BIDV funds construction of third VSIP Binh Duong Industrial Park

BIDV, one of Vietnam’s “Big 4” commercial banks, will loan about $200 million for constructing the Vietnam-Singapore Industrial Park (VSIP) III in the southern province of Binh Duong.

The bank signed a loan agreement with VSIP Co. Ltd. Monday, showcasing confidence in the new IP, the third VSIP in Binh Duong and the 11th in the country. The loan will help the joint venture and the province consolidate their positions and continue promoting Vietnam’s industrial development.

VSIP Co. is a joint venture between Singapore’s energy and urban developer Sembcorp Industries and Binh Duong-based major industrial property and urban developer Becamex. It started the construction of the VSIP III - Binh Duong this March, with Vietnam’s Prime Minister Pham Minh Chinh attending the ground-breaking ceremony.

With a total investment of $280 million, the 1,000 hectare IP is located in Bac Tan Uyen district, about an hour’s drive away from Ho Chi Minh City.

The park will have green and smart infrastructure to attract investment into many sectors including electricity, electronics, transport vehicle production and assembly, mechanics, support industry, textile - garment, food, beverage, and logistics.

VSIP III - Binh Duong will host Danish toymaker Lego’s $1 billion carbon neutral factory. Lego obtained a license in March this year to develop its latest project, which is also the largest investment in Vietnam by a Danish company.

The Danish firm said the new factory will be its first carbon-neutral factory, featuring solar panels on its roof and that VSIP will build a solar project nearby on behalf of Lego. Together, they will produce enough renewable energy to match 100% of the factory’s annual requirements.

Binh Duong authorities have pledged to hand over the first 22 hectares of land to Lego this month and the rest by the end of September.

VSIP’s 11 large-scale industrial parks in Vietnam are located in Bac Ninh, Hai Phong and Hai Duong in the north; Nghe An, Quang Tri and Quang Ngai in the central region; Binh Duong in the south.

According to the Semcorp website, the joint venture’s total gross land bank in Vietnam has increased to 9,733 hectares, ensuring a stable launch pipeline for land sales that will provide a platform to leverage Sembcorp’s business synergies and drive future growth in sustainable solutions.

HCMC, Binh Duong, Dong Nai, Long An and Ba Ria-Vung Tau are manufacturing hubs in southern Vietnam.