Singapore firm to spend $84 mln on northern Vietnam medical equipment project

The industrial zone authority in the northern province of Nam Dinh granted an investment certificate Thursday to Singapore-based Xingyu Safety Technology for building an $84-million medical equipment factory.

Construction of the 10.36-hectare factory, located at the Bao Minh Industrial Park, is expected to start in March 2024. Equipment will be installed in February 2025 and the factory will enter official operation in December 2025. The project’s duration will last until December 30, 2060.

The factory’s annual output will include 300 million pairs of protective gloves (1,950 tons) and 10 million pairs of medical gloves, or 300 tons.

Established in 1992, Xingyu products are now available in over 30 nations including China, the U.S., Russia, Japan, South Korea, Southeast Asian countries and Middle Eastern countries.

Provincial authorities have said that the firm will benefit from preferential policies related to corporate income tax, import tax, land lease fees, and other incentives.

Nam Dinh province attracted foreign direct investments of $329.7 million in the year to October 20, 18th among all localities in Vietnam, according to the Ministry of Planning and Investment.

As of October 20, the province had attracted a total of $3.95 billion in 138 valid FDI projects, ranking 26th in Vietnam in terms of value.

Vietnam’s industrial sector has continued to recover, with the index of industrial production (IIP) rising 5.5% in October over September, while the January-October index was up 0.5% year-on-year, according to the General Statistics Office. Nam Dinh outperformed the country’s average with an increase of 14.24% in the first 10 months of 2023, according to provincial data.