Strategic partnership blooms between top IP developers
Strategic partnership blooms between top IP developers
The official launch of Becamex VSIP Binh Dinh Township and Industrial Park last month by developer Becamex Binh Dinh JSC is anticipated to open bright prospects to beef up the region’s industrial development, while simultaneously being a testament to the strategic and efficient partnership between the two southern localities of Binh Dinh and Binh Duong, as well as between top players Becamex IDC and VSIP Group.
The VSIP Binh Dinh Township and Industrial Park by Becamex highlights how neighbouring localities can work together for the greater good
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The complex is the sweet fruit of friendship and cooperation between two southern localities, Binh Dinh and Binh Duong. The project also marks the maiden team-up between Becamex IDC and VSIP, both are flagship industrial park (IP) developers in Vietnam.
Covering around 1,425 hectares, Becamex VSIP Binh Dinh Township and Industrial Park will be found in Canh Vinh commune of Van Canh district, belonging to Nhon Hoi Economic Zone’s block 07. This encompasses an 1,000ha industrial park which Becamex IDC and VSIP will jointly develop, and more than 425ha of residential, commercial, and resettlement area.
With the planning task performed by a team of highly skilled engineers and architects striving to create a green, clean, beautiful, and sustainable space, the IP will feature a modern and seamless infrastructure platform consisting of internal and external roads, power system, water supply and drainage, telecommunications, wastewater treatment, a green park, and a square.
The site will be home to multi-disciplinary industries closely attached to a full suite of service facilities like healthcare and education units, trade centres, hotels, restaurants, shopping centres, entertainment venues, community sports grounds, and social housing. Each subzone will be rationally arranged to meet the highest requirements of hundreds of thousands of local residents and investors, helping them to save costs while optimising investment efficiency.
Strong reputation
In regards to the team-up between Becamex IDC and VSIP, chairman of Binh Duong People’s Committee Tran Thanh Liem said Becamex IDC is one of the top players in the investment and development of industrial zones, residential areas, urban complexes, and transport infrastructure in the province. VSIP Group, meanwhile, is a joint venture rooted in Binh Duong between Becamex IDC and Singaporean partner Sembcorp Development.
To date, VSIP has attracted 880 customers from 30 economies with more than $15 billion of investments while creating about 270,000 jobs. The successful groundbreaking ceremony of Becamex VSIP Binh Dinh will bring the total number of VSIP projects to 10 with a total land fund of 10,000ha nationwide.
“The two partners’ track record in diverse localities across the country has lent significant impetus to the socioeconomic development of Binh Duong province and the entire Vietnam. Both Becamex IDC and VSIP are well-established brands in the domestic and regional markets, particularly in industrial zone (IZ) investment and development, earning solid trust from investors,” Liem noted. The project enterprise Becamex Binh Dinh JSC inherits these valued advantages and experience of its parent companies, ensuring the efficient management of Becamex VSIP Binh Dinh Township and Industrial Park.
“Van Canh district, the site of Becamex VSIP Binh Dinh, has difficult conditions for development,” said representative of Becamex Binh Dinh JSC. “However, with active support from local management agencies, we will do our utmost to ensure progress and quality, attracting other investors to join. From there, we can create more jobs and make bigger budget payments, helping to accelerate local socioeconomic development as well as improving people’s lives.”
The project is expected to help Binh Dinh attract about $2 billion into industrial production, creating jobs for 120,000-150,000 labourers in Binh Dinh and nearby localities after coming on stream. It also helps elevate Binh Dinh’s competitiveness economically, improve social and technical infrastructure, and will contribute more than VND400 billion ($17.3 million) to the state coffers annually.
According to Ho Quoc Dung, Chairman of Binh Dinh People’s Committee, with bountiful advantages in the form of perfect infrastructure featuring a strong network of sea and airports, railway, major national highways, and backbone roads in all directions, Binh Dinh offers tremendous potential for industrial and tourism development.
The Binh Dinh complex will bring VSIP up to 10 projects in total across the country
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Springboard to expand
A raft of infrastructure projects are under intensive construction, including the works to upgrade Phu Cat airport, new National Highway 19, National Highway 19C, and Cu Mong Tunnel, among others. Simultaneously, a slew of major highways like Danang-Quang Ngai, Nha Trang-Phan Thiet, Binh Dinh-Nha Trang, and Quy Nhon-Pleiku are soon in the pipeline, driving stronger regional links.
“The prime minister gave the thumbs-up to the investment proposal of Becamex Binh Dinh IP with scale touching 1,000ha and total investment value surpassing VND3.33 trillion ($144.9 million) via February’s Decision No.270/QD-TTg, laying the bedrock for the next steps,” said Ho Quoc Dung.
Sharing the mindset, C.K Tong, CEO of BW Industrial Development JSC - a joint venture between private equity fund Warburg Pincus and Becamex IDC - praised Binh Dinh for having a strategic position with transport convenience to arterial roads and infrastructure works.
Along with this, the province is proximal to national highway 19C, 9km from Dieu Tri railway station, 10km from national highway 1A, 25km from Quy Nhon international seaport, and 30km from Phu Cat international airport.
These favourable factors are expected to turn the Becamex VSIP Binh Dinh into a major venue for trade exchanges and transshipment of goods, as well as propelling socioeconomic development with other regions domestically and internationally.
“Becamex VSIP Binh Dinh Township and Industrial Park will play an active part in creating more jobs for local labour and driving local social and economic development in a sustainable manner. We expect more high-profile investors will join Becamex Binh Dinh to lift development of relevant localities to a new high,” said C.K Tong.
According to Vietnamese Deputy Prime Minister Truong Hoa Binh, the increasing complication of the COVID-19 pandemic is causing unprecedented critical impacts on the global economy as well as people’s lives, and leaving the global value chain severely disrupted. It has also brought shifts in investment capital flows globally.
In such a context, the launching of the Becamex VSIP Binh Dinh project is a practical move of Binh Dinh and the investors in realising the dual targets of the Party and the government: containing the pandemic and pushing up economic development.
DPM Binh appreciated Becamex IDC’s decision to choose Binh Dinh province for project development, adding the three solid pillars - the lasting cooperation between Binh Dinh and Binh Duong, Binh Dinh’s well-proven strength and aspiration, and both developers’ track record in IP investment and development throughout Vietnam - will be instrumental to the project’s bright growth prospects.
For the part of Binh Dinh, the deputy premier called on the province to step up efforts in the “new normal”, working on complementing and harmonising local resources to ensure keeping abreast of increasingly demanding requirements for large-scale and tech-intensive industrial development from investors, particularly Becamex IDC and VSIP partners and foreign investors landing high-quality projects at the Becamex VSIP Binh Dinh Township and Industrial Park.
Simultaneously, Binh said, further efforts must be geared towards bettering the local investment environment through fast processing of administrative procedures and radically tackling investors’ obstacles. Last but not least, it is crucial to have a good grip of the situation and caring for the life of relocated people in the project site.
