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Cities and Economic Zones
Arnault Morisson
Tam Ky – 7 May 2015:
2
AGENDA
2
 UNIDO in brief
 Cities are more important than ever
 Two emerging trends in urban development
 Eco-Industrial Parks (EIP)
 Innovation Districts (ID)
 Wrap-up
3
In brief
UNIDO is the specialized agency of the United Nations that promotes industrial development
for poverty reduction, inclusive globalization and environmental sustainability.
The mandate of the United Nations Industrial Development Organization (UNIDO) is to
promote and accelerate inclusive and sustainable industrial development in developing
countries and economies in transition.
3
4
In brief
UNIDO aspires to reduce poverty through inclusive and sustainable industrial development.
All countries should have the opportunity to grow a flourishing productive sector, to increase
their participation in international trade and to safeguard their environment.
Inclusive and sustainable industrial development (ISID) means that:
• Every country achieves a higher level of industrialization in their economies, and benefits
from the globalization of markets for industrial goods and services.
• No one is left behind in benefiting from industrial growth, and prosperity is shared among
women and men in all countries.
• Broader economic and social growth is supported within an environmentally sustainable
framework.
• Unique knowledge and resources are combined of all relevant development actors to
maximize the development impact of ISID.
4
55
Industrial Parks
Trafford Industrial Park
Manchester (UK), 1898
Special Economic Zones
Shannon SEZ
Ireland, 1958
Eco-Industrial Parks
Kalundborg
Denmark, 1990
Technology Parks
Research Triangle Park
North Carolina (USA), 1959
Innovation Districts
22@ Barcelona
Barcelona (Spain), 2000
THE FIVE TYPES OF ECONOMIC ZONES
ECONOMIC ZONES aim to strengthen the competitiveness of a location
66
INDUSTRIAL
PARKS
SPECIAL
ECONOMIC
ZONES
ECO-
INDUSTRIAL
PARKS
TECHNOLOGY
PARKS
INNOVATION
DISTRICTS
STAGEOFECONOMICDEVELOPMENT
TYPE OF ECONOMIC ZONES
1
2
3
GLOBAL SCALE: International regulatory systems (e.g. WTO, UN…)
PLURI-NATIONAL SCALE: Multinational trading blocs (e.g. EU, ASEAN…)
Free-trade areas (e.g. TPP )
NATIONAL SCALE: Convergence to neo-liberal policies
dismantlement of the welfare state
Urban competitiveness is increasingly important:
1
2
ICT: making the world flat? Not really.
GLOBALIZATION: outsourcing
In the developed countries, old industrial centers such as Detroit (USA), or the Ruhr
(GERMANY) are in crisis
Innovative clusters however, such as the Silicon Valley are thriving.
3 URBAN POLICIES: from comparative advantage to competitive advantage
4 FOCUS ON INNOVATION: highly localized
Urban competitiveness is increasingly important:
99
ECO-INDUSTRIAL PARKS
1010
What is an Eco-Industrial Park?
EIP is a community of manufacturing and service businesses seeking
enhanced environmental and economic performance by collaborating in the
management of environmental and reuse issues. By working together the
community of businesses seeks a collective benefit that is greater than the
sum of the individual benefits each company would realize if it optimized its
individual performance only.
The United States Environmental Protection Agency (USEPA)
1111
Contribute to the economic and environmental well-being of the
community
1
2
3
Improve the economic performance of the participating companies
Minimize the companies’ environmental impacts
The three objectives of an EIP are to:
(Lowe, 2001).
1212
Three types of Eco-Industrial Parks:
1
2
3
Top-down EIPs refer to planned Eco-Industrial Parks from scratch by a
private, nongovernmental, or public authority; some EIPs in China are Top-
down EIPs.
Bottom-up EIPs refer to industrial parks that have independently
transformed themselves into EIPs. Kalundborg in Denmark is the
most famous bottom-up EIP.
Retrofitted EIPs refer to industrial parks that were transformed into EIPs
thanks to the actions of a private, nongovernmental, or public
authority. Retrofitted EIPs are the most common types of EIPs.
