VSIP Nghe An industrial park to see 100% occupancy this year

The VSIP Nghe An industrial park has attracted 32 corporate tenants and expects to be fully occupied by the fourth quarter of this year.

The 32 tenants, of which 14 are foreign-invested enterprises, have registered a total investment of VND13,046 billion ($557 million) and have created about 14,000 jobs.

Major foreign investors setting shop here include Everwin, Luxshare ICT, Merry & Luxshare, Em-tech Vietnam, May An Nam Matsuoka, Innovative Manufacturing Solutions Viet Nam, and Woosin Vina.

About 146.23 ha out of the IP’s total of 263.23 ha have been leased out, accounting for 55.6%.

“Two big customers have just signed leasing agreements and some others are expressed interest. We expect to fully lease all industrial land in the fourth quarter of this year,” said a representative of the IP who did not want to be named.

VSIP Co. is a joint venture between Singapore’s energy and urban developer Sembcorp Industries and Binh Duong-based major industrial property and urban developer Becamex.

It started construction of the VSIP Nghe An in 2015. The IP is licensed to cover 750 ha, of which 367.6 ha will be industrial land and 382.4 ha will be used for services and urban areas.

The VSIP Nghe An revealed in May that the IP faced a big labor shortage. In a meeting with provincial authorities, it said its corporate tenants needed an additional 4,000 workers in 2022, of whom 85-90% are unskilled. Workers must be between the ages of 18 and 40, primarily female, and would work in sectors like automobile components, electronics, and apparel.

VSIP’s 11 large-scale industrial parks in Vietnam are located in Bac Ninh, Hai Phong and Hai Duong in the north; Nghe An, Quang Tri and Quang Ngai in the central region; and Binh Duong in the south.

Investors are pumping billions of U.S. dollars into industrial property development in Vietnam as the country has emerged as one of the most attractive destinations for pandemic-induced supply chain relocations.