Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Development, has received the investment licence to develop a new industrial park in Vietnam.
The park will be operated by the Vietnam Singapore Industrial Park (VSIP) Group. Sembcorp is the joint master developer of the VSIP projects together with its long-standing partner Becamex IDC Corporation.
The park, which measures 293.7 hectares, is located in Can Tho City, a Class 1 city in Vietnam. Can Tho City, located in the Mekong Delta region of Vietnam, is regarded to be on par with the country’s Hai Phong City and Danang City. According to Sembcorp’s release, the Vietnamese central government had previously announced a new master plan approving Can Tho City’s socio-economic development for the period 2021- 2030 with a vision to make Can Tho City a centre for trade and services in the Mekong Delta region by 2030.
“Can Tho has the potential to build on its established aquaculture and agriculture industries, and increase its importance as a mega food-processing and distribution hub, with infrastructure investments planned under the new master plan,” reads the Oct 17 statement.
The licence was presented to Sembcorp Development’s CEO Kelvin Teo in the presence of President Halimah Yacob and Vietnamese President Nguyen Xuan Phuc at the Hanoi Presidential Palace on Oct 17.
Further to its statement, Sembcorp revealed that President Halimah Yacob will also tour the VSIP Bac Ninh park I at Bac Ninh Province.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
The 635-hectare integrated township and industrial park broke ground in 2007. It has since attracted 125 companies with US$2.5 billion ($3.56 billion) in investment capital and created 40,000 employment opportunities.
“Sembcorp, through the VSIP Group, has a portfolio of 11 large-scale developments spread across eight provinces in Vietnam. We are glad to receive the continuing trust of the Vietnam government, to support the country’s economic progress and create meaningful social impact. Leveraging our expertise and proven track record to deliver sustainable urban solutions, we look forward to enabling new engines of growth for Vietnam,” says Teo.
As at 1.25pm, shares in Sembcorp are trading 5 cents lower or 1.74% down at 42.83.
