Sembcorp Breaks Ground for Fourth Vietnam Singapore Industrial Park
January 13, 2010
- Ground breaking is graced by Prime Ministers Lee Hsien Loong of Singapore and Nguyen Tan Dung of Vietnam
Sembcorp Industrial Parks, a fully owned subsidiary of Sembcorp Industries, held a ground breaking ceremony for its new Vietnam Singapore Industrial Park (VSIP) development in Hai Phong, Vietnam. The ground breaking was witnessed by Guests of Honour Prime Minister Lee Hsien Loong of Singapore and Prime Minister Nguyen Tan Dung of Vietnam; signifying the continued importance of the well-established VSIP projects as a symbol of bilateral economic cooperation. The two prime ministers had earlier also graced the tenth anniversary celebration of the first VSIP project in Binh Duong province, in September 2006.
Jointly developed with Vietnam’s state-owned enterprise Becamex IDC Corporation, the new VSIP Hai Phong is Sembcorp’s fourth VSIP project, after its first two successful VSIP projects in Binh Duong and a third project in Bac Ninh. The VSIP Hai Phong will set itself apart from other industrial parks with its Singapore-style urban development, localised to suit the demands of Vietnam’s market. Spanning 1,600 hectares, it will be positioned as an integrated township and industrial park, with 1,100 hectares allocated for commercial and residential development and a combined 500 hectares allocated for a business park and clean industrial park. While industry remains the core of the development in bringing in foreign investment, the integrated township will enhance the attractiveness of the industrial development by providing a financial centre, commercial belt, shopping malls, hotels, medical centres and four residential precincts with supporting schools and community spaces. The master plan for VSIP Hai Phong also includes a signature four-kilometre river front, as well as proposed features such as an arts and cultural centre, a trade and convention centre and waterfront residences.
With thirty percent of land reserved for greenery, Sembcorp also aims to go one step further to preserve the features in Hai Phong’s natural environment with the objective of creating an environmentally-pleasing township. This includes preserving the habitat of local flora and fauna, retaining existing wetlands and enhancing naturally-occurring tributaries from the Cam River that run through the township. This integration of conservation and development has been undertaken to improve the area’s liveability while retaining much of its natural charm.
Investors participating in the VSIP Hai Phong integrated township and industrial park can also tap on its advantageous strategic location and preferential policies. Hai Phong, being one of five Grade 1 cities in Vietnam that are prioritised for accelerated development, will see increased government spending on overall infrastructure development. Its location at the Northern Vietnam Economic Zone and proximity to southern China offers it easy access to a significant consumer and trade market via highway, sea, air and railway networks. Furthermore, special incentives will be available to companies located within the VSIP Hai Phong, under the Dinh Vu-Cat Hai Economic Zone initiative. So far, 11 companies have signed memoranda of understanding and letters of intent to invest in the integrated township and industrial park.
Said Ms Low Sin Leng, Executive Chairman of Sembcorp Industrial Parks and Co-Chairman of VSIP Hai Phong Co., “Vietnam is a stable country with tremendous investment opportunities. With a population of more than eighty million and growing trend of urban migration, we see a growing market here for sustainable urban solutions. With an environmentally sensitive approach to its development and its emphasis on attracting clean industries, VSIP Hai Phong has real potential as a showcase for long-term development sustainability.
“Sembcorp has long participated in supporting Vietnam’s development with our VSIP projects and our energy solutions in the south. Leveraging on Sembcorp’s expertise in Vietnam and VSIP’s brand name, Singapore companies can also work together with us to offer bundled solutions and further replicate Singapore’s urban development success stories in VSIP Hai Phong.”
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For media enquiries please contact:
FOCK Siu Ling (Ms)
Group Corporate Relations
DID: +65 6723 3152
Email: [email protected]
Mary Ann CHAN (Ms)
Sembcorp Parks Management
Tel: +65 9862 8363
Email: [email protected]
ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading utilities and marine group. With facilities with over 3,800 megawatts of installed power capacity and over 4 million cubic metres of water under management per day, Sembcorp is a trusted provider of essential energy and water solutions to customers in Singapore, China, Vietnam, the United Kingdom and the Middle East. In addition, it is a world leader in marine & offshore engineering, as well as an established developer of integrated industrial townships in Asia.
Sembcorp Industries has total assets of over S$9 billion and employs around 6,500 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index and several MSCI indices.
ABOUT SEMBCORP IN VIETNAM
Sembcorp is a major developer in Vietnam with four Vietnam Singapore Industrial Park (VSIP) projects in Binh Duong, Bac Ninh and Hai Phong provinces. The VSIP projects will cover 4,845 hectares of industrial, commercial and residential land when fully developed. Out of about 180 industrial parks, VSIP has been named the 'Best Industrial Developer 2008' in Vietnam by UK's Euromoney Liquid Real Estate magazine and is a symbol of successful Vietnam-Singapore bilateral co-operation.
The VSIP Joint Venture Company is 51% held by a Singapore consortium led by Sembcorp Industries, while the remaining 49% share is held by Vietnam state-owned enterprise, Becamex IDC Corporation. Sembcorp holds a 79.29% stake in the Singapore consortium. The VSIP Joint Venture Company has a 70% share in the VSIP Township & Development Joint Stock Company, which owns the VSIP Hai Phong. Sembcorp also holds a further 12% direct stake in this joint stock company and its effective stake in the VSIP Hai Phong is 40.31%.
In addition to the VSIP projects, Sembcorp also operates Vietnam’s largest private-sector power plant. The 728-megawatt Phu My 3 Power Plant in Ba Ria-Vung Tau province contributes about 7% of the total national grid demand.
Note to Editors:
Following a company rebrand, please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.