Singapore-Vietnam JV to develop fifth industrial park

Singapore and Vietnam are joining hands to develop a fifth industrial park worth US$337.82 million (S$421.6 million) at Quang Ngai province in central Vietnam.The Vietnam Singapore Industrial Park (VSIP), which will be the first in the region, aims to enhance connectivity between Vietnam's southern and northern economic zones. Covering a 1,120 ha site, the VSIP Quang Ngai township cum-industrial park, will include 520 ha for residential and commercial purposes and 600 ha for an industrial park within the Dung Quat Special Economic Zone.The VSIP is a 49:51 joint venture (JV) between Vietnam's state-owned Becamex IDC Corporation and a Singapore consortium.


The Singapore group, Sembcorp Development, a subsidiary of Sembcorp Industries, holds 79.29 percent. Being the lead Singapore partner, Sembcorp will have 40 percent share in all the five VSIP projects.The project is in line with a memorandum of understanding 9MOU) signed in September, as witnessed by Prime Minister Lee Hsien Loong and Vietnamese President Truong Tan Sang.Low Sin Leng, Co-Chairman of the VSIP Group and Executive Chairman at Sembcorp Development, said, "Singapore, through the four existing VSIPs, has helped to develop the local economy here.

We hope to see VSIP Quang Ngai repeat the success of the other industrial parks, using industrialisation as an economic driver to spearhead urban development."Nguyen Van Hung, Co-Chairman of the VSIP Group and Chairman and Chief Executive Officer of Becamex, believes that "central Vietnam has great potential for infrastructure and economic growth. Quang Ngai has a big domestic market with ample labour force at reasonably attractive cost."Aside from the Quang Ngai project, VSIP also runs two industrial parks in Binh Duong and two more in Bac Ninh (pictured) and Hai Phong