VSIP gets nod to develop $26 mln industrial park phase 2 in central Vietnam

Nghe An province authorities have approved VSIP as the investor for the second phase of Tho Loc Industrial Park, with an estimated investment of VND688 billion ($26 million).

The industrial park expansion will be developed in Tan Chau commune within the Southeast Nghe An Economic Zone, covering nearly 80 hectares.

Of the total cost, the investor, VSIP Nghe An Co Ltd, will contribute more than VND103.2 billion ($3.92 million), equivalent to 15% of the project’s capital, while the remainder will be financed through loans, customer advances, and reinvested revenue.

Under the approval conditions, the firm must reserve at least five hectares, or no less than 3% of the industrial land area, for small and medium-sized enterprises, supporting industries, and innovative startups under Vietnam’s industrial support policies.

Construction can only begin after the project satisfies all legal, environmental, fire safety, and technical requirements under Vietnamese law and international commitments applicable to Vietnam, authorities said.

The project is aimed at expanding industrial land supply and supporting investment attraction efforts in Nghe An. It will operate for 50 years from the date of investment approval.

According to the implementation timeline, legal procedures, environmental approvals, fire prevention requirements, and construction design are expected to be completed between Q2/2026 and Q1/2027. Land clearance and compensation are scheduled for 2027, while infrastructure construction is planned from Q2/2027 through Q2/2030.

VSIP, a joint venture between Becamex IDC and Singapore’s Sembcorp, developed its first IP in the southern province of Binh Duong in 1996. Its portfolio now comprises 20 IPs covering a combined 12,000 hectares across Vietnam.

Nghe An is emerging as one of Vietnam’s top FDI destinations. In the first four months of this year, the province lured $2.2 billion in newly-registered FDI, ranking second nationwide, after the northern province of Thai Nguyen with over $8 billion.

Nghe An is home to many electronics corporations and key suppliers to Apple such as Foxconn, Goertek, and Luxshare.