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Deputy Prime Minister Hoang Trung Hai on July 5 directed the land usage time and the operating lifetime of the township area in VSIP Bac Ninh project be implemented in accordance with the Decree 84/2007/ND-CP issued in 2007 and the Decree 121/2010/ND-CP issued in 2010.
While Decree 84 regulates a foreign-invested residential development project will have land usage time of 70 years, Decree 121 regulates operating lifetime of this kind of project is equivalent to land usage time. This means land usage time and township lifetime will be extended from 50 to 70 years. Hai’s move was in response to a Bac Ninh Provincial People’s Committee proposal sent to the prime minister in April.
The township area is part of VSIP Bac Ninh project, 18 kilometres north of Hanoi. VSIP, a joint venture between Singaporean Sembcorp Parks Holdings and Vietnam’s Becamex IDC, received an investment certificate for the project in 2007 and planned to pump $103.7 million into the industrial park and township.
According to the developer, the industrial park, covering 500 hectares, would be home to non-pollutive, high-tech, high value-added, capital intensive industries such as those in the electronic and pharmaceutical sectors. Furthermore, a 200ha township also will be developed near the industrial park, including commercial and residential developments as well as services to support residents of Bac Ninh province and the surrounding areas.
A senior VSIP Bac Ninh officer said the lifetime extension would ensure this township has a lifetime similar to other residential property projects in the country. “We are preparing to receive adjusted investment certificate,” he said.
This new industrial and township is part of VSIP’s strong footprint in northern Vietnam after the success of two similar projects in southern Binh Duong province, VSIP I and VSIP II.
So far, VSIP Bac Ninh has attracted several well-known transnational companies such as PepsiCo and Nokia. PepsiCo, the world’s second largest food and beverage manufacturer decided to build a $70 million beverage factory there. Nearby, Nokia is building a mobile phone manufacturing factory.