Enhanced Partnership Between Vietnam and Singapore for Advancing Smart and Sustainable Industrial Parks

Representational image. Credit: Canva

Sembcorp Development, a subsidiary of Sembcorp Industries based in Singapore, together with its Vietnamese joint venture partner Becamex IDC Corporation, a state-owned enterprise, have revealed the incorporation of four additional Vietnam Singapore Industrial Parks (VSIP) into their portfolio. Furthermore, Memoranda of Understanding (MOUs) outlining plans for an impressive total of 10 prospective VSIPs were unveiled.


This significant step forward was officially inaugurated by His Excellencies, Mr. Lee Hsien Loong and Mr. Pham Minh Chinh, the respective Prime Ministers of Singapore and Vietnam. Accompanied by government officials, ministers, and provincial leaders, they participated in a special state ceremony aimed at endorsing the VSIP initiatives, emblematic of the strong bonds between Vietnam and Singapore.


Addition of four new VSIPs


Sembcorp and Becamex have been granted the investment license for the establishment of VSIP Lang Son, an expansive 600-hectare industrial park. Additionally, they have secured Prime Minister Chinh’s preliminary approvals to proceed with the development of fresh VSIPs in Thai Binh, Binh Thuan, and Ha Tinh provinces. This augmentation brings the total count of VSIPs within their repertoire to 17, making it the most extensive Vietnam-Singapore cooperative effort encompassing 13 different locations across Vietnam.

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MOUs for 10 prospective VSIPs

Envisioning a dynamic future, the event witnessed the leaders of 10 provinces reaffirming their dedication to collaborate alongside Sembcorp and Becamex for the purpose of jointly conducting feasibility assessments for an impressive count of 10 potential VSIPs. This resolute commitment is spread across the nation, encompassing Binh Phuoc and Tay Ninh in the southern region; Khanh Hoa, Thua Thien Hue, and Quang Ngai II in central areas; Thanh Hoa in the north-central zone; and Nam Dinh, Ninh Binh, Hai Duong II, and Hai Phong II in the northern regions.

The proceedings reached their pinnacle as the Prime Ministers partook in a virtual groundbreaking ceremony for three distinct VSIPs – VSIP Can Tho in the Mekong Delta, VSIP Bac Ninh II in the Red River Delta, and VSIP Nghe An II in the North Central Coast. This symbolic commencement of land development sets the stage for customer handovers commencing from the year 2024 onward.

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Since 1996, the VSIPs have stood as a pivotal platform for bilateral cooperation. A testament to their significance, they play a vital role in hosting foreign manufacturing investments, catalyzing the transformation of local provinces from agrarian economies to industrial hubs, thus fostering Vietnam’s holistic development. The introduction of these new VSIPs is poised to fortify collaboration in the realm of intelligent and sustainable industrial parks, envisioned to represent the future model of sustainable industrialization.

It’s important to note that these collaborations are not anticipated to exert any substantial impact on Sembcorp’s earnings per share and net tangible assets per share for the fiscal year concluding on December 31, 2023

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