ITPC deputy director Tran Phu Lu speaks at the conference. (Photo: VNA) HCM City (VNA) - Promoting exports to Singapore, which has opentrade mechanisms and high-quality services, is viewed as a shortcut for Vietnamesesmall and medium-sized enterprises (SMEs) to send their products out to theworld, according to industry insiders.
At a conference held by the Ho Chi Minh City Investment and Trade PromotionCentre (ITPC) on October 7, centre deputy director Tran Phu Lu said Singaporeplays an important role in Southeast Asia’s economy thanks to its strategiclocation and high-quality human resources.
As the 37th-largest economy in the world, its per capita income stoodat 59,590 USD in 2019, he said, adding that as its domestic consumption relies agreat deal on imports, Vietnamese SMEs could penetrate into the market, especiallyin the context of formidable challenges posed by COVID-19.
Vice Presidentof the Vietnamese Chamber of Commerce Ltd (Vietcham) Singapore, Phan Phi Long,said that besides traditional distribution channels like FairPrice, 7Eleven,ShengSiong, Giant, Ang Mo Supermarket, and Market Place, Singapore also has awell-developed e-commerce space favoured by young people and high-income households.
Some 60 percent of its e-commerce revenue is from outbound orders. Along withAmazon, eBay, and Apple, other sites in the country such as Taobao, Qoo10,Lazada, Zalora, Carousell, Redmart, Reebonz, HipVan, and Alibaba have also postedimpressive earnings.
In this context, Vietnamese companies could access these e-commerce platformsto sell products in Singapore and elsewhere at a lower cost compared totraditional distribution channels, Long said.
Meanwhile, Vietcham Singapore Vice President Phillip Phung highlighted the factthat over 99 percent of imports to Singapore enjoy tax exemptions (excludingcars, petrol and oil, alcohol and tobacco) and the country has excellent portsand logistics services.
Figures from the International Trade Centre show that Singaporean ports handle around91,000 containers each day, with 5 percent of commodities consumed in-countryand 95 percent shipped to other countries.
Phung said the Singaporean market could serve as an effective bridge introducingor expanding Vietnamese exports to larger markets.
Experts have recommended that Vietnamese SMEs pay due regard to improvingproduct quality, ensure products are produced in line with internationalstandards, and acquire product quality certificates such as HACCP or Halal, inorder to successfully do business in the island state./.
VNA
