection and
conveyance of solid waste.
Hung Yen IPs Management Board also usually organizes Propaganda Conferences on
environmental protection of the IPs for enhancement of enterprise's awareness of IPs environment
protection, but not yet highly effective.
d. Audit and treatment of violations on environment protection
IPs Management Board regularly coordinates with Infreastructure companies in inspection and
supervision of IPs environment protection in order to timelt find out, prevent and treat any violations
on legal regulations on environment protection.
Additionally, monitoring and supervision of compliance with conclusions by Auditors by
violation cases at IPs have not been paid attention to.
3.2.3.2. Evaluation of criteria on management of IPs development in Hung Yen towards environmental
sustainability
Up to 2016, the province has 4 out of 11 IPs taken into operation, namely Pho Noi A IP, Pho
Noi Textile and Garment IP, Thang Long II IP and Minh Duc IP with total area of 1,261,45ha. The

whole area has greener area of 175.44ha, accounting for 13.9% of the entire area.
Natural resource saving, recycled energy use have played an important rol in clean production
and maintained SD of IPs in Vietnam in general and in Hung Yen in particular. However, this has not
been strictly implemented by enterprises.
3.3 Analysis of factors affecting management of IPs development in Hung Yen towards
sustainability
3.3.1Factors belonging to State management tools for IPs
a. Policies and strategies of IPs development by the Governement
b. Clasification and decentralization of management
c. Impacts by legal documents of the State
3.3.2 Factor group belonging to the local authority
a. IPs development planning in association with socio-economic development in Hung Yen
- 17 -


b. Policies related to compensation and land acquisition
c. IPs Management Board of Hung Yen
d. Factor group belonging to enterprises
3.4 Evaluation of actual status of IPs development management in Hung Yen towards
sustainability
3.4.1 Assessment of good points of management of IPs development in Hung Yen towards
sustainability
Infrastructure planning and development of IPs
IPs of the province are formed, built and developed in compliance with general planning
approved by Prime Minister. IPs planning quality has been improved. Planning includes all technical
infrastructures such as available areas for construction of factories, power and water systems of high
capacity, waste treatment system and greenery system with high rate. Infrastructures of IPs are
increasingly invested which helps development promotion of IPs infrastructures
Infrastructure construction
State management agencies in Hung Yen selected projects to resources mobilization into

infrastructure completion at IPs, avoiding a waste of investment into IPs. IPs infrastructures are
increasingly completed and morder.
Investment attraction
The province has well implemented investment environment improvement by
transparentalization and shortening administrative procedures, and strict application of investment
encouragement policies. Consequently, the number and the scope of investment projects into IPs in
Hung Yen have increased. Investment attraction to IPs is to promote economic growth along with
economic restructuring towards modernization, create jobs for ten thousands of laborers and enhance
land use effeciency.
Compensation, land acquisition and resettlement for residents when land acquisition for
construction of IPs
Based on State regulations, Hung Yen specificalized and introduced policies on compensation,
land acquisition and resetlement for residents in the areas with acquired land area for construction of
IPs in order to create legal corridors for land acquisition and infrastructure construction at IPs.
Career training and resource development
Determination of laborer supply ability and human resource quality is the important factor for
advantage determination of investment attraction into IPs. Hung Yen People's Committe have
implemented many supporting policies and called for investors to career training for the province.
Thus, trained laborers have highly increased. Strict implementation of career traing projects for rual
laborers has promoted labor transition and met demands in the number of laborers for IPs in Hung Yen.
Environment management
Environment management at IPs is more closely established. Many legal documents related to
environment management at IPs are issued, creating legal corridors for enterprises and relevant
ulations agencies. Waste control is mentioned at planning stage. Audit and supervision of any violation
on environment protection regulations are frequently carried out.
- 18 -


3.4.1 Assessment of limitations of management of IPs development in Hung Yen towards
sustainability

Industrial zone planning
Planning industrial zones in the direction of sustainable development: Actual planning
implementation, adjustment and supplement for many times have shown planning is still spreading,
shorrt-term and slow.
Construction of industrial park infrastructure
Infrastructure construction in IPs in Hung Yen has many outstanding problems sucgh as land
policies, and land acquisition policies, slow implementation of infrastructure Investment attraction in
industrial zones
Investment attraction into IPs
Investment attraction into IPs has had some limiations:
+ Few projects with big investment and high-tech contents at IPs
+ Ineffective investment promotion, sometimes passive.
Training, development and supply of human resources
The training, development and supply of human resources for enterprises in the IPs are still
limited, resulting into failure to meet requirements of investment attraction. Industrial parks were
established and put into operation in the northern area of the province; this area concentrates nearly
80% of enterprises/projects in the province. Therefore, laborer recruitment in this area faces many
difficulties, especially enterprises with a big demand for labor. In addition, some vocational training
centers in the province are still incapable, so they cannot meet demands of enterprises, especially the
demands in high skilled human resources;
Social infrastructure management at IPs
+ Inadequate supply of housing for laborers in the industrial park. Construction and supply of
social housing for laborers and assurance of living environment for laborers in industrial parks such as
markets, schools, medical facilities, cultural houses, etc. only had unfeasible results due to limited
budget and difficult invesor mobilization caused by slow capital recovery, low investment efficiency,
difficulties in bank capital approach while investment profits from these projects are low. Abandoned
land is a waste of social properties which reduces investment use effeciency.
+ Inadequacies in management of rental accomodations for laborers in IPs
Laborers away from home in industrial zones in Hung Yen mostly rent accommodation at local
resident's houses in rural areas. These are spontaneously formed next to industrial parks and industrial

