Five more Vietnam-Singapore industrial parks to be set up, says Sembcorp

The 12 parks currently in northern, central and southern Vietnam have attracted $22.6 billion in investments. PHOTO: SEMBCORP DEVELOPMENT

SINGAPORE - Sembcorp Industries will co-establish five more industrial parks in Vietnam to the tune of US$1 billion (S$1.3 billion), the Singapore-listed energy and urban solutions provider said on Friday.

This will bring to 17 the total number of Vietnam-Singapore Industrial Parks (VSIPs) with its longstanding partner, Vietnam state-owned developer Becamex IDC.

A memorandum of understanding (MOU) on the latest tie-up was announced during the third and final day of an official visit by Vietnamese Prime Minister Pham Minh Chinh to Singapore.

VSIPs, first set up in 1996, are a key part of Singapore’s economic link with Vietnam.

The 12 parks currently in northern, central and southern Vietnam have attracted US$17 billion (S$22.6 billion) in investments and created 300,000 jobs.

The upcoming VSIPs are envisioned to be smart and sustainable, with low carbon footprints and features such as rooftop solar systems and solar farms where feasible, said Sembcorp.

They will also use real-time tracking devices to remotely monitor and manage energy, water and waste use, as well as traffic and security.

Among them is a 500ha expansion of a 750ha park in Nghe An province in north-central Vietnam that was established in 2015.

The current Nghe An (Park I) hosts investments from labour-intensive manufacturing industries, such as electronics and garments. A licence for the expansion was presented by the Vietnam government to Sembcorp and Becamex on Friday.

The locations of the other four new VSIPs have not yet been finalised.

Mr Kelvin Teo, chief executive of Sembcorp Development and co-chairman of VSIP Group, noted that 2023 marks 50 years of diplomatic relations and 10 years of the strategic partnership between Singapore and Vietnam.

“Our commitment to Vietnam remains deep because the spirit of partnership has held strong,” he said, adding that he looked forward to the continued support of all parties in growing the VSIP project.

As at May 2022, Singapore was the second-largest cumulative investor in Vietnam, with investments totalling $94.5 billion.

As part of his programme on Friday, Mr Chinh addressed a business forum at the Shangri-La Hotel, which was attended by about 500 business representatives and officials from both countries.

Mr Chinh, who is on his first official visit to Singapore since he took office in 2021, said he hopes that another two or three VSIPs can be opened in 2023.

The parks were testament to the flourishing ties between the two countries, and served as a foundation for investors to further build upon, he added.

Other agreements announced on Friday include one between Vietnam Airlines and Singapore Airlines. Both carriers will be exploring opportunities for codeshare arrangements to improve connectivity between Vietnam and Singapore.

Nanyang Technological University and Vietnam’s National Innovation Centre are collaborating to build research translation and innovation capacity for start-ups, research institutions and companies in both countries.

Keppel Land and Vietnamese real estate company Khang Dien Group are working on the development of residential projects and sustainable urban developments in Ho Chi Minh City.

Deputy Prime Minister Lawrence Wong, who met Mr Chinh on Friday, said they discussed how Singapore and Vietnam can deepen cooperation in renewable energy, carbon credits and the digital economy.

“Our countries celebrate the 50th anniversary of our diplomatic relations and 10th anniversary of the strategic partnership this year.

“I look forward to working with PM Chinh to deepen Singapore’s relations with Vietnam in the years to come,” he said in a LinkedIn post.

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