Sembcorp embraces a next-generation industrial ecosystem

He raised three questions: “Why Vietnam? Why invest here? Why manufacture here?”

For policymakers, this is a competitiveness agenda. For investors, it is a growth opportunity. For developers, it is a call to build the ecosystems that will define the next decade of industrial value creation, Boon said.

Photo courtesy of Sembcorp

Thirty years ago, Sembcorp built the first Vietnam-Singapore Industrial Park (VSIP) in Binh Duong. Today, with close to 30 VSIPs across the country, Sembcorp has seen Vietnam’s transformation first-hand, from a competitive manufacturing base into a platform for higher-value industry and modern services.

“Why can't Vietnam become Asia's most compelling destination for advanced manufacturing and a leader in digital infrastructure? Why not build a new generation of industrial ecosystems where technology, sustainability, people and innovation come together?” he explained.

The question now is how far Vietnam can go, and how quickly government, investors, and developers can work together to build the ecosystems that will take it there.

According to Boon, three forces are reshaping the global economy – supply chain reconfiguration, AI, and energy resilience. Together, they are changing what countries, investors, and developers must build to stay competitive.

"In recent years, many companies have pursued a China+1 strategy," Boon said. "Diversification, however, is easier in theory than in practice. Factories can be built. But ecosystems cannot be replicated overnight. Supply chains don't move for lower costs alone. They move where capabilities exist. And capabilities will only flourish within strong ecosystems."

The second aspect is AI, which is creating massive productivity gains. But it is also creating unprecedented demand for power, water, infrastructure, and connectivity. The countries that succeed will build the ecosystems that enable it.

"Thirdly, higher energy costs have given greater urgency to efficiency and sustainability. Investors are asking at what cost can growth be delivered sustainably. Against this backdrop, competitiveness increasingly depends on ecosystem strength," Boon said.

As industries move up the value chain, investor expectations are also changing. These rising expectations are accelerating the demand for eco-IPs globally, where sustainability is no longer an add-on but a basis for competition.

“We are already seeing this in Singapore, China, India, and the Middle East,” Boon said. “Location, labour, and infrastructure still matter. But they are no longer enough. Leading manufacturers now want ecosystems that improve efficiency, strengthen resilience, and help them meet sustainability goals.”

Sembcorp takes a disciplined approach to design for sustainability from the outset, build the systems that support low-carbon growth, and measure outcomes that turn targets into performance, he explained. Its approach brings energy, resources, infrastructure, and industrial activity together, allowing sustainability to be designed, built, and measured as part of industrial performance.

The group has already achieved a LEED Volume Prototype approval – the first in Vietnam. This is a repeatable framework for green industrial buildings, now applied across all its logistics parks and integrated hubs. This enables tenants to benefit from consistent sustainability features across their industrial spaces in Vietnam.

In VSIP Haiphong, Sembcorp has also achieved independently verified ISO carbon neutrality certification, the first industrial park in Vietnam to do so.

“Sustainability is a journey, not a destination. It requires us to understand emissions, build the right systems, and measure progress. When we do that well, sustainability becomes part of industrial performance, and that creates value,” Boon stated.

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