Becamex IDC, a leading Vietnamese industrial development group, is preparing to set up an electricity company for power supply within industrial parks across the country.
The major, based in the industrial province of Binh Duong, plans to name the new unit Becamex-VSIP Electricity Investment and Development JSC, with VSIP being Vietnam-Singapore Industrial Park Joint Venture Ltd. The joint venture between Becamex and Sembcorp Industries, one of Singapore’s biggest conglomerates, represents a successful business partnership between Vietnam and Singapore.
As planned, the new firm will have a chartered capital of VND100 billion ($4.27 million), with 36% from Becamex, and capital contribution set for completion in the third quarter.
Sembcorp Industries announced this February it was scaling up investment in Sembcorp Vietnam, focusing on developing a range of energy and urban development solutions in areas like sustainable industrial parks, power systems, renewable energy and technology, as well as skills and capabilities building.
Last December, Sembcorp launched its collaboration with Ho Chi Minh City-based BCG Energy to jointly identify and develop a pipeline of up to 1.5 gigawatts of wind and solar projects in the country.
The partnership’s first phase involves initial funding of $30 million for the development of a 550 MW portfolio of nearshore and onshore wind farms in the southern provinces of Ca Mau, Tra Vinh and Soc Trang.
Binh Duong, which neighbors Ho Chi Minh City, is a manufacturing hub in southern Vietnam and home to three VSIP industrial parks.