VSIP sows seeds in communities

Since its establishment in Vietnam in 1996, VSIP has grown into the most successful industrial park developer in the country. What are the key factors driving this success?

Sembcorp has worked with the same joint venture partner, Becamex IDC Corporation, for 19 years in Vietnam. We decided to ride the highs of economic booms and the lows of recessions together. As joint master developer of the VSIP projects, we understand very well that we are here for a bigger mission, to use the VSIP projects as a catalyst to drive economic development. The VSIPs have attracted $7.8 billion of investment capital to date, from 22 countries and territories. Our operating tenants have created 155,355 jobs for the Vietnamese people. The VSIP projects are as much about developing industry as they are about developing communities.

The story of VSIP is similar to Singapore’s early years: creating jobs for the people and homes in safe environments for communities to spread their roots and raise their families; encouraging provincial growth with wealth that is pumped back into the community to improve infrastructure, schools and hospitals; and finally, fostering environments where businesses can flourish and investments can pour in.

VSIP has seven projects in Vietnam so far. What are the most successful VSIP projects in the country?

One of the best examples of what VSIP has achieved are our projects in the southern province of Binh Duong. These are mature integrated developments that were built in 1996. Every day, more than 120,000 people enter the VSIP Binh Duong to work and do business. This development supports many livelihoods and families. Binh Duong is now one of the most successful provinces in Vietnam. It has been able to prosper because it has very supportive leaders with a clear vision for the future and a determination to implement successful policies.

In the last quarter of this year, Sembcorp, together with VSIP and MC Development Asia (a subsidiary of Japan’s Mitsubishi Corporation) will launch a residential development within the VSIP Binh Duong in Thuan An district. The Habitat Binh Duong contains 267 residential units. Although this residential development caters to the mass market segment, we will provide many value-added facilities, including a swimming pool, gym, and security features for each tower. Again, the aim here is to allow communities to flourish near their workplace, and to provide a safe haven for families.

How is investment attraction to VSIPs going so far?

Our other VSIP projects in Haiphong city, Bac Ninh and Quang Ngai provinces started much later than Binh Duong. Nevertheless, we have made huge strides with these three projects.

The VSIP Bac Ninh has attracted 49 companies since its inception in 2007. The 700-hectare project’s industrial zone is nearing full capacity. Our focus is now to attract investments for the township zone in order to provide complementary services and amenities for the people working in the park.

Covering 1,600ha, the VSIP Haiphong has attracted 30 companies with $1 billion in capital. Companies operating in the park are attracted to the project’s location near the coastal ports. Just last week, Sembcorp celebrated the opening of our Sembcorp Haiphong Logistics Hub. Travel time will be significantly cut in the near future with the completion of Vietnam’s longest sea bridge and the new Haiphong expressway.

Established in 2013, the VSIP Quang Ngai has drawn 10 companies to the 160ha industrial start-up zone. The complex was established to attract investments into Vietnam’s central coastal region, in efforts to balance out developments across the southern, central, and northern parts of the country.

Last week, VSIP commenced the next phase of development, including a 99ha township near downtown Quang Ngai city. The township’s master plan includes a two-hectare nature park for families to enjoy.

This year, we also announced that we would undertake two new VSIP projects in Hai Duong and Nghe An provinces. We are currently focusing on the master plan designs, but the aims are similar: to provide the best environments and the most ideal conditions for generating industry.