Renewable energy utilised in industrial parks

To promote sustainable development, businesses operating in industrial parks across Ho Chi Minh City are increasingly turning to renewable energy for their production needs. Some next-generation industrial parks have begun incorporating renewable power into their planning, contributing to the creation of net-zero industrial zones.

Rooftop solar power system at VSIP 3, Ho Chi Minh City.
Rooftop solar power system at VSIP 3, Ho Chi Minh City.

The supply and use of renewable energy within industrial zones not only ensures a stable and uninterrupted power source for investors but also reduces dependence on the national grid, playing a crucial role in Viet Nam’s national commitment to combating climate change.

Renewable energy-based production model

In April 2025, LEGO Group (DenmarK) inaugurated the high-tech LEGO Manufacturing Viet Nam plant, with a total investment of over 1.3 billion USD, located in the Viet Nam-Singapore Industrial Park 3 (VSIP 3), Ho Chi Minh City.

With the installation of 12,400 rooftop solar panels, the plant is expected to run entirely on renewable energy by early 2026. By focusing on green production powered by renewables, LEGO Manufacturing Viet Nam is currently the most environmentally friendly facility of the LEGO Group worldwide.

In addition to rooftop solar installation, LEGO has partnered with VSIP to build an Energy Centre on an adjacent plot of land.

The centre will house Viet Nam’s first large-scale battery energy storage system, slated to be operational by the end of 2025.

Carsten Rasmussen, Chief Operating Officer of LEGO Group, expressed pride in Viet Nam’s progress towards sustainable development. This not only enables LEGO to make a greater positive impact locally but also helps the company meet its global targets.

The deployment of battery energy storage solutions alongside power purchase agreements to increase the share of renewable energy use is a pioneering move by LEGO, and one of the first such initiatives implemented by a business in Viet Nam. By collaborating with local partners to develop the necessary legal and policy frameworks, LEGO is also helping to pave the way for other businesses to adopt renewable energy.

Alongside manufacturers transitioning to next-generation, sustainability-focused industrial parks, many zones in Ho Chi Minh City have been actively exploring renewable energy to provide on-site power for their tenants.

The Viet Nam-Singapore Industrial Parks (VSIPs) are leading this trend, demonstrating a model where the government creates the enabling environment, and enterprises take the lead. In September 2019, shareholders of the Viet Nam-Singapore Industrial Park Joint Venture Company, including Becamex IDC Corporation and Singapore’s Sembcorp Development, signed an agreement to establish a joint venture that would bring smart energy solutions to the Vietnamese market.

Expanding the number of renewable-powered industrial parks

Under the agreement, Becamex IDC and VSIP partnered with Sembcorp Smart Energy Solutions Viet Nam—a subsidiary of Sembcorp Group—to launch a platform providing integrated energy services and efficiency tools for their joint projects in Viet Nam.

With multiple VSIPs nationwide and extensive industrial real estate infrastructure, Becamex IDC and Sembcorp are enabling clients to operate using green and renewable energy. This allows them to meet environmental sustainability goals, while also lowering operational costs and enhancing competitiveness.

In March 2022, the VSIP broke ground on the 1,000-hectare VSIP 3, distinguished by a 50-hectare on-site solar farm. This facility enhances the reliability and sustainability of electricity supply for investors operating in the park. LEGO Group is the first investor to benefit from this purpose-built solar farm.

Following the example of VSIP 3, in May 2025, Becamex IDC launched two strategic projects: the 700-hectare Cay Truong Industrial Park and the expansion phase 2 of Bau Bang Industrial Park with 380 hectares.

Pham Ngoc Thuan, Vice Chairman of Becamex IDC’s Board of Directors, stated: “With a focus on ensuring a clean and stable power supply, Becamex IDC has planned these two industrial parks close to large-scale renewable energy projects, forming a complete industrial-energy ecosystem geared toward achieving net-zero emissions. We are actively promoting the integration of green power sources through rooftop solar systems at factories, the development of solar farms, and other forms of renewable energy to support stable and sustainable operations for investors within the parks.”

Following recent administrative restructuring, Ho Chi Minh City now has 64 out of 67 industrial and export processing zones in active operation.

Vo Van Minh, Deputy Secretary of the City Party Committee and Chairman of the People’s Council of Ho Chi Minh City, noted that in addition to modern infrastructure, the city’s industrial parks are consistently aligned with the green industrial zone model. These areas are committed to environmental protection, offering solutions for the transition to clean and renewable energy, including solar power, and for reducing waste and emissions, in line with Viet Nam’s green and sustainable economic development goals.

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