"Many Singaporean investors tend to invest in the agro-processing and seafood sectors in Vietnam, especially in the Mekong Delta". It is mentioned at the Vietnam-Singapore Business Forum 2014 (VSBF), held recently in the Ho Chi Minh City. The event was hosted by the Vietnam Chamber of Commerce and Industry (VCCI), with the support of the International Enterprise Singapore (IE Singapore), the Singapore Embassy in Vietnam, the Singapore Business Federation (SBF), and the Vietnam Ministry of Planning and Investment of Vietnam (MPI).
According to the report presented at the forum, the bilateral trade turnover of Vietnam and Singapore reached US$8.36 billion in 2013 and has remained stable in the last 3 years. Vietnam mainly exports such commodities as rice, seafood, pepper, cashew nuts, fruits and vegetables, and coffee; in 2013, the export turnover of these commodities is around US$360 million, accounting for 13.5 percent of the total export turnover. And the import turnover of Vietnam from Singapore is less than about 4.4 percent of the total import value. In the first four months of 2014, the export turnover has reached US$159 million, in which, coffee is the most vibrant export commodity.
In just April 2014, the coffee export earned US$5.2 million, more than 3 times that of 2013.
According to Vo Hung Dung, Director of Can Tho Branch of VCCI (VCCI-Can Tho), Singapore is a potential market for the high value agriculture products. Singapore is not only a market, but also the important trade port of Vietnam to export agricultural products to the world. Singapore's investment in the agro-processing sector can create new channels to export agriculture and fishery products of Vietnam to many countries around the world.
This market is also connected to the major markets around the world.
However, this market also has certain requirements for consistent quality, the origin of products, beautiful packaging, and high quality. Therefore, if Vietnamese businesses want to penetrate this market, they need to understand carefully and take steps accordingly.
Sharing views on the investment environment, Ms Edlyn Khoo, Centre Director of IE Singapore Office in Ho Chi Minh City, said the governments of two countries upgraded the relations to strategic partnership in September, 2013. This has been and will be bringing many business cooperation opportunities for enterprises of the two countries. The Singaporean companies specialising in food processing, hospitality, and fast food are doing well in Vietnam and are expanding their business.
According to Ms Edlyn Khoo, Vietnam is a country with strong economic fundamentals, including the increasing number of working age population and rich mineral resources. The Singaporean companies are the potential partners, which bring both of services and expertise to improve the strength of Vietnam. Meanwhile, the business environment and stable safety continue to be a key factor in the investment decisions. The deeper cooperation between the two sides will not only benefit businesses, but also gain positive influence on the local community through the creation of employment opportunities and knowledge transfer.
Emphasising the potential of Mekong Delta, Vo Hung Dung, Director of VCCI - Can Tho, confirmed that along with the development of energy and tourism, the Mekong Delta will be the major centre of rice production and processing and exploitation of the aquaculture, fisheries and seafood, which greatly contribute to the exports of agricultural and fishery products of Vietnam. The Mekong Delta produces over 40 percent of agricultural and fishery products of the country and plays a key role in ensuring national food security. This is also the region that accounts for nearly one fifth of the total consumer and retail goods, 10 percent of the industrial outputs and nearly 10 percent of businesses throughout the country. The Vietnam- Singapore Business Forum 2014 is an important platform for the two countries to cooperate in the field of investment.
Mr Norman Lim, President of Singapore Business Group, said that Singapore has imported many seafood products and processed agricultural products from Vietnam, particularly from the Mekong Delta. Therefore, it is necessary to trigger the establishment of Vietnam and Singapore Industrial Park (VSIP) in the Mekong Delta to develop strong ties between the two countries in the fields of agriculture, forestry and fishery.
In regard to the issue of how to connect two economies towards a stronger ASEAN community, Dr Doan Duy Khuong, Vice President of VCCI, said the VSBF 2014 is an important event, which contributes to a more comprehensive partnership between Vietnam and Singapore in various fields, including production and processing of agricultural, forestry and fisheries. The VSBF 2014 will continue to connect the two countries and create a solid foundation for enterprises to explore new investment opportunities, especially in the context of the Agreement on Strategic Partnership being signed, and as the ASEAN countries are heading towards an ASEAN Economic Community by 2015.
It is known that Singaporean enterprises have made several field trips to Da Lat in the past two years to achieve two business objectives of importing agricultural products from Da Lat and transporting machinery and equipment from Singapore to Vietnam. Some Singapore companies have also directly researched a number of provinces in the Mekong Delta, such as Can Tho, Vinh Long and Ca Mau to survey the probability of investing in manufacturing of food, fisheries and aquaculture.
Thu Ha
Vietnamese
