Vietnam agriculture, aquaculture are investment worthy: Singapore minister

Minister Lim Hng Kiang encourages local businesses to supply critical capabilites to these fast-growing Vietnamese industries.

In a speech during a recent bilateral economic meeting, Mr Lim said Singapore companies can offer capabilities that are critical in enhancing the development of the primary industries in Vietnam. Such capabilities include cold chain logistics, business financing, master planning and food distribution.

Singapore’s private sector can contribute to Vietnam’s efforts to increase the production volume of seafood export to 2 million tonnes by 2020, he adds.

As of February 2012, Singapore was the second largest foreign investor in Vietnam with registered cumulative investments of US$24 billion in nearly 1,000 projects, according to the Singapore Ministry of Trade and Industry, with bilateral trade rising 22% year-on-year to reach S$15 billion in 2011.

“Vietnam’s economy will continue to grow as it enhances its connectivity to the world. Beyond physical air and sea linkages, such connectivity could encompass modern services such as finance and info-communications to facilitate business transactions. For instance, Vietnam can leverage on the Singapore Mercantile Exchange (SMX) to develop and grow its commodity markets,” said Minister Lim.

He notes that the Singapore Mercantile Exchange (SMX) offers a comprehensive platform for trading energy, metals and currency contracts. The rise of Vietnam as the world’s leading pepper supplier underscores the country’s potential to grow as the delivery centre for the futures
contracts.

Minister Lim also encouraged Vietnam to increase commodity trading on SMX to hedge the risk of volatile pepper prices as well as improve the logistical and associated financial services.