Singapore companies remain keen on Vietnam amid pandemic, with Singapore as largest foreign investor: Tan See Leng

MORE Singapore companies are investing in Vietnam, with Singapore being the largest foreign investor there in 2021, said Second Minister for Trade and Industry Tan See Leng at the Singapore Business Federation's business dialogue on Friday (Feb 25).

Singapore's foreign direct investment into Vietnam amounted to nearly US$10.7 billion in 2021, accounting for 34.4 per cent of Vietnam's total foreign capital investments that year, he said.

The physical event at the Shangri-La Hotel was held on the sidelines of Vietnam President Nguyen Xuan Phuc's state visit to Singapore, along with key members of his Cabinet.

During the visit, from Feb 24 to 26, President Phuc also called on Singapore's President Halimah Yacob and had a bilateral meeting with Singapore's Prime Minister Lee Hsien Loong.

Dr Tan noted the "strong and robust economic ties" between both countries. Bilateral trade between Singapore and Vietnam saw steady growth over the past decade, reaching S$26.9 billion in 2021, an 18.7 per cent increase from 2020.

There are now 10 Vietnam-Singapore Industrial Parks (VSIPs) around Vietnam, which have attracted US$15.6 billion in investments and are creating over 290,000 jobs. Singapore companies are expanding in the main cities of Hanoi and Ho Chi Minh City, and also into other regions such as Vinh Phuc and Bac Ninh provinces in the north, and Binh Duong province in the south, said Dr Tan.

Earlier that day, a memorandum of understanding (MOU) on economic and trade cooperation was signed between Vietnam's Ministry of Industry and Trade and Singapore's Ministry of Trade and Industry.

The MOU indicated Singapore and Vietnam's shared commitment to expand collaboration in the digital economy, facilitate business partnerships in the industrial and energy sectors, and encourage more information sharing on best practices, certification and standards in the agriculture industry.

The MOU also aims to enhance Singapore's resilience by building more robust supply chains and facilitating smooth and continued trade flows between both countries even in times of crisis.

Dr Tan noted that other MOUs and agreements were being signed at the dialogue, between governments and businesses, as well as between businesses. The agreements span sectors such as infrastructure, industrial, agriculture, education, green and renewable energy, logistics, and smart urban development.

These agreements included 4 partnerships signed by Sembcorp Industries with various partners, to support Vietnam's energy transition and sustainable development, ranging from the development of an industrial park to a collaboration on renewable energy.

"The Covid-19 pandemic has made it even more crucial for close partners like Singapore and Vietnam to work together in mutual areas of interest," said Dr Tan.

He encouraged other Singapore and Vietnamese businesses "to leverage on the strengths of both markets to expand and pursue opportunities in both countries".

Singapore firms can get support from the Singapore Business Federation's GlobalConnect@SBF programme and its Singapore Enterprise Centre in Ho Chi Minh City, while Vietnamese firms can approach Enterprise Singapore offices in Hanoi and Ho Chi Minh City to be connected with partners in Singapore, he added.