Mr. Nguyen Van Hung, Board of Directors’ Chairman cum CEO of Becamex IDC, Board of Directors’ Co-Chairman of VSIP Group: VSIP maintains the role of exemplary industrial park of the country

To celebrate the 20^th anniversary of Vietnam – Singapore industrial park (VSIP)’s foundation, Binh Duong Newspaper had an interview with Mr. Nguyen Van Hung, Board of Directors’ Chairman cum CEO of Becamex IDC, Board of Directors’ Co-Chairman of VSIP Group.

Republic of Singapore’s President Tony Tan Keng Yam (front, 4th from left) visited VSIP Binh Duong

 - Sir, in the process of developing VSIP as an exemplary industrial park model, what were difficulties and advantages?

After 20 years, in my opinion, today VSIP success depended mainly on the cooperation with our partner – Sembcorp. Singapore is a prestigious country, and Sembcorp has shared unique experiences and their global marketing network to help in advertising Vietnam, which was a new name at that time. Then foreign investors have trusted more and select VSIP for investment, opening up an impressive development stage impression across North - Central - South of us. This is the most favorable condition for us to successfully set up a model of international-quality industrial park.

In the early days, VSIP honorably welcomed many high-level officials of the two Governments, including former Prime Minister Lee Kuan Yew. His questions oriented VSIP towards a sustainable development strategy. On the other hand, we have received the enthusiastic support from central and local agencies, especially the attention and help of leaders and people in the province.

However, there were many difficulties. Firstly, in compensation, clearance work, we must ensure people would have stable accommodation after giving their land to us. At that time, the most difficult thing to us was resettlement and investor attraction, service development. Besides, we also encountered general difficulties. Firstly, the global economy was affected by the regional economic crisis in 1996 and 2009. Secondly, when VSIP was put into operation, we must meet the requirement of "one-stop". This issue must have the involvement of all sectors and a new separate management board of "one-stop". The issue of human resources was also difficult to us, because at that time local human resource did not meet business demands, while human resource for management was not available.

- Could you please summarize VSIP’s steps during 20 years?

- Binh Duong province was a new area at that time, with labor proportion in agricultural sector accounted for more than 56%. The rural economy was slowly growing but still had low production capacity; the abundant land resource did not used efficiently for economic development objectives. VSIP joint venture entered the beginning of cooperation with a concern: What to do to exploit these advantages?

Firstly, we studied how to work most effectively in the long run. Our partner Sembcorp made every effort to share knowledge and commitment to jointly solving all problems, while Becamex always has a high learning spirit.

After learning and selecting the most relevant criteria to Vietnam, we started to a model of industrial park meeting international standards with the fervent support of Central and local agencies. For the first time, a separate management board was established for VSIP and has helped investors to significantly simplify administrative procedures. The infrastructure must also meet international standard, like an own large capacity power supply, upgrading Highway 13 according to BOT mode while State budget was limited… At the same time, we also started training and improving skills of local workers to prepare a good foundation for the industrialization process…

- How has been VSIP growth affected investment attraction and economic growth, sir?

- Firstly, along with infrastructure construction, how to approach investors and create a spillover effect was very important. Therefore, we paid much attention to marketing team. VSIP has developed professional marketing teams in many countries. We also employ native persons, who understand thoroughly all requirements of VSIP and Vietnamese policies to create favorable conditions for investors. VSIP has successfully introduced a steadfast modern Vietnam with open policies, abundant markets, young workforce and high learning spirit.

VSIP is present not only in Binh Duong. According to the Government’s request, VSIP has expanded to other provinces across the country. Currently, with many experiences in infrastructure construction and professional staff in investment attraction, we are also investing in a number of provinces, cities. We have done well this job.

Particularly, in Binh Duong, after 20 years, VSIP has encouraged all economic sectors to invest in the province, brought industrial production to rural areas. Some bright spots are My Phuoc, Bau Bang industrial park, especially Binh Duong New City urban, service complex, provincial Integrated Administrative Center; creating a linkage between economic zones through Binh Duong Highway and My Phuoc - Tan Van road, helping Binh Duong to become a province with the strongest industry in Vietnam.

- To continue to be an exemplary industrial park, what is VSIP strategy in the future?

- VSIP perceives the growing confidence of businesses in Vietnam. VSIP has maintained the role of an exemplary industrial park in planning and investment attraction. However, we determine to learn and best meet the needs of businesses. Namely, developing new supply chain, including supporting industry chain, improving logistics process and facilitating the exchange of goods so that businesses are able to enjoy maximally the utilities from VSIP.

In the next stage, to contribute to the common growth of the country, Binh Duong will continue develop ​​1,000 ha of industrial zone. Besides, we will continue to expand in some provinces and cities, spread cooperation with a number of provinces and cities; implement technological sharing, exchanging models, especially the model between State, businesses and scientists…

- Thank you!

Reported by Phuong Le – Translated by Ngoc Huynh