1313
How to achieve the Eco-Industrial Parks:
1
2
3
4
5
Industrial Ecology – Byproduct exchanges
Information technologies – (GIS) geographic information system
Clean energy and efficient water management
Efficient EIP management
Industries - adopt energy efficiency production models
1414
Kalundborg – The model Eco-Industrial Park
1
Industrial Ecology –
Byproduct exchanges
1515
1616
The concept of Eco-Industrial Park is the by-product of two powerful ideas: sustainability and industrial
ecology. However, even though EIPs are supposed to be primarily based on an environmental and
social agenda, the primary driver for eco-industrial parks is financial benefits.
1717
Industrial parks have been essential in Viet Nam’s economic transformation
1991 The first industrial park opens in HCMC, today there are 289 industrial parks in Viet Nam
Industrial parks represent 40 % of the total exports40%
However, there is an impact on the environment.
91 industrial parks have not constructed a central waste water treatment
Employees suffer occupational hazards such as bronchitis…
Water, seawater and groundwater pollution
Negative effects on agriculture
1818
The first Eco-Industrial Parks in Viet Nam
In 2015, launch of the project on Eco-Industrial parks in Viet Nam, the three-years project is funded
by GEF and SECO and implemented by UNIDO and MPI.
UNIDO is retrofitting three existing industrial into eco-Industrial parks, they have been chosen due to
their diverse industrial base and their proximity to unique ecosystem Red River Basin and Mekong delta.
They are also located in three distinct regions, North, Center, and South, so that the EIP concept
can spread to every Vietnamese province.
Name/City IZ Khanh Phu / Ninh Binh IZ Hoa Khanh / Danang IZ Tra Noc1&2 / Can Tho
Year of operation 2004 1998 1968 (renovated 1995)
Total surface area (ha) 366 396 (298 leased) 320
Number of companies 27 139 187
Number of employees 6800 28070 17267 (Tra Noc 1)
Industrial sectors Iron&steel processing, chemical
industry, communication devices,
construction material, glass,
garment, plating
Iron&steel processing, chemical
industry, energy generation,
construction material,
food&beverage, textile, garment,
electronics, pharmaceutical,
plastics, paint manufacture,
pulp&paper, packaging, plating
Iron&steel processing, chemical
industry, energy generation,
food&beverage, garment,
electronics, leather,
pharmaceutical, plastics, ceramics,
construction material, packaging
Environmental features nearby Day River (distributary of red
river)
Bau Tram lake (water supply for
agriculture and aquaculture), sea
coast
Adjacent to Mekong river (Song
Hau)
Settlement areas Residential areas of Khanh Phu
commune nearby
Residential area adjacent 10 km from Can Tho city
Industrial waste water (m3/d) 5000 (treated) 2000-3000 (treated) 12,000 (no central treatment)
Hazardous waste (kg/d) N/A >1000 100
Environmental issues Gaseous emissions (dust, SO2,
NOx, GHG, UP-POP)
Waste water quality (COD),
groundwater contamination,
gaseous emissions (GHG, UP-
POP)
Waste water quality (SS, COD,
BOD), gaseous emissions (dust,
GHG, UP-POP)
1919
Overview
Policy review Capacity-building Energy efficiency
Byproduct
exchangeWater
Provisions in the
planning of
industrial parks
improving the IZ
policy and
regulatory
framework
Raising
awareness among
managers on
energy efficiency
funding
mechanisms (e.g.
Swiss Green
Credit Fund,
Vietnam
Environmental
protection fund)
Selecting 30
companies for
funding for energy
efficient
production
method
Survey among
the industries to
identify and map
potential
byproduct
exchanges
Centralized
Wastewater
facilities, efficient
water
management
system
2020
Benefits of the project on Eco-Industrial Parks in Viet Nam
For industries For the industrial parks For the communities
Less air and water
pollution
 Quality Agriculture
and fishing
 Better and healthier
lives
 New employment
opportunities
 Attractive to green
companies
 New employment
opportunities
 Regional anchor for
sustainable practices
 Reducing waste and
raw materials costs
 Increased profits
 More competitive
and efficient
 Green image
For the environment
 182,000t/a CO2 of
estimated saving
 Reducing waste water
by six million cubic
metersper year
Reducing Persistent
Organic pollutants
(POPs )
2121
INNOVATION DISTRICTS
INNOVATION IS FLOWING BACK TO CITIES
FROM TECHNOLOGY PARKS
e.g. Sophia Antipolis
TO CITIES
Where innovation is created
“The 20th century urban planning represents a reaction to the evils of the 19th
century city.” The 21th century urban planning is thus a reaction of the evils of
the 20th century. Peter Hall (1988).
