5 things you need to know about Vietnam Singapore Industrial Park (VSIP) 

By 2024, Vietnam will have 17 Vietnam Singapore industrial parks, but information about this project model is limited. What exactly is a “Vietnam-Singapore Industrial Park”? Why do people call it “VSIP” ? Join us in the blog below to learn about the c characteristics, and goals of this  industrial park model!

1. What is Vietnam Singapore Industrial Park (VSIP)?

Vietnam-Singapore Industrial Park (VSIP) is an industrial model founded on the strong bilateral relationship between Vietnam and Singapore. As of 2023, there are 17 VSIPs located across 13 provinces in Vietnam, with a total investment exceeding USD 187 billion. The first VSIP was established in Binh Duong province in 1996. On August 29, 2023, the Vietnamese government initiated three new VSIP projects in Can Tho, Bac Ninh, and Nghe An.

VSIPs are strategically positioned near major economic zones, seaports, and cities. Their goal is to facilitate economic growth and provide high-quality jobs. VSIPs  focus on creating sustainable, eco-friendly environments with advanced infrastructure, including efficient transportation systems and waste management. The VSIP model aims to enhance the Vietnam-Singapore partnership, industrialize local economies, and attract sustainable investments.

2. Characteristics of VSIP The Vietnam Singapore Industrial Parks (VSIP) have distinctive features in terms of location, infrastructure, and model as follows:

2.1. Location features

VSIPs are located near critical economic zones, seaports, and major cities. Their presence boosts the national economy and provides high-quality job opportunities for local communities.

• Proximity to major cities and seaports: VSIPs are typically built in major cities and near seaports to optimize transportation and export costs. For example, VSIP 1 in Binh Duong is about 40km from Ho Chi Minh City and 60km from Cat Lai Port.
• Richand quality labor supply: VSIPs are established in areas with abundant and high-quality labor resources. For example, VSIP Can Tho collaborates with local universities to ensure a steady supply of skilled graduates.
• Well-developed infrastructure: Before commencing, each VSIP must have high-quality infrastructure that meets the green, clean, and sustainable criteria necessary for business needs.

2.2. Model features

VSIPs are developed according to the industrial-urban-service model, which combines industrial areas with urban systems, social housing, and service areas for employees. This model aims to create green industrial zones.

VSIPs feature green spaces, well-planned transportation systems, and modern infrastructure. They incorporate the TOD (Transit Oriented Development) model, which focuses on public transportation. Additionally, VSIPs are equipped with healthcare systems to enhance the quality of life for residents.

2.3. Infrastructure features

Each VSIP requires a consistent, high-quality infrastructure system. The infrastructure may vary depending on the park's specific goals and scale but must include essential components such as electricity, roads, water supply, and drainage systems.

Wastewater collection and treatment systems are emphasized and planned to meet the government's green and sustainable development criteria. According to Decree No. 40/2019/NĐ-CP, modern infrastructure ensures environmental compliance.

3. Development goals of VSIP Industrial Parks

As a symbol of the friendship and economic cooperation between Vietnam and Singapore, VSIPs aim to achieve several future goals:

• Enhancing Vietnam-Singapore cooperation: VSIPs represent a strong bilateral relationship and their growth aligns with the development of Vietnam-Singapore cooperation.
• Industrial, commercial, and service development: Activities within VSIPs gradually increase the proportion of the industrial construction and service sectors in the economic structure of the provinces and cities. The push for industrialization and modernization drives local economic development. This requires high-quality human resources.
• Expanding the eco-friendly industrial model: VSIPs aim to replicate this model with stringent environmental requirements, ensuring sustainability in production processes. VSIPs build and operate high-tech wastewater treatment systems that meet national standards.
• Contributing to International Integration and Sustainable Investment Attraction: Focusing on industrialization and modernization helps integrate the national economy into the global market. The green development model, modern infrastructure, and strategic location are key attractions for sustainable investments.

4. 17 Vietnam Singapore Industrial Parks (VSIP)

In 2023, Vietnam added 7 more Vietnam Singapore IPs, bringing the total number to 17 VSIP industrial parks across the country. Below is the updated list of these industrial parks:

STT	industrial area	Established year	Location	Area (ha)
1	VSIP Binh Duong Industrial Park I	1996	Binh Duong	500
2	VSIP Binh Duong II Industrial Park	2006	Binh Duong	2,045
3	VSIP Bac Ninh I Industrial Park	2007	Bac Ninh	700
4	VSIP Hai Phong Industrial Park	2010	Hai Phong	1,600
5	VSIP Quang Ngai Industrial Park	2013	Quang Ngai	1,700
6	VSIP Hai Duong Industrial Park	2015	Hai Duong	150
7	VSIP Nghe An Industrial Park	2015	Nghe An	750
8	VSIP Bac Ninh II Industrial Park	2019	Bac Ninh	273
9	VSIP Binh Dinh Industrial Park	2020	Pacify	1,374
10	VSIP Binh Duong Industrial Park III	2022	Binh Duong	1,000
11	VSIP Lang Son Industrial Park	05/2023	Lang Son	600
12	Becamex VSIP Industrial Park - Binh Thuan (Son My 2 Industrial Park)	08/2023	Binh Thuan	5,000
13	VSIP Ha Tinh Industrial Park (Bac Thach Ha Industrial Park)	08/2023	Ha Tinh	412.34
14	VSIP Thai Binh Industrial Park	08/2023	peaceful	333.4
15	VSIP Nghe An Industrial Park II	08/2023	Nghe An	500
16	VSIP Can Tho Industrial Park	09/2023	Can Tho	900
17	VSIP Quang Tri Industrial Park	12/2023	Quang Tri	481
Total area				18,318.63 ha

Currently, Vietnam has a total of 17 VSIP Industrial Parks. Of these, 14 are operational, and 3 are newly opened parks, which include VSIP Can Tho, VSIP Bac Ninh II, and VSIP Nghe An, with a total investment capital of nearly VND 17,000 billion. Notable large-capital businesses in VSIPsinclude Intel Products Vietnam, Unilever Vietnam, P&G, etc.

As a collaborative model between Vietnam and Singapore, projects in VSIP Industrial Parks are oriented towards new, environmentally friendly fields such as high technology and renewable energy.

We hope this article provides useful information about the Vietnam-Singapore industrial park model. Besides VSIP Industrial Parks, you can refer to other articles on our website https://dulongip.vn/ to stay updated on the latest developments in the industrial park real estate sector.