The Vietnam-Singapore Industrial Park (VSIP) Group, a joint venture between Singapore’s Sembcorp Industries and Vietnam’s Becamex IDC, was allowed on Tuesday to build a 190-hectare industrial park in the central province of Ha Tinh.
The license was presented to VSIP in Hanoi, witnessed by Vietnamese Prime Minister Pham Minh Chinh and his Singapore counterpart Lee Hsien Loong, who wrapped up his three-day visit to further boost the two countries’ strong and multi-faceted relations on the same day.
Bac Thach Ha Industrial Park, the new park in Ha Tinh, would cost VND1,555 billion ($64.3 million) to build in the first phase, according to the license. Construction will be within 36 months.
The new IP will be home to facilities for electronic components, automatic equipment, high-tech components, food processing, consumer goods, transportation services, warehousing, construction materials, garments, leather shoes, automobile parts, and others.
Meanwhile, a new township would be built together with the IP to jointly serve provincial development goals. It would include commercial centers, healthcare facilities, schools, areas for physical training and sports, and residential sites.
A provincial official told The Investor that VSIP had asked for provincial support in legal procedures, including land-related issues and site clearance.
Therefore, the provincial People's Committee has assigned relevant departments and units to look at VSIP’s proposal for the combined project and to help the developer complete procedures.
Appointed by the governments of Singapore and Vietnam to operate VSIP projects in Vietnam since 1996, the joint venture has expanded to 13 developments across the country to date.
The existing 13 VSIPs that have been awarded investment licences by Vietnam so far have generated significant economic growth, according to the Singaporean Prime Minister’s office, attracting more than $18.4 billion in investments and creating about 300,000 jobs.
On February 10, 2023 in Singapore, Sembcorp announced new collaborations with Becamex, witnessed by visiting Vietnamese Prime Minister Pham Minh Chinh, to develop five new Vietnam-Singapore Industrial Parks in Vietnam valued at approximately $1 billion.
Simultaneously, the Vietnamese Ministry of Planning and Investment presented to Sembcorp and Becamex an investment license to develop a 500-hectare VSIP in Nghe An province (park II). The license is an expansion of the successful 750-hectare VSIP Nghe An (park I) established in 2015. Nghe An, which borders Ha Tinh province, plays a supporting role to Hanoi.