Singapore-Vietnam Cooperation Launches Multiple Industrial Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Major industrial development initiatives and synergies between newly developed and developing nations are spawning multiple projects as demonstrated by Singapore's focus on opportunities in Vietnam. SembCorp and MapleTree Investments are making major investments into the third Vietnam-Singapore Industrial Park (VSIP) after an agreement was signed in mid-February for the project in the northern Bac Ninh province. Construction on the park will commence in January 2009.

SembCorp and its local Vietnamese joint venture partner will invest $104 million in the 700-hectare project. SembCorp is also developing a 1,200-hectare township project in Hai Phong, Vietnam's third largest city, and could increase its activities in the southern and central areas of the country.

In a statement by Vietnam's Ministry of Foreign Affairs, Low Sin Leng, Executive Chairman of SembCorp Parks Holdings, said: "I am very bullish about Vietnam. Vietnam is developing very, very rapidly… and I think we will continue to expand in Vietnam. This is a sure win-win from the private and public sectors' point of view."

MapleTree Investments is acquiring about 70 hectares of land at VSIP-Bac-Ninh to develop a logistics park. Near the capital, Hanoi, this will be the company's third logistics development in the country. The park will have a free trade zone, a non-free trade zone and an inland container depot. It will have 370,000 square meters of logistics space and will cater tenants' customized requirements and other more flexible logistics facilities.

SP Chemicals is about to start a feasibility study on a 1,300-hectare large-scale cracker complex as part of a long-term growth strategy to expand upstream and ensure reliable raw material supply. SP aims to obtain its investment license by the end of this year. SP is currently in negotiations with companies based in Asia and the Middle East on the project. Commissioning of the naphtha cracker and utility plants by 2014 is the $1.5 billion Phase I of the project followed by the promotion of upstream and downstream project investments in the park to complete Phase II by 2024. Naphtha feedstock could be sourced from Russia's Tecnostar, which is building an 8 million-ton-per-annum refinery in Phu Yen. For related information, see August 13, 2007, article - Singapore Chemicals Plans Major Petrochem and Industrial Park in Vietnam.

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