Vietnam's central province of Ha Tinh has handed over 88% of land earmarked for Bac Thach Ha Industrial Park project to the developer, Vietnam-Singapore Industrial Park J.V. Co. Ltd. (VSIP).
Thach Ha district needs to reclaim 190.41 hectares for the project in Thach Lien and Viet Tien communes, according to local authorities.
The land reclamation will affect 633 households in the two communes, along with a graveyard and technical and electrical infrastructure.
Thach Ha district has issued a decision approving compensation for 169.85 hectares of agricultural land with a total cost of nearly VND210 billion ($8.48 million), of which VND207.5 billion will be paid to residents. The locality has already paid VND206.2 billion to affected households.
The first phase of the Bac Thach Ha Industrial Park project (VSIP Ha Tinh), with a total investment of VND1.56 trillion ($63 million), received the Prime Minister’s in-principle approval on August 29, 2023. It has an operation term of 50 years.
VSIP is a joint venture between Vietnamese real estate developer Becamex and Singapore’s Sembcorp.
In a release in late 2023, VSIP said it will proceed to incorporate a wholly-owned subsidiary in Vietnam to develop the first phase of VSIP Ha Tinh, and is expecting to complete the incorporation in the first quarter of 2024.
Per an agreement signed between Sembcorp and Becamex in August 2023, the two sides will build four additional VSIP facilities, raising the VSIP portfolio across Vietnam to 17. They will also conduct feasibility studies for 10 more.