Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, announced that it has held a groundbreaking ceremony of Becamex VSIP Binh Dinh Township and Industrial Park on September 27.
The ceremony was witnessed by Vietnam’s Deputy Prime Minister Truong Hoa Binh.
The development, located in Canh Vinh Commune of Binh Dinh Province, is the latest of several VSIP (Vietnam – Singapore Industrial Parks) developments clustered in Central Vietnam where the government is keen to draw investments through incentives for manufacturers and create employment to encourage economic growth.
The development is within the Nhon Hoi Economic Zone and encompasses 1,000 hectares of industrial zone with the potential for further commercial and residential development. According to Sembcorp, the location is suited for labour-intensive manufacturing for textile, garment, furniture and wood processing, as well as machining and precision engineering industries.
Sembcorp Development has, through its joint venture entity VSIP Joint Venture Co, co-developed nine VSIP integrated developments across Vietnam with its partner Becamex IDC Corporation.
The VSIP developments have attracted US$15 billion ($20.65 billion) in total investment capital from 880 tenant companies.
Becamex IDC will take the lead in this latest development through its 70% held subsidiary Becamex Binh Dinh Joint Stock Company.
VSIP Joint Venture Co holds the remaining 30% stake in the company.
Sembcorp Development’s 14.8% effective equity interest in Becamex Binh Dinh JSC is held through VSIP Joint Venture Co.
Shares in Sembcorp Industries closed 1 cent lower, or 0.8% down, at $1.31.
