Singapore’s Sembcorp adds 3 VSIP industrial parks to portfolio in Vietnam

Sembcorp Industries will add three industrial parks under the Vietnam-Singapore Industrial Park (VSIP) model to its portfolio, the Singaporean giant announced Friday.

Vietnam Singapore Industrial Park Joint Venture Company, the developer of VSIP facilities and a joint venture between Vietnam’s Investment and Industrial Development Corporation (Becamex IDC) and Singapore’s Sembcorp, has received investment licenses for the three projects, according to the announcement.

They include the 333-hectare VSIP Thai Binh in the northern province of Thai Binh, the 498-hectare VSIP Quang Ngai II in the central province of Quang Ngai, and the 468-hectare Becamex-VSIP Binh Thuan in the central province of Binh Thuan.

VSIP Thai Binh, a hub for high-tech and large-scale manufacturing industries thanks to its proximity to China, can serve as a satellite industrial park to support existing large manufacturers in VSIP Bac Ninh I and II, VSIP Hai Phong and VSIP Hai Duong, all in the northern region.

VSIP Quang Ngai II is expected to continue serving multinational companies in industries such as textiles and garments, footwear, furniture, electronics, and automotive parts.

Becamex-VSIP Binh Thuan plans to draw investments in industries such as electronics and electrical goods, information communication technology (ICT), machine parts, and pharmaceuticals.

With the latest projects, Sembcorp has participated in the development of 18 VSIPs covering 11,588 hectares. With the rising importance of incorporating sustainability practices into business operations, manufacturers there are gradually transitioning towards green factories and adopting decarbonization and energy efficient solutions, Sembcorp said.

Sembcorp made the announcement two days after a phone discussion between new Singaporean Prime Minister Lawrence Wong and his Vietnamese counterpart Pham Minh Chinh. Chinh affirmed that Vietnam is interested in expanding and facilitating new-generation VSIP facilities in the country. In reply, Wong said VSIP is an exemplary cooperation between the two countries and agreed to push the development of VSIP in Vietnam.

The VSIP joint venture recorded a post-tax profit of VND1,703 billion ($66.9 million) in 2023, down 24.6% year-on-year, according to the firm’s filing with the Hanoi Stock Exchange (HNX).