Prospects from VSIP Nghe An Project

(Baonghean) - June 30, 2015 marked an important milestone in Nghe An province's investment attraction when the VSIP Nghe An Industrial, Urban and Service Park Project was officially licensed. At the licensing ceremony, the investor pledged to quickly implement the project, contributing to promoting the province's economic and social development.

Prepare project service conditions

The VSIP Nghe An Industrial, Urban and Service Park project was born as a result of investment promotion, the spirit of cooperation between Nghe An and Binh Duong provinces and enriching the cooperation program between the two governments of Vietnam and Singapore. This is the 7th project of VSIP in Vietnam.

VSIP I area, Binh Duong province. (Photo provided by the investor)

On February 15, 2014, Nghe An province and Becamex IDC Investment and Industrial Development Corporation - Becamex IDC Limited Company signed a Memorandum of Understanding on investment in the Industrial Park, Urban and Service Project in Nghe An. After many surveys and researches of locations inside and outside the Southeast Economic Zone of Becamex IDC and VSIP Joint Venture. Including the delegations of the Singaporean Ambassador, General Director of Becamex IDC Corporation, CEO of Sembcorp Development, Singapore - Co-Chairman of the Board of Directors of Vietnam - Singapore Industrial Park Joint Venture Company Limited (VSIP Group), Becamex IDC and VSIP Joint Venture have selected locations and segments to implement the investment project of VSIP Nghe An Industrial Park, Urban and Service Project including: Phase 1 with an area of ​​about 750 hectares in the communes: Hung Chinh (Vinh City); Hung Tay, Hung Dao communes and Hung Nguyen town, Hung Nguyen district (this area has now been adjusted by the Government to belong to the Southeast Economic Zone). Phase 2 belongs to the Southeast Economic Zone planning according to Decision No. 21/2010/QD-TTg dated March 3, 2010 of the Prime Minister, total area of ​​1,096 hectares.

To meet the first basic conditions for a large-scale project that is a driving force for the province, the work of investment promotion, difficulty removal, and site clearance has been closely and comprehensively directed by the provincial leaders. The Provincial People's Committee has established a Project Steering Committee headed by the Chairman of the Provincial People's Committee, directly managing issues so that the project can be implemented soon.

To facilitate investors, the Provincial People's Committee has completed the dossier to submit to the Government on adjusting the boundary of the Southeast Economic Zone including the entire area of ​​750 hectares of the VSIP Nghe An Industrial, Urban and Service Park project. On April 3, 2015, the Prime Minister issued Decision No. 10/2015/QD-TTg on amending and supplementing Clause 1, Article 2, Regulations on the operation of the Southeast Economic Zone of Nghe An, accordingly, the Southeast Economic Zone has a total area of ​​about 20,776.47 hectares including: The area of ​​the existing Economic Zone and the area of ​​750 hectares of the VSIP Nghe An Industrial, Urban and Service Park. Then, on June 3, 2015, the Prime Minister issued Document No. 789/TTg-KTN on the conversion of rice land use purposes to implement projects in Nghe An province, agreeing to allow Nghe An to decide to convert the use purpose of 490.62 hectares of rice land to implement the VSIP Nghe An Industrial, Urban and Service Park project. On March 12, 2014, the People's Committee of Nghe An province issued Document No. 1276/UBND-DT, registering with the Ministry of Planning and Investment to include the content of promoting and calling on Sembcorp Group and Vietnam - Singapore Industrial Park Joint Venture Company Limited to implement the Becamex - Nghe An Industrial, Urban and Service Park complex project in the Program of the 10th Ministerial Conference on Vietnam - Singapore Economic Connectivity.

On VSIP's side, the consultant has completed the detailed planning documents at a scale of 1/2000. The investor organized a report to the Provincial People's Committee and the Provincial Party Committee Standing Committee on the detailed planning plan. Mr. Nguyen Phu Thinh - General Director of Vietnam - Singapore Industrial Park Joint Stock Company (VSIP) said: "We will invest in the 7th VSIP project in Nghe An. In the past, the leaders of Nghe An province have been enthusiastic and attentive in directing. To implement the project quickly, there is still a lot of work to do, we hope that there will be close coordination between the leaders of Nghe An and Becammex Group, from preparing to start construction to leveling the ground, ensuring investment procedures. The locality will clear the ground to ensure the project's progress, meeting the needs of investors".

The immediate site clearance of 50 hectares to serve the groundbreaking ceremony has been vigorously implemented by Hung Nguyen district. Mr. Ngo Phu Han, Chairman of Hung Nguyen district People's Committee said: "After receiving the province's policy, Nghe An provincial People's Committee assigned Hung Nguyen district to preside over the compensation for site clearance in area IV, phase I of the project. Recognizing the importance of the project, Hung Nguyen district Party Committee issued a resolution, assigning all organizations in the political system to participate in site clearance. Leaders of organizations and associations directly go down to do mass mobilization work for their members. Explain and publicize the State's policies. Nghe An province also allowed Hung Nguyen district to establish a delegation with all members from the district to the hamlet to visit Vsip projects in Binh Duong. Hung Nguyen district has established a compensation plan for site clearance. Thanks to the ideological communication, up to now, Hung Nguyen district People's Committee has organized site clearance for the entire 50 hectares to serve the project".

The Provincial People's Committee has also assigned Vinh City and Nghi Loc and Hung Nguyen districts to establish district-level Steering Committees and deploy tasks in their areas, completing site clearance work according to project progress.

All investment procedures and difficulties faced by investors 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 traffic in the project area. The project is implemented with WB capital, expected to start construction in the third quarter of 2015 and be completed in the fourth quarter of 2016.

Importance of the Project

The current land status in the Becamex - Nghe An Industrial, Urban and Service Park Project area, the part that needs to be adjusted into the Southeast Economic Zone is currently mainly low-yield agricultural land. With a large project coming into operation, it is expected to attract about 150 enterprises to invest and operate in the field of high-tech, clean, environmentally friendly industry; at the same time, it will develop an international standard urban and commercial area, with an expected population of about 150,000 people with modern, synchronous infrastructure, full of utilities such as: schools, hospitals, commercial centers, services... Thereby improving the efficiency of land use in the project area.

In Vietnam, Becamex Corporation has experience in successfully developing industrial and urban zones in Binh Duong and many provinces and cities such as Quang Ngai, Hai Phong... The total development area is 5,620 hectares. Starting operations in Binh Duong province since 1996, the industrial zones invested by Becamex Corporation have contributed significantly to making Binh Duong province the second largest industrial center in the Southern region of Vietnam (after Ho Chi Minh City).

With financial potential, development experience and existing customer system, Becamex Corporation is a capable investor to successfully develop the Becamex-Nghe An Industrial, Urban and Service Park Project. This is expected to be an important leverage project in promoting the industrialization and modernization process of Nghe An province, creating a positive effect on Nghe An's investment environment and enhancing Nghe An's position.

Chau Lan