September 24, 2012
Mitsubishi Corporation and Sembcorp Development to enter into a strategic alliance agreement on township development in South East Asia
Mitsubishi Corporation (MC) is pleased to announce that it has entered into a strategic alliance agreement with Sembcorp Development (SCD) in the field of urban development business in South East Asia.
South East Asia is expected to attract an increasing level of investment from foreign manufactures and other businesses as they look towards the establishment of the ASEAN Economic Community in 2015. MC and SCD plan to expand urban development business in this region, combining SCD’s experience in urban and industrial park development with MC’s functions in developing residential/logistics/retail properties as well as its global network spanning virtually every industry.
SCD owns, develops, markets and manages urban developments comprising industrial parks as well as business, commercial and residential space in Vietnam, China and Indonesia. It is a wholly-owned subsidiary of Sembcorp Industries, a leading energy, water and marine group, which is itself 48.84%-owned by Singapore’s Temasek Holdings.
In 1996, MC joined SCD’s flagship project - Vietnam Singapore Industrial Park (VSIP). VSIP has developed 5 industrial parks (with a total area of approximately 6,000ha) in Vietnam which have been utilized by 465 manufacturing and logistics companies including 104 Japanese companies.
Enjoying stable economic growth, cost competitiveness and a strategic manufacturing/logistics location due to its proximity to China, South East Asia is currently experiencing a wave of industrialization similar to that which it saw during the 1990s.
Although most foreign investments into this region tend to be made by manufacturing companies and focus on industrial parks, there is also an increasing need for integrated urban solutions, including residential and retail facilities, to support local employees and communities. . VSIP is working to address this need, having incorporated this integrated urban solutions concept into all of its projects since its second project, “VSIP Binh Duong,” which commenced in 2006.
MC plans to expand its urban development business in South East Asia with SCD, and by doing so facilitate global investment into this region while contributing to the sustainable growth of local society.
1. Sembcorp Development Ltd
Executive Chairman ：Low Sin Leng
No. of Employees ：70
SCD is a leading Asian developer with over 20 years’ experience undertaking planning, land preparation and infrastructure development to create large scale urban developments. It owns, develops, markets and manages urban developments comprising industrial parks as well as business, commercial and residential space in Vietnam, China and Indonesia. SCD is a wholly-owned subsidiary of Sembcorp Industries, a leading energy, water and marine group with operations across six continents worldwide. The Group has total assets of over S$11 billion (US$9 billion) and employs over 9,000 employees.
2. Vietnam Singapore Industrial Park (VSIP)
In 1996 VSIP’s first project, an industrial park consisting of 500 hectares of land, was established in Binh Duong province by Becamex IDC, a local state-owned company, and a consortium from Singapore led by Sembcorp Development Ltd. Mitsubishi Corporation was a member of this consortium and supported the project’s promotional activities .
Due to accelerated economic growth in Vietnam, from 2006, VSIP expanded rapidly with the establishment of further industrial parks in Binh Duong (2,045 hectares), in Bac Ninh province (700 hectares), in Hai Phong City (1,600 hectares), and most recently in central Quang Ngai province (1,120 hectares).
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