1
2
THE AUTOMOBILES
URBAN SPRAWL
The two evils of 20th Century.
Automobiles and urban sprawl = pollution and inefficiencies
1
2
THE CREATIVE CLASS – LIVE/WORK/PLAY
SINGLE-PERSON HOUSEHOLDS
3
4
THE EXPERIENCE ECONOMY
URBAN MOBILITY
Many factors explain the migration from the suburbs to downtown
22@ Barcelona
Before
After
WHAT IS THE FRAMEWORK?
CREATIVE PRODUCTIVE
URBAN INNOVATIVE
LEADERSHIP
URBAN PRODUCTIVECREATIVE INNOVATIVELEADERSHIP
ENTREPRENEURS
REAL-ESTATE
COMPANIES
MUNICIPALITY
MIXED-USED
SMART CITY
DIVERSITY
DENSITY
COMPACT
HISTORIC BUILDING
INFRASTRUCTURES
ICONIC BUILDINGS
CREATIVE CITY
IDENTITY
CREATIVE CLASS
STREETCULTUREBRANDING
UNIVERSITIES
TRIPLE-HELIX
TACIT KNOWLEDGE
PROXIMITY
CLUSTERS
DIVERSITY
KNOWLEDGE-ACTIVITIES
ENTREPRENEURSHIP
3030
Wrap-up:
 Cities have more power today due to the relative decline of countries’ sovereignty.
 The right local economic strategy depends on the country’s stage of economic development.
 Viet Nam is the middle-income country, the focus has to be on innovation and sustainable growth.
 The local economic strategy has to deliver financial benefits when planning for sustainable urban
developments in order to be viable in the long-run.
 Eco-Industrial Parks and Innovation Districts have to not only be environmentally sound but also
have to bring financial and social benefits to the industries, companies, and wider community.
THANK YOU FOR YOUR ATTENTION!
Arnault Morisson| UNIDO Viet Nam
a.morisson@unido.org

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UN-HABITAT - UNIDO - TAM KY

  • 1. Cities and Economic Zones Arnault Morisson Tam Ky – 7 May 2015:
  • 2. 2 AGENDA 2  UNIDO in brief  Cities are more important than ever  Two emerging trends in urban development  Eco-Industrial Parks (EIP)  Innovation Districts (ID)  Wrap-up
  • 3. 3 In brief UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. The mandate of the United Nations Industrial Development Organization (UNIDO) is to promote and accelerate inclusive and sustainable industrial development in developing countries and economies in transition. 3
  • 4. 4 In brief UNIDO aspires to reduce poverty through inclusive and sustainable industrial development. All countries should have the opportunity to grow a flourishing productive sector, to increase their participation in international trade and to safeguard their environment. Inclusive and sustainable industrial development (ISID) means that: • Every country achieves a higher level of industrialization in their economies, and benefits from the globalization of markets for industrial goods and services. • No one is left behind in benefiting from industrial growth, and prosperity is shared among women and men in all countries. • Broader economic and social growth is supported within an environmentally sustainable framework. • Unique knowledge and resources are combined of all relevant development actors to maximize the development impact of ISID. 4
  • 5. 55 Industrial Parks Trafford Industrial Park Manchester (UK), 1898 Special Economic Zones Shannon SEZ Ireland, 1958 Eco-Industrial Parks Kalundborg Denmark, 1990 Technology Parks Research Triangle Park North Carolina (USA), 1959 Innovation Districts 22@ Barcelona Barcelona (Spain), 2000 THE FIVE TYPES OF ECONOMIC ZONES ECONOMIC ZONES aim to strengthen the competitiveness of a location
  • 7. 1 2 3 GLOBAL SCALE: International regulatory systems (e.g. WTO, UN…) PLURI-NATIONAL SCALE: Multinational trading blocs (e.g. EU, ASEAN…) Free-trade areas (e.g. TPP ) NATIONAL SCALE: Convergence to neo-liberal policies dismantlement of the welfare state Urban competitiveness is increasingly important:
