Executive chairwoman Low Sin Leng said on Tuesday that the corporation was seeking new projects in sectors of electricity, wastewater treatment and environment among others, besides inviting other stakeholders to join forces in property projects. She was speaking to reporters in Binh Duong, where the corporation operates two large-scale industrial parks named VSIP 1 and VSIP 2, on the occasion of welcoming Singapore’s Minister Mentor Lee Kuan Yew.

Leng admitted that the global financial meltdown had adversely affected the flow of investment into industrial parks, but Sembcorp was confident in the business prospects in Vietnam in the medium and long term.

The economic crisis has slowed down investments into Sembcorp’s industrial parks, “from five projects per month before to two or three projects per month now,” she said.

Leng observed that the number of investors who came to produce goods for export, electronics, auto and chemicals had fallen, while that of investors who came to tap the local market as well as food and pharmaceutical companies are still building factories in Vietnam.

Despite the general slowdown, Sembcorp is still committed to developing infrastructure for the licensed industrial park and residential area projects.

Sembcorp is developing infrastructure at new industrial park and residential projects in the northern region like Bac Ninh Province and Haiphong City as well as expanding VSIP II in the southern province of Binh Duong.

This is because foreign investors still see Vietnam as a safe and strategic investment destination and as a potential market. So, Sembcorp and its local partners continue to develop infrastructure at industrial park and residential area projects to supply investors, to prepare for when the turmoil goes away, she said.

VSIP Corp. is building its first IP in the north named VSIP Bac Ninh Integrated Township & Industrial Park, modeled after the successful VSIP I and VSIP II in southern Binh Duong.

Huynh Quang Hai, general director of VSIP in the north, said some 19 investors had committed to invest some US$500 million into the park, which covers 700 hectares and is situated in the northern key economic zone, about 18km from the capital city. The industrial park and township comprises 500 hectares of industrial zone with modern manufacturing facilities and a logistics hub, and 200 hectares for residential development.

The developer late last year also received an investment certificate to develop a new industrial park and township project in the northern city of Haiphong. The Bac Song Cam project covers 1,566 hectares in Thuy Nguyen District, with the township occupying 1,058 hectares and the industrial park the remaining space.

Hai told the Daily the joint venture will begin work on the project in September this year. The US$1-billion project will be carried out in two phases with the 611-hectare first phase consisting of an industrial park, and housing and commercial facilities.

Meanwhile, VSIP II in Binh Duong province is being expanded with a further 1,000 hectares of industrial space and 700 hectares of land for residential development. In all, VSIP II occupies 2,045 hectares.

VSIP is a joint venture between Becamex IDC Corporation, a state-owned Vietnamese enterprise in Binh Duong Province, and SembCorp Industries of Singapore.

With 2,545 hectare of land in the south province and 2,300 hectare in the north when fully developed, VSIP is among the largest land bank owner and developer in Vietnam, said Low Sin Leng. Up to now, the joint venture has poured US$660 million into its projects.

Sembcorp said that they developed VSIP I since 2006 and earned a profit from 2001. But they have been using profits to expand and invest in new projects.

Leng said Sembcorp will develop commercial and residential properties in tandem with the industrial park development in its new townships.

VSIP having started off as a traditional industrial park has adopted an integrated township and industrial park model, introducing residential, commercial and industrial mix. The developer is inviting investors to co-develop business centers, villas, apartments and shopping malls or office towers.

Apart from the property sector, Sembcorp also has invested in Phu My 3 power plant in Ba Ria-Vung Tau Province, which came online in 2004.