Dr Admad Md Magrad, Vice President of the ASEAN Business Group under the Singapore Manufacturing Federation (SMF) has said that companies in Singapore find Vietnam a highly lucrative location to expand production activities.
Speaking on the sidelines of a recent seminar “Doing Business in Vietnam”, Dr Admad stated that Vietnam’s laws on business activities have been much improved in recent years.
“This in conjunction with a strong labour force, a huge retail market potential and the impetus for establishment of the ASEAN economic region by 2015 provide ample incentives for investment attraction” he said.
Meanwhile, Daniel Pok, Investment Promotion Manager of Sembcorp Parks affirmed the consensus of Singaporean businesses assess Vietnam as an attractive investment market.
“Sembcorp is one of Singapore’s largest investors in Vietnam with five Vietnam-Singapore Industrial Parks located in Bac Ninh, Hai Phong, Quang Ngai and Binh Duