VSIP celebrates 20 years of success

The event marking the milestone was organised in Binh Duong and was graced by His Excellency Truong Hoa Binh, Deputy Prime Minister of Vietnam, and His Excellency Teo Chee Hean, Deputy Prime Minister of Singapore.

Since its founding in 1996 under a landmark agreement between the Prime Ministers of Vietnam and Singapore, VSIP has been flourishing and continuously expanding. As the leading developer in Vietnam with a presence that now extends to seven sites across the country, VSIP has become a symbol of the close ties between Vietnam and Singapore and an emblem of successful economic cooperation.

Over the last two decades, the joint venture has drawn $9 billion in investments from more than 630 multinational companies. Besides helping to drive a value-added economic transformation through bringing in international manufacturers, VSIP has also delivered a wide societal impact to local communities across Vietnam. More than 174,000 jobs have been created in the industrial service sector thanks to VSIP’s undaunted march forward, supporting the rise of the country’s middle class.

Speaking at the event, Teo Chee Hean said that the VSIPs have evolved over the years to cater to Vietnam’s changing needs. As a stark contrast to the initial industrial parks, today’s VSIPs are integrated townships which attract higher value-added industries and skilled manpower.

“As the Vietnamese economy moves up the value chain, the VSIPs can be testbeds for new areas, such as urban solutions and high-technology manufacturing,” he said.

Truong Hoa Binh also lauded the achievement, saying, “VSIP has been associated with innovation and development thanks to its contribution to growing the local economy and enhancing the Vietnamese-Singaporean partnership.”

“The Vietnamese Government warmly appreciates the contribution of Singaporean businesses in Vietnam and pledges to continue putting in place policies to stabilize the investment environment and to continue creating favourable conditions for foreign enterprises in general and Singaporean ones in particular,” he noted.

Riding on the success, VSIP announced that it has signed memoranda of understanding (MOU) to explore two new expansions in Binh Duong and Bac Ninh provinces. These will potentially add 1,500 hectares to the 6,660-hectare gross land area handled by the company, which now spans across Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong, and Nghe An provinces.

Kelvin Teo, CEO of Sembcorp Development and VSIP co-chairman, said that the early decision to position VSIP to cater for international companies with international standards has bore fruit. Coupled with modern master plans that integrate working, living, entertainment, and learning elements in areas outside of the city centres, VSIP has been able to offer customers solutions that meet their operating needs.

“The new expansions are not confirmed yet, we are still conducting the feasibility studies. VSIP is exploring innovation hubs for Vietnam as we believe that the country can embrace greater sophistication expected of foreign factories,” he added.

In addition, VSIP also unveiled its new corporate logo, an icon that captures the spirit of partnership and the power of shared aspirations, at the anniversary event.

VSIP J.V. Co. is 49 per cent held by Vietnamese state-owned enterprise Becamex IDC Corporation, with the remaining 51 per cent held by a Singaporean consortium led by Sembcorp Development. Sembcorp holds 92.9 per cent of this consortium.