US$55 billion

Singapore has become the third largest foreign investor in Vietnam with more than US$55 billion of registered capital. In the first eight months of 2020, Singapore was the biggest foreign investor with total investment capital of US$6.54 billion, accounting for 33.5 percent of all foreign direct investment (FDI) Vietnam attracted during this period.

Sembcorp Development is a major Singaporean investor in Vietnam. Sembcorp Development cooperated with Becamex IDC Vietnam to establish the Vietnam-Singapore Industrial Park (VSIP). There are currently nine VSIP industrial zones, totaling more than 8,600ha of land throughout Vietnam, providing production infrastructure for almost 900 enterprises with total capital of more than US$15 billion. Other leading Singaporean businesses in Vietnam include Ascendas, which has entered a joint venture with Protrade to develop and operate the 500ha Protrade Industrial Park in Binh Duong Province, and the 12ha OneHub Saigon project in the Saigon Hi-Tech Park (SHTP).

Bilateral trade reached US$21 billion in 2019. The two countries’ goods structures are complementary, allowing Vietnamese businesses to expand their farm produce, seafood and foodstuff market shares in Singapore, which is seeking to replace China as a source of some goods.

Attractive destination

According to Douglas Foo, President of the Singapore Manufacturing Federation (SMF) and Vice President of the Singapore Business Federation (SBF), Vietnamese and Singaporean businesses have more opportunities to promote trade and investment, as the two countries are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Association of Southeast Asian Nations (ASEAN).

Vietnam plays an increasingly important role in the regional and global economy, and its efficient control of the Covid-19 pandemic proves the country is a safe, attractive destination for Singaporean enterprises, Foo said.

Vietnam is preparing to attract FDI through cooperation programs between universities, colleges, vocational training centers and businesses. Experts are also urging it to improve its legal framework in order to simplify and make it more attractive, and develop support industries to attract Singaporean and other foreign investors.

Thanh Thanh