Singapore
and Vietnam will study the feasibility of building an industrial park in Quang
Ngai province in central Vietnam, a development they believe can spur growth in
the region.
It will be the first foray into the region by
the Vietnam-Singapore Industrial Park (VSIP) joint venture, which runs four
industrial parks.
Yesterday, it signed a memorandum of
understanding with the People's Committee of Quang Ngai province to conduct the
feasibility study.
The Istana ceremony was witnessed by visiting
Vietnamese President Truong Tan Sang and Singapore Prime Minister Lee Hsien
Loong.
VSIP is a tie-up between Vietnam's Becamex IDC
and Sembcorp Industrial Parks and yesterday, their chairmen highlighted the
value of locating an industrial park in Quang Ngai.
Said Becamex IDC chairman Nguyen Van Hung:
"The government has invested in a lot of infrastructure, facilities and
even social amenities around the area. They need a good player to (take)
development to another level."
He also said VSIP's tenants have asked for it
to expand to central Vietnam, which is home to about 20 million people.
Sembcorp Industrial Parks executive chairman
Low Sin Leng said Quang Ngai was a "strategic choice", being a
promising centre of growth.
Although Quang Ngai is not among Vietnam's
top-grade cities like Hanoi and Ho Chi Minh City, she noted that an expressway
is being built to the major city of Danang, a tourism hub with direct flights
to Singapore.
VSIP runs two industrial parks in Binh Duong,
near Ho Chi Minh City in the south, and two more in Bac Ninh and Hai Phong near
Hanoi in the north.
The proposed fifth park will be in Dung Quat
Economic Zone, one of the few remaining areas in Vietnam offering incentives to
investors.
Quang Ngai is ideal for labour intensive
industries such as fast-moving consumer goods and food and beverage
manufacturing, VSIP said in a statement. Said Ms Low: "We are putting in
very long-range planning for VSIP. It shows our confidence in Vietnam's
economic growth."
VSIP also wants to continue contributing to
Vietnam's social development, she added, noting that VSIP has invested US$4
billion (S$5 billion) in Vietnam since 1996 and created more than 100,000 jobs.
The company also plans to help in the urbanisation of Vietnam, by building more
housing and commercial projects.
The proposed 500ha industrial park is paired
with an "integrated township" of about the same size for commercial
and residential use.
Mr Sang, who ended his three-day state visit
yesterday, stressed several times that Vietnam welcomes more investment from
Singapore companies. During his visit, he visited Keppel FELS, which designed
and built Vietnam's first semi-submersible drilling rig.
He and PM Lee discussed trade and investment,
among other topics, when they met. Both leaders affirmed the strong bilateral
ties and spoke of strengthening cooperation in international fora like Asean,
said Singapore's Foreign Affairs Ministry.
Mr Sang left for Malaysia yesterday.
Andrea Ong
The Straits Times
Business & Investment Opportunities
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