clusters. Most of houses for laborers in industrial zones have not met construction standards, basic
living conditions such as unsatisfactory living areas, toilets, electricity, water, security. On the other
hand, living in rural areas is unsuitable due to working shifts. There are very few cultural/sport
activities for laborers in residential areas. Moreover, accommodation areas also make environmental
pollution and damage architectural landscape of the rural areas.
Environmental management in industrial parks
Several IPs have failed to comply with investment into internal environmental protection
projects succh as surface water collection system, waste water collection system and internal waste
- 19 -


water treatent plant s as shown in the approved environment impact assessment reports or approved
environment protection commitment.
Some IPs have not yet implemented the internal environmental protection projects according to
the approved environmental impact assessment report or the approved environmental protection report,
so the environmental pollution of some IPs still occurs.
Compliance with legal laws by some enterprises is not good so they intentionally run ây from
any inspection and supervision by the relevant agencies. The legal system on environmental protection
has many limitations, especially unstrict sanctions for any violation by enterprises.
Although IPs Management Board is the direct agency for implementation of environment
protection of IPs, this board has not been authorized by the provincial people's committe to verify
enviroment impact evaluation reports, so effeciency of the Statement mângement of enviroment by the
management board is not high yet.
3.4.3 Causes of limitations
Main causes of outstanding problems at IPs in Hung Yen Provinces come from many different
aspects, from managerial levels to enterprises at IPs. Pointing out those causes and improvement of
these limitations shall help development of IPs in Hung Yen towards sustainability.
Incomprehensive awareness of sustainable development
Although Vietnam 's sustainable development strategy is strongly committed through many
programs, decrees and commitments, the country in general and Hung Yen province in particular have

not been fully aware of the role and the meaning of the sustainable development.
Socio-economic policies are still prone to the rapid economic growth, but not paying attention
to the sustainability while expoitation and use of natural resources and environment protection. In the
other word, environment protection policies fucus on resolution of environment incidents, but not have
any long-term orientation for satifaction of future social demands. Planning and making plans of socioeconomic development and making environment protection policies are not yet closely coordinated.
Management mechanisim and SD supervision have not been clearly established and taken into valid.
Missing institutions of State management of IPs development
Currently, legal law system on IPs development in our country still has many outstanding
problems. Policies are slowy updated and renewed in accordance with general development of IPs.
There are no master planning of IPs in the direction of IPss developent in association with growth
model renewal and socio-economic development of the nation.
Ineffective management tools for IPs development in Hung Yen towards sustainability
Despite Hung Yen always proactively pushes up investment attraction activities towards SD via
introduced policies, IPs development strategies of the province have not been specifically given out.
Resource training and development in terms of quality and quantity are still limitted.
Incentive policies have been given out for investment attraction into IPs, but policies,
assessment sanctions and violation treatment have not been sufficient. This has resulted into that
enterprises run ây from obligations of taxes and insurances for employees and investment into
industrail waste. Cororrdination between IPs Management Board and departments and district people's
committes where IPs are located is inefffective, so there is no connection in production.
- 20 -


Limitations of mamnagement capacility of IPs Management Board in Hung Yen
Currently, all leaders and officials under IPs Management Board in Hung Yen clearly
understand importance and nessessity of SD implementation; however, capability of working in the
integration environment is limited and they have no ability to directly communicate with foreign
enterprises. Furthermore, incapailities of some officials have resulted into failure to affirm position and
rold of Management Board in modernization and industrialization of the province.
Chapter 4

SOLUTIONS FOR MANAGEMENT OF IPs DEVELOPMENT TOWARDS
SUSTAINABILITY
4.1 Domestic & worldwide context
4.1.1 Worldwide context
Impacts of the sustainable development requirements
Impacts of International Integration
Impacts of climate change, natural resource & environment degradation (Agreement COP21)
Fourth industrial revolution (Revolution 4.0)
4.1.2 Context in Vietnam
Management of IPs development towards sustainability in Hung Yen suffers strong effects of
changes in environmental & socio-economic situation in Vietnam
First of all, it is required to mention about environmental pollution in Vietnam at alarming level
to be solved.
Climate change has big impacts on industries and developments of IPs.
Sustainable economic development goal oritentation during the period 2016-2020 by Vietnam
has created basic legal frame for IPs development
For implementation of SD targets as set out by National Party Conference and implementation
of international committement on SD, Prime Minister already approved Orientation of SD Strategy in
Vietnam (Meeting Agenda 21 of Vietnam)
Currently, Vietnam has been the official member of ASEAN, APEC, ASEM, WTO. The
Poliburo Decision No. 22-NQ/TW dated 10/04/2013 on International integration há already orinted and
identifies opinions for instructions for international integration; of which, "economic integration is the
core issue and integration of the other fields shall facilitate economic integration and make active
contributions to economic development, national defense consolidation, national security, national
culture identity preservation and promotion and socio-cultural development promotion". The deeper
the international integration is, the greater the impacts on SD are, bringing both more opportunities and
challenges for the country.
Globalization tendency and stable growth are big challenges requiring enterprises to change.
Vietnamese enterprises shall have to face competitiveness not only in terms of production criteria such
as prices and quality but also cope with pressure in creation of high-tech service products which are

