Nghe An hands over investment approval for VSIP Nghe An 3 to Sembcorp

On the morning of March 12, during an official visit to the Republic of Singapore, General Secretary To Lam held high-level talks with Singaporean Prime Minister cum Secretary-General of the People's Action Party, Lawrence Wong.

At the conclusion of the talks, under the witness of General Secretary To Lam, Prime Minister Lawrence Wong, and leaders of ministries, sectors, localities, and enterprises of both countries, various cooperation documents were exchanged.

Secretary of the Nghe An Provincial Party Committee Nguyen Duc Trung handed over the investment approval decision for the VSIP Nghe An 3 Industrial Park project to leaders of Sembcorp Group.

The VSIP Nghe An 3 Industrial Park project covers more than 181 hectares in Hung Nguyen district, within the Dong Nam Economic Zone, with an investment capital of USD 52.5 million. This is the third VSIP industrial park in Nghe An, following VSIP Nghe An 1 and VSIP Nghe An 2.

To date, the industrial parks invested by VSIP Nghe An Co., Ltd. have attracted 54 secondary projects, with a total registered investment of VND 64.7615 trillion, including 34 FDI projects with a total capital of USD 2.59 billion. The total FDI in VSIP Nghe An industrial parks accounts for 53.1% of the province's total FDI capital.

VSIP Group entered Nghe An in 2015 with the VSIP Nghe An Industrial, Urban, and Service Park (VSIP Nghe An 1) project in Hung Nguyen district. The project spans over 750 hectares with a total investment of USD 359 million.

To date, the industrial park has completed 96.98% of land leveling, while the urban and service areas have completed around 45%. The industrial park has essentially completed synchronized infrastructure construction to attract investment, while the urban and service areas are under development and site clearance.

VSIP Nghe An 1 has attracted 53 secondary projects, with a total registered investment of VND 49.9851 trillion, including 33 FDI projects with a total investment of USD 2 billion; the occupancy rate is about 95%.

In 2024, Nghe An attracted nearly USD 1.75 billion in FDI, ranking 8th out of 63 provinces and cities. VSIP Nghe An alone attracted eight FDI projects with a total investment of nearly USD 1.4 billion.

In February 2023, VSIP continued investing in the Tho Loc Industrial Park – Phase 1 project (VSIP Nghe An 2) in Dien Chau district. The industrial park covers 500 hectares with a total investment of USD 164.6 million. To date, the project has completed 13.4% of land leveling and has attracted one project, Mega Textile Vietnam, invested by Best Pacific International Limited Group.

VSIP is one of the most successful FDI projects in Nghe An and is becoming a key project with the expectation of creating a significant breakthrough in the province's industrial development in the coming period.

Previously, on March 11, General Secretary To Lam met with Mr. Tow Heng Tan, Chairman of the Board of Directors of Sembcorp Group. Secretary of the Nghe An Provincial Party Committee Nguyen Duc Trung and leaders of ministries, agencies, and sectors also attended.

Mr. Tow Heng Tan proposed a pilot policy for the VSIP industrial parks and stated that, in addition to industrial infrastructure development, the group aims to invest heavily in Vietnam’s power sector, particularly in renewable energy and gas turbines in the near future. He also expressed his hope that the two governments would consider developing joint training programs and cooperation in offshore wind power.

Highly appreciating the development of the VSIP industrial park model, General Secretary To Lam noted that the Vietnamese government is currently reviewing adjustments to the Power Development Plan to strongly promote renewable energy sources.

Vietnam warmly welcomes foreign enterprises, including Sembcorp, to invest in the power sector, particularly in clean and renewable energy. Vietnam is committed to accompanying Sembcorp to support and facilitate the group's effective and successful investment activities in the country.

Sembcorp invests in Vietnam through Sembcorp Development (SCD) in industrial infrastructure and real estate and through Sembcorp Utilities (SCU) in the energy sector. The joint venture between SCD and Becamex IDC co-established the Vietnam-Singapore Industrial Park (VSIP) Company to implement VSIP projects.

To date, Sembcorp Group has invested in 18 VSIP industrial park projects across 13 provinces and cities, creating jobs for over 300,000 workers in Vietnam. The VSIP industrial parks serve as a symbol of economic cooperation between Vietnam and Singapore.