VIETNAM, September 16, 2015 – Vietnam Singapore Industrial Park JV. Co., Ltd. (VSIP JV) today held the ground breaking of its seventh VSIP development located in Nghe An province’s Hung Nguyen district. The ceremony was witnessed by Vietnam Prime Minister Nguyen Tan Dung and Singapore Minister for Trade and Industry Lim Hng Kiang, signifying the continued importance of the well-established VSIP projects as a showcase of bilateral economic cooperation.
VSIP JV has, earlier in June, received the investment license from the People’s Committee of Nghe An Province to develop phase one of the project which comprises 198 hectares of industrial land and 81 hectares of commercial and residential land. This phase one is part of the overall 750-hectare VSIP Nghe An for which VSIP JV plans to develop in tandem with demand. VSIP JV is a joint venture between Vietnam’s Becamex IDC Corporation and a Singapore consortium.
A Vietnamese company, TDV Vietnam Trading and Manufacturing Co, has committed to build a factory in VSIP Nghe An to manufacture bathroom fixtures for export and domestic sales. TDV intends to begin construction in 2016 after obtaining its investment license.
Nghe An province is located in Vietnam’s northern central region, 288 kilometres from Hanoi and 70 kilometres from the Laotian border. It is the country’s largest province by land mass. The central government recently included VSIP Nghe An within the boundaries of the newly established Dong Nam Economic Zone, where generous investment incentives for up to 15 years are available to manufacturers. Nghe An’s industries will potentially receive a boost in domestic production due to the expected benefits of free trade agreements in place and under negotiation, including the upcoming Trans-Pacific Partnership. The province is especially strong in agriculture-based production. Coupled with lower labour costs and the 10 million-strong labour force of the northern central region, the province offers compelling reasons for other labour-intensive manufacturing industries including garment manufacturing, fast moving consumer goods and electronics sectors to set up operations. Nghe An is also located along the East-West economic corridor linking Laos, Myanmar and Thailand with the East Sea, off Nghe An’s coast, and the port of Cua Lo.
To commemorate the launch of VSIP Nghe An, Sembcorp and VSIP JV pledged US$100,000 towards the Sembcorp-VSIP Water Initiative for Nghe An province. This community project was first introduced in VSIP’s Quang Ngai location in central Vietnam in 2013. To date, 10 domestic water purification systems with water towers have been constructed to provide local schoolchildren and residents of nearby villages a ready supply of domestic non-potable clean water for their daily needs. Seven schools have also benefited from newly built or upgraded toilet facilities.
With the investment in VSIP Nghe An, there are now seven VSIP projects across Vietnam, with the others located in Binh Duong, Bac Ninh, Hai Phong City, Quang Ngai and Hai Duong provinces. The total gross area of the seven VSIP developments (including phase one of VSIP Nghe An) is 6,153 hectares. VSIP has attracted US$7.9 billion in total investment capital from over 583 companies to Vietnam. Companies operating in the VSIP developments employ about 160,000 workers.