Absorption of VSIP

Part 1: VSIP-an attractive destination for investors

After 20 years of development, Vietnam-Singapore Industrial Park (VSIP) has still held the role of the whole country’s model IP in both investment absorption and planning. The VSIP trademark always leads in IP models in Vietnam and this is also an attractive destination for investors at home and abroad.

VSIP 1 in Thuan An town

Model IP

VSIP was established in 1996 with a total area of 500 hectares. This is the only IP set up under the cooperation agreement signed by the two governments of Vietnam and Singapore, initiated by late Prime Minister Vo Van Kiet of Vietnam and former Prime Minister Goh Chok Tong of Singapore with a goal of promoting Vietnamese economy as well as increasing the region’s global position. VSIP is developed from a joint venture between Vietnam’s Becamex IDC Corporation and a Singaporean consortium represented by Sembcorp Industries.

VSIP is a perfect IP with optimal services like banking, post, customs, logistics…With a goal of bringing investors the best favorable investment climate, VSIP 1 has quickly become one of the country’s top places in FDI attraction with hi-tech projects. Following its success, VSIP 2 and VSIP 2A were established between 2016 and 2008 with 2,045 hectares in total, not only bringing investors modern infrastructure, but also harmonious connection between industrial, service and urban development.

Over the past 20 years, VSIP created a breakthrough in reforming administrative procedures. It now has an open investment climate with international standard infrastructure and workforce at investors’ requirements. All have helped it become an attractive destination for investors around the world.

Ly Hung, Deputy Head of the VSIP Management Board said that since being established, VSIP has still been an attractive destination for new investors, due to having good infrastructure, marketing and customer care. Leaders of the VSIP Management Board have also always created favorable conditions for investors to feel secure when making investment herein.

Although attracting a lot of hi-tech projects with good competitiveness, VSIP has still boosted marketing activities, especially for corporations in hi-tech industries like electronics, pharmaceuticals, food…, bringing it practical results. For example, Protec & Gamble (P&G) Co. started construction of its Gillette razor plant capitalized at US$100million in VSIP 2. Anheus Bush (AB) InBever Co. also built its beer plant with the annual capacity of 50 million liters of beer…

Pervasive influence of VSIP

Nguyen Van Hung, CEO of Becamex IDC said that after putting into operation, VSIP has been successful in introducing about Vietnam where is steady in renewal with open policies, a potential market and a young and competent workforce. It has also contributed to promoting the local economic sectors to get involved in industrial development in poor rural areas in the northern region of the province with bright spots like My Phuoc Ips, Bau Bang Ip, especially provincial industrial-urban-service complex and integrated administration center. This has made regional connection via Binh Duong Avenue and My Phuoc-Tan Van expressway, helping Binh Duong become a locality with the country’s strongest industrial growth.

VSIP has also created the foundation for a vigorous investment wave from Singapore into Vietnam. Singapore is now one of top investors in Vietnam. VSIP has so far developed 7 projects in Binh Duong, Bac Ninh, Hai Phong, Hai Duong and Nghe An. Reportedly, VSIPs nationwide have absorbed nearly 600 investors from 30 countries with a total investment capital of US$7.8billion, generating jobs for more than 150,000 laborers. The result has proved VSIP’s pervasive influence in investment attraction, contributing to the national economic development.

According to Mr.Hung, the VSIP Management Board will continue learning about enterprises’ needs and well meeting them. Particularly, the VSIP Management Board will attach special importance to developing a new supply chain, in which auxiliary industries, logistics and materials-goods exchange will be focused on, helping enterprises enjoy the best advantages from VSIP at maximum level.

Province-based VSIPs have to date lured 21 domestic investment projects with a total registered capital of more than US$3.88trillion and 458 FDI ones with a total registered capital of more than US$6.62billion.

Tran Thanh Liem, Vice-Secretary of provincial Party Committee cum Chairman of provincial People’s Committee said that VSIP is the important basis for the province to attract domestic and foreign investment resources in order to become one of the country’s localities with great achievements on the way of industrialization and modernization…

Reported by Phuong Le-Translated by K.T