Singapore-Vietnam joint venture plans second industrial park in Quang Ngai

VSIP, a joint venture between Singapore's Sembcorp and Vietnam's Becamex, is planning to develop its second industrial park in Quang Ngai province next year.

In a meeting with the central province's authorities this week, Kelvin Teo, CEO of the Singapore-based Sembcorp Development and co-chairman of VSIP Group, said they hoped to receive support from Quang Ngai for the new plan.

2023 will mark 50 years of diplomatic ties between Singapore and Vietnam and the 10th anniversary of the VSIP Quang Ngai, he noted.

VSIP Quang Ngai 2 will have a green, clean and smart design and built to new standards, making it different from other facilities and fit the province’s development requirements, Teo said.

VSIP Quang Ngai 1 has so far attracted 31 investors, including 22 in manufacturing with 28,000 employees.

Dang Van Minh, chairman of the provincial People’s Committee, said Quang Ngai was submitting to the government a proposal on planning amendments for the Dung Quat Economic Zone until 2035 with vision until 2050.

As soon as the proposal is approved, the province will assist VSIP in applying for an investment certificate for the VSIP 2 project, Minh said.

VSIP currently runs 11 industrial parks across Vietnam covering 10,000 hectares. Together they have attracted $17 billion from 860 investors from 30 nations and territories and employed 300,000 people.

Vietnam attracted $31.15 billion of registered foreign direct investment (FDI) in 2021, up by 9.2% year-on-year. Singapore was the biggest investor with $10.7 billion, up 19.1%.

In the first eight months of this year, Quang Ngai attracted three FDI projects worth $73.9 million, according to provincial data.

The central coastal province currently operates five seaports, including Dung Quat seaport with a capacity of handling ships of up to 100,000 deadweight tonnage. As an emerging industrial hub in Vietnam, it is well-known for Dung Quat Economic Zone and VSIP Quang Ngai.

VSIP Quang Ngai 1 focuses on food-beverage, fast-moving consumer goods (FMCG), assembly of electronic items, apparel, bags, footwear, weaving, among others.

Major business lines in Dung Quat Economic Zone include oil refining, energy, metallurgy, shipbuilding, food, packaging, automobile component, and high-tech processing of farm produce.