SEMBCORP : U96 0% has obtained an investment licence for an industrial park project in Ha Tinh, Vietnam. The 190-hectare development will be added to wholly owned subsidiary Sembcorp Development’s portfolio, the group said on Friday (Dec 29).

The investment licence was awarded to the Vietnam Singapore Industrial Park and Township Development Joint Stock Company (VSIP JSC), a 46.5 per cent-owned joint venture with Vietnam state-owned enterprise Becamex IDC Corporation.

This month, an in-principle approval was also received to develop VSIP Quang Ngai II. This is an expansion from the first VSIP Quang Ngai, which was set up 10 years ago.

Sembcorp Development chief executive Lee Ark Boon said the new investment licence for the first phase of VSIP Ha Tinh adds to the investment licences received earlier this year for VSIP Lang Son and VSIP Nghe An II.

“With the additional land bank pipeline secured from these projects, we will continue to focus on driving Sembcorp Development’s growth in Vietnam,” he added.

Ha Tinh, which is located in Vietnam’s northern central region, neighbours the Nghe An province and is a prospective industrial hub.

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It benefits from one of the region’s largest natural deep-sea ports, Vung Ang Son Duong port, which serves provincial and regional activities. It also potentially bridges connections from transshipment ports such as Singapore and Hong Kong.

Manufacturers at VSIP Ha Tinh can tap the planned cargo consolidation point and international logistics hub, replacing the need for goods to be transported via the northern ports, Sembcorp said.

VSIP JSC will incorporate a wholly owned subsidiary in Vietnam to pursue development activities for the first phase of VSIP Ha Tinh. This is expected to be completed in the first quarter of 2024, the group said.

It does not expect the project to have any material impact on the group’s earnings per share and net tangible assets per share for the financial year ending Dec 31, 2023.

Shares of Sembcorp closed up S$0.11 or 2.1 per cent at S$5.24 on Thursday.