Sembcorp VSIP page
Vietnam Singapore Industrial Park Video
Article on VSIP
How has VSIP helped to strengthen the relationships between the countries in the region?
1. What was the purpose of building the VSIP?
2. How has VSIP developed since it started?
3. Why are companies move into VSIP?
4. How are Vietnamese consumers different from Singapore and how does this affect VSIP?
VSIP is a producer of precision engineering, automotive components, electrical and electronics, pharmaceutical and health care, food and beverages. Many companies are willing to set up factories in Vietnam as Vietnam has a stable socio-political environment, safe business environment, competitive labour cost, member of the world trade organization and a large market of 86.5 million people
VSIP started in 1996 with a size of 500 hectares. It was originally a rubber plantation. In 2006, VSIP 2 was built. It had a size of 345 hectares. In 2008, VSIP 2 was expanded to a size of 1700 hectares. However, most of VSIP 2 is still undeveloped. It was also established to show the close relations between Vietnam and Singapore
Vietnam decided to collaborate with Singapore because Singapore had a lot of finances, marketing networks and management experiences. The goal of building the VSIP was to provide more jobs, living space and services for the people of Vietnam. It also provided companies with a chance to expand their businesses in Vietnam.
We learnt more about the movement of companies. Companies move to other places in search of a larger potential market, lower production costs, to diversify risks and to expand their business. Companies will move to places with political stability and certainty, lower costs of operation, scalability - possible business opportunities and expansions and good infrastructure and connectivity.
We also learnt about the consumers in Vietnam. Most consumers are about 20 to 29 years of age which makes up about 27.5% of the population. Consumers also have a spend more and save less attitude. They have more complicated product requirements and spend more on healthcare. The consumers also appreciate higher quality products.
After our visit to VSIP( Vietnam Singapore Industrial Park), we learnt about the strong ties between Singapore and Vietnam, the importance for companies to find new markets and move to other countries.how countries could growth and prosper together, making use of each other. For example, Singapore has marketing networks, while Vietnam has the human resources.