  • 8. 1 2 ICT: making the world flat? Not really. GLOBALIZATION: outsourcing In the developed countries, old industrial centers such as Detroit (USA), or the Ruhr (GERMANY) are in crisis Innovative clusters however, such as the Silicon Valley are thriving. 3 URBAN POLICIES: from comparative advantage to competitive advantage 4 FOCUS ON INNOVATION: highly localized Urban competitiveness is increasingly important:
  • 10. 1010 What is an Eco-Industrial Park? EIP is a community of manufacturing and service businesses seeking enhanced environmental and economic performance by collaborating in the management of environmental and reuse issues. By working together the community of businesses seeks a collective benefit that is greater than the sum of the individual benefits each company would realize if it optimized its individual performance only. The United States Environmental Protection Agency (USEPA)
  • 11. 1111 Contribute to the economic and environmental well-being of the community 1 2 3 Improve the economic performance of the participating companies Minimize the companies’ environmental impacts The three objectives of an EIP are to: (Lowe, 2001).
  • 12. 1212 Three types of Eco-Industrial Parks: 1 2 3 Top-down EIPs refer to planned Eco-Industrial Parks from scratch by a private, nongovernmental, or public authority; some EIPs in China are Top- down EIPs. Bottom-up EIPs refer to industrial parks that have independently transformed themselves into EIPs. Kalundborg in Denmark is the most famous bottom-up EIP. Retrofitted EIPs refer to industrial parks that were transformed into EIPs thanks to the actions of a private, nongovernmental, or public authority. Retrofitted EIPs are the most common types of EIPs.
  • 13. 1313 How to achieve the Eco-Industrial Parks: 1 2 3 4 5 Industrial Ecology – Byproduct exchanges Information technologies – (GIS) geographic information system Clean energy and efficient water management Efficient EIP management Industries - adopt energy efficiency production models
  • 14. 1414 Kalundborg – The model Eco-Industrial Park 1 Industrial Ecology – Byproduct exchanges
  • 15. 1515
  • 16. 1616 The concept of Eco-Industrial Park is the by-product of two powerful ideas: sustainability and industrial ecology. However, even though EIPs are supposed to be primarily based on an environmental and social agenda, the primary driver for eco-industrial parks is financial benefits.
  • 17. 1717 Industrial parks have been essential in Viet Nam’s economic transformation 1991 The first industrial park opens in HCMC, today there are 289 industrial parks in Viet Nam Industrial parks represent 40 % of the total exports40% However, there is an impact on the environment. 91 industrial parks have not constructed a central waste water treatment Employees suffer occupational hazards such as bronchitis… Water, seawater and groundwater pollution Negative effects on agriculture
  • 18. 1818 The first Eco-Industrial Parks in Viet Nam In 2015, launch of the project on Eco-Industrial parks in Viet Nam, the three-years project is funded by GEF and SECO and implemented by UNIDO and MPI. UNIDO is retrofitting three existing industrial into eco-Industrial parks, they have been chosen due to their diverse industrial base and their proximity to unique ecosystem Red River Basin and Mekong delta. They are also located in three distinct regions, North, Center, and South, so that the EIP concept can spread to every Vietnamese province. Name/City IZ Khanh Phu / Ninh Binh IZ Hoa Khanh / Danang IZ Tra Noc1&2 / Can Tho Year of operation 2004 1998 1968 (renovated 1995) Total surface area (ha) 366 396 (298 leased) 320 Number of companies 27 139 187 Number of employees 6800 28070 17267 (Tra Noc 1) Industrial sectors Iron&steel processing, chemical industry, communication devices, construction material, glass, garment, plating Iron&steel processing, chemical industry, energy generation, construction material, food&beverage, textile, garment, electronics, pharmaceutical, plastics, paint