Assembly line workers examine sweet confections at URC Viet Nam, part of VSIP's industrial zone in southern Binh Duong Province. VSIP's industrial zones will be expanded to attract more investments. — VNA/VNS Photo Quach Lam

Kelvin Teo, co-chairman of VSIP Group Management Board, said that two Memoranda of Understanding (MoU) had been signed with local authorities.

"These two expansions will potentially add 1,500ha to the current 6,660 ha of the existing seven VSIP projects," he said. "We're still studying their feasibilities."

Teo also said that during 20 years operating in Viet Nam, VSIP had attracted US$9 billion investment from more than 630 multi-national companies.

The company has brought more than 174,000 jobs to the industrial service sector, supporting the rise of the country's middle class.

"Factories no longer serve only the domestic market, but also multiple markets. VSIP is therefore exploring innovation hubs for Viet Nam," Teo said. "We believe that Viet Nam can embrace greater sophistication expected of foreign factories, but we will need the Government's support in readying the Vietnamese in education and skills development."

Strong Singapore ties

Singapore has deep economic ties with Viet Nam, with bilateral trade growing steadily, doubling over the past decade to reach $16 billion in 2015.

Singapore is Viet Nam's sixth largest trading partner, while Viet Nam is Singapore's 11th largest trading partner.

Speaking at the 20th anniversary of VSIP on Wednesday, Deputy Prime Minister Truong Hoa Binh praised the contribution of Singaporean businesses operating in Viet Nam.

Singaporean investors have made a hugely significant contribution to the Vietnamese economy across different provinces, in sectors such as oil exploration, industrial manufacturing, agriculture, forestry and seafood processing, and most notably in the fields of infrastructure, business services and real estate, Binh said.

He said that the Government pledged to continue putting in place policies to stabilise the investment environment, promote the reform of administrative processes for a more efficient approach, streamline the legal system and create favourable conditions for foreign enterprises.

Teo Chee Hean, Singapore's Deputy Prime Minister, said that Viet Nam continued to enjoy one of the highest economic growth rates in our region.

"Its young population, vibrant workforce and rising middle class are Viet Nam's comparative advantages. The Government has also progressively reformed and liberalised the economy," he said.

"It has built up a strong network of bilateral and multilateral free trade agreements, and advocated for agreements connecting our region such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership. Such efforts will improve Viet Nam's business environment, facilitate investments and open up new opportunities for foreign companies, including those from Singapore." —  VNS