Senior Minister Goh Chok Tong leads groundbreaking for SembCorp's new industrial township in Northern Vietnam

December 11, 2007

- The project represents Sembcorp’s entry into North Vietnam, showcases its new improved integrated industrial township model

Sembcorp’s industrial parks joint venture, Vietnam Singapore Industrial Park and Township Development Joint Stock Company (VSIP JSC), hosted a groundbreaking ceremony to kick-start the construction of the Vietnam Singapore Industrial Park (VSIP) located in Bac Ninh Province, North Vietnam, this morning. Jointly developed by a Singapore consortium led by Sembcorp Parks, and Vietnam’s stateowned Becamex Corporation, the VSIP-Bac Ninh project is the third in the series of Vietnam Singapore Industrial Parks.

In the opening speech delivered by Ms. Low Sin Leng, Executive Chairman of Sembcorp Parks and Co-Chairman of VSIP JSC, she said “This time last year, we were travelling around, scouting for a site to locate our third VSIP project in Vietnam and our first in Northern Vietnam. The speedy development of this new project leading to today’s event is a best testimony of the strong support given by the Vietnam government and Bac Ninh local authorities, as well as a reflection of our confidence in Vietnam’s robust economy.”

Guests of Honour Senior Minister Goh Chok Tong and Vietnam Deputy Prime Minister Hoang Trung Hai delivered speeches and tossed the first shovels of earth as a symbolic start of construction.

Senior Minister Goh has played a key role in the VSIP’s success. Whilst the Prime Ministers of Singapore and Vietnam respectively, he and Mr. Vo Van Kiet, mooted the VSIP in 1994 as a joint collaboration between the two countries. In May 1996, both leaders broke ground for the first VSIP project in Binh Duong Province, South Vietnam.

The VSIP projects have since developed into a showcase of Vietnam-Singapore economic collaboration. In September 2006, Prime Ministers Lee Hsien Loong of Singapore and Nguyen Tan Dung of Vietnam officiated at the 10th anniversary celebrations of VSIP I and witnessed the launch of VSIP II. Having expanded from its original 500 hectares to 845 hectares currently, the parks have successfully attracted some 347 foreign as well as local manufacturing companies who have brought in more than US$2 billion worth of investments. About 75,000 jobs in the Binh Duong province will be created once all companies are fully operational by end 2008.

Now, the new VSIP-Bac Ninh project in the north will showcase the developer’s first modern industrial township in Vietnam. The industrial township model is akin to a city within an industrial park and represents an improvement over traditional industrial parks in terms of urban planning and facilities.

The 700-hectare VSIP-Bac Ninh project will contain separately zoned industrial as well as residential and commercial areas, measuring 500 and 200 hectares respectively. It will contain improved facilities such as high-rise condominium accommodation, villas, retail mall, as well as an educational institution, office buildings and banking facilities. As the first such premium industrial township in Northern Vietnam, VSIP-Bac Ninh is wellplaced to meet increasing demands for quality industrial, commercial and residential developments by international manufacturers from the electronics, electrical and pharmaceutical industries.

VSIP – Bac Ninh’s other key advantages centre around its strategic location and highway links to major facilities. Upon the completion of Highway 1B by end 2008, it will take just 15 minutes to reach Hanoi City. Noi Bai International Airport is 40 kilometres away, while the north’s deep sea Port of Hai Phong is 120 kilometres away. The closest Vietnam-Chinese border is the Lang Son-Guangxi border just 3 hours away.

“We are very excited about VSIP-Bac Ninh as it is our first integrated industrial park and township concept in Vietnam, offering a world-class manufacturing, residential and commercial environment for multi-national companies and local leading enterprises. When successfully executed, it will change the landscape of Bac Ninh Province and provide a more vibrant lifestyle for Vietnamese and foreign investors in Hanoi,” added Ms Low.

The 700 hectare VSIP-Bac Ninh is currently open for booking. Fifteen companies have already taken up 130 hectares of land for production and commercial development. Amongst these companies are the component suppliers to notable home office appliance manufacturers. VSIP-Bac Ninh will be ready for occupancy in the fourth quarter of 2008.