As Vietnam and Singapore mark 52 years of strengthened diplomatic relations, recent high-level visits underscore a deepening economic partnership and the exploration of new avenues for collaboration. Following Vietnamese President To Lam's visit to Singapore, Singaporean Prime Minister Lee Hsien Loong's official visit to Vietnam from March 25th to 26th served as a significant milestone in reinforcing bilateral ties and identifying fresh opportunities. A particularly noteworthy aspect of this engagement is the potential for increased Singaporean investment in the development of Eco-Industrial Parks (Eco-IPs) in Vietnam, a burgeoning trend poised to reshape Vietnam's industrial and economic landscape.
Vietnam has consistently prioritized sustainable development and environmental protection through the implementation of its National Green Growth Strategy to 2030 and its commitment to achieving Net-Zero emissions by 2050. A cornerstone of these efforts is the establishment of Eco-Industrial Parks. These parks aim to minimize the environmental impact of industrial activities – a significant source of pollution – by integrating eco-friendly practices, optimizing resource utilization, and enhancing economic efficiency.
Prime Minister Lee's recent visit presents a prime opportunity for Vietnam to attract investment from Singapore, a nation with extensive experience and expertise in sustainable urban development and green technologies. Singaporean investors are well-positioned to introduce valuable experience and cutting-edge technologies to Vietnam's Eco-IP projects. This could pave the way for the creation of state-of-the-art industrial parks adhering to international environmental standards, building upon the success of the established Vietnam-Singapore Industrial Parks (VSIPs). Furthermore, the transfer of knowledge and sharing of best practices will be instrumental in helping Vietnam develop a robust framework for sustainable industrial growth.
Major Singaporean Developers Actively Investing: Sembcorp, Frasers Property, and Mapletree Lead the Way
Leading Singaporean developers, including Sembcorp Industries, Frasers Property, and Mapletree Investments, have already made substantial investments in the Vietnamese market over the years.
Sembcorp Industries, a key player in Vietnam's industrial park development, has made significant strides in promoting sustainable industrial practices. The VSIP model stands as a testament to Sembcorp's commitment to eco-friendly development. Sembcorp's expertise in building green and resilient industrial infrastructure is poised to further strengthen Vietnam's Eco-IP development efforts.
Frasers Property has also made notable contributions to Vietnam's industrial landscape. The company focuses on creating sustainable and innovative industrial spaces that cater to the evolving needs of businesses. Their projects in Vietnam emphasize energy efficiency, waste management, and environmentally friendly construction practices. In 2024, Frasers Property completed the Yen Phong 2C-RF Industrial Park in Bac Ninh province, northern Vietnam. This park incorporates green building materials and maximizes natural light to enhance energy efficiency while minimizing its environmental footprint.
While primarily focused on real estate project development, Mapletree has actively participated in the development of industrial and business parks within Vietnam. A prime example is the 86-hectare Mapletree Binh Duong Logistics Park, located in VSIP 2 in Binh Duong province, near Ho Chi Minh City. This park was developed to meet the logistics and supply chain demands of manufacturing facilities in adjacent industrial parks, featuring leasable warehouse space, a customs clearance center, and security and segregation facilities. It also offers build-to-suit factory design and construction services tailored to client requirements.
Vietnam Expects to Secure Sustainable Growth Engine by Fostering Eco-Friendly Industries
As Vietnam prioritizes environmental protection and sustainable growth, collaboration with Singaporean investors is expected to usher in transformative changes. Eco-Industrial Parks will play a crucial role in driving sustainable development and fostering a greener economy. The development of these parks will not only attract foreign investment but also contribute to the advancement of green technologies, enhance resource efficiency, and strengthen economic resilience. Consequently, Vietnam's industrial sector holds a promising outlook.
Success Story: Vietnam-Singapore Industrial Parks (VSIP)
The Vietnam-Singapore Industrial Parks (VSIP) stand as an iconic success story in economic cooperation between the two nations. Established in 1996, VSIP has developed numerous industrial parks across Vietnam, significantly contributing to attracting foreign investment and promoting local economic development. Beyond providing space for manufacturing facilities, VSIP actively participates in environmental protection by adopting eco-friendly designs and sustainable operating practices. Through wastewater treatment facilities, securing green spaces, and building energy-efficient infrastructure, VSIP positively impacts both tenant companies and local communities. This successful model serves as a crucial benchmark for the development of future Eco-Industrial Parks in Vietnam.
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