Singapore is the third largest investor in Vietnam. Mr. Ho Meng Kit, Executive Director of the Singapore Business Federation (SBF), said that he was optimistic that [...]
Mr. Ho Meng Kit, Executive Director of the Singapore Business Federation (SBF), said that he is optimistic about the investment prospects of Singaporean businesses in Vietnam, with not only large corporations or companies, but many small and medium-sized enterprises also looking for opportunities or expanding their business activities.
According to statistics, investment from Singapore into Vietnam has reached more than 1.1 billion USD in registered capital in the first 6 months of 2016. As of June 2016, Singapore is the 3rd largest investor in Vietnam, after South Korea and Japan.
If calculated cumulatively to date, Singapore's expected investment capital in Vietnam has reached 37.9 billion USD with over 1,600 different projects, focusing mainly on industry, processing and manufacturing... Notably, Singapore's FDI capital has flowed into 18/21 economic sectors of Vietnam, which mainly focuses on the processing and manufacturing industry with 494 projects, with a total registered capital of more than 16 billion USD, accounting for over 44% of total investment capital of Singaporean enterprises in Vietnam. Ranked second is real estate business with 81 projects, with a total registered capital of nearly 11 billion USD, accounting for 30% of the total investment capital of Singaporean enterprises in Vietnam.
The average capital size of a Singapore investor project is nearly 23 million USD, higher than the average capital of an FDI project in Vietnam which is approximately 14 million USD. Many projects of Singaporean investors in Vietnam operate effectively, contributing greatly to GDP growthEfforts to create jobs, increase export turnover and economic growth in Vietnam.
Currently, Singaporean investors are present in 46/63 provinces and cities of Vietnam. The area that attracts the most FDI capital from Singaporean businesses is Ho Chi Minh City with 799 projects, registered capital of nearly 10 billion USD, accounting for nearly 27% of total registered capital in Vietnam. Hanoi ranked second with 256 projects and nearly 5 billion USD, accounting for approximately 13% of registered capital...
Mr. Ho Meng Kit said: "Not only large corporations, but many small and medium-sized Singaporean enterprises are also looking for business opportunities in Vietnam. Therefore, I am very optimistic about the investment prospects of Singaporean businesses in Vietnam."
According to Mr. Ho Meng Kit, about 80% of SBF members are small and medium-sized enterprises. Grasping the growing demand, SBF is actively coordinating with the Vietnamese Embassy in Singapore, VCCI as well as localities to have business promotion and connection programs. SBF also supports and creates maximum conditions for these businesses to learn about the market, grasp Vietnam's reform process, seek cooperation opportunities to expand investment and business in the coming time, and take advantage of opportunities when the Trans-Pacific Partnership Agreement (TPP) comes into effect.
“The fields that Singapore businesses are interested in investing in Vietnam are manufacturing, real estate, high technology and infrastructure services such as seaports, transportation and energy systems, export of agricultural products and fruits...
In addition, Vietnam's tourism industry is also on the rise with many beautiful beaches and an extremely rich and unique culture. We see there the potential to cooperate in building resorts, hotels or tourism products," Mr. Ho Meng Kit emphasized.
Source: Government Electronic Newspaper
Procedures
