Can Tho city is aiming to kick off construction of the first Singapore-backed VSIP industrial park in the Mekong Delta in June.
Can Tho Chairman Tran Viet Truong has requested relevant authorities to complete all preparations for the VSIP Vinh Thanh Industrial Park project by June 10.
Vinh Thanh district is building a VND172.4 billion ($7.35 million) road, which will be 572 meters long, to connect National Highway 80 to the IP site in preparation for the construction.
Singapore’s Sembcorp Industries received an investment license in October 2022 to develop a new VSIP industrial park in Can Tho city, its first in Vietnam's Mekong Delta.
The 293.7-hectare IP, with an investment of VND3.72 trillion ($158.55 million), will be operated by Vietnam Singapore Industrial Park (VSIP) Group, a joint venture between Sembcorp and Becamex, a major Vietnamese industrial developer.
Local authorities and VSIP Can Tho JSC have paid compensation for 8.2 hectares to households on the construction site. VSIP Group plans to hand over the land to secondary investors from the second quarter of 2024, and achieve full occupancy by 2026.
According to plans for the IP approved by the municipality last month, 71.3% of the total area will be used for factories and warehouses, 1.51% for services, 1.36% for infrastructure, 13% for water surface and tree planting, and 12.83% for traffic infrastructure.
VSIP Group has been developing 12 industrial parks in Vietnam to date. The IPs are located in Bac Ninh, Hai Phong and Hai Duong in the north; Nghe An, Quang Tri and Quang Ngai in the central region; and Binh Duong and Can Tho in the south.
In April, the Ministry of Planning and Investment submitted a plan for a VSIP project in the northern province of Lang Son to Prime Minister Pham Minh Chinh for approval.
During PM Chinh's visit to Singapore in February, Sembcorp Industries announced new collaborations in sustainable urban development in Vietnam by building five more VSIPs valued at approximately $1 billion. The parks will be smart and sustainable with low carbon footprints, Sembcorp said. They will also feature decarbonization solutions like rooftop solar systems, solar farms (where feasible), and green-certified buildings.
Can Tho is considered the heart of the Mekong Delta. The city's index of industrial production (IIP) grew 5.01% in April and 4.81% from January-April year-on-year, according to the municipal statistics office.
Vietnam IIP rose by 0.5% in April, but fell 1.8% in the first four months amid weaker global demand, the General Statistics Office (GSO) said.