SINGAPORE: Singapore companies are scaling up their operations in Vietnam to tap the growing opportunities there.

Among them are SembCorp Industries and MapleTree Investments, which are committing millions of US dollars on a third Vietnam Singapore Industrial Park (VSIP) project.

An agreement on the collaboration for the project at the Bac Ninh Province in northern Vietnam was signed at the Istana on Monday and witnessed by the Prime Ministers from Singapore and Vietnam.

For SembCorp, the new project follows its successful foray into southern Vietnam.

SembCorp is also developing a 1,200-hectare township project in Hai Phong, Vietnam's third largest city. And it may consider stepping up its presence in the southern and central areas as well.

Low Sin Leng, executive chairman of SembCorp Parks Holdings, said: "I am very bullish about Vietnam. Vietnam is developing very, very rapidly... and I think we will continue to expand in Vietnam. This is a sure win-win from the private, public sectors' point of view."

For MapleTree Investments, it is acquiring about 70 hectares of land at VSIP-Bac Ninh to develop a logistics park.

Meanwhile, SP Chemicals will also start a feasibility study of a 1,300-hectare petrochemical project in Phu Yen Province in south-central Vietnam.

This is part of SP Chemicals' long-term growth strategy to expand upstream and ensure reliable raw material supply.

It is likely to be implemented in two phases.

Phase one will focus on the development of basic infrastructure and the construction of a naphtha cracker and utility plant, with an investment of US$1.5 billion and to be ready in 2014.

Phase two is aimed at promoting the petrochemicals park and inviting investments for projects, targeted to be completed in 2024. - CNA/ir