Prospects from the VSIP Nghe An Project

(Baonghean) - June 30, 2015 marked a significant milestone in Nghe An province's investment attraction efforts when the VSIP Nghe An Industrial, Urban and Service Zone Project was officially licensed. At the licensing ceremony, the investor committed to quickly implementing the project, contributing to the economic and social development of the province.

Prepare the necessary conditions for the project.

The VSIP Nghe An Industrial, Urban and Service Zone project is the result of investment promotion and cooperation between Nghe An and Binh Duong provinces, enriching the cooperation program between the Vietnamese and Singaporean governments. This is VSIP's seventh project in Vietnam.

VSIP I industrial park in Binh Duong province. (Photo provided by the investor)

On February 15, 2014, Nghe An province and Becamex IDC, a subsidiary of the Vietnam Industrial Development Corporation, signed a Memorandum of Understanding regarding investment in an industrial, urban, and service zone project in Nghe An. Following numerous site surveys and research conducted by Becamex IDC and the VSIP joint venture, both within and outside the Southeast Economic Zone, including visits by delegations from the Singaporean Ambassador, the General Director of Becamex IDC, and the CEO of Sembcorp Development, Singapore – Co-Chairman of the Board of Directors of the Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP Group), Becamex IDC and the VSIP joint venture selected the locations and phases for the VSIP Nghe An industrial, urban, and service zone project. Phase 1 covers approximately 750 hectares in Hung Chinh commune (Vinh City); Hung Tay, Hung Dao communes and Hung Nguyen town, Hung Nguyen district (this area has now been reclassified by the Government as part of the Southeast Economic Zone). Phase 2 of the Southeast Economic Zone planning, as per Decision No. 21/2010/QD-TTg dated March 3, 2010, of the Prime Minister, covers a total area of ​​1,096 hectares.

To meet the initial basic conditions for a large-scale project that will be a driving force for the province, investment promotion, obstacle removal, and land clearance have been closely and comprehensively directed by the provincial leadership. The Provincial People's Committee has established a Project Steering Committee chaired by the Chairman of the Provincial People's Committee, directly managing all issues to ensure the project is implemented as soon as possible.

To facilitate investors, the Provincial People's Committee has completed the dossier to submit to the Government regarding the adjustment of the boundaries of the Southeast Economic Zone, encompassing the entire 750-hectare area of ​​the VSIP Nghe An Industrial, Urban, and Service Zone project. On April 3, 2015, the Prime Minister issued Decision No. 10/2015/QD-TTg amending and supplementing Clause 1, Article 2 of the Regulations on the operation of the Southeast Nghe An Economic Zone. Accordingly, the Southeast Economic Zone has a total area of ​​approximately 20,776.47 hectares, including: the existing economic zone area and the 750-hectare area of ​​the VSIP Nghe An Industrial, Service, and Urban Zone. Subsequently, on June 3, 2015, the Prime Minister issued Document No. 789/TTg-KTN regarding the conversion of rice land for project implementation in Nghe An province, agreeing to allow Nghe An to convert 490.62 hectares of rice land for the VSIP Nghe An Industrial, Urban and Service Complex project. On March 12, 2014, the People's Committee of Nghe An province issued Document No. 1276/UBND-ĐT, registering with the Ministry of Planning and Investment to include the promotion and promotion of the Becamex - Nghe An Industrial, Urban and Service Complex project by Sembcorp Group and Vietnam-Singapore Industrial Park Joint Venture Company Limited in the agenda of the 10th Ministerial Conference on Vietnam-Singapore Economic Connectivity.

On the VSIP side, they have completed the detailed planning documents at a scale of 1/2000 with the consulting unit. The investor will report to the Provincial People's Committee and the Standing Committee of the Provincial Party Committee on the detailed planning scheme. Mr. Nguyen Phu Thinh – General Director of Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP) said: “We will invest in the 7th VSIP project in Nghe An. Over the past period, the leaders of Nghe An province have been enthusiastic and attentive in their guidance. To implement the project quickly, there is still much work to be done. We hope for close cooperation between the leaders of Nghe An and Becammex Group, from preparing for the groundbreaking ceremony to land leveling and ensuring investment procedures. The local authorities will ensure land clearance to meet the project's progress and the investor's needs.”

The Hung Nguyen district has been aggressively implementing land clearance for the immediate 50 hectares needed for the groundbreaking ceremony. Mr. Ngo Phu Han, Chairman of the Hung Nguyen District People's Committee, stated: “Following the provincial directive, the Nghe An Provincial People's Committee assigned Hung Nguyen district to lead the compensation and land clearance process for Area IV, Phase I of the project. Recognizing the importance of the project, the Hung Nguyen District Party Committee issued a resolution, mobilizing all political organizations to participate in land clearance. Leaders of these organizations and associations directly engaged in public relations work with their members, explaining and publicly disclosing state policies. Nghe An province also allowed Hung Nguyen district to form a delegation with representatives from the district and village levels to visit VSIP projects in Binh Duong. Hung Nguyen district has developed a compensation and land clearance plan. Thanks to effective communication, the Hung Nguyen District People's Committee has now completed the land clearance for the entire 50 hectares to serve the project.”

The Provincial People's Committee has also assigned Vinh City and the districts of Nghi Loc and Hung Nguyen to establish district-level steering committees and implement the tasks within their respective areas, completing the land clearance work according to the project schedule.

All investment procedures and investor difficulties have received timely support from the Southeast Economic Zone Management Board. To date, the investor has been granted an investment certificate and is currently implementing phase 1 of the project. The Provincial People's Committee has also decided to invest in a 72m road from Quan Bau intersection to Hung Tay to better serve transportation in the project area. The project is being implemented with WB funding, and construction is expected to begin in the third quarter of 2015 and be completed in the fourth quarter of 2016.

The Importance of the Project

The current land status in the Becamex - Nghe An Industrial, Urban, and Service Zone Project area, specifically the portion requiring adjustment into the Southeast Economic Zone, is primarily low-productivity agricultural land. With the arrival of a large project, it is expected to attract approximately 150 businesses operating in high-tech, clean, and environmentally friendly industries. Simultaneously, it will develop an international-standard urban and commercial area with an estimated population of around 150,000 people, featuring modern and integrated infrastructure and comprehensive amenities such as schools, hospitals, shopping centers, and other services. This will significantly improve land use efficiency in the project area.

In Vietnam, Becamex Corporation has successfully developed a chain of industrial and urban parks in Binh Duong and many other provinces and cities such as Quang Ngai, Hai Phong, etc. The total developed area is 5,620 hectares. Having started operations in Binh Duong province in 1996, the industrial parks invested in by Becamex Corporation have significantly contributed to making Binh Duong the second largest industrial center in Southern Vietnam (after Ho Chi Minh City).

With its financial resources, development experience, and existing customer base, Becamex Corporation is a capable investor to successfully develop the Becamex-Nghe An Industrial, Urban, and Service Complex Project. This project is projected to be a crucial catalyst in promoting the industrialization and modernization of Nghe An province, creating a positive impact on Nghe An's investment environment and enhancing its standing.

Chau Lan