Work begins on second Vietnam-Singapore industrial park this month

Vietnam Singapore Industrial Park Joint Venture Co. (VSIP) on Tuesday broke ground for a new facility in the central province of Ha Tinh.

VSIP Ha Tinh industrial park, also called Bac Thach Ha industrial park, is the second VSIP facility to start construction this month, following VSIP Lang Son in the eponymous northern border province on June 14.

Approval for the VND1,555 billion ($63 million), 190.5-hectare VSIP Ha Tinh was given by Prime Minister Pham Minh Chinh in August 2023.

Designed as a green, modern facility, it will focus on electronics, electricals, semiconductors, precision mechanics, textile-apparel, footwear, energy, electric vehicle (EV) battery, metal, automobile part, and food processing.

At the groundbreaking ceremony, VSIP Ha Tinh signed memoranda of understanding (MoUs) with five investors: BW, a Vietnam-U.S. joint venture in logistics and industrial real estate; Everwin Precision Vietnam, a China-invested precision mechanics and electronics business; Sangwoo Vietnam, a South Korea-invested apparel-textile firm; Haohui Vietnam, a Vietnamese develop of ready-built warehouse and factory; and GLC Vietnam, a Vietnamese gas business.

Vietnamese Deputy Prime Minister Tran Hong Ha said at the groundbreaking ceremony that the VSIP facility would promote modernization and sustainable growth in the province. He said the IP exemplified the strong Vietnam-Singapore partnership that has developed over five decades.

Ha called on the joint venture to continue developing green industrial parks in Vietnam with a focus on research and development, green energy and knowledge-based economy. He also urged Ha Tinh to share its experiences towards developing more VSIP facilities in the country.

Tan Cheng Guan, executive vice president of Sembcorp, a partner in the VSIP joint venture, observed that Ha Tinh was emerging as a major industrial hub in Vietnam. VSIP was committed to the province’s sustainable growth, he added.

Jaya Ratnam, Singaporean Ambassador to Vietnam, said the Singaporean government can help Ha Tinh with workforce training by granting scholarships to students, in addition to support with green economy and digitalization.

Speaking with The Investor prior to the event, Ha Tinh Vice Chairman Tran Bau Ha noted that the facility can employ 30,000 locals. Ha Tinh will facilitate the project, initially with site clearance and in the long term, with housing and vocational training for workers.

The province has earmarked 8.5 hectares outside the facility to develop housing and plans to allocate part of the industrial park’s area for the same purpose, he added.

Sembcorp Industries said last month that it would add three industrial parks under the Vietnam-Singapore Industrial Park (VSIP) model to its portfolio, making up a total of 18 VSIPs covering 11,588 hectares.

With the rising importance of incorporating sustainability practices into business operations, manufacturers in the facilities were gradually transitioning towards green factories and adopting decarbonization and energy efficient solutions, the company said.

Ha Tinh is home to some big projects such as the $2.4 billion, 1,320-MW Vung Ang II thermal power plant, which is set to enter operation next year; the electric vehicle (EV) battery plant of VinES, a subsidiary of Vietnamese private conglomerate Vingroup; the Formosa Ha Tinh Steel complex invested by Taiwan's Formosa Plastics Group.