Sembcorp Industries to Expand Industrial Parks in Vietnam
Sembcorp Industries, a prominent energy and urban solutions provider based in Singapore, has announced plans to co-establish five additional industrial parks in Vietnam, backed by a substantial investment of US$1 billion (approximately S$1.3 billion). This initiative, unveiled during the official visit of Vietnamese Prime Minister Pham Minh Chinh to Singapore, underscores the longstanding partnership between Singapore and Vietnam and aims to boost economic ties significantly.
Vietnam-Singapore Industrial Parks (VSIPs)
With these new developments, the total number of Vietnam-Singapore Industrial Parks (VSIPs) will reach 17. Sembcorp collaborates with Becamex IDC, a leading state-owned developer in Vietnam, marking a significant expansion of their joint efforts that began back in 1996. The VSIPs serve as a crucial link in fostering economic relations between the two nations.
To date, the existing 12 parks—strategically located across northern, central, and southern Vietnam—have attracted a remarkable US$17 billion (around S$22.6 billion) in investments. This influx of capital has created approximately 300,000 jobs, contributing to Vietnam’s growing economy.
Vision for Smart and Sustainable Parks
The upcoming VSIPs are envisioned to uphold a commitment to sustainability and innovation. They will incorporate smart technologies designed to minimize carbon footprints. Features will include rooftop solar systems and solar farms, where feasible, alongside real-time tracking devices for monitoring and managing energy, water use, waste production, traffic, and security.
A notable highlight among the new parks is a 500-hectare expansion of an existing 750-hectare park in Nghe An province, which has been operational since 2015. This park primarily hosts investments in sectors such as electronics and garments, reflecting the diverse economic activities that the VSIPs support.
Expanding Horizons
While the exact locations of the other four new VSIPs have yet to be determined, discussions around these developments signal strong economic cooperation between Vietnam and Singapore. Mr. Kelvin Teo, the chief executive of Sembcorp Development and co-chairman of VSIP Group, emphasized the depth of their commitment to Vietnam as the countries celebrate significant milestones: 50 years of diplomatic relations and 10 years of strategic partnership.
Singapore’s Role in Vietnam’s Investment Landscape
As of May 2022, Singapore ranks as the second-largest cumulative investor in Vietnam, with investments totaling approximately $94.5 billion. This substantial financial commitment highlights Singapore’s pivotal role in Vietnam’s economic landscape. During a business forum attended by over 500 representatives from both nations, Prime Minister Chinh expressed aspirations for the establishment of two or three additional VSIPs by the end of 2023.
Collaborative Agreements and Future Initiatives
In addition to the industrial parks, several other agreements were inked during the Prime Minister’s visit. A partnership between Vietnam Airlines and Singapore Airlines was announced to explore codeshare arrangements, enhancing connectivity between the two countries. Moreover, Nanyang Technological University is collaborating with Vietnam’s National Innovation Centre to foster research translation and innovation capacity, aiding startups and research institutions in both nations.
Furthermore, real estate collaboration is underway between Keppel Land and Vietnam’s Khang Dien Group, focusing on the development of residential and sustainable urban projects in Ho Chi Minh City. As discussions continue, Deputy Prime Minister Lawrence Wong noted potential avenues for cooperation in renewable energy, carbon credits, and the digital economy.
Through these sustained efforts and projects, both Singapore and Vietnam are poised to strengthen their bilateral relations, setting the stage for a more interconnected future as they navigate the complexities of a rapidly changing global economy.