VSIP – Important Part of FDI Driven Economy

With the latest project in Hai Phong, VSIP has four industrial parks and township projects in Vietnam. VSIP is one of the most successful parks in terms of investment attraction, technology transfer and environmental protection. The Vietnam Business Forum talks with Ms Low Sin Leng, Co-Chairperson of Vietnam-Singapore Industrial Park Joint Venture Co., Ltd about its success and development plan.

VSIP is considered as a symbol of Vietnam-Singapore cooperation. What factors have brought success to VSIP?

VSIP is very much part of the FDI driven economy of Vietnam. Therefore a large part of the ability to attract tenants lies in the overall investment policies of the country. Apart from this, close collaboration between the stakeholders of VSIP has been integral to its success. The joint venture relationship of Singapore’s Sembcorp Industries and Vietnam’s Becamex has been one of strong support and shared visions. Based on the principle of open communication, the provincial government has maintained close supervision and provided prompt advice to VSIP and its customers. The positive outcomes of close collaboration have also extended at the national level. Both countries’ governments have worked together to deliberate solutions to issues that are raised under the Vietnam-Singapore Connectivity Agreement, of which VSIP is a part of.

How do you care about environmental protection and sustainable development purposes?

We are encouraged to see that attention is increasingly being paid to environment protection in Vietnam, and there is greater awareness amongst companies of the importance of carrying out one’s business in an environmentally responsible and sustainable manner.

VSIP has been a firm believer in sustainable development and the careful management of our environmental impact for many years. Since the inception of the first VSIP in 1996, we have incorporated onsite waste management and wastewater treatment services and have required our tenants to comply with strict effluent discharge standards. VSIP has also leveraged on the expertise of its Singapore shareholder, Sembcorp Industries, a trusted name in sustainable development which has not only implemented such measures in all its industrial parks across Vietnam, China and Indonesia, but has also built up a strong track record as a provider of greener energy, water and environmental solutions internationally.

With the introduction of VSIP’s new integrated industrial townships in Bac Ninh and Hai Phong provinces, VSIP now aims to go one step further in promoting more enlightened development through maintaining features of the natural environment in the master plan of these new townships. For instance, VSIP Hai Phong intends to maintain green belts with a wetland park that will preserve the natural habitat of local flora and fauna. The townships will also feature broad and pleasant pedestrian walkways and bicycle lanes, in order to encourage the use of more environmentally friendly modes of transport within their confines. In addition, campaigns to “reuse, reduce and recycle” can be implemented, as well as programmes to promote awareness and the preservation of naturally-occurring waterways within the townships, such as tributaries of the River Cam flowing through VSIP Hai Phong. We foresee that these measures will not only preserve the environment of the townships, but also make them more attractive to tenants, who will be able to enjoy a greener and more beautiful environment to live, work and play in, as well as lifestyle features such as waterfront living and dining.

Could you please reveal the detailed plans of VSIP till 2015?

Currently, there are four VSIP projects spanning Binh Duong, Bac Ninh and Hai Phong provinces. VSIP is arguably the largest integrated township developer in Vietnam with 4,845 hectares of land when fully completed. We are only in the early land clearance stage for our VSIP Binh Duong expansion and VSIP Hai Phong, while VSIP Bac Ninh is in its first development stage. We estimate that these projects will take fifteen to twenty years to be fully developed.

As we aim to ensure that the VSIP projects are economically and environmentally sustainable, good urban planning and sound implementation are our key management focus. As Singapore has undergone transformation from industrialisation to a knowledge and service economy, we hope to identify the learning points to adapt and suit Vietnam’s local market. We expect to be working closely with Vietnam authorities on policy matters and undertake promotion activities on Vietnam and VSIP to global investors.

Tags: Vietnam business news, Vietnam enterprise, VSIP