SINGAPORE - Sembcorp Development, a unit of Sembcorp Industries, has through a joint venture company gained exclusive rights to develop a 750-hectare integrated township and industrial park in Vietnam's north central Nghe An province.
Vietnam Singapore Industrial Park Joint Venture Co is a 49-51 joint venture between Vietnam's Becamex IDC Corporation and a Singapore consortium in which Sembcorp Development has a 92.9 per cent stake.
The project will be developed in phases in tandem with demand, Sembcorp said on Tuesday.
Authorities have already granted the venture an investment licence for phase one of the project, which comprises 198ha of industrial land and 81ha of commercial and residential land.
The first phase of investment will be funded using US$15.2 million (S$20.5 million) of equity from the joint venture's wholly-owned project company, VSIP Nghe An Co, as well as external borrowings and project cash flow.
The Nghe An is 400km from Hanoi and 70km from the Laotian border. The project will target garment manufacturers, agribusinesses and fast moving consumer goods sectors, Sembcorp said. Tenants can also receive special economic zone incentives provided by the Vietnam government, it added.
With the investment in VSIP Nghe An, the joint venture now has a total of seven projects across Vietnam.