The 150-hectare industrial estate will target supporting industries for big manufacturers like Samsung and LG.
Located midway between capital Hanoi and the port city of Haiphong, VSIP Hai Duong is a joint venture between Sembcorp Development and Vietnam’s Becamex IDC.
At 150 hectares, VSIP Hai Duong is one third the size of Jurong East industrial district in the city-state, and significantly smaller than the preceding VSIPs. There are five other VSIPs – Bac Ninh and Haiphong in the north, Quang Ngai in central Vietnam, and two in southern province Binh Duong.
Sembcorp holds a 45-47 per cent stake in the parks.
In a Channel News Asia article, Sembcorp Development CEO Kelvin Teo said that bookings for about 20 per cent of the land on offer in Hai Duong VSIP have been received from Vietnamese, Chinese and Taiwanese manufacturers.
The VSIP is expected to support the operations of tenants by the end of 2015, with infrastructure works currently underway. Acquired from Japanese-owned infrastructure firm Phuc Hung Co in April 2015, the former Cam Dien-Luong Dien Industrial Park had triggered discontent from local residents for being undeveloped, as several had lost farmland within the area to the project.
Sembcorp has declined to disclose the total investment value, but said that the total investment will be funded partly by equity of $11 million from its joint venture and partly by external borrowings.