VSIP looks to expand Quang Ngai investment
VSIP Quang Ngai - illustration photo source internet
The Quang Ngai Provincial People’s Committee recently approved the adjustment of the industrial park’s (IP) development plan, allowing the developer to expand the park by nearly 50 per cent to 660 hectares from the initial 458ha.
According to the Management Authority of the Dung Quat Economic Zone - where VSIP Quang Ngai is situated - this expansion demonstrates the developer’s confidence in the growth potential of the central region, following its successes both in the south and in the north. Asides from the expansion of VSIP Quang Ngai, VSIP is looking into developing two more projects in the central provinces, in Nghe An and Binh Dinh, in a bid to respond the growth trends of this region.
Beginning operations as recently as 2013, VSIP - the joint venture between Vietnam’s Becamex IDC and Singapore’s Sembcorp Industries - developed VSIP Quang Ngai as an integrated township and IP. The project covers an area of 1,120ha, roughly half of which is dedicated to industrial land.
VSIP expected that this IP would be a competitive manufacturing base vis-à-vis labour-intensive industries and those eyeing the central region market and the external markets such as Laos, Cambodia, and Eastern Thailand. In addition, VSIP Quang Ngai offers investors preferable incentives under the government-approved Dung Quat Economic Zone scheme. Indeed, this IP is located in one of the few remaining areas in Vietnam where investment incentives are still available.
At present, the IP is home to 10 tenants from six countries with the total registered investment capital of nearly $200 million. King Riches, a subsidiary of Kingmaker Footwear Group, is building a $20 million factory in the park. URC Central Co. of the Philippines, known for its Jack & Jill brand of potato chips, started construction of its $35 million plant in the park while China’s Hebei Xindadong Textiles Co. is developing its $60 million textile manufacturing plant.
The Dung Quat Economic Zone Management Authority announced that it would attract around $2.1 billion of foreign direct investments to Dung Quat this year.
