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The VSIP model was founded on the basis of friendship and economic cooperation between Vietnam and Singapore which was first raised by PM Vo Van Kiet during the visit by his Singaporean counterpart Goh Chok Tong in 1994. Two years later, the first VSIP – a joint venture between Vietnam’s Becamex IDC and a consortium of three companies from Singapore led by SembCorp Group, was inaugurated in Thuan An town in the southern province of Binh Duong with 500 hectares in total, creating the opportunity for investors at home and abroad to get access to an effective and optimal investment climate with synchronous and modern infrastructure facilities; placing the foundation for investment waves into Vietnam in the future.

At the time, VSIP’s top goal was to absorb labor-intensive industries, mainly in garment and footwear. Kelvin Teo, CEO of Sembcorp Development and co-chairman of VSIP Joint Stock Company (JVC) said that VSIP’s top priority at that time was to create jobs for laborers. After many years of development in Vietnam, VSIP has not only focused on the target of job generation, but also continued accompanying the national economic development by promoting industries with high added value.

So far, VSIP is a perfect IP with optimal services like banking, post, customs, logistics…With a goal of bringing investors the best favorable investment climate, VSIP 1 has quickly become one of the country’s top places in FDI attraction with hi-tech projects. Following its success, VSIP 2 and VSIP 2A were established between 2016 and 2008 with 2,045 hectares in total, not only bringing investors a modern infrastructure system, but also creating harmonious connectivity between industrial, service and urban development.

Ng Teck Hean, former Singaporean Ambassador to Vietnam said: “We always consider Binh Duong as a reliable and comprehensive partner for economic development. Over the past years, Binh Duong was an attractive destination for Singaporean investors. The result not only relied on the close relationship between the two governments, but also came from the fine economic cooperation between Becamex IDC and SembCorp Industries. This is the firm foundation for us to reach more successful and closer development steps. We believe that with the success of the VSIP model, more and more investors in Singapore in particular and in the world in general will make investment in the IP, significantly contributing to building up a more prosperous and beautiful Vietnam”.

Possibly speaking, the formation of VSIP bears an important significance, marking new and creative paces in realizing Vietnam’s renewal and development policies while strengthening cooperation and friendship between Vietnam and Singapore. Especially, VSIP has created a great motivation for Binh Duong’s evolution and is also the foundation for the province to attract foreign and domestic resources in order to become one of Vietnam’s localities with important achievements on the way of industrialization and modernization.

Over the past 20 years, VSIP created a breakthrough in reforming administrative procedures. It now has an open investment climate with international standard infrastructure facilities and workforce at investors’ requirements. All have helped it become an attractive destination for investors around the world.

VSIP 1 of 500 hectares was established in 1996 with a total investment capital of US$139million. Till now, VSIP 1 has been fully covered by 238 projects capitalized at US$2.6billion, generating jobs for 96,000 laborers. Some typical projects investing in VSIP 1 are Nitto Denko, Foster Electric, Showa Gloves, Toyota, Spartronics, Unilever, Kimberly, Clark, Unigen, CEI, Super Coffee Mix, Food Empires, Goldroast…

Following the success of VSIP 1, VSIP 2 of 345 hectares in provincial Industrial-Service-Urban Complex was set up in 2005 with a total investment capital of US$49million. VSIP 2 has to date lured 129 projects worth US$1.5billion, creating jobs for 35,000 laborers. Its rate of land tenancy has reached 98%. Till 2008, the expanded VSIP 2 of 1,700 hectares in Tan Uyen town was established with a total investment capital of US$136.2million. It has so far lured 58 projects worth US$1.15billion, providing jobs for more than 34,000 laborers, with the rate of land tenancy of 30%. Some typical projects herein are Hoya Lens, Tokyo Rope, Onamba, Baiksan, DDK, Omron…Possibly speaking, the birth of VSIPs in Binh Duong has changed the lives of locals and significantly contributed to the local socio-economic development. 

VSIP 2 has absorbed 129 projects capitalized at US$1.5billion

Ly Hung, Deputy Head of the VSIP Management Board said that since being established, VSIP has still been an attractive destination for new investors, due to having good infrastructure, marketing and customer care. Leaders of the VSIP Management Board have also always created favorable conditions for investors to feel secure when making investment herein.

Although attracting a lot of hi-tech projects with good competitiveness, VSIP has still boosted marketing activities, especially for corporations in hi-tech industries like electronics, pharmaceuticals, food…, bringing it practical results. For example, Protec & Gamble (P&G) Co. started construction of its Gillette razor plant capitalized at US$100million in VSIP 2. Anheus Bush (AB) InBever Co. also built its beer plant with the annual capacity of 50 million liters of beer. Or, Amway Vietnam Co.Ltd. spent US$25million on building a factory of more than 54,675 square meters with the state-of-the-art equipment and machines.

Kent The-General Director of Esquel Vietnam Co. in VSIP 1 said that VSIP 1 has a modern and synchronous infrastructure system in line with the company’s needs. The company has worked very effectively and become a big partner of the world’s renowned brand names in garment and textile. As of late 2015, the company continued expanding production by putting its 2^nd factory into operation in VSIP 2.

Further expanding investment

Possibly speaking, VSIP is one of outstanding IP models in Vietnam. VSIP Binh Duong is the most successful. So far, VSIP has developed 7 projects in Binh Duong, Bac Ninh, Hai Phong, Hai Duong and Nghe An. Reportedly, VSIPs nationwide have absorbed nearly 600 investors from 30 countries with a total investment capital of US$7.8billion, generating jobs for more than 150,000 laborers. The result has proved VSIP’s pervasive influence in investment attraction, contributing to the national economic development.

Being recognized as one of Vietnam’s top Ips with active contributions to investment attraction, job creation, industrial-urban and service development…, VSIP has brought investors perfect and synchronous infrastructure facilities in a safe and effective production environment. With a strategic vision, VSIP has become a symbol of successful economic cooperation between Vietnam and Singapore. It is sure that VSIP will get more thriving and affirm its position in the international arena while contributing to consolidating Vietnam’s position as a sustainable and reliable investment center in the region.

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VSIP has developed 7 projects nationwide

Nguyen Van Hung, CEO of Becamex IDC said that after putting into operation, VSIP has been successful in introducing about Vietnam where is steady in renewal with open policies, a potential market and a young and competent workforce. It has also contributed to promoting the local economic sectors to get involved in industrial development in poor rural areas in the northern region of the province with bright spots like My Phuoc Ips, Bau Bang Ip, especially provincial industrial-urban-service complex and integrated administration center. This has made regional connectivity via Binh Duong Avenue and My Phuoc-Tan Van expressway, helping Binh Duong become one of the country’s top localities in industrial growth.

According to Mr.Hung, the VSIP Management Board will continue learning about enterprises’ needs and well meeting them. Particularly, the VSIP Management Board will attach special importance to developing a new supply chain, in which auxiliary industries, logistics and materials-goods exchange will be focused on, helping enterprises enjoy the best advantages from VSIP at maximum level…

VSIPs in Binh Duong have to date lured 21 domestic investment projects with a total registered capita of more than VND3.88trillion and 458 FDI ones with a total registered capital of US$6.6billion. Among these projects, there are great groups in hi-tech industries with high competitiveness like electronics, consumer goods, precise mechanism from Japan, South Korea, Singapore, the U.S…

Reported by Mai Xuan-Translated by Que Chi​