The International Finance Corporation ( IFC ), the private finance arm of the World Bank, has signed a cooperation agreement to implement an eco-industrial park ( EIP ) assessment programme across industrial-urban zones in Vietnam co-developed by local developer Becamex and Singapore-based industrial land developer VSIP.

The IFC, the largest global development institution focused on the private sector in emerging markets, inked the partnership on July 16 in Ho Chi Minh City, Vietnam’s southern economic powerhouse, which along with the two provinces of Binh Duong and Ba Ria-Vung Tau, have been incorporated into a single region that is responsible for a quarter of the nation’s GDP.

The IFC-Becamex-VSIP partnership aims to expand pilot EIP models towards global standards and serve as a platform to access green financing for sustainable industrial development.

VSIP is a joint venture between Vietnamese industrial–urban zone developer Becamex and Singapore's Sembcorp Industries, a leading renewables player and an established industrial and urban solutions provider in Asia.

Greener future in industrial production

Through the Global Eco-Industrial Park Assessment and Certification programme, the IFC will support Becamex in conducting initial diagnostics of up to five industrial parks based on the IFC’s global EIP certification framework.

The assessment will help identify high-level strengths, gaps and opportunities for improvement across key environmental, social and governance ( ESG ) pillars, including park management, environmental performance, social inclusion and economic efficiency.

It will also provide, according to the IFC, a roadmap for technical planning, operational improvements and investment mobilization.

“With Vietnam enhancing its position in global supply chains, adopting the EIP model is crucial for sustainable growth”, says Diep Nguyen van-Houtte, global senior manager for climate business at the IFC. “This strategic move aims to boost the country’s green competitiveness, reduce greenhouse gas emissions, attract high-quality investments and, crucially, generate new, better jobs.

“The IFC is proud to support Becamex in driving this vital green industrial transformation, delivering wins for both the economy and the environment.”

Becamex CEO Nguyen Hoan Vu echoes this sentiment: “Partnering with IFC is a strategic move to strengthen the ESG capabilities of the Becamex and VSIP ecosystem, and establish a foundation for accessing green finance that supports inclusive and responsible growth.”

World Bank efforts go on

The new partnership marks a milestone that continues the collaboration between Becamex and the World Bank Group since 2022. Over the past years, the two sides have carried out technical assistance programmes for pre-feasibility and feasibility studies to develop EIPs in Vietnam.

Both Becamex and Singapore-backed VSIP are headquartered in former Binh Duong province, now part of new Ho Chi Minh City. Binh Duong is also home to Danish toymaker Lego Group’s US$1.3 billion “green” factory covering 44 hectares inside VSIP 3 industrial park.

The manufacturing facility, Lego’s sixth and newest factory in the world, was officially launched this April and has plans to run on 100% renewable energy by 2026, using rooftop solar and Vietnam’s first large-scale battery storage solution.

The IFC-Becamex-VSIP partnership, the IFC adds, will also deliver a platform to align visions and foster deeper collaboration on green industrial transformation, contributing to Vietnam’s goal of achieving net-zero emissions by 2050.