Vietnam emerges as attractive market for Singapore companies

This assessment was made during a conference on trade connection between the two countries which was jointly hosted by the Investment and Trade Promotion Centre (ITPC) of Ho Chi Minh City, the Vietnam Trade Office in Singapore, and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) in Ho Chi Minh City on March 9.

Upon addressing the event, Kho Choon Keng, president of the SCCCI, said both sides share close and long-term economic relations, with two-way trade recording steady growth over the past decade, hitting SGD31 billion over US$22.9 billion in 2022.

Singapore has always been among the country’s largest foreign investors, especially in Ho Chi Minh City, he said.

Many Singaporean companies have already established offices or are actively seeking opportunities in many areas nationwide, including infrastructure development, production, transportation, logistics, education, tourism, finance, and agriculture, Keng added.

Along with further boosting ties in existing fields, both nations can also move to expand their linkages in new areas, such as sustainability, green economy, and the digital economy, Keng noted.

According to Cao Xuan Thang, first secretary in charge of the Vietnam Trade Office in Singapore, there remains ample room for the two countries to step up their trade and investment ties.

Singapore is in the process of emerging as a service and finance centre in Southeast Asia, while the country has also become an attractive destination for investors and goods distributors, Thang emphasised.

Cao Thi Phi Van, vice director of ITPC, said Singapore ranks second among 140 countries and territories investing in the Vietnamese market, with total registered capital of US$ 71.85 billion. In line with this, Singapore remains the biggest foreign investor in Ho Chi Minh City with more than 1,677 projects worth nearly US$14.02 billion, she added.

Van attributed these results to the nation’s political stability, transparent and attractive investment environment, positive economic growth, along with its qualified and hard-working labour force, saying that the country is maintaining its advantages in attracting foreign investors, especially those from Singapore.

Most notably, Ho Chi Minh City is increasingly attracting international investors thanks to its synchronous infrastructure system which facilitates trade connection among domestic and international areas, she added.

Nguyen Quoc Vinh, head of ITPC’s Investment Promotion Division, said Ho Chi Minh City has always made efforts to maintain rapid economic growth and promote sustainable and comprehensive development across a variety of fields.

When investing in the southern city firms will have the opportunity to access a large number of customers, he said, adding that Ho Chi Minh City also serves as a bridge in helping businesses effectively approach the ASEAN community with a market of 500 million people, Vinh added.