December 13, 2007 -- Bulldozers started to roll on a 700ha piece of land to prepare the building site for the new VSIP Bac Ninh Township and Industrial Park yesterday in Vietnam's northern province of Bac Ninh.

The initial investment in the 700ha by Viet Nam-Singapore Industrial Park and Township Development (VSIP) will consist of a 500ha industrial zone to be equipped with modern manufacturing facilities, a logistics hub and a 200ha area dedicated to township development.

The modern township will contain a hotel, high-rise apartments, villas, research institutes, an exhibition centre, a supermarket, schools, hospitals and dormitories for workers.

It would also offer quality power distribution, water treatment facilities and a telecommunications network, said Huynh Quang Hai, CEO of the VSIP Joint Stock Company.

Mr Hai said the area would be an ideal place for warehouses for electronics, pharmaceutical, auto parts and other consumer goods, covering an area of 70ha.

The project has currently attracted 15 projects with an estimated investment capital of US$200 million, covering an area of over 20ha. Seven of the current projects were granted investment licences yesterday, with a total investment capital of US$120 million.

These will include a US$30 million four-star hotel, an outdoor sports area and a US$15 million supermarket.

Investors have mostly come from Japan, Taiwan, the US and Singapore. Once completed, the project could lure more than 200 investors with a total estimated investment capital of US$2 billion, and create nearly 40,000 jobs.

Delivering a speech at the ground-breaking ceremony, Deputy Prime Minister Hoang Trung Hai said, "Singapore is a leading trade partner and investor in Viet Nam. Trade between our two countries reached approximately US$8 billion in 2007, and there are currently more than 500 Singapore-invested projects in Viet Nam registering a total investment capital of US$9.7 billion. Many of these projects are successful and are contributing significantly towards Viet Nam's increased economic development."

Singapores Senior Minister Goh Chok Tong said, "Viet Nam is ASEANs fastest growing economy. If Viet Nam sustains this pace of economic liberalisation, I believe that in the next decade it could grow faster than its past annual average of 7 per cent, perhaps even achieving double-digit growth for many years to come."

"As a member of the WTO, Viet Nam is now also part of the global economy and is in a strong position to attract foreign investors."

"However, economic growth also brings new challenges. Globalisation means international competition for farmers, subjecting them to fluctuating global prices. Traditional jobs are being displaced and people are migrating from the countryside to the cities, leading to overcrowding and stresses on public amenities. More urban infrastructures, such as housing, schools, hospitals, water supplies and waste treatment plants have to be built to keep up with the demand. The Government must keep a watchful eye on inflation and balance the demands and needs of the rural and urban populations and the aspirations of the northern and southern regions. These are daunting tasks which Viet Nam must tackle," Goh Chok Tong said.

Former Prime Minister Goh Chok Tong and former Prime Minister Vo Van Kiet graced the ground-breaking ceremony of the first VSIP in 1996. Following the success of VSIP1, VSIP2 was launched at the first VSIPs 10th anniversary celebration in September 2006.

Source: Asia Pulse