Vietnam Economic News had a conversation with Edlyn Khoo, CentreDirector, Ho Chi Minh City, International Enterprise (IE) Singapore,about economic relations between Vietnam and Singapore.
* Data showed that Vietnam enjoyed a trade surplus with Singapore andthe two-way trade turnover has significantly increased, especially inearly months of 2013. How do you evaluate the potential andopportunities of our cooperation in trade exchange?
Total trade between Singapore and Vietnam rose to reach a record 13billion USD in 2012, making Singapore Vietnam’s seventh largest tradingpartner. There is clear potential for further growth. As Vietnam’seconomy grows, demand for products and services quality will increasealong with the growing middle-class. The expansion in disposable incomeshas brought about increased consumer awareness and receptivenesstowards foreign brands and correspondingly, an influx of foreignconsumer brands into Vietnam over the past few years.
Singapore retailers have also been active in engaging the market tooffer more choices to increasingly sophisticated Vietnamese consumers.In January 2013, Singapore company, Charles and Keith, opened itsseventh outlet in HCMC. The recent opening of NTUC FairPrice’s Co.opXtrain Ho Chi Minh City, the first hypermarket collaboration betweenSingaporean and Vietnamese companies will also further familiariseVietnamese consumers with Singaporean brands.
*However, Vietnam always faces with the big trade deficit with Singapore,particularly in recent two years. What is your assessment of this? Inyour opinion, what should both countries do to deal with this issue?
Over the past few years, total bilateral trade hasseen a steady increase. In 2012, bilateral trade between Vietnam andSingapore rose 5.6 percent year on year to reach 13 billion USD. Somecomponents of Vietnamese imports from Singapore are used for furtherprocessing into higher value added products for exports. On a globalscale, Vietnam recorded its first trade surplus in two decades lastyear, enjoying a surplus of 284 million USD or 6.8 percent of GDP in2012.
The results are driven primarily by theexports of foreign invested enterprises that are bringing atechnological boost into Vietnam. Export revenue will continue to growif strong foreign investment can continue to generate higher-value add.To maintain this momentum, Vietnam must continue to liberalise more itstrade and investment regulations and continue to take positive stepstowards making the business environment more friendly and conducive forforeign investments. In that regard, it is worthy to note that Singaporeis one of the largest investors in Vietnam.
*Regarding to investment, could you share with us the contributions whichSingaporean businesses made to Vietnam’s development?
As of August this year, Singapore was the second largest investor inVietnam with approximately 28.6 billion USD in cumulative investments bymore than 1000 firms spread across different sectors. As Vietnamcontinues to undertake steps to liberalise and develop its economy,there is a broad range of sectors in which Singapore companies canpartner Vietnam’s growth needs, including urban solutions,consumer-related retail and food services, food processing, logistic,telecommunications as well as tourism and hospitality.
The urban population in Vietnam’s key cities is expected to growexponentially over the next decade and Singapore is especially keen toshare our experience in urban planning and water treatment. These areareas that we have strong expertise in given our own physicalconstraints and development experience. Singapore companies in theconstruction, energy, utilities and engineering sectors can tailorcustomised solutions to meet the needs of key industries across Vietnam.
The Vietnam-Singapore Industrial Parks (VSIPs)serve as good examples of our partnership. The first VSIP established in1996 was based on a pure industrial model, but this has evolved, acrosssubsequent VSIP projects, to become an integrated industrial townshipmodel encompassing the elements of “work, live, and play”.
To date, the VSIPs have attracted over 490 companies and employingover 140,000 workers. Ascendas has also completed the first phase ofinfrastructural development for the Ascendas-Protrade Singapore TechPark (APSTP), a project to develop a next generation 500-ha industrialpark in Binh Duong Province. In addition, Singapore real estatedeveloper Mapletree has partnered with Saigon Co-op InvestmentDevelopment JSC to develop SC VivoCity, a 64,000 sq.m family-orientedlifestyle destination mall in Ho Chi Minh City while Keppel Land willdevelop Phase 2 of Saigon Centre in the heart of Ho Chi Minh City’sDistrict 1, with Takashimaya as the anchor retail tenant.
Singapore firms are cognisant that beyond attracting FDI, it isimportant to play a responsible role in Vietnam’s sustainabledevelopment. The overall benefits of our strong economic relationshipinclude not just financial gains for the firms involved but are alsoeconomic and social in nature with tangible returns for the peoples ofboth sides.
* What has the IE Singapore done to create favourable conditions for Singaporean businesses to invest in Vietnam?
International Enterprise (IE) Singapore is the lead agency under theSingapore Ministry of Trade and Industry promoting international tradeand the overseas expansion of Singapore-based companies globally. OurOverseas Centres in Ho Chi Minh City and Hanoi focused on increasing andfacilitating business partnerships between Singapore and Vietnam byengaging the two governments as well as enterprises from both sides. IESingapore raises awareness of the opportunities available in Vietnam forSingapore companies through seminars and business missions and helpSingapore firms to build up their market knowledge and competenciesbefore they enter the Vietnam market. Our Overseas Centres help toidentify potential projects in areas where Singapore firms haveexpertise. IE Singapore supports both government-to-government, andgovernment-to-business platforms.
