SEMBCORP Development has added three industrial parks in Vietnam to its expanding portfolio of low-carbon industrial parks.
Investment licences for VSIP Thai Binh, VSIP Quang Ngai II and Becamex-VSIP Binh Thuan were awarded to companies held by Vietnam Singapore Industrial Park Joint Venture Company (VSIP JV Co), Sembcorp Industries : U96 0% said on Friday (May 31). Sembcorp Development is its wholly owned subsidiary.
VSIP JV Co is Sembcorp’s 49.3 per cent owned JV with Vietnam state-owned enterprise Becamex IDC Corporation. Sembcorp’s effective shares in the three new projects range from 24.6 per cent to 49.3 per cent.
“These new projects build on VSIP’s extensive presence in the northern, central, and southern regions of Vietnam, where each region presents unique locational advantages for the manufacturing industry,” Sembcorp said.
“With increasing government spending on infrastructure such as highways, ports and airports to improve accessibility and connectivity to global markets, these regions are attracting investments and trade from foreign-invested enterprises.”
Including the new projects, Sembcorp has participated in the development of 18 VSIPs with a total licensed land area of 11,588 hectares.
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“With the rising importance of incorporating sustainability practices into business operations, manufacturers are gradually transitioning towards green factories and adopting decarbonisation and energy-efficient solutions,” the group said.
Lee Ark Boon, Sembcorp Development’s chief executive officer, said: “As a master developer and growing renewables player in Vietnam, Sembcorp contributes to the development of low-carbon industrial parks through our comprehensive suite of solutions. These include solar energy, battery energy storage systems, as well as carbon management solutions such as the provision of verified renewable energy certificates.”
The group does not expect the projects to have any material impact on its earnings per share and net tangible assets per share for the financial year ending Dec 31, 2024.
Shares of Sembcorp closed down 0.8 per cent or S$0.04 at S$5.09 on Friday, after the news.
