Singapore’s Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), and its joint venture partner in Vietnam, Becamex IDC Corporation (Becamex), a state-owned enterprise, have announced the addition of four new Vietnam Singapore Industrial Parks (VSIP) to its portfolio. Memoranda of Understanding (MOUs) for 10 prospective VSIPs were also presented.

The new projects were inaugurated by Their Excellencies, Mr Lee Hsien Loong and Mr Pham Minh Chinh, the Prime Ministers of Singapore and Vietnam respectively. The heads of government were joined by ministers and provincial leaders in a special state event to support the VSIP projects, a symbol of Vietnam-Singapore relations.

Addition of four new VSIPs

Sembcorp and Becamex received the investment licence to develop VSIP Lang Son, a 600-hectare industrial park, and also received Prime Minister Chinh’s in-principle approvals to develop new VSIPs in the provinces of Thai Binh, Binh Thuan and Ha Tinh. Including these four projects, there will be 17 VSIPs in the entire portfolio, establishing this as the largest Vietnam-Singapore collaboration in 13 locations across Vietnam.

MOUs for 10 prospective VSIPs

During the event, the leaders of 10 provinces reiterated their commitment to work with Sembcorp and Becamex to jointly engage in feasibility studies for more VSIPs. The 10 provinces are located throughout the country - Binh Phuoc and Tay Ninh in the south; Khanh Hoa, Thua Thien Hue and Quang Ngai II in central; Thanh Hoa in north-central; and Nam Dinh, Ninh Binh, Hai Duong II, Hai Phong II in the north.

To cap off the event, the Prime Ministers officiated the virtual groundbreaking ceremony of three VSIPs - VSIP Can Tho in the Mekong Delta, VSIP Bac Ninh II in the Red River Delta and VSIP Nghe An II in the North Central Coast. The groundbreakings mark the commencement of land development for handover to customers from 2024 onwards.

The VSIPs have been an important platform for bilateral cooperation since 1996. They serve a critical role in hosting foreign manufacturing investments that contribute to the sectoral transformation of local provinces from agriculture to industry, thereby promoting the overall development of Vietnam. The addition of the new VSIPs will deepen collaboration in the areas of smart and sustainable industrial parks that are envisaged to be the future model of sustainable industrialisation.

These partnerships are not expected to have any material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2023.