Vietnam is a market of great potential for Singapore businesses. In fact, leaders of the two countries have promoted Singapore investments in Vietnam. Meeting with Singapore businesses recently, President Truong Tan Sang welcomed their investments and partnership with Vietnamese businesses.
Mr Raymond Liu, Director of Singapore International Enterprises Centre (IE), Hanoi, said that for many years, Singapore businesses have proved themselves to be true partners in the Vietnamese market. They continue stable investments and expanding business activities in Vietnam.
At present, Singapore ranks 5th largest among trade partners of Vietnam. Bilateral trade has increased by four times since 2000 and posted US$10.1 billion in 2010. Singapore has 945 investment projects in Vietnam worth nearly US$23 billion.
Bilateral relations continue to develop after the signing of the Vietnam-Singapore Connectivity Agreement. In September 2011, Sembcorp Industrial Park signed a MOU with Quang Ngai People’s Committee to start a feasibility study of the 5th Vietnam-Singapore Industrial Park (VSIP) in Dung Quat Economic Zone. It is the first breakthrough of Sembcorp in Central Vietnam.
In May 2011, Capita Value Homes, a sister company of CapitaLand (Singapore), signed a joint venture with Khang Dien Saigon Real Estate to build 974 houses in Ho Chi Minh City worth US$70 million. While in December 2010, NTUC Fairprice of Singapore signed a joint venture with Saigon Co-op to build a chain of supermarkets to be operated in 2012.
Experts believe that there are still large areas for Singapore investments in Vietnam, especially urban development, infrastructure, trade and services.
Mr Raymond Liu said that Singapore can provide services for infrastructure development in Vietnam. As Hanoi, Ho Chi Minh City and Haiphong will triple in size by 2020, demand will increase for water supply, waste treatment and other services for sustainable development.
In larger scale, VCCI Vice President Doan Duy Khuong emphasised the role of Vietnam and Singapore in building the ASEAN Economic Community by 2015. In the conditions of regional and international integration, businesses of the two countries should overcome challenges and make the best use of opportunities for development.
Mr Ricky Tan, Chairman and CEO of KinderWorld Group, said that in the past 11 years, Vietnam investment law and authorities have readjusted the policy facilitating foreign businesses. However, there is still a distance between the law and its implementation at lower levels which causes a difference between big cities and provinces. Singapore businesses want long-term investments in Vietnam. Therefore, to ensure an attractive investment environment in Vietnam, implementation of the law must be consistent at all levels so investors can follow it correctly.
Dr Phan Huu Thang, Director, Centre for Foreign Investment Studies
By registered investment capital, Singapore investments in Vietnam focus in five main sectors: real estate (US$7.6 billion), processing and manufacturing industries (US$6 billion), construction (US$3.5 billion), art and recreation services (US$1.7 billion), and hotels and restaurants (US$1.7 billion).
Singapore also has other comparative advantages in financial-monetary-insurance, trading, wholesale and retail sales, information and communication. However, investments in those areas remain modest.
The main reason is that Singapore businesses do not always find projects suitable for their capacity and objectives in Vietnam. Therefore, promotion activities must be stepped up to attract Singapore investments to meet the demand in Vietnam.
Mr Raymond Liu, Director of Singapore International Enterprise Centre (IE)
No doubt, the implementation of policy will increase the confidence of foreign investors in Vietnam. In larger scale, the Vietnamese government has made certain steps to improve the business environment to attract foreign investors. It is most encouraging and important that Vietnam has transformed into a market economy.
Bilateral trade and investment have been developed vigorously in Vietnam. We are looking for more opportunities to increase such cooperation in the interests of the two countries.
Giang Tu
Vietnamese
