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Vietnam offers S’porean firms new opportunities: Iswaran

SINGAPORE – Vietnam, the second most popular market for Singaporean companies venturing overseas, continues to provide business opportunities, especially in the manufacturing, consumer services and urban solutions sectors, Minister For Trade and Industry (Industry) Mr S Iswaran said yesterday.

SINGAPORE – Vietnam, the second most popular market for Singaporean companies venturing overseas, continues to provide business opportunities, especially in the manufacturing, consumer services and urban solutions sectors, Minister For Trade and Industry (Industry) Mr S Iswaran said yesterday.

“Vietnam is an important economic partner for Singapore and our economic ties have grown from strength to strength. Bilateral trade has doubled over the past decade to almost S$22 billion last year. Singapore is also Vietnam’s third-largest investor, and the top Asean investor, with more than US$38 billion (S$52 billion) in total investments,” he said at the Singapore-Vietnam Business Forum, attended by 250 participants, and graced by Vietnamese President Tran Dai Quang.

“There continues to be great potential for Singapore and Vietnam to build on our current trade and investment relations, and enhance economic cooperation, especially in the manufacturing, consumer services and urban solutions sectors.

“There are opportunities for businesses to: First, tap on Vietnam’s competitive advantage as a manufacturing location, particularly in the consumer electronics, apparel, and food manufacturing sectors and; second, offer supporting services like automation and logistics services to multinational corporations which are establishing manufacturing operations in Vietnam,” Mr Iswaran added.

He noted that the Vietnamese government had embarked on economic reforms that will accelerate growth and open up new opportunities for businesses. “Singapore welcomes the implementation of business-friendly policies and infrastructure improvements, as well as policy initiatives such as the revision of Vietnam’s foreign investment and property laws. These measures will help to attract more foreign investments,” he said.

In the recent 2015-2016 Singapore Business Federation’s National Business Survey, Vietnam was ranked the second-most popular market, after Myanmar, into which the organisation’s member companies were most keen to venture outside Singapore.

Singaporean companies have been doing business in Vietnam for a long time. For example, there are already 10 Singapore industrial parks operated by Ascendas-Singbridge, Mapletree and Sembcorp in Vietnam, according to a joint statement by IE Singapore and the SBF. Together they have attracted more than US$8 billion in investments, over 600 tenants and provided employment to more than 155,000 people.

Yesterday, the SBF signed a memorandum of understanding (MOU) with the Vietnam Chamber of Commerce and Industry (VCCI) to facilitate trade and investment as well as mutual cooperation among the member companies, and promote the exchange of economic and trade missions between both countries. The SBF has over 22,500 members while VCCI has more than 100,000 members.

Also yesterday, GIC inked an MOU with Vietcombank for the Singapore sovereign wealth fund to acquire a 7.73 per cent stake in the Vietnamese lender by taking up 305.8 million new shares.

The acquisition amount was not disclosed, but Reuters earlier reported Vietcombank had been planning to issue new shares equivalent to 10 per cent of existing stock to foreign investors, which would total more than US$600 million based on prevailing market value. Angela Teng

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