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VSIP Expansion Supports the Next Wave of FDI
During the recent high-level engagement between Vietnam and Singapore, VSIP received approvals for five new industrial park projects across the country. With a total site area of over 2,300 ha, these projects will expand VSIP’s network in Vietnam to 26 projects and move it closer to the 30-project target set by the two governments. The expansion is also aligned with the broader direction of developing greener VSIP industrial parks, with a stronger focus on high-tech investment and more sustainable industrial ecosystems.
The development is meaningful beyond additional land supply. Over the past three decades, VSIP has become one of the clearest examples of how Vietnam and Singapore can translate strategic partnership into practical investment outcomes, combining Singapore’s experience in infrastructure development, urban planning, and governance standards with Vietnam’s competitive manufacturing base and long-term growth potential.
It also reflects Vietnam’s broader effort to upgrade its industrial park model. Beyond land and factory space, the focus is increasingly shifting toward integrated industrial–urban–service ecosystems, where production facilities are supported by worker housing, urban amenities, investor services, environmental management systems, green infrastructure, and stronger links to advanced manufacturing. This is becoming more relevant as global manufacturers look beyond cost competitiveness and place greater emphasis on operating resilience and long-term scalability.
The approval also highlight the government’s effort to expand industrial land supply to accommodate rising demand, especially as occupancy rates remain high across key manufacturing hubs. In 5M/2026, registered FDI reached USD24.8bn (+34.9% y/y), while disbursed FDI reached USD9.8bn (+9.6% y/y), the highest level in the past five years. The continued expansion of Samsung, Foxconn, and Goertek across electronics, semiconductors, and higher-value manufacturing further reinforces the country’s role as a preferred production hub.
These developments highlight the next phase of Vietnam’s industrial real estate sector: moving from industrial land provision toward more integrated, sustainable, and higher-value manufacturing ecosystems. Our recent industrial real estate report provides further context on how the country is positioned to benefit from global supply chain transformation.
