“Singaporean businesses remain interested in investing in Vietnam, despite the global economic turmoil, which demonstrates their confidence in the nation’s growth and development,” said H.E Simon Wong, Singaporean Ambassador to Vietnam in a talk with Vietnam Business Forum.
How do you evaluate Vietnam’s policies for investment attraction amidst the global economic downturn? Is Vietnam still a destination for Singaporean investors?
Singapore companies view Vietnam as an important market, given the good relationship between the two governments, the close proximity of Singapore to Vietnam, Vietnam’s commitment to an open economy and Vietnam’s large and hardworking population. Singapore companies have expressed strong confidence in Vietnam’s long-term economic prospects and are keen to continue investing in Vietnam.
Could you please reveal some positive results of Vietnam-Singapore Connectivity Framework Agreement after four years of establishment?
On the economic front, we established the Singapore-Vietnam Connectivity Framework Agreement in December 2005. It has developed into a key pillar of our economic engagement, spanning 6 sectors of economic cooperation, namely: (i) education and training, (ii) finance, (iii) information technology and telecommunications, (iv) investment, (v) trade and services, and (vi) transportation.
Through the Connectivity Agreement, Singapore has made significant contribution in developing Vietnam’s human resource though training and capacity building efforts across all six sectors. In particular, there has been close collaboration between Singapore’s MOE and Vietnam’s Ministry of Education and Training (MoET), including schools twinning programmes, English language courses, student exchange programmes and high-level visits from both sides. In the financial sector, the Monetary Authority of Singapore (MAS) has conducted a series of training programmes in financial regulation and supervision for the various Vietnamese financial authorities in the last few months.
Singapore is known as a country taking the lead in building a knowledge based economy, could you please share your experience in economic development?
We are always willing to share our experience. Singapore companies have indicated that the challenges faced by Vietnam are similar to those faced by other developing countries. These include the need to enhance manpower skills, language skills and make the business climate more investor-friendly by reducing regulations and speeding up investment approval processes.
Are you confident of the recovery of Vietnam’s economy in 2009? What do both countries need to do to maintain the already strong relationship?
As you rightly pointed out, Singapore and Vietnam enjoy warm and friendly ties. Our relations are underpinned by broad and multi-faceted cooperation in a wide spectrum of areas. Last year, we commemorated the 35th anniversary of the establishment of relations between Singapore and Vietnam, a significant milestone in our bilateral relationship. We expect bilateral cooperation to grow from strength to strength in the years ahead as we continue to explore new ways to deepen the friendship.
We are particularly delighted to note that bilateral trade and investment flows between Singapore and Vietnam have grown steadily over the last ten years. The global financial crisis has, however, affected our bilateral trade and investment flows since late 2008. But, there are some tentative signs in recent months that things could be improving. In terms of investments, Singapore is still among the top 5 FDI source country for Vietnam, with cumulative registered investments reaching US$16.7 billion as of July 2009. This is a clear indication of the continued confidence of Singapore companies over Vietnam's future. As for tourism, while overall visitor arrivals to Vietnam grew by 0.6 % in 2008, Singapore visitor arrivals to Vietnam grew by 15 % in 2008. Likewise, Singapore saw an 18 % growth in visitor arrivals from Vietnam in 2008
What specific sectors do you think Vietnam and Singapore can strengthen cooperation in the coming time?
Singapore companies are already involved in a wide range of economic activities in Vietnam, such as development and operation of industrial parks, infrastructure development, logistics, port development, healthcare, education, tourism, as well as manufacturing of food, consumer products and electronics components. For example, Singapore companies’ involvement in the urban development sector is broad and deep, with projects in industrial parks, commercial, residential and hospitality developments.
Singapore’s investments in this sector stood at about US$10 billion, or 62 % of Singapore’s total cumulative investments in Vietnam as at end December 2008. One example is the Vietnam-Singapore Industrial Park (VSIP), which is one of the most successful parks in Vietnam in terms of investment attraction, technology transfer and environmental protection. With the latest project in Hai Phong, VSIP now has 4 industrial parks and township projects with over US$2.4 billion in foreign investment. Another example is the Laguna Hue project by Banyan Tree, which will be one of the largest premium integrated world-class hospitality projects in Vietnam.
In other sectors, an example of a major project is the PSA-Saigon Port joint venture for a container terminal in Ba Ria-Vung Tau Province. Similarly, Singapore healthcare providers are keen to increase their presence in Vietnam. Thomson Medical Centre, one of Singapore's leading healthcare companies, will complete its consultancy project for Protrade's Hanh Phuc International Women and Children Hospital by the end of the year. It will manage the hospital after its opening, which is planned to be in the first quarter of 2010.
There is significant potential for further economic collaboration between both countries. As Vietnam continues to open up its economy and foster a pro-business environment, Singapore companies can share its expertise and experience in developing Vietnam’s modern services sector such as the financial, transportation and info-communications sectors, as well as participate in building modern townships.
Reported by Ngoc Trang
Vietnamese
