Establishment of VSIP in Nghe An Province, Northern Central Vietnam

Vietnam, Jun 30, 2015

Sembcorp Development (SCD), a wholly-owned subsidiary of Singapore’s Sembcorp Industries, announces that its joint venture, Vietnam Singapore Industrial Park Joint Venture Co (VSIP JV), has obtained exclusive rights from the People’s Committee of Nghe An Province to develop a 750-hectare integrated township and industrial park.

VSIP Nghe An will be developed in phases in tandem with demand. VSIP JV has also received the investment licence for phase one of the project which comprises 198 hectares of industrial land and 81 hectares of commercial and residential land. The investment in phase one will be funded partly by equity of US$15.2 million from VSIP JV and the remainder funded by external borrowings and project cash flow.  

The project company, VSIP Nghe An Co, which will undertake this project is wholly-owned by VSIP JV. VSIP JV is a 49-51 joint venture between Vietnam’s Becamex IDC Corporation and a Singapore consortium in which SCD holds a 92.9% stake.

 Nghe An province is located in Vietnam’s northern central region and plays a supporting role to the capital of Hanoi. It is located 400 kilometres from Hanoi and 70 kilometres from the Laotian border. Garment manufacturers, agribusinesses and fast moving consumer goods (FMCG) sectors are target industries of VSIP Nghe An. Special economic zone incentives provided by the government, are available to its tenants.

With the investment in VSIP Nghe An, there are now a total of seven VSIP projects across Vietnam, with the others located in Binh Duong, Bac Ninh, Hai Phong City, Quang Ngai and Hai Duong provinces. The total gross area of the seven VSIP developments (including phase one of VSIP Nghe An) is 6,153 hectares.  

The above investment does not have a material impact on the earnings per share and net asset per share of Sembcorp Industries for the financial year ending December 31, 2015.

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For media and analysts’ queries, please contact:  

Mary Ann Chan (Ms) 
Senior Manager, Corporate Relations 
Sembcorp Parks Management 
DID: +65 98628363 
Email: maryann.chan@sembcorp.com

Tran Thi Quynh Thanh (Ms) 
Marcom Officer  VSIP J.V. Co. 
Tel: +(84-650) 374 3898    ext:219 
Email: thanh.ttq@vsip.com.vn

Aleve Co (Ms) 
Senior Manager, Group Corporate Relations 
Sembcorp Industries 
DID: +65 6723 3178 
Email: aleve.co@sembcorp.com 


ABOUT SEMBCORP INDUSTRIES

Sembcorp Industries is a leading energy, water and marine group with operations across six continents worldwide. With facilities of almost 7,900 megawatts of gross power capacity and over nine million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.  

Sembcorp has an established presence in Vietnam with its highly successful Vietnam Singapore Industrial Park (VSIP) projects. Sembcorp also owns and operates the Phu My 3 power plant, a 746-megawatt gas-fired power plant which began commercial operation in 2004 in southern Vietnam, and plans to develop a new power plant in central Vietnam.  

Sembcorp is listed on the main board of the Singapore Exchange.  It is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

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