Sembcorp remains a principal driver of Singapore relationship

In early March, Sembcorp held the groundbreaking ceremony for Sembcorp Logistics Park Dinh Vu in Haiphong. How does this latest project serve the demand for industrial real estate in the north, and Haiphong specifically?

James Ng, director of Sembcorp Infra Services

Location is key to meeting tenant needs by optimising operations, reducing logistics costs, and improving efficiency. We have already established four other ready-built facilities in Vietnam-Singapore Industrial Park (VSIP) Haiphong.

Sembcorp Logistics Park Dinh Vu is located within Dinh Vu IP, offering direct access to China’s supply chain, Dinh Vu port, and Lach Huyen deepsea port. As part of Dinh Vu-Cat Hai Economic Zone, the park benefits from government tax incentives, making it a prime option for enterprises.

The government’s ongoing investment in infrastructure, including road, rail, air, and water transport, supports investment growth in northern Vietnam. Haiphong ranked second nationwide for attracting foreign direct investment in 2024. With such an increase, we plan to expand our facilities in the region.

How does Sembcorp Logistics Park Dinh Vu facilitate tenants to pursue sustainable development?

Designed for sustainability, it aims for LEED Silver certification, incorporating eco-friendly features to enhance energy efficiency, reduce environmental impact, and create a healthier workplace.

By operating in a Sembcorp facility, our tenants can leverage our nationwide network of over 1,000 manufacturers and suppliers, all through our VSIPs and Sembcorp Logistics Parks. This strategic advantage enables our tenants to capitalise on our established presence in the country and reach a broader customer base of reputable, high-quality enterprises.

What are the key trends to shape the industrial real estate market in Vietnam this year?

Vietnam’s industrial real estate market will be influenced by overseas funding inflows, IP expansions, and the growth of e-commerce and logistics.

Foreign investment disbursement reached a record high in 2024 and is expected to rise in 2025, fuelled by production relocations and the country’s push for high-tech industries like semiconductors and digital economy sectors.

To support this growth, Vietnam is increasing industrial land supply and focusing on ready-built facilities in IPs. The booming e-commerce and logistics sectors are also driving investments in modern, high-specification facilities to meet tenants’ requirements.

Sembcorp Development and its joint venture partner Becamex IDC aim to build 20 VSIPs in Vietnam. What is Sembcorp’s plan to expand the industrial real estate footprint in the country?

Sembcorp is one of the principal drivers of the Vietnam-Singapore economic partnership, known for co-developing the VSIPs. Since 1996, we have established 18 VSIPs, where our operating parks have attracted more than $23 billion worth of investment capital from nearly 1,000 tenant companies, creating close to 320,000 employment and community living opportunities across the country.

In March, two VSIP projects were approved at the launch of the comprehensive strategic partnership upgrade between Singapore and Vietnam, taking the total to 20 VSIPs. VSIP Nam Dinh and VSIP Nghe An III will complement the current complexes.

We are helping to drive the country’s energy transition, providing renewable energy to the national grid, factories, businesses, and homes with a total of 457MW in renewable energy capacity. We have established ready-built facilities in Haiphong, Bac Ninh, Hai Duong, Quang Ngai, Nghe An, and Binh Duong. Being demand-driven, we will continue to serve our tenants with high-quality, green, and energy-efficient industrial spaces at strategic locations.

Sembcorp begins construction on SIS Dinh Vu logistics centre On March 6, at DEEP C Haiphong 1 Industrial Zone, Sembcorp Dinh Vu Infra Services Co., Ltd. officially broke ground on the Sembcorp Logistics Park Dinh Vu (SIS Dinh Vu) warehouse and ready-built factory for lease initiative.

Sembcorp and Becamex expand VSIP portfolio Sembcorp Development and its joint venture partner Becamex IDC are expanding their portfolio of Vietnam Singapore Industrial Park (VSIP) projects, taking the total to 20.

Sembcorp and Becamex expand VSIP network with new agreements MoUs for prospective VSIPs in Hung Yen, Haiphong, Hai Duong, Binh Duong, and Thai Binh were signed in Hanoi on March 26.