Vietnam welcomes foreign investment to help grow its finance sector

SINGAPOREAN investors looking for opportunities in Vietnam could focus on areas of finance and infrastructure, among other sectors, said Do Nhat Hoang, director general, Foreign Investment Agency, Ministry of Planning and Investment, Vietnam, on Friday in a webinar on Vietnam's growth prospects.

Mr Hoang added that Vietnam was actively looking to grow its financial sector, particularly in areas such as fintech, and welcomed potential investors to help the country grow in the area, given that it only possesses mid-level logistics for the finance sector.

Organised by the Singapore Business Federation, the webinar saw more than 180 participants join in the panel discussion where representatives from Singapore and Vietnam exchanged ideas on how both parties could benefit from investment opportunities. (see Amendment note)

Deputy Minister, Ministry of Planning and Investment for Vietnam, Nguyen Thi Bich Ngoc, said she expects that Singapore investment in Vietnam, particularly in areas of digitalisation and technological innovation, will continue to expand in the next five to 10 years.

Singapore is currently among the top three sources of foreign domestic investment (FDI) in Vietnam, making up 16 per cent of Vietnam's FDI alone.

Other sectors worth noting include Vietnam's services industry, where multi-national company Nova Group was also invited to share examples of how Singaporean businesses have partnered with the company to expand in Vietnam.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Jumbo Seafood, for example, had earlier worked with Nova Group's service arm to bring the brand into the Vietnamese market, which Nguyen Thai Phien, vice general-director, Nova Group, said was well-received by locals thus far.

Chief executive officer of UOB Vietnam Harry Loh also noted how the country had grown significantly, transforming from a primarily agriculture-driven economy into a service-driven one, which now contributes 41 per cent of the country's GDP, its current largest.

Mr Loh further identified five key areas of investment opportunities highly regarded by the country, including infrastructure, industrials, high tech industries, energy and other supporting ancillary services.

Ending the webinar, Amy Wee, country head, Vietnam, Singapore Business Federation and also moderator for the session, urged interested Singaporean investors to consider Vietnam as a potential investment destination.

"Vietnam is currently developing an international hub. We hope that we can attract more resources from foreign investors and we hope that Singaporean investors will take into consideration this opportunity in Vietnam," said Ms Nguyen Thi Bich Ngoc.

Amendment note: An earlier version of this article said more than 150 participants had attended the webinar. SBF has since corrected its figures - more than 180 participants had attended instead.