Vietnam touted as favorite destination by Singapore investors

Singaporean companies consider Vietnam a preferred investment destination and rising star in Southeast Asia, heard the Vietnam-Singapore Business Forum in the island state on Friday.

Vietnamese Prime Minister Pham Minh Chinh told the event he was impressed by the participation of around 500 companies, which illustrated a strong interest in Vietnam’s business environment.

Tan See Leng, Singapore’s Minister for Manpower and Second Minister for Trade and Industry, told the forum that economic cooperation, investment and trade relations between the two countries are energetic.

"The two nations’ establishment of a digital economy and green economy partnership announced on Thursday would further promote their multi-faceted bilateral relations, especially in clean energy, infrastructure, innovation and some other fields," he explained.

The minister said he expected the two ASEAN members to lift their relationship to new heights.

The Singapore government in 2019 launched its “Global Connect” program, providing relevant information and supporting companies to do business and invest in Vietnam. The program has to date supported 500 businesses and more than 400 projects, according to information from the forum.

At present, Singapore is the second-largest investor in Vietnam, with 3,095 operational projects and combined capital of $70.8 billion. Within ASEAN, the island state is the largest investor in Vietnam.

Among Singapore companies, Sembcorp Development of conglomerate Sembcorp Industries and its Vietnamese partner Becamex IDC have co-developed 12 Vietnam-Singapore Industrial Parks (VSIPs) across Vietnam. Singapore’s Prime Minister Lee Hsien Loong on Thursday hailed the parks as “concrete symbols” of the cooperation between the two countries.

Sembcorp Industries deputy chairman Tow Heng Tan told Friday’s forum he was impressed with Vietnam’s changes and development. He said VSIP Group Company is focusing on the development of a new model of green industrial parks combined with urban areas in Vietnam.

Sembcorp Industries announced the same day new collaborations with Becamex by building five new VSIPs valued at approximately $1 billion altogether.

The new parks are envisioned as smart and sustainable with low carbon footprints. They will feature decarbonization solutions such as rooftop solar systems, solar farms, where feasible, and green-certified buildings.

The forum served as a key platform for Vietnamese government leaders as well as Vietnamese business executives to discuss important economic issues and matters relating to policies for boosting the post-pandemic economy in 2023 and the years ahead.

As a supporting partner in the forum, Standard Chartered Bank reinforced its commitment to Vietnam’s growth and support of strong Vietnam-Singapore bilateral ties.

“A rising star in the region, Vietnam’s attractive investment policies and favorable demographics make it the market of choice for many Singapore investors and businesses,” Patrick Lee, Cluster CEO, Singapore & ASEAN Markets, Standard Chartered, told the forum.

“With Vietnam’s burgeoning consumer market and opportunities from green energy to infrastructure development, we are seeing greater interest among Singapore clients to expand into Vietnam,” said Lee, who is also the chair of Standard Chartered Vietnam’s board of members.

At a business lunch with Singaporean companies and investment funds, the Vietnamese PM called for investments in new business fields in Vietnam like the digital economy and green economy.

Also in Singapore on Friday, the Vietnamese PM met with leading Singaporean and Singapore-based firms.

Receiving Sembcorp Industries’ Tan, the Vietnamese leader Chinh hailed the conglomerate’s strong partnership with Becamex in developing VSIPs. Chinh suggested Sembcorp continue to expand its investment in Vietnam, and pledged the Vietnamese government would support and create optimal conditions for the firm.

He then met with Lee Chong Min, founder and managing partner of CMIA Capital Partners Singapore, and Nina Yang, CEO of Surbana Jurong. The PM said leaders of the two countries would encourage the two economies’ cooperation in connecting on a digital level with high technology investment and transfer, and green growth.

Chinh had another meeting with Dilhan Pillay Sandrasegara, CEO of Temasek Holdings, which invested more than $1 billion in Vietnam from 2014-2021. He proposed the government-run investment corporation expand its investment in infrastructure (hard and soft), green transformation, circular economy, innovation, chip production, and the building of an innovation center in Ho Chi Minh City while continuing to actively contribute to the sustainable socio-economic development of Vietnam.

In his meeting with Wee Ee Cheong, CEO of United Overseas Bank (UOB), the PM said Vietnam prioritizes green and sustainable financial development. He asked UOB to propose potential investors to come to Vietnam while continuing to connect more Singaporean firms with Vietnam.