friendly with the environment and users.
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4.2 Potentuions and advantages of Hung Yen Province for IPs development
4.2.1 Potentials and advantages
4.2.2 Difficulties and challenges
4.3 Points of view and orientation of management of IPs development towards sustainability in
Hung Yen Province
4.3.1 Points of view of management of IPs development in Hung Yen Provine towards sustainability
In view of the worldwide and domestic contexts along with actual status of management of IPs
development towards sustainanability, the author hereby gives out points of view of management of
IPs development in Hung Yen Province towards sustainability as follows:
Management of IPs development in Hung Yen Province shall be suitable to internaltional
integration tendency and sustainable development, comply with national & economic region planning
principles of IPs establishment and development. Manage IPs development in the Hung Yen Province
teritory towards sustainability and with harmonization of "three key factors" namely economy, culturesociety-human and environment.
Manage IPs development towards development quality enhancement and concentration on
quality, operation effeciency, investment restructuring via technology reenewal, product quality
enhancement, industry connection enhancement and sector development orientation suitable according
to the local conditions. Accordingly, construction and development of specialized and creative IPs
IPs development management in Hung Yen Province towards modernization and effeciency via
construction and implementation of mechanisms and policies on IPs management in compliance with
national regulations and sepecific policies/characteristics of Hung Yen Province in order to create
specific advantages for IPs development in Hung Yen towards sustainability.
IPs development management in Hung Yen Province towards sustainability starts from
homogenous and modern IPs infrastructure construction and development including both technical
infrastructures and social infrastures.
4.3.2 IPs development management orientaion in Hung Yen Province towards sustainability
The author hereby suggests for IPs development management orientations in Hung Yen

Province towards sustainability including:
IPs planning shall have to be according to the sustainable development in terms of economy,
society and environment. IPs development planning shall be synchronous and ensure connection
between the local and nearby provinces.
Domestic & oversea investment attraction shall be selective to ensure occupancy of IPs of Hung
Yen Province
Homogenous construction of synchrounous & modern infrastructures of IPs
Resolution of jobs for laborers and human resource training, living standard enhance for
laborers at IPs, especially resettlement of accommodation issues for workers at IPs
Acceptance of advanced technologies and management experiences
Sttudy and application and development of ecology IP model in Hung Yen Province
IPs development mangement shall be along with strengthening, innovation, effeciency
enhancement and effectiveness of State management agencies for industrial parks.
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4.4 Solution for IPs development management towards sustainability in Hung Yen Province
Solutions for IPs development management in Hung Yen Province towards sustainability proposed in
the thesis are based on some experiences in the sustainable development of IPs in Vietnam and in the world
and also pursuant to anayses and limitations of IPs development management in Hung Yen towards
sustainability
4.4.1 Solution group belonging to the Government's general mechanisms and policies
* Legal completion of IPs management
For creation of legal corridors, it is necessary to have a separate Law on IPs, EZs and EPZs,
which clearly defines the functions, tasks, authority and organizational structure of IPs Management
Board, especially the authority in the environment field and audit for inspection enhancement during
IPs & EZs investment and development and environmental protection towards sustainable
development.
Besides, it is required to finish IPs development comprehension towards the sustainable
development (estimated in the separate laws on IPs and EZs), including regiona development

orientation (sustainable); investment attraction careers, functional areas for comprehensive
development in the industrial park.
* Completion of hierachical classification and decentralization of State management for
IPs
Clearly fix authority and resonsibilities of each agency and organization for EZs & IPs
management
Build effective cooperation mechanisms for IPs management between IPs Management Board
and the local agencies
Finish IPs management organization models in accordance with IPs development planning
orientation across the country.
4.4.2 Solutions to awareness of sustainable development
a. The State agencies should clarify responsibilities of objects related to IPs sustainable
development
b. Change the State agencies' awareness of IPs development management towards sustainability
4.4.3 Solutions directly related to IPs development management towards sustainability
4.4.3.1 Solutions for IPs development management towards economic sustainability
a. Quality enhancement of IPs development lanning towards sustainability
b. Solutions for sustainable development of IPs infrastructure
Enhancement and diversification of investment capital for Hung Yen IPs infrastructure
construction; of which, maximize public-prive cooperation.
Synchronous and modern technical and social infrastructure construction both inside and
outside industrial park fences.
c. Investment attraction towards sustainability into IPs
4.4.3.2 Solutions for IPs development management towards soicial sustainability
a. Policy mechanism related to land acquisition and compensation
b. Solution to housing for workers at IPs
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