Construction of VSIP Quang Ngai starts on Friday

Hung Le

VSIP Quang Ngai is the fifth project of VSIP, a joint venture of Becamex IDC Corporation with a 49% stake and a group of Singaporean investors led by Sembcorp with 51%. Currently, there are two VSIP projects in the southern province of Binh Duong and two in the northern region (with one in Bac Ninh Province and the other in Haiphong City).

VSIP Quang Ngai consists of a 600-ha industrial park in Dung Quat Economic Zone and a 520-ha commercial and residential site near downtown Quang Ngai City. The project has an option for expanding the industrial park by an extra 626 hectares in the future.

In the first phase, the project will focus on building infrastructure for 160 hectares in the industrial park and 100 hectares in the commercial and residential area.

The joint venture will pour hundreds of millions of U.S. dollars into VSIP Quang Ngai.

According to the JV, producers in VSIP Quang Ngai can enjoy incentives provided for this EZ such as a corporate income tax of 10% for 15 years after projects are operational, a four-year corporate income tax exemption after projects have taxable income and a 50% tax reduction in the nine following years.

Major industries at the industrial park include food-beverage, fast-moving consumer goods (FMCG), assembling of electronic components and light industries serving the oil, gas and chemical sectors.

At the ground-breaking ceremony today, Quang Ngai Province will grant investment certificates to enterprises making investments there.

VSIP is regarded as one of the role models in Vietnam. The joint venture has worked on five projects nationwide using a total of over 6,000 hectares of industrial, urban and service land.

On Wednesday, representatives of the Ministry of Industry and Trade and Sembcorp Utilities Pte Ltd under Sembcorp signed a memorandum of understanding to develop the 1,200-MW Dung Quat thermal power project worth around US$2 billion in Quang Ngai Province’s Binh Son District.

The Government has agreed to add this project to the Power Master Plan VII and assign Sembcorp as investor of the project in May.

Constructed in an area of some 85 hectares in Eastern Industrial Park of Dung Quat EZ, the project will run on imported coal and have the first generator put into operation in September 2020. The entire project is expected to be operational in March 2021 and supply around seven billion kWh each year.

The project’s investor and Vietnam will soon negotiate relevant contracts such as BOT, power purchasing and land leasing contracts.

The province has also pledged to quickly hand over the site to the investor.

Sembcorp previously invested in Phu My 3 gas-fired plant having a capacity of 746 MW which was put into operation in 2004.