Vietnam-Singapore Industrial Park J.V. Co. Ltd. (VSIP), a joint venture between Vietnam’s real estate developer Becamex and Singapore’s Sembcorp, has received an investment certificate for VSIP Ha Tinh Industrial Park.
In a Friday release, Sembcorp, which holds a 46.5% stake in the joint venture, said the VSIP facility in Vietnam's central province of Ha Tinh would cover 190 hectares in the first phase. The approval of VSIP Ha Tinh is the second of the joint venture this month, after VSIP II Quang Ngai.
VSIP will proceed to incorporate a wholly-owned subsidiary in Vietnam to conduct development activities of the first phase of VSIP Ha Tinh, expecting to complete the incorporation in the first quarter of 2024.
The development is part of an agreement signed between Sembcorp and Becamex in August, during the Vietnam visit of Singaporean Prime Minister Lee Hsien Loong.
Per the agreement, the two sides will have four additional VSIP facilities, raising the VSIP portfolio to 17 across Vietnam. They will also conduct feasibility studies for 10 more across the country.
Sembcorp highlighted advantages of Ha Tinh province, a cog in the East-West Economic Corridor connecting Laos, Thailand, and Vietnam. Vung Ang Son Duong port in the province is one of the largest natural deep-water seaports in the region, which can link large transshipment ports such as Singapore and Hong Kong and serve as an alternative choice for seaports in northern Vietnam.
“The new investment license for VSIP Ha Tinh (phase 1) adds to the investment licenses received earlier this year for VSIP Lang Son and VSIP Nghe An II,” said Lee Ark Boon, CEO of Sembcorp Development, under Sembcorp.
“With the additional land bank pipeline secured from these projects, we will continue to focus on driving Sembcorp Development’s growth in Vietnam,” the executive added.
In December 2022, Singaporean Ambassador to Vietnam Jaya Ratnam visited the planned site for VSIP Ha Tinh. The industrial park was set to have an investment capital of $325 million, covering 603 hectares in Thach Ha district.