VSIP signs Nghe An industrial park agreement

18-Feb-2014 Intellasia | VIR | 6:00 AM Print This Post

Vietnam-Singapore Industrial Park, the leading industrial park and township developer in Vietnam, intends to develop its second project in the central region, underscoring the role of the area in attracting future foreign direct investment.

Nghe An People’s Committee last week signed a memorandum of understanding with state-owned Becamex IDC, the Vietnamese stakeholder of Vietnam-Singapore Industrial Park (VSIP), to study the feasibility of a township complex in the province.

If implemented, the project will be the sixth VSIP complex in Vietnam. The developer has already developed two projects in southern Binh Duong province, one in northern Bac Ninh province, one in Hai Phong port city and one in central Quang Ngai province.

The industrial park developer’s ambitions to expand their interests in the region are underscoring the central region as an attractive location for investment in Vietnam.

An anonymous source familiar with this case said VSIP wanted to develop an industrial park and township complex in Nghe An due to the abundance of labour and strong infrastructure such as air and sea ports.

The source added VSIP chose to locate the project in the Nghe An Southeast Economic Zone, as the area allows investors to enjoy preferential corporate income tax rates.

Nguyen Xuan Duong, Chair of Nghe An People’s Committee, said projects like VSIP would improve the investment climate and attract more foreign investors to the province.

Nghe An had attracted 37 foreign direct investment projects as of the end of 2013, capitalised at $1.56 billion.

VSIP is considered the most successful industrial park developer in Vietnam. To date it has attracted nearly 500 investors from 25 countries and territories to invest in Vietnam. These companies have brought $6.4 billion in investment capital to the country and have employed about 140,000 workers.



Category: Business

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