Vietnam Singapore Industrial Park or VSIP, a joint venture between Vietnam’s Becamex IDC and Singapore's Sembcorp Development, is to embark on constructing an industrial park in Quang Tri province this month.
The project recently got Quang Tri's approval and its groundbreaking ceremony is scheduled on April 30, according to provincial authorities.
The $90 million project, Quang Tri Industrial Park, will cover 428 hectares in Hai Lang district in central Vietnam. The consortium of investors comprises VSIP JV, Japan’s Sumitomo Corp., and Amata City Bien Hoa JSC, a subsidiary of Thai industrial developer Amata.
With the new industrial park, Quang Tri has five ones. The other four are Quan Ngang, Northwest Ho Xa, Nam Dong Ha, and Trieu Phu IPs.
Sembcorp has invested in Vietnam for more than 25 years and so far established 11 Vietnam Singapore Industrial Parks. It has established its footprint as a principal driver of the Vietnam-Singapore economic partnership.
VSIP JV broke ground for the VSIP III Industrial Park in Binh Duong, a southern manufacturing hub, on March 19, with Prime Minister Pham Minh Chinh attending the ceremony.
On the sidelines of the event, Danish toymaker Lego Group obtained a license to build a facility with more than $1 billion in investment inside VSIP III. This is the largest investment in Vietnam made by a Danish company so far.
The modern factory, planned to be Lego’s first carbon-neutral factory worldwide, will cover 44 hectares, creating up to 4,000 jobs over the next 15 years. The new facility will be the group’s sixth manufacturing site globally and second in Asia.
Lego said they chose Vietnam because they wanted to cater to rising demand in Asia and also strengthen their supply chain. The group has five other manufacturing locations in China, Denmark, Czech, Hungary, and Mexico. The Vietnamese facility is being built to support additional long-term growth in the region.