Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, has announced that it will be involved in the development of a new industrial park in Vietnam’s Quang Tri province. 

The investment licence for this project, Quang Tri Industrial Park, has been issued to a consortium that includes Vietnam Singapore Industrial Park Joint Venture Co (VSIPJV), which is Sembcorp Development’s joint venture with longstanding partner Becamex IDC Corporation. 

Sembcorp’s effective ownership in the project will be 29.6%. 

The Quang Tri Industrial Park will be located 60 kilometres of Phu Bai International Airport (Hue airport) in Central Vietnam. It will span approximately 481 hectares, with the initial development phase comprising 97 hectares. 

According to Sembcorp, the project is envisioned to help strengthen economic growth and in turn catalyse the long-term development of the Quang Tri province. 

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“The province has been earmarked by the Vietnamese government as a future economic hub along the East-West Economic Corridor linking Vietnam, Laos, Thailand and Myanmar. The trans-regional corridor aims to promote the development and integration of the four ASEAN countries,” says Sembcorp.

Following the receipt of the investment licence, the new joint venture will require the clearance of anti-monopoly legislation and enterprise registration to establish a joint venture company in Vietnam. The entire process is expected to be completed by mid-2021. 

The Quang Tri Industrial Park project is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2021.

Developing industrial parks in Vietnam is something Sembcorp is familiar with. It has been doing so since 1996. 

According to Sembcorp’s website, there are nine existing Vietnam Singapore Industrial Parks (VSIP) in Vietnam's southern, northern and central economic zones, including VSIP Binh Duong (picture) which is near Ho Chi Minh City.

Sembcorp Industries closed March 30 at $1.86, up 1.09%.