We help Singaporecompanies establish business connections on the government, enterpriseand community levels as well as play an active role in theSingapore-Vietnam Connectivity Framework Agreement to help Singaporecompanies invest and participate in Vietnam’s growth.-VNA
* Data showed that Vietnam enjoyed a trade surplus with Singapore andthe two-way trade turnover has significantly increased, especially inearly months of 2013. How do you evaluate the potential andopportunities of our cooperation in trade exchange?
Total trade between Singapore and Vietnam rose to reach a record 13billion USD in 2012, making Singapore Vietnam’s seventh largest tradingpartner. There is clear potential for further growth. As Vietnam’seconomy grows, demand for products and services quality will increasealong with the growing middle-class. The expansion in disposable incomeshas brought about increased consumer awareness and receptivenesstowards foreign brands and correspondingly, an influx of foreignconsumer brands into Vietnam over the past few years.
Singapore retailers have also been active in engaging the market tooffer more choices to increasingly sophisticated Vietnamese consumers.In January 2013, Singapore company, Charles and Keith, opened itsseventh outlet in HCMC. The recent opening of NTUC FairPrice’s Co.opXtrain Ho Chi Minh City, the first hypermarket collaboration betweenSingaporean and Vietnamese companies will also further familiariseVietnamese consumers with Singaporean brands.
*However, Vietnam always faces with the big trade deficit with Singapore,particularly in recent two years. What is your assessment of this? Inyour opinion, what should both countries do to deal with this issue?
Over the past few years, total bilateral trade hasseen a steady increase. In 2012, bilateral trade between Vietnam andSingapore rose 5.6 percent year on year to reach 13 billion USD. Somecomponents of Vietnamese imports from Singapore are used for furtherprocessing into higher value added products for exports. On a globalscale, Vietnam recorded its first trade surplus in two decades lastyear, enjoying a surplus of 284 million USD or 6.8 percent of GDP in2012.
The results are driven primarily by theexports of foreign invested enterprises that are bringing atechnological boost into Vietnam. Export revenue will continue to growif strong foreign investment can continue to generate higher-value add.To maintain this momentum, Vietnam must continue to liberalise more itstrade and investment regulations and continue to take positive stepstowards making the business environment more friendly and conducive forforeign investments. In that regard, it is worthy to note that Singaporeis one of the largest investors in Vietnam.
*Regarding to investment, could you share with us the contributions whichSingaporean businesses made to Vietnam’s development?
As of August this year, Singapore was the second largest investor inVietnam with approximately 28.6 billion USD in cumulative investments bymore than 1000 firms spread across different sectors. As Vietnamcontinues to undertake steps to liberalise and develop its economy,there is a broad range of sectors in which Singapore companies canpartner Vietnam’s growth needs, including urban solutions,consumer-related retail and food services, food processing, logistic,telecommunications as well as tourism and hospitality.
The urban population in Vietnam’s key cities is expected to growexponentially over the next decade and Singapore is especially keen toshare our experience in urban planning and water treatment. These areareas that we have strong expertise in given our own physicalconstraints and development experience. Singapore companies in theconstruction, energy, utilities and engineering sectors can tailorcustomised solutions to meet the needs of key industries across Vietnam.
The Vietnam-Singapore Industrial Parks (VSIPs)serve as good examples of our partnership. The first VSIP established in1996 was based on a pure industrial model, but this has evolved, acrosssubsequent VSIP projects, to become an integrated industrial townshipmodel encompassing the elements of “work, live, and play”.
To date, the VSIPs have attracted over 490 companies and employingover 140,000 workers. Ascendas has also completed the first phase ofinfrastructural development for the Ascendas-Protrade Singapore TechPark (APSTP), a project to develop a next generation 500-ha industrialpark in Binh Duong Province. In addition, Singapore real estatedeveloper Mapletree has partnered with Saigon Co-op InvestmentDevelopment JSC to develop SC VivoCity, a 64,000 sq.m family-orientedlifestyle destination mall in Ho Chi Minh City while Keppel Land willdevelop Phase 2 of Saigon Centre in the heart of Ho Chi Minh City’sDistrict 1, with Takashimaya as the anchor retail tenant.
Singapore firms are cognisant that beyond attracting FDI, it isimportant to play a responsible role in Vietnam’s sustainabledevelopment. The overall benefits of our strong economic relationshipinclude not just financial gains for the firms involved but are alsoeconomic and social in nature with tangible returns for the peoples ofboth sides.
* What has the IE Singapore done to create favourable conditions for Singaporean businesses to invest in Vietnam?
International Enterprise (IE) Singapore is the lead agency under theSingapore Ministry of Trade and Industry promoting international tradeand the overseas expansion of Singapore-based companies globally. OurOverseas Centres in Ho Chi Minh City and Hanoi focused on increasing andfacilitating business partnerships between Singapore and Vietnam byengaging the two governments as well as enterprises from both sides. IESingapore raises awareness of the opportunities available in Vietnam forSingapore companies through seminars and business missions and helpSingapore firms to build up their market knowledge and competenciesbefore they enter the Vietnam market. Our Overseas Centres help toidentify potential projects in areas where Singapore firms haveexpertise. IE Singapore supports both government-to-government, andgovernment-to-business platforms.
We help Singaporecompanies establish business connections on the government, enterpriseand community levels as well as play an active role in theSingapore-Vietnam Connectivity Framework Agreement to help Singaporecompanies invest and participate in Vietnam’s growth.-VNA
