Third Singapore-backed industrial park VSIP to take shape in Binh Duong

Construction is set to embark on the Vietnam-Singapore Industrial Park 3 (VSIP III) in Binh Duong province, a manufacturing hub in southern Vietnam, this month.

A report by the provincial People’s Committee said ground-breaking for the 1,000 ha project in Hoi Nghia and Tan Lap communes will take place in mid March.

The VSIP III project, with a total investment capital of VND6.41 trillion ($281 million), was approved by the Vietnamese Government in November 2016.

If phase 1 reaches an occupancy rate of over 60%, the project can ask for land allocation phase 2. The province plans to prioritize attracting high-tech industries into VSIP III.

This will be VSIP’s ninth project in Vietnam. The previous eight include VSIP I and VSIP II in Binh Duong (in the south), VSIP Bac Ninh, VSIP Haiphong, VSIP Hai Duong (in the north), VSIP Quang Ngai, VSIP Nghe An and Becamex VSIP Binh Dinh (in the central region).

The first VSIP project in Binh Duong was initiated by Singapore and Vietnam’s prime minister. The joint venture contract was signed in 1996.

VSIP is a symbol of Singapore-Vietnam relationship and a symbol of Singapore’s investment success in Vietnam.

The Singapore partner, Sembcorp Development, is the wholly-owned urban business of Sembcorp Industries (Sembcorp), a leading energy and urban development player. Becamex IDC Corp, the Vietnamese partner, is a prestigious brand in development of IP infrastructure, residential areas, urban areas and transport infrastructure.

VSIPs across the country has attracted 880 tenant companies from 30 countries and territories, with investment capital of $15 billion.

Construction on another 1,000 IP, Cay Truong, is set to kick off in the second quarter in Binh Duong. This year, Binh Duong will also amend zoning plans to allow some other IPs like Nam Tam Uyen and Rach Bap to expand.

Since the end of 2021, IPs in Binh Duong have achieved a high occupancy rate as the supply of industrial land failed to meet the rising demand. Therefore, Binh Duong is enlarging industrial land to cash on the surging needs.

In the year to February 15, 15/2, the province attracted VND7 trillion ($306 million) in domestic investment capital and $47 million in foreign direct investment.