Vietnam – Singapore Industrial Park – symbol of bilateral cooperation

(VOV) - The Vietnam Singapore Industrial Park (VSIP) is a flagship project initiated by the governments of Vietnam and Singapore. The maiden VSIP project is located in Binh Duong province's Thuan An district. For the past 16 years of development, VSIP Binh Duong has become one of the leading industrial park in Vietnam, and has proven to be a very attractive investment destination, technology transfer and environment protection for many multinational companies for the domestic as well as export markets.

 Vietnam – Singapore Industrial Park – symbol of bilateral cooperation - ảnh 1
Park of the green Vietnam - Singapore Industrial Park

In its initial stage, the operation of VSIP faced many difficulties as Vietnam just began the process of door opening resulting in the limitation of number and quality of foreign investment. However, in such a context, Binh Duong province was aware of the importance of VSIP in boosting local economic development, and facilitating Vietnamese and local businesses to access technology and experience in management, marketing and attracting foreign investments from Singaporean partners. So far, some 240 investors from 22 countries around the world have chosen to base their long-term investment projects in VSIP I Binh Duong. The development of VSIP Binh Duong has brought about several lessons in the management of industrial parks. Bui Minh Tri, Deputy Director of Binh Duong IP Management Committee, says ‘Singaporean managers have closely coordinated with Vietnamese partners. As a result, VSIP has become the most modern Industrial Park not only in Binh Duong province but also in Vietnam. The IP Management Board is located inside the Industrial Park enabling administrative procedures to be settled very quickly’.

So far, VSIP has attracted more than 350 foreign direct investment projects with a total capital of 3.7 billion USD and 16 domestic investment projects with a registered capital of nearly 100 million USD. VSIP’s total revenue has reached 16 billion USD and its contribution to the state budget has been nearly 360 million USD. The park has also generated jobs for more than 100,000 workers. By August this year, VSIP has attracted 600 million USD worth of foreign investment while businesses operating in the park have generated a revenue of 2.5 billion USD and provided another 4,000 jobs. Mr. Hoshino Toshiyuki, General Director of Becamex Tokyu says ‘We have received great support from Binh Duong’s provincial people’s committee and relevant agencies in settling administrative procedures, especially when we began new projects. We have enjoyed a lot of favorable conditions when investing in Vietnam’.

In VISP Binh Duong, a modern waste treatment system has been put in place preventing investors from releasing waste directly to the environment. Despite several economic difficulties, the living conditions of workers in VSIP Binh Duong have been constantly improved and the jobs here are the most stable among other IP in the south. Nguyen Thanh Chung, Head of Cooperation and Investment Division of the VSIP Management Board, says ‘The VSIP management board has closely coordinated with relevant agencies and listened to businesses’ opinions. We meet businesses and investors on a regular basis to learn about their difficulties for prompt solutions. In response to the government and National Assembly’s resolutions, we have cooperated with tax, customs departments and the state bank to introduce Vietnam’s preferential policies and initiatives for investors’.

On the back of strong investment flow into Vietnam, the highly successful VSIP has since expanded its presence to three other locations in Vietnam's southern and northern economic zones in Hai Phong, Bac Ninh and Quang Ngai. The latter three VSIP projects are urban developments, transforming the landscape with improved urban planning and modern facilities. Uniquely integrating industrial, commercial and residential solutions, these are Singapore-style urban developments localized to suit the demands of Vietnam's rapid urbanization on the back of industrialization, with a focus on long-term sustainability and quality development.