Singapore Tops Investment Projects

Singapore Tops Investment Projects

According to the Ministry of Planning and Investment (MPI), Singapore was the leading country in terms of investment projects among the 65 countries and territories investing in Vietnam by June 30, 2004. With 307 projects and a total registered capital of over US$7.8 billion, Singapore holds 18 per cent of the foreign direct investment share in Vietnam.

Mr. Nguyen Bich Dat, MPI vice minister, noted that "the economic, investment and trade relations between Vietnam and Singapore are developing successfully. Singapore is an important economic partner of Vietnam." Currently, Singaporean projects are present in almost all economic sectors of Vietnam, but, most are concentrated in real estate, hotel, office, apartment building, transport and finance services, constituting 116 projects and registered capital of nearly US$5 billion, making up nearly 38 per and 63 per cent, respectively.

Regarding implemented capital, Singapore realised US$3.3 billion, or 42 per cent of registered capital, second only to Japan (88 per cent). It shows that Singaporean projects keep to the schedule and record high efficiency. Hanoi has the largest number of Singaporean investment projects (42 projects and investment capital of over US$2.8 billion, 36 per cent of the total registered capital), followed by Ho Chi Minh city (29 projects, US$2 billion and 26 per cent, respectively) and then Dong Nai, Lam Dong and Binh Duong.

According to the Trade Ministry, Singapore ranks second in terms of trade value with Vietnam. In 2003, bilateral trade reached US$3.9 billion, 8.4 per cent more than in 2003. Vietnamese exports constituted US$1.02 billion of the total, an increase of 6.6 per cent, and imports increased by 13.57 per cent. Exports to Singapore increased in the fields of crude oil (US$754.1 million), rice (133,200 tonnes worth US$24 million, an increase of 30.02 per cent), coffee beans (US$10.37 million, 50,04 per cent), computers and spare parts (US$6.11 million, 45.6 per cent) and cashew nuts (US$3.11 million, an increase of 1.67 fold). High value imports from Singapore included electronic parts, computers, machines and equipment, steel and petroleum. In the first half of 2004, the bilateral trade value was US$2.26 billion, an increase of 21 per cent over the same period last year, constituting US$595 million in exports (26.9 per cent increase) and US$1.66 billion in imports (20.3 per cent increase). Vice Minister Dat added that Vietnam and Singapore are carrying out initiatives on cooperation, primarily focusing on investment, trade, tourism, capital markets and infrastructure.

Ms. Wang Look Fung, general manager in charge of external relations and communication of the Keppel Corporation, a major investor in Vietnam, disclosed that in addition to the implemented investment by December 2003 of US$250 million, Keppel would pour US$277 million more into Vietnam. Keppel has operational in Vietnam over the last two decades with its first project in 1985 when Keppel Shipyard repaired the KRYM ship for the Sudoimport company. Keppel has invested in four main areas: offshore construction, real estate, infrastructure and investment. "We are confident and prepared for long-term investment in Vietnam," Ms. Wang Look Fung reaffirmed.

With half of the population under 35 years old and a 93 per cent literacy rate, the Vietnamese economy is poised for take-off. The investment environment in Vietnam is highly valued following the commitments of the government to make it more attractive to foreign investors. The encouragement of the government has opened up new opportunities for foreign investment.

• Doan Phuong