Vietnam - Singapore Industrial Park: FDI capital increases sharply

Update: 20-10-2017 | 08:56:23

At present, Vietnam-Singapore Industrial Park (VSIP) in the province managed by VSIP Management Board has 509 FDI projects, which were granted investment registration certificate with total registered capital of over $7.6 billion. Only in the first nine months of 2017, VSIPs in the province attracted nearly $781 million of FDI capital, equaling 136.75% of the same period in 2016 and 223.08% of the year plan.

Commencement ceremony of Tetra Pak factory in VSIP 2.

Continue to attract large investors

Recently, at expanded VSIP 2, Indian Tata Coffee Group started the project of instant coffee factory with a total investment capital of $60 million, with a capacity of 5,000 tons/year. Tata Coffee was established in 1922, is a large corporation in India. The group has invested in Vietnam in fields of energy, steel, coal, construction, and processing of coffee. This is the second investment project and a major project of this group in Vietnam.

Indian Ambassador in Vietnam evaluated that Binh Duong province had a favorable investment environment and preferential policies for businesses. VSIPs have good and modern infrastructure, which will contribute to creating favorable conditions for enterprises to invest in this area.

Recently, Tetra Pak Group (Sweden) started its factory in VSIP 2 with total investment capital of $110 million. Tetra Pak is the world's leading provider of food processing and packaging solutions. Tetra Pak plant in Binh Duong is the largest of 34 Swedish investment projects in Vietnam. The factory covers an area of 100,000m2 and is capable of a capacity of 20 billion packages per year, and is expected to officially operate in early 2019. The plant will produce a wide range of paper packages, Including popular packaging such as tetra brik aseptic, tetra fino aseptic. With a strategy of sustainable development, the new plant will be the greenest in the Tetra Pak system and will be one of the first plants in Vietnam to adopt the highest environmental standards in the world.

Turnover of business is quite good

In the first 9 months of 2017, the disbursed capital of FDI projects investing in VSIPs reached over $280 million, equaling 112% of the same period of 2016 and equaling 93.33% of the 2017 year plan. Turnover of enterprises investing in VSIPs was estimated at over $5.5 billion, equal to 110% over the same period of 2016 and 73.33% of the plan in 2017.

YoKaichi Makoto, General Director of TPR Vietnam (Japan) said that from the beginning of 2017, production and business activities of the company continued its stable growth. Particularly, the company's fifth factory in VSIP 2A (Tan Uyen Township), reached 2.6 million products of per month, with production expected to increase threefold by 2019.

According to Nguyen Thanh Trung, Deputy Director of VSIP's Management Board, since the beginning of the year, VSIPs have maintained a steady level of investment capital absorption, some projects have expanded their production scale. In the coming time, the Management Board will continue to assist businesses, along with the authorities’ support, to timely solve difficulties of investors, so that remaining months of 2017 could reach the target; namely, turnover of businesses to reach $1 billion, businesses to contribute $11 million to the budget...

Reported by Phuong Le – Translated by Ngoc Huynh

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Vietnam - Singapore Industrial Park: FDI capital increases sharply

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