Nghe An province to invest $5.6 mln in infrastructure for VSIP

Vietnam’s central province of Nghe An will invest VND135 billion ($5.6 million) to build a water disposal system for the to-be-built Vietnam-Singapore Industrial Park (VSIP) Tho Loc.

According to a decision dated August 21, the system targets to prevent floods in the residential areas near VSIP Tho Loc, which will be the second VSIP in Nghe An province.

Construction of the 2.7-kilometer system is set to take under four years amd will commence on August 29 as part of a push to implement Vietnam-Singapore investment projects, a reliable source told The Investor.

In February, the Vietnamese government presented Sembcorp and Becamex with an investment license to develop the 500-hectare VSIP Tho Loc (VSIP II). Per a decision signed by Deputy Prime Minister Tran Luu Quang, construction must be completed in 48 months from the date of land delivery.

Nghe An province is already home to VSIP I in Hung Nguyen district. The 750-hectare facility, established in 2015, had attracted 39 projects with a total registered capital of $743.6 million as of March 2023. The occupation ratio has reached 88% and 23 projects have entered operation.

Major investments in the first VSIP include $200 million from electronics fỉrm Everwin Precision Hong Kong Co. Ltd., $150 million by China-headquartered Luxshare-ICT, and $165 million by China’s Shandong Innovation Group.

Nghe An’s index of industrial production (IIP) grew 2.63% in the first seven months of this year, including growth of 8.69% in July. The seven-month performance was driven by an increase of 3.7% in the manufacturing-processing sector, and 1.85% in mining, 21.45% in water supply and waste management.