Singaporean firms have high expectation for Vietnam’s business environment, according to Douglas Foo, president of the Singapore Manufacturing Federation (SMF) and vice president of the Singapore Business Federation (SBF).
|Vice Minister of Planning and Investment Tran Quoc Phuong at the meeting. Source: MPI.|
This is evidenced by the fact that the online Vietnam – Singapore investment promotion conference took place during the Covid-19 pandemic, showcasing the two countries’ adaptability in the new situation in boosting economic recovery and efforts to enhance bilateral investment cooperation, said Mr. Foo at the conference on September 17.
As both Vietnam and Singapore are members of the ASEAN and Comprehensive and Progressive Agreement for Trans – Pacific Partnership (CPTPP), enterprises from the two countries will have more opportunities to take advantage of bilateral strong relations for doing businesses, he said.
The event was jointly held by Vietnam’s Ministry of Planning and Investment (MPI), Vietnam’s Embassy in Singapore, the SMF and SBF and the participation of nearly 500 Singaporean enterprises around the world.
Vice Minister of Planning and Investment Tran Quoc Phuong said Vietnam remains steadfast in pursuing the dual target of both containing the pandemic and boosting economic growth, aiming to avoid economic disruption.
Meanwhile, international organizations such as the World Bank and the International Monetary Fund (IMF) all forecast Vietnam to be among a handful economies with positive economic growth this year.
According to Mr. Phuong, Vietnam is currently home to over 32,000 projects worth US$381 billion from 137 countries and territories, in which Singapore is Vietnam’s third largest investor with US$55 billion in investment capital.
In the first eight months of 2020, Singapore was the largest investor with US$6.54 billion, accounting for 33.5% of total investment in Vietnam.
Amid growing global uncertainties, Mr. Phuong said Vietnam is pushing for economic restructuring and global integration while focusing on improving growth quality based on productivity, innovation and digital economy.
Mr. Phuong added Vietnam’s National Assembly has recently revised and ratified new laws, including the Investment Law, the Law on Enterprises, and the PPP Law to ensure greater convenience for investors.
Moreover, the country’s participation in the CPTPP and the EU – Vietnam Free Trade Agreement (EVFTA) would further cement Vietnam’s position as a strategic investment destination, particularly at a time when multinationals are diversifying their global supply chains.
A recent study from the World Bank suggested being a member of the EVFTA and CPTPP would boost Vietnam’s GDP by 3.2 percentage points in the 2021 – 2030 period.
Complementing each other
The Vietnamese government would encourage Singapore’s investment in fields of hi-tech, manufacturing, supporting industries, high quality services, privatization of state firms, as well as setting up innovation and R&D centers, among others.
|Overview of the meeting. Source: MPI.|
The investment cooperation between Vietnam and Singapore would complement each other and serve mutual benefits, Mr. Phuong stressed.
On this issue, Vietnamese Ambassador to Singapore Tao Thi Thanh Huong said as Singapore has advantages in finance, knowledge, and technologies, Vietnam could support these expertise with a large market, land and human resources.
In the future, this could result in innovating in Singapore, manufacturing in Vietnam and providing to the world, Mrs. Huong envisioned.
Ms. Huong added economic cooperation is a major pillar in Vietnam – Singapore relations, which is strengthened by similarities in culture, economic structure, among others.
The ambassador also noted while the majority of Singaporean firms in Vietnam are of large scale, opportunities remain abundant for those of small and medium size.