VSIP JV’s ambitious expansion

VISP Nghe An - photo baonghean

Last week, VSIP JV officially obtained exclusive rights from the Nghe An Provincial People’s Committee to develop a 750 hectare integrated towns and industrial park.

VSIP Nghe An Co., Ltd., the project company undertaking this project, is wholly-owned by VSIP JV - joint venture between Vietnam’s Becamex IDC Corporation and a Singaporean consortium led by Sembcorp Development.

VSIP JV also received the investment certificate for the first phase which comprises 198 hectares of industrial and 81ha of commercial and residential land. The investment of the first phase will be partly funded by equity of $15.2 million.

Garment manufacturers, agribusinesses and the fast moving consumer goods sector (FMCG) are the target industries of VSIP Nghe An.

With the investment in VSIP Nghe An, there are now a total of seven VSIP projects across Vietnam, with the others located in Binh Duong, Bac Ninh, Haiphong, Quang Ngai and Hai Duong provinces. The total gross area of the seven VSIP development projects is more than 6,000ha.

Along with the establishment of VSIP Nghe An, VSIP Hai Duong Co also confirmed its first tenant Regina Miracle International (Vietnam) Limited, which received its investment certificate last week from the Hai Duong Provincial People’s Committee.

Regina Miracle, with the total investment capital of $88 million, will set up a 13.6ha shoe manufacturing facility within VSIP Hai Duong located in Cam Giang district.

Construction of the factory will commence in January 2016. Approximately a staff of 3,800 will be employed to work in the factory during its initial phase. Regina Miracle planned to produce about 6.8 million pairs of shoes annually in the fully operational factory.

Regina Miracle’s factory in VSIP Hai Duong is its second in Vietnam. In March 2014, it invested $150 million in its first factory in VSIP Haiphong. That factory will be operational in September 2015 and will produce lingerie and sportswear apparel.