Central Vietnam city okays $114 mln industrial park project VSIP seeks to develop

The Hue city People’s Committee has granted in-principle approval for the La Son Industrial Park - Zone 1 project, with total investment capital of over VND3 trillion ($114 million).

Investors will be selected through a bidding process per regulations for land-use projects. The project will operate for 50 years from the date the State leases land.

The industrial park will cover about 467.2 hectares in Hung Loc and Loc An communes. Implementation costs are estimated at over VND2.54 trillion ($96.63 million), while compensation and resettlement expenses would be more than VND533 billion.

The investors are required to contribute at least 15% of the capital, with the remainder mobilized from other sources.

The Vietnam-Singapore Industrial Park (VSIP), a joint venture between local developer Becamex IDC and Singapore’s Sembcorp, has submitted documents seeking permission to develop the project.

Earlier, Hue's Chairman Nguyen Khac Toan met with representatives of VSIP to hear their proposal. VSIP representatives said the company aims to develop the complex under a green, smart and sustainable model, prioritizing modern infrastructure, digital management, and integrated company support services.

The joint venture emphasized plans to attract investment into high value-added industries such as clean technology manufacturing, electronics, deep processing, supporting industries, logistics, and high-tech sectors - aligned with global supply chain shifts.

The La Son Industrial Park in Hue is positioned as a key component in VSIP’s expansion strategy in central Vietnam, helping establish Hue as a new destination for industrial investment and production-support services.

Hue is one of six centrally-governed cities in Vietnam, together with Hai Phong, Hanoi, Danang, Ho Chi Minh City, and Can Tho.

A consortium involving VSIP plans a large-scale urban-industrial development named the "Moc Bai Xuyen A complex" along the Tay Ninh-Binh Duong economic corridor in southern Vietnam.

The project is positioned to connect directly with the Moc Bai border gate economic zone and serve as a next-generation investment hub focused on digital technology, clean energy, and eco-industrial development aligned with carbon-neutral standards.

VSIP is also eyeing service-urban-industrial park investments in the coastal province of Khanh Hoa. The intension was disclosed at a meeting on November 4 between company representatives and Khanh Hoa authorities.

Khanh Hoa - home to Cam Ranh and Nha Trang bays - and Ninh Thuan - a hub of renewable energy and home to two future nuclear power plants - were merged in July to form the new Khanh Hoa province.

VSIP developed its first industrial park in the southern province of Binh Duong in 1996. Its portfolio now comprises 20 IPs covering a combined 12,000 hectares across Vietnam.

Vietnam-Singapore Industrial Park J.V. Co., Ltd, or VSIP, the largest industrial park developer in Vietnam, posted nearly VND1.13 trillion ($42.7 million) in net profit in the first half of 2025, up nearly 3.4% year-on-year.

The company recorded net profits of VND2.26 trillion ($85.71 million) in 2022, VND1.7 trillion ($64.6 million) in 2023, and a record VND3.28 trillion ($124.6 million) in 2024.