Part 1: Model industrial park

Vietnam-Singapore Industrial Park (VSIP) in Binh Duong, founded on the trust and highlighted relation of Vietnamese and Singaporean governments in 20 years, has become a model of planning and investment luring in the nation. Up to date, VSIP is the most effective industrial park ever invested by an ASEAN nation in Binh Duong Province.

VSIP – the lighted place of investments

ASEAN has become the second commercial partner with Vietnam for average growth of 14.5% per annum in the decade. Commercial revenue of Vietnam and ASEAN increased from about US$ 19 billion in 2006 to US$ 41.36 billion in 2016. ASEAN has become the third largest supplier to Vietnamese enterprises, holding the key investment resources to our nation at about US$ 64 billion.

Production line of TPR Vietnam in VSIP II-A of Tan Uyen Town is operating. Photo: Phuong Le

ASEAN nations such as Singapore, Thailand, Malaysia, etc. have invested into Binh Duong Province and Singapore is the largest and the most effective investor, contributing to socio-economic development. VSIP has emerged as the name of attraction of investment from nations.

VSIP was initiated by the friendly and economic cooperation of Vietnam and Singapore as the passed away Prime Minister Vo Van Kiet recommended for Prime Minister Lee Kuan Yew and Goh Chok Tong, the then senior minister and former Prime Minister of Singapore. The former Song Be Province and SembCorp of Singapore and Becamex IDC signed a cooperation deal to incorporate Vietnam-Singapore Industrial Park Joint Venture Company Limited, contributing to the creation of breakthrough and foundation for establishment of VSIP in industrialization and modernization orientation. VSIP was established in 1996 on 500 hectares, creating opportunities for domestic and foreign investors to access a model industrial park infrastructure with elite business environment and foundation for investment pour into Vietnam.

From the beginning of 2017, VSIP attracts more investment capital. Regarding domestic capital resources, in the first 6 months of the year, the amount has reached VND 516.32 billion. Up to date, 27 domestic projected industrial parks of VND 4,017 billion are under management of VSIP on administering registration of projects to VSIP Authority under Investment Law 2014. As for foreign investment, in the first 6 months of 2017, nearly US$ 652 million, increasing by 61.65% from 2016 and 186.25% of 2017 plan has been poured into VSIP. Accordingly, 500 effective projects are currently managed by VSIP Authority with registered capital of US$ 7.47 billion. According to Nguyen Thanh Trung, the Deputy Director of VSIP Authority informed of stable development and extension of projects.

Nguyen Van Luong, the Deputy General Director of Esquel Vietnam (VSIP I, Thuan An Town), informed of better exportation from 2016 as quantity of purchase orders and exportation have increased by 10% year on year. He is confident that by the end of 2017 the growth should be 10-15% year on year.

Outspreading VSIP

Nguyen Van Hung, co-chairman of VSIP Board of Directors, Chairman of Becamex IDC's Board of Directors cum General Director, informed that VSIP has been selected by many multinational corporations after being put into operation as the introduction of a sustainable Vietnam with its open policy, abundant market space, young workforce and high market spirit. VSIP has enabled the economic sectors of Binh Duong to invest, bringing the industry to the rural areas with many difficulties in the north of the province. Among the highlights are the industrial parks of My Phuoc and Bau Bang, especially the industrial-service complex and the urban complex; together with that, it will connect economic zones and connect Binh Duong avenue and My Phuoc - Tan Van streets, contributing Binh Duong province from an purely agricultural province 20 years ago to an industrial province.

From the first foundations built with confidence, the deep relationship between the two governments of Vietnam and Singapore, after 20 years into operation, VSIP today remains the role of model industrial park in planning and calling for investment of the country. Up to now, VSIP has developed six projects in the provinces and cities of Binh Duong, Bac Ninh, Hai Phong, Hai Duong, Quang Ngai and Nghe An and has absorbed and promoted economic potentials of these localities. From these projects, VSIP's industrial parks have attracted nearly 600 investors from 30 countries with a total registered capital of over US $ 9 billion and created jobs for more than 174,000 workers. This result demonstrates the spillover effect of VSIP, contributes to good implementation of social welfare policy and the success in integration and development of Vietnam in general, said Binh Duong province.

"In order to continue our role as a model industrial park in the planning and calling for investment of the country, in the future we will remain determined to understand and best meet the needs of enterprises. We will focus on developing a new supply chain model that develops the supporting industry chain, improves logistics processes, and facilitates the exchange of raw materials for enterprises to enjoy utmost convenience. Benefit from VSIP. We will promote the spirit of dynamism, creativity and vision, which has helped VSIP become a model for strategic thinking and vision with its own mark in Vietnam," said Hung.

Reported by Phuong Le – Translated by Vi Bao

Part 2: A place of ASEAN project attraction

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