Singapore’s Sembcorp Development, a wholly owned subsidiary of Sembcorp Industries, and its state-owned joint venture partner in Vietnam, Becamex IDC Corporation, announced the addition of four new Vietnam Singapore Industrial Parks (VSIPs) on August 29.
The new projects were inaugurated by Lee Hsien Loong and Pham Minh Chinh, prime ministers of Singapore and Vietnam respectively, and MoUs for 10 prospective VSIPs were also presented.
|Singaporean Prime Minister Lee Hsien Loong at the announcement ceremony on August 29 |
A special state event were also joined by ministers and provincial leaders to support the VSIP projects, a symbol of Vietnam-Singapore relations.
Sembcorp Development (Sembcorp) and Becamex IDC Corporation (Becamex) received the investment licence to develop VSIP Lang Son, a 600-hectare industrial park (IP), and also received PM Chinh’s in-principle approvals to develop new VSIPs in the provinces of Thai Binh, Binh Thuan, and Ha Tinh.
Including these four projects, there will be 17 VSIPs in the entire portfolio spanning 13 locations across Vietnam, establishing this as the largest Vietnam-Singapore collaboration to date.
|Vietnamese Prime Minister Pham Minh Chinh speaking at the ceremony |
During the event, the leaders of 10 provinces reiterated their commitment to work with Sembcorp and Becamex to jointly engage in feasibility studies for more VSIPs.
The 10 provinces are located throughout the country, including Binh Phuoc and Tay Ninh in the South, Khanh Hoa, Thua Thien Hue and Quang Ngai II in the central region, and Thanh Hoa, Nam Dinh, Ninh Binh, Hai Duong II, and Haiphong II in the north.
At the end of the event, the prime ministers officiated virtual groundbreaking ceremonies for VSIPs in Can Tho city in the Mekong Delta, VSIP Bac Ninh II in the Red River Delta, and VSIP Nghe An II on the north-central coast, marking the commencement of land development ahead of the handover to customers from 2024 onwards.
Becamex and Sembcorp also announced the establishment of the Vietnam-Singapore Innovation Centre in Binh Duong, with the aim of implementing the province’s orientation for building a strong economy based on innovation, science, and technology.
Along with the Innovation Centre 4.0, the Smart Manufacturing and Innovation Centre, the Sembcorp Centre for Sustainable Solutions, and BLOCK71 Saigon, this new facility will be responsible for developing orientations and creating an environment for sci-tech research, facilitating technology transfer, and building production models that are in line with Industry 4.0 trends.
Vietnam Singapore Innovation Centre is the first step in the comprehensive transformation of Binh Duong province, an urgent aspect of its socioeconomic development strategy.
The VSIPs have been an important platform for bilateral cooperation since 1996. They serve a critical role in hosting foreign manufacturing investments that contribute to the sectoral transformation of local provinces from agriculture to industry, thereby promoting the overall development of Vietnam.
The addition of the new VSIPs will deepen collaboration in the areas of smart and sustainable IPs that are envisaged to become the future model of sustainable industrialisation.
With the inauguration of the new projects, VSIP is developing 17 integrated townships and IPs in Vietnam.
From the first IP in Binh Duong's Thuan An, VSIP Group's total land stock has increased to over 11,000 hectares. About 900 customers from 30 countries and territories have invested a total of more than $18 billion and employ 300,000 staff.
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Chairman of the People’s Committee of the southern province of Binh Duong Duong Vo Van Minh had a working session with CEO of Semncorp Development of Singapore Kelvin Teo on January 12 to discuss the firm’s investment in Vietnam – Singapore industrial park projects in the locality.
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An MoU was signed between Becamex IDC Industrial Development and Investment Corporation (Vietnam) and Sembcorp Development Ltd. (Singapore) on February 10 in Singapore to acknowledge the cooperation to develop five green, smart, and sustainable industrial parks (IPs) in Vietnam within the next three years with total investment capital of roughly $1 billion.
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Localities throughout the country are striving to create a breakthrough for industrial infrastructure to increase its competitive capacity in attracting foreign capital.
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Foreign direct investment (FDI) inflows into Vietnam have gradually recovered with many large-scale investment projects following the COVID-19 pandemic as well as political and economic uncertainties in the world.