The adjustment would allow manufacturers and investors planning to invest in the Vietnam Singapore Industrial Park (VSIP) Nghe An project to enjoy the highest tax incentives offer for economic zones.

The approval follows a petition from the People’s Committee of Nghe An province in April. In an announcement released by the Government Office on October 29, Deputy Prime Minister Hoang Trung Hai directed the provincial people’s committee to be responsible for adjusting the Dong Nam-Nghe An Economic Zone borders set forth in the master plan to include the VSIP Nghe An project.

The Ministry of Planning and Investment was responsible for appraising the adjustment and then submitting it to the government for final approval.

In February, Nghe An’s People’s Committee signed a memorandum of understanding with Becamex, the Vietnamese stakeholder of the reputable industrial park developer VSIP, to conduct a feasibility study of a VSIP industrial park and township complex in the province.

The site of the project was located just outside the Dong Nam-Nghe An Economic Zone, and the developer demanded inclusion into the zone as a precondition for investment. The government’s decision to support VSIP in this is a big step forward for the group’s investment in the country.

Established in 1996 as a joint venture between Vietnam’s Becamex IDC and Singapore’s Sembcorp Industries, VSIP is a prominent IP developer in Vietnam and is considered an icon of economic co-operation between Vietnam and Singapore.

Thus far, VSIP has developed five industrial parks nationwide, including two in Binh Duong, one in Bac Ninh, one in Haiphong and one in Quang Ngai. More than 500 companies have invested in its industrial parks and township with a total capital of $7.4 billion.

The VSIP Nghe An project, if carried out, would be VSIP’s second in the central region. The developer is also currently conducting a feasibility study for developing another project in Binh Dinh.

Last month the Hai Duong People’s Committee announced that the Vietnam-Singapore Industrial Park Bac Ninh, a VSIP subsidiary, will acquire Cam Dien-Luong Dien Industrial Park from Phuc Hung Company Limited.