VSIP to extend service-urban house segment in central Vietnam challenge by way of 3 years

Vietnam’s central province of Nghe An has allowed VSIP Nghe An Co. Ltd., the investor of an industrial park per the Vietnam-Singapore Industrial Park (VSIP) model, to delay the $216 million service-urban area section by three years.

The VSIP Nghe An service-urban-industrial park project was approved in 2015. The five phases of its 382-hectare service-urban area section were initially set for completion in Q4/2023, Q3/2024, Q3/2025, Q1/2027, and Q2/2027, respectively.

According to Nghe An authorities’ latest decision issued on Monday, the five phases are now set for completion in Q2/2026, Q4/2029, Q4/2028, Q2/2030, and Q2/2030.

The industrial park section of VSIP Nghe An has an investment of $63.9 million and covers 367.7 hectares. This section has three phases which entered operation in Q4/2016, Q4/2019, and Q3/2021.

Nearly a decade into operation, VSIP Nghe An has attracted 50 corporate tenants with total investment of $1.8 billion, including 30 FDI projects. Of these, 31 projects are operational with over 20,000 laborers. The number of workers is set to reach 70,000 when all factories operate.

The occupancy rate of VSIP Nghe An has reached 97% and Nghe An province is proceeding with the VSIP 2 Nghe An Industrial Park project, also known as Tho Loc Industrial Park.

Vietnam-Singapore Industrial Park (VSIP) is a joint venture between Vietnam’s Becamex IDC and Singapore’s Sembcorp Development Group. The first VSIP was established in 1996.

The joint venture now operates 18 VSIP facilities in 13 localities across Vietnam. Several more were planned in the country.