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IC Awarded for VSIP Quang Ngai

Press Release

investment certificate AWARDED for fifth VIETNAM SINGAPORE INDUSTRIAL PARK project TO BE LOCATED in quang ngai province, central vietnam

- Witnessed by Their Excellencies, Singapore President Tony Tan Keng Yam and Vietnam President Truong Tan Sang

Vietnam, April 23, 2012 – The People’s Committee of Quang Ngai Province has approved the investment for the new Vietnam Singapore Industrial Park (VSIP) integrated township and industrial park in central Vietnam. The investment certificate for the VSIP Quang Ngai was presented to Ms Low Sin Leng, Co-chairman of the VSIP Group and Executive Chairman of Sembcorp Development, at a ceremony today at Hanoi’s Presidential Palace, witnessed by Their Excellencies Tony Tan Keng Yam, President of the Republic of Singapore and Truong Tan Sang, President of the Socialist Republic of Vietnam. President Sang and Singapore Prime Minister Lee Hsien Loong had earlier witnessed the signing of the memorandum of understanding for the VSIP Quang Ngai in Singapore, in September 2011.

The VSIP Quang Ngai project will be undertaken by the VSIP Joint Venture Co. (VSIP JV), which is a joint venture between Vietnam’s Becamex IDC Corporation with 49% shareholding and a Singapore consortium holding 51% share. Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, holds 79.29% share in the Singapore consortium. VSIP JV will invest a total of US$337.82 million in the VSIP Quang Ngai. The estimated total equity of US$40 million will be funded through VSIP JV’s internally generated funds.

The new VSIP Quang Ngai is the fifth VSIP project, with the first two VSIP projects located in the southern economic zone of Binh Duong province and the next two located in the northern economic zone’s Bac Ninh province and Hai Phong City. The VSIP Quang Ngai comprises a 600-hectare industrial park located within the Dung Quat Special Economic Zone. Separately, a 520-hectare site zoned for commercial and residential purposes will be developed near downtown Quang Ngai city. To kick-start the project, the VSIP JV will focus on a start-up area of 160 hectares for industrial park and 100 hectares for commercial and residential development.

Quang Ngai province enjoys strategic location advantages for manufacturers looking to distribute their products to the northern and southern economic zones of Vietnam as well as to central Vietnam. In addition, Quang Ngai provides access to external markets such as Laos, northeastern Thailand and Cambodia. Labour supply is abundant within the province and from neighbouring provinces. Manufacturers located in the VSIP Quang Ngai will also be offered government-supported special economic zone incentives. Target industries of the industrial park include food and beverages, fast-moving consumer goods (FMCG), electronics assembly and other light industries catering to the oil and gas and chemical sectors.

The first four established VSIP projects have attracted 465 committed customers, of which 313 companies are operational with US$5.28 billion in approved total investment capital, and employ about 110,000 workers. This morning, Finland’s Nokia, the world’s number one manufacturer of mobile devices, held its project launching ceremony at the VSIP Bac Ninh for its first manufacturing facility in Southeast Asia Pacific. Nokia has invested US$302 million to produce affordable mobile phones and provide localised mobile experiences to growing markets in the region. At full capacity, it will employ a workforce of up to 10,000. It will commence phase one operations on the 17-hectare site in the VSIP Bac Ninh in mid 2013. 

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 For media queries please contact:

 

Mary Ann Chan (Ms)

Senior Manager, Corporate Relations

Sembcorp Parks Management

Tel: +65 9862 8363

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