Sembcorp embraces a next generation industrial ecosystem

Sembcorp is embracing a new era of industrial ecosystems in Vietnam, as the country undergoes a transformation from a manufacturing base to a platform for advanced manufacturing and modern services. The question now is how quickly government, investors, and developers can collaborate to build these ecosystems that will propel Vietnam forward.

Vietnam is undergoing a significant shift due to three forces: supply chain reconfiguration, AI, and energy resilience. These forces are changing the way countries, investors, and developers must build to remain competitive. While many companies have pursued a China+1 strategy, diversification is easier said than done. Factories can be built, but ecosystems cannot be replicated quickly. Supply chains move where capabilities exist, and those capabilities flourish within strong ecosystems.

AI is creating immense productivity gains but also demands substantial power, water, infrastructure, and connectivity. Countries that succeed will build ecosystems enabling AI advancements. Higher energy costs are driving a greater focus on efficiency and sustainability, with investors demanding sustainable growth. Competitiveness is now increasingly dependent on ecosystem strength.

As industries move up the value chain, investor expectations are rising, accelerating the demand for eco-IPs globally. Location, labor, and infrastructure still matter, but they are no longer sufficient. Leading manufacturers now seek ecosystems that improve efficiency, strengthen resilience, and help meet sustainability goals.

Sembcorp takes a disciplined approach to sustainability, integrating energy, resources, infrastructure, and industrial activity into its designs. This allows sustainability to be designed, built, and measured as part of industrial performance. The group has achieved a LEED Volume Prototype approval, the first in Vietnam, and independently verified ISO carbon neutrality certification for its Haiphong industrial park.

Sembcorp's joint venture with StarMason JSC has received approval for a hyperscaled and AI-ready data center campus in Ho Chi Minh City. Sembcorp Development, a wholly owned subsidiary of Sembcorp Industries, has also achieved pre-certification for Vietnam's first LEED Volume prototype for ready-built facilities, enabling quicker deployment of green industrial buildings. Vietnam's industrial property sector is transitioning towards green growth, requiring developers to adapt their strategies to a competitive landscape.