Strong Demand Prompts Vietnam Singapore Industrial Park to expand in Southern Vietnam

Vietnam, Sep 14, 2005

- VSIP US$20 million Third Phase underway
- Additional US$49 million VSIP II in Binh Duong in pipeline

Singapore-based SembCorp Parks Holdings and Vietnam-based Becamex - developers of Vietnam Singapore Industrial Park (VSIP), have progressed on to the Phase Three development of VSIP.  Encouraged by the strong take-up of land parcels and ready-built factories in the park, VSIP also announced its plan to expand in Binh Duong Province and has earmarked another piece of land for industrialization.

VSIP – Embarking on the third phase

2. VSIP is located in Binh Duong Province of Vietnam, just 17 kilometers from the commercial hub of Ho Chi Minh City.  This Singapore flagship investment in Vietnam comes complete with on-site power generation, water supply and sewerage treatment facility.  Led by a world-class management team, VSIP also receives good support from the local government.  The on-site customs office helps to expedite approvals of trade documents and cargo clearance while local government officials appointed to the VSIP management board help to facilitate smooth start-up and operations.
3. To date, VSIP has attracted 195 investors who have invested over US$935 million and employ a workforce of over 35,000 people.  Its list of international clientele includes Diethelm, Kimberly-Clark, Konica, Sato Sangyo, Spartronics Vietnam and SV Probe.
4. The VSIP third phase is already underway, bringing the total area to about 400 hectares upon completion by early next year.  Although only about 60 per cent of the infrastructure in the third phase has been completed, to date, 50 per cent of the available land has been committed to customers.
5. A 20-hectare commercial land fronting highway 13 in VSIP is also currently undergoing construction.  This integrated development will provide VSIP tenants and the neighboring community with essential amenities including medical centers, supermarket, restaurants, banks and recreation facilities.  The new development would also include a hotel, conference facility and residential area.

VSIP II – Modeled after the success of the VSIP
6. Meanwhile the success of VSIP has encouraged and spawned the establishment of Vietnam Singapore Industrial Park II (VSIP II).  Situated in the 4,300-hectare new township of Binh Duong Province, the entire VSIP II will occupy 335 hectares.  It will offer investors land parcels and standard ready-built factories in a fully integrated manufacturing environment.  An investment of about US$49 million is planned for VSIP II.  Works on Phase One development of the 125-hectare land has commenced operation and is expected to be completed by early 2006. 
7. Ms Low Sin Leng, Executive Chairman of SembCorp Parks Holdings, who is also Chairman of Vietnam Singapore Industrial Park, has full confidence in Vietnam.  She said: “The Vietnam government has been pro-active and aggressive in its pursuit of global industrialization to achieve regional and international integration.  Its effort in securing various trade agreements and the emergence of generous tax incentives and bold legal reforms clearly demonstrates its commitment towards globalization and attracting foreign investments.”
8. She added: “The decision to locate both VSIP and VSIP II in Binh Duong Province was reached after careful consideration.  As a driver and marketer for the Vietnam industrial parks, we are mindful that the location should offer investors seamless and all-rounded manufacturing support from both the host country and us.  Binh Duong Province was selected because of its strategic location.  VSIP investors are able to reap maximum value as the province provides very competitive operational costs.  In addition, the close proximity to the bustling Ho Chi Minh City allows VSIP investors to enjoy easy access to the well-developed infrastructure and professional services,” said Ms Low.
9. “VSIP II will and incorporate some of the best features of our industrial parks in the region.  We are confident that VSIP II will set new benchmarks for other industrial parks in Vietnam and reap synergistic benefits for both its investors and the development of Binh Duong as a whole,” she added.

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For media enquiries, please contact:
Carolyn Chua (Ms)     
Corporate Relations Unit       
SembCorp Parks Management Pte Ltd        
DID: +65 6329 2509         
Fax: +65 6221 9096         
About SembCorp Parks Management Pte Ltd

SembCorp Parks Management (SPM) is a subsidiary of SembCorp Industries (SCI), a leading engineering services group in Asia focused on the provision of Integrated Utilities and Energy, Marine Engineering, Environmental Engineering, Logistics, and Engineering and Construction services.  As the industrial parks management arm of SCI, SPM’s main expertise is in managing and marketing four internationally distinguished industrial parks in Indonesia, Vietnam and China.

Recognized as one of the leading industrial space providers in Southeast Asia, SPM attracted many international clienteles which include multinational corporations and leading local enterprises. Its track record as a global business partner that provides integrated solutions to its pool of international tenants is attributed to the accumulated experience and expertise gained through the management of some leading industrial parks in Southeast Asia and the synergies that already exist between Singapore and the host countries.

About Vietnam-Singapore Industrial Park

Vietnam-Singapore Industrial Park (VSIP) is a 500-hectare integrated industrial park in Binh Duong Province, Vietnam.  Strategically located just 17km north from Ho Chi Minh City, VSIP is within easy reach to the city’s commercial hub, international airport and major seaports.  

Established since 1996, VSIP has accelerated and progressed rapidly to a widely-recognized manufacturing estate home to many international manufacturers. The strong commitment and support from both Vietnam and Singapore governments has also facilitated VSIP’s unparallel status in Asia. 
About Vietnam-Singapore Industrial Park II

The Vietnam-Singapore Industrial Park II (VSIP II) is designed to be a modern and fully integrated self-contained industrial estate.  It will offer tenants a world-class operating environment with reliable infrastructure and unmatched customer service support.  Besides the integrated and conducive environment, tenants in VSIP II will also enjoy full support from the provincial government in their daily operations.

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