Sembcorp and Becamex Partnership Expands to 20 Vietnam Singapore Industrial Parks

• Two Vietnam Singapore Industrial Park projects were awarded at the launch of the Comprehensive Strategic Partnership between the two countries
  

Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), and its joint venture partner Becamex IDC (Becamex), were awarded two new Vietnam Singapore Industrial Park (VSIP) projects, taking the total to 20 VSIPs.

The investment registration certificate was issued by the Vietnam government for a new VSIP in Nam Dinh province (VSIP Nam Dinh). This new 180-hectare project (phase one) is located within northern Vietnam, the fastest growing economic zone where large electronics, machinery and automotive companies, as well as their supply chains are established.

The investment registration certificate for a third VSIP in Nghe An province (VSIP Nghe An III) was also issued, reinforcing the success and expansion of the VSIP model. VSIP Nghe An III will cover 180 hectares. The two previous VSIP Nghe An projects have attracted top global manufacturers in electronics, precision engineering, garment and textile, helping Nghe An secure its place in the country’s top 10 foreign direct investment destinations for the third time.

Both VSIPs will be developed according to the principles of low-carbon industrial parks. In addition, Sembcorp and Becamex will explore the development of a first VSIP in Ha Nam province.

VSIP Nam Dinh and VSIP Nghe An III will complement the current 18 VSIPs, which have assisted more than 1,000 manufacturers in establishing their operations in strategic locations across the country. In the past year, demand for land in VSIPs has risen, driven by high value-added electronics components manufacturers and precision engineering companies.

The new projects were awarded during the state visit of His Excellency Mr To Lam, General Secretary of the Communist Party of Vietnam, to Singapore. At a ceremony held at Parliament House, he was joined by Prime Minister of Singapore, His Excellency Mr Lawrence Wong, as well as ministers and provincial leaders from Singapore and Vietnam, to launch the Comprehensive Strategic Partnership between the two countries.

The above developments are not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2025.

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ANNEX: OTHER DEVELOPMENTS ALIGNED WITH THE COMPREHENSIVE STRATEGIC PARTNERSHIP BETWEEN SINGAPORE AND VIETNAM

ADVANCING SUSTAINABLE AND HIGH-TECH GROWTH AT VSIP

Sembcorp Development and Becamex IDC are working closely with government agencies and academic institutes to support Vietnam’s push toward a sustainable, innovation-driven growth model. As part of this effort, two key initiatives will be piloted at the VSIPs before wider implementation.

1. An International Advisory Board will be formed in collaboration with experts from government, academia, and industry. The board will make key contributions towards developing a roadmap for Vietnam’s industrial upgrade focusing on science and high-tech manufacturing to enhance the country’s manufacturing competitiveness.
   
   
2. A tripartite MOU was formalised with the Agency for Science, Technology and Research (A*STAR), an agency under Singapore’s Ministry of Trade and Industry, to develop a solutioning playbook with the aim of setting the standards for low-carbon industrial parks. In addition, a series of training and development initiatives will be developed to cultivate a skilled workforce ready for Industry 4.0. This initiative will play a key role in advancing the digital transformation of Vietnam's manufacturing sector.

ENHANCING COLLABORATION FOR OFFSHORE WIND DEVELOPMENT

Advancing to the next phase of the Vietnam-Singapore Electricity Export-Import Project¹(the Project), Sembcorp Utilities (SCU) and PetroVietnam Technical Services Corporation (PTSC) will be conducting wind and metocean measurements to provide data for the development of offshore wind projects. PTSC Geos & Subsea Services has been appointed to conduct the measurements and is expected to deploy the Floating Light Detection and Ranging (FLiDAR)² system by mid-2025, with the study expected to be completed by the third quarter of 2026. 

¹SCU and PTSC are jointly exploring the development of offshore wind farms in southern Vietnam for the export of electricity to Singapore. In connection with the Project, SCU was granted conditional approval by the Energy Market Authority of Singapore to import 1.2GW of renewable electricity from Vietnam to Singapore in October 2023 

²The FLiDAR system measures parameters such as wind speed, direction, and wave characteristics