Speech by Prime Minister Lee Hsien Loong at the ground-breaking ceremony of the Vietnam-Singapore Industrial Park (VSIP) in Quang Nai province, Vietnam

Your Excellency Prime Minister Nguyen Tan Dung

Party Secretary of Quang Ngai Province Vo Van Thuong

Distinguished Guests

Ladies and Gentlemen

I am very happy to officiate at the ground-breaking ceremony for the fifth Vietnam-Singapore Industrial Park (VSIP) in Quang Ngai province together with Prime Minister Dung.

The VSIPs are concrete symbols of the excellent economic cooperation between Singapore and Vietnam. They bring together Vietnam’s vast industrial land and manpower resources, and Singapore’s experience with industrial park management and integrated urban infrastructure solutions.

The VSIPs have been very successful. From our first VSIP in Binh Duong province in South Vietnam, we have built new VSIPs in North (Bac Ninh and Hai Phong) and now Central Vietnam. Our four VSIPs have attracted more than US$6 billion of investments, with almost 500 companies employing over 140,000 workers. They have brought in US$6 million of investments per hectare, almost double the national average.

The VSIPs have also upgraded in quality. They have attracted higher value-added and capital-intensive industries such as pharmaceuticals, precision engineering, and high-end consumer products. They have evolved from traditional industrial parks to integrated townships, offering a high-quality “work-live-play” environment which suits Vietnam’s urbanisation needs and the changing lifestyles of the Vietnamese people. In this way, the VSIPs have played a small part in Vietnam’s growth and transformation.

VSIP Quang Ngai will set a new standard for the quality of its infrastructure and environment. It will comprise modern factories, pleasant homes and a wholesome living environment. The empty site we see here today will soon become a bustling industrial park. It will be complemented by a commercial and residential development near downtown Quang Ngai, which will cater to workers from the VSIP as well as locals from Quang Ngai city.

The VSIPs’ success has been due to the strong support from the Vietnamese Central and Provincial Governments. I thank Prime Minister Dung for personally supporting the VSIPs. We have met often as the VSIP project has progressed and expanded. The success of VSIP Quang Ngai will depend ever more critically on the support of the Vietnamese Government, to provide good infrastructure, clear rules and favourable incentives to encourage investments.

The VSIPs fit within the larger context of Singapore’s broader relationship with Vietnam. I am delighted to celebrate the 40th anniversary of our diplomatic relations, and to raise our ties to a Strategic Partnership. Singapore is the second largest investor in Vietnam, and one of Vietnam’s biggest trading partners. Our companies have done business in Vietnam for a long time, and hope to do more with their Vietnamese partners to jointly realise Vietnam’s vast potential. Beyond economics, our countries cooperate well in many fields, including education, culture, security and people-to-people exchanges. Our Strategic Partnership will pave the way for even stronger ties in future.

Ladies and gentlemen, many Vietnamese and Singaporeans will work side-by-side in this VSIP. Let us use this opportunity to strengthen the friendship between our peoples and countries. Singapore looks forward to even closer collaboration with Vietnam in the years ahead, to bring progress and prosperity to both our peoples.

I wish VSIP Quang Ngai every success. Thank you.