SINGAPORE - Deputy Prime Minister Teo Chee Hean and Vietnam's Deputy Prime Minister Truong Hoa Binh attended an event on Wednesday morning (Sept 14) to mark 20 years of the Vietnam-Singapore Industrial Park (VSIP) joint venture.
At the event, the two sides signed memoranda of understanding to explore two new expansions in Binh Duong and Bac Ninh provinces, potentially adding 1,500ha to the 6,600ha already occupied.
VSIP is a joint venture between Vietnam state-owned enterprise Becamex IDC Corporation and a Singapore consortium led by Sembcorp Development.
It consists of seven parks across Vietnam and has become a symbol of the close ties between Vietnam and Singapore, said SembCorp Development in a statement.
The industrial parks have drawn US$9 billion (S$12.3 billion) in investments from more than 630 multinational companies.
They have also created more than 174,000 jobs.
VSIP co-chairman Nguyen Van Hung, who is also chairman of Becamex IDC Corporation, said: "VSIP has been a great success in showcasing Vietnam's sustained economic reform strategy, and its abundant market potential, through seven integrated industrial parks across the country.
"The success of Binh Duong has been a key feather in our cap and encourages us to extend this transformation further in Vietnam."
Binh Duong province, where the first two industrial parks are located, has been transformed from an agricultural province to an industrial powerhouse. As of late 2015, industries and services accounted for 97 per cent of total provincial economic output, cementing Binh Duong's position as one of the top provinces in Vietnam today.
"The early decision to position VSIP for international companies with international standards has borne fruit," said Mr Kelvin Teo, chief executive officer of Sembcorp Development and VSIP co-chairman.
"Coupled with modern master plans that integrate work, live, play and learn elements for areas outside of the city centres, we have been able to offer our customers solutions that meet their operating needs."