manufacture, pulp&paper, packaging, plating Iron&steel processing, chemical industry, energy generation, food&beverage, garment, electronics, leather, pharmaceutical, plastics, ceramics, construction material, packaging Environmental features nearby Day River (distributary of red river) Bau Tram lake (water supply for agriculture and aquaculture), sea coast Adjacent to Mekong river (Song Hau) Settlement areas Residential areas of Khanh Phu commune nearby Residential area adjacent 10 km from Can Tho city Industrial waste water (m3/d) 5000 (treated) 2000-3000 (treated) 12,000 (no central treatment) Hazardous waste (kg/d) N/A >1000 100 Environmental issues Gaseous emissions (dust, SO2, NOx, GHG, UP-POP) Waste water quality (COD), groundwater contamination, gaseous emissions (GHG, UP- POP) Waste water quality (SS, COD, BOD), gaseous emissions (dust, GHG, UP-POP)
  • 19. 1919 Overview Policy review Capacity-building Energy efficiency Byproduct exchangeWater Provisions in the planning of industrial parks improving the IZ policy and regulatory framework Raising awareness among managers on energy efficiency funding mechanisms (e.g. Swiss Green Credit Fund, Vietnam Environmental protection fund) Selecting 30 companies for funding for energy efficient production method Survey among the industries to identify and map potential byproduct exchanges Centralized Wastewater facilities, efficient water management system
  • 20. 2020 Benefits of the project on Eco-Industrial Parks in Viet Nam For industries For the industrial parks For the communities Less air and water pollution  Quality Agriculture and fishing  Better and healthier lives  New employment opportunities  Attractive to green companies  New employment opportunities  Regional anchor for sustainable practices  Reducing waste and raw materials costs  Increased profits  More competitive and efficient  Green image For the environment  182,000t/a CO2 of estimated saving  Reducing waste water by six million cubic metersper year Reducing Persistent Organic pollutants (POPs )
  • 21. 2121 INNOVATION DISTRICTS INNOVATION IS FLOWING BACK TO CITIES
  • 22. FROM TECHNOLOGY PARKS e.g. Sophia Antipolis TO CITIES Where innovation is created
  • 23. “The 20th century urban planning represents a reaction to the evils of the 19th century city.” The 21th century urban planning is thus a reaction of the evils of the 20th century. Peter Hall (1988). 1 2 THE AUTOMOBILES URBAN SPRAWL The two evils of 20th Century. Automobiles and urban sprawl = pollution and inefficiencies
  • 24.
  • 25. 1 2 THE CREATIVE CLASS – LIVE/WORK/PLAY SINGLE-PERSON HOUSEHOLDS 3 4 THE EXPERIENCE ECONOMY URBAN MOBILITY Many factors explain the migration from the suburbs to downtown
  • 27. WHAT IS THE FRAMEWORK?
  • 29. URBAN PRODUCTIVECREATIVE INNOVATIVELEADERSHIP ENTREPRENEURS REAL-ESTATE COMPANIES MUNICIPALITY MIXED-USED SMART CITY DIVERSITY DENSITY COMPACT HISTORIC BUILDING INFRASTRUCTURES ICONIC BUILDINGS CREATIVE CITY IDENTITY CREATIVE CLASS STREETCULTUREBRANDING UNIVERSITIES TRIPLE-HELIX TACIT KNOWLEDGE PROXIMITY CLUSTERS DIVERSITY KNOWLEDGE-ACTIVITIES ENTREPRENEURSHIP
  • 30. 3030 Wrap-up:  Cities have more power today due to the relative decline of countries’ sovereignty.  The right local economic strategy depends on the country’s stage of economic development.  Viet Nam is the middle-income country, the focus has to be on innovation and sustainable growth.  The local economic strategy has to deliver financial benefits when planning for sustainable urban developments in order to be viable in the long-run.  Eco-Industrial Parks and Innovation Districts have to not only be environmentally sound but also have to bring financial and social benefits to the industries, companies, and wider community.
  • 31. THANK YOU FOR YOUR ATTENTION! Arnault Morisson| UNIDO Viet Nam a.morisson@unido.org