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Last updated: Tuesday, February 19, 2019


Vietnam always welcomes Singaporean investors

Posted: Monday, July 24, 2017

Vietnam always welcomes Singaporean investors and believes in their success in doing business in the country, said Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) at “Overseas Market Workshop” in Hanoi School of Business and Management, Vietnam National University Hanoi.

The workshop this year welcomes 22 managers, leaders, CEOs and chairmen from 14 Singaporean companies and enterprises to attend 4 days workshop in Hanoi, Bac Ninh, Hai Phong and Vinh Phuc. The participants are provided a opportunity to interact and learn from senior level corporate executives, academicians and government officials about practical knowledge on doing business in Vietnam as well as attend site visit to successful foreign manufacturing-based businesses operating in major cities of Northern Vietnam. The programme aims to showcase latest business environment trends, explore investment policies and opportunities, and build networks with potential business intermediaries and partners.

The lesson provided the information about: Develop holistic perspective on market-entry into Vietnam encompassing economic, policy, legal and resource issues; Discover investment and business opportunities in broad spectrum of opportunities in the Vietnam’s successful economic and industrial hubs; Learn from foreign & Singapore businesses that have successfully set-up and operated in Vietnam.

Besides, attend the lesson, the Singapore business also are built strong connections with top Vietnamese and Singaporean businessmen based in the Vietnam’s industrial hubs.

Dr. Phan Thuy Tram, Former Vice President Investment Promotion Center – North Vietnam (IPCN) overviewed on North Vietnam/Hanoi as a FDI destination for manufacturing companies; Information on Laws and Regulations to ensure successful set-up for foreign companies, Special investment schemes and incentives to facilitate project implementation; Labour & productivity-related issues for successful set up; Facilitating market access for foreign manufacturing companies.

She also stressed success studies of foreign/Singapore companies setting up and operating in North Vietnam, such as: Samsung Electronics Rushes to Vietnam for More Production Sites; Intel’s Vietnam Success Begins with Building Paper Towers; Mercedes-Benz Continues to Expand Investment.

At the lesson, Dr Doan Duy Khuong, Vice President VCCI affirmed Vietnam also encourages Singaporean firms to connect Vietnamese partners with the global market, he said, adding that both countries are quite able to double two-way trade in the future on the back of the ASEAN Economic Community and the Trans-Pacific Partnership.

He expressed Singapore is currently Vietnam’s major partner in ASEAN in the fields of trade, tourism, international transport, education-training, and health care, and the largest trade partner.

About the role of manufacturing in Vietnam, according Dr Doan Duy Khuong, constantly confirmed since the beginning of the renovation (1986) up to now. Orientation: "modernization associated with knowledge economy development" (Party Congress X (2006); Target: by 2020, Vietnam to basically become industrialized countries towards. Vietnam manufacturing is the highest growth rate the group in the whole economy: an average annual increase of 13.8% from 2006 to 2014, in 2014: 8.7% (GSO), higher than the average growth of GDP.

However, the production only meets 40% of the needs of domestic market. Industrial production structure in general, the rate of processing and assembling remains high, the use of the domestic part of the assembly producer in Vietnam for high-tech industry is only 10%.

Besides, with FDI, processing industry and manufacturing has a very important position. In the first 10 months of 2015, the registered capital of 12.49 billion dollars (19.29 billion US dollars in total) are projects in the fields of manufacturing; 2011-2014: the proportion of the total registered capital of manufacturing over total registered capital increased from 50% to 72%. Moreover 80/101 countries and territories owning FDI projects in Vietnam invest in this field.

However, according Vice President of VCCI, there are also a lot of current weaknesses in manufacturing in Vietnam: The relatively small scale; The products manufactured with huge imported content. Therefor, limited linking between global and national chains and weak private sector.

He stressed, due to the importance of manufacturing and industrial sectors, it is needed to improve the competitiveness of these industries. Businesses need to be the center of a new development model, including trade promotion activities of enterprises. The question is that how to achieve this goal?; Developing evenly or focusing on some key industries?; Qualified personnel training is able to master the technology and modern equipment?...

He also recommended on organization models at national level with the aim of gathering leading manufacturers and industries (VCCI): Consulting and dialogue with the government on the business development, industry and production cluster development strategy…; Organizing annual industry and manufacturing forum; Sending representatives to participate in the business advisory council of economic integration programs; Joining market development and labor relations; Recommendation on measurement to prevent risks (business development funds and settlement dispute).

Thu Ha

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