Economic ties between Singapore and Vietnam strengthens

Bilateral business linkages include an MOU to explore a new Vietnam-Singapore Industrial Park (VSIP) in Central Vietnam.

Private sector companies between Singapore and Vietnam to conduct a feasibility study for potential new Industrial Park Singapore and Vietnam are reaffirming their commitment to strengthen bilateral business links at a dialogue and dinner event this evening, and tomorrow, companies from the two countries will sign a Memorandum of Understanding (MOU) to conduct a feasibility study afor a potential new Vietnam-Singapore Industrial Park.

The Singapore-Vietnam Business Dialogue and Dinner will be hosted by Minister for Trade and Industry Mr Lim Hng Kiang, as part of a state visit by President Truong Tan Sang, the Socialist Republic of Vietnam. More than 100 industry leaders from Singapore and Vietnam, representing sectors such as urban development, banking, information technology and telecommunications and utilities, is set to be attending the event.

Opportunities in Central Vietnam
On 28 September 2011, a Memorandum of Understanding (MOU) to embark on a feasibility study to explore a new Vietnam-Singapore Industrial Park (VSIP) in Central Vietnam, will be signed between Singapore and Vietnam private sector players. There are currently four VSIPs in Vietnam. The MOU will be witnessed by Singapore Prime Minister Mr Lee Hsien Loong and Vietnam President Sang, according to a government report. 

Both Singapore and Vietnam are pleased to note the strengthening bilateral economic relations, underpinned by the Singapore-Vietnam Connectivity Framework. In the first eight months of 2011, Singapore companies invested US$1.33 billion in 58 new projects in Vietnam. This brings Singapore’s total investments in Vietnam to US$23.2 billion in 930 projects as of August 2011, making Singapore the third largest foreign investor in Vietnam. Bilateral trade has increased four-fold since 2000 to reach US$10 billion in 2010.

Minister Lim noted the growing number of business partnerships forged between Singapore and Vietnam companies. He said: “The thriving business linkages are testament to the strong synergies between Singapore and Vietnam. Both countries will mutually benefit from the expanding bilateral economic trade and investments. As a fast-growing economy with a rising middle-income group, Vietnam offers considerable opportunities for Singapore companies with a range of competencies in areas such as urban development, healthcare and finance.” 

Singapore Investments in Vietnam
Singapore companies have established a strong presence in southern Vietnam since initial ventures the 1990s. This was marked by the establishment of the first VSIP in Binh Duong in 1996, a joint venture between SembCorp Industrial Parks and its Vietnamese partner, Becamex IDC. Over the years, with long-term confidence in Vietnam’s economy and its development potential, Singapore companies have ventured into the northern and central parts of Vietnam.

Today, Singapore companies are present in various locations across Vietnam, and in diverse industry sectors ranging from industrial park and township developments, port management, to the provision of financial and lifestyle services.