Over 40 years of establishing diplomatic relation between Vietnam and Singapore (Aug. 1, 1973-2013), this relation has beautified friendship between the two countries. Contributing to spur Vietnam’s economic development, more and more businesses from Singapore have invested in Vietnam in general and in Binh Duong in particular. Accordingly, Vietnam-Singapore industrial park (VSIP) founded in 1996 has been considered as a symbol of cooperation and investment between Vietnam and Singapore. More than 17 years of development, VSIP has so far reached successes and become a global trademark.
A corner of VSIP II.
A strong trademark
VSIP is the important project that making a great echo in the current of investment capital source from Singapore to Vietnam. This is the only IP in Vietnam established under a document signed by Vietnamese and Singaporean governments. VSIP’s birth is based on cooperation of investment capital between Singapore’s SembCorp Industries, Ascendas, United Overseas Land, Mitsubishi Corporation, KMP Group and Binh Duong province’s Becamex IDC under the name of VSIP Co. Ltd.
In 1996, VSIP was built at Thuan An town with the scale of 500ha of land. Ten years later, VSIP II was launched on an area of 345ha at Binh Duong industry-urban-service complex. With position of the top trademark of industrial park plus advantaged factors of geology, synchronous and modern infrastructure facility as well as simple procedures, both VSIP and VSIP II have led the whole country in success. Until now, both 2 IPs have reached 100% of tenancy. Based on success of VSIP and VSIP II, the over 1,000ha VSIP IIA under construction in the province has promoted its efficiency. Up to now, these VSIPs have lured nearly 400 projects, capitalized at over US$4.5bil.
Aside from Binh Duong, VSIP has been expanded across other provinces and cities with 5 projects, 2 of which are built in Binh Duong and 2 others built in the Northern provinces of Bac Ninh and Hai Phong and the latest one built in the central province of Quang Ngai. As such, VSIPs have appeared across 3 regions of Vietnam and lifted their area up to more than 6,000ha, luring nearly 490 investors from 25 nations and territories and placing jobs for over 140,000 laborers nationwide.
Winning trust of businesses
Finish on VSIPs’ infrastructure facility meeting businesses’ high requirements has been an attractive element for investors. Finecs Group president Noboru Masuda said that on surveys in many places, Finecs highly values VSIP’s position and gives it top priority in the group’s investment abroad strategy. Along with VSIP’s finish, accompanied services such as accommodations, experts’ villages, urban areas please all investors.
Producing gloves for export at a company in VSIP I.
Determining to invest US$30mil in a plant located at VSIP IIA, Andrew David Islands, chairman cum general director of International Beer Co.Ltd. said “We choose VSIP because it satisfies our requirements”. Takahashi Ogasawara, director of Panasonic Ecosolutions Vietnam Co.Ltd. said “VSIP’s synchronous and modern infrastructure facilities are suitable to big, hi-tech projects, so we choose it to launch our project”.
After a stable time of operation, many businesses in VSIP have increased their investment capital. Recently, Sai Gon Stec Co.Ltd. from Japan has poured additional US$175mil to improve production capacity after its initial capital of US$340mil. SaiGon Stec Co.Ltd. general director Hidetake Senoo said that the company directorate believes in VSIP.
Businesses’ satisfaction is an effective proof of investment environment. More and more businesses’ selection investing in VSIPs proves that VSIPs are attractive investment destinations. More importantly, after a more than 17 year establishment and development of VSIP, Binh Duong and Singapore’s cooperation has created significant achievements and contributed greatly to Vietnamese economy. VSIP’s success has opened a new prospect and been a bridge and foundation for Singapore to invest in Vietnam in general and Binh Duong in particular.
In 2011, VSIPs paid US$60mil to the State budget, a 23% year-on-year increase. In 2012, they paid $64mil to the budget, a 6% rise compared to the previous last year. VSIPs in this year strive to reach $5.5bil, pay $65mil to the budget. At present, VSIPs in BInh Duong have placed jobs for more than 100,000 laborers.
Reported by V.Giang – Translated by A.C
