Work on the first phase of the Vinh Thanh Industrial Park, also known as Vietnam-Singapore Industrial Park (VSIP) Can Tho, is set to begin on September 9.
The Mekong Delta city has put out a document saying that this project is a prioritized one, the first VSIP in the Mekong Delta, and one of the biggest in the region.
The logistics service, urban and industrial complex will follow sustainable, green and clean requirements, it adds.
The groundbreaking ceremony for the new IP will be a part of many activities commemorating the 50th anniversary of diplomatic relations between Vietnam and Singapore. As such, it will be attended by diplomats from the Singaporean Embassy in Hanoi and the Singaporean Consulate General’s office in Ho Chi Minh City.
Singapore’s Sembcorp Industries received an investment license in October 2022 to develop the new VSIP in Can Tho city. The 293.7-hectare IP, with an investment of VND3.72 trillion ($158.55 million), will be operated by the Vietnam Singapore Industrial Park (VSIP) Group, a joint venture between Sembcorp and Becamex, a major Vietnamese industrial developer.
It is expected to generate 30,000-50,000 jobs, giving an employment and development boost to the local and regional economies.
The first VSIP was set up in 1996 in the southern province of Binh Duong. The group has since developed a total of 12 industrial parks in the country; and the one in Can Tho will be the 13th. The IPs are located in Bac Ninh province, Hai Phong city and Hai Duong province in the north; Nghe An, Quang Tri and Quang Ngai provinces in the central region; and Binh Duong province and Can Tho city in the south.
During Prime Minister Pham Minh Chinh’s Singapore visit last 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 feature decarbonization solutions like rooftop solar systems, solar farms (where feasible), and green-certified buildings, it explained.
The VSIP was a strong symbol of Vietnam-Singapore cooperation, Minister of Planning and Investment Nguyen Chi Dung said Sunday at the 17th Vietnam-Singapore Connectivity Ministerial Meeting in Hanoi.
VSIP facilities in Vietnam, covering 2,600 hectares, have so far attracted investments of $17 billion from 880 companies inside and outside Vietnam, providing 300,000 jobs, he added.
The minister urged Singapore to transform all the VSIPs into eco-industrial parks, while helping Vietnam develop further the prioritized sectors of chip manufacturing, semiconductor, digitalization, big data, renewable energy and supporting industries.
Registered foreign direct investment (FDI) capital in Vietnam rose 8.2% year-on-year to nearly $18.15 billion in the year to August 20, according to the Ministry of Planning and Investment. Singapore was the biggest investor with $3.83 billion, down 15.4% year-on-year, accounting for 21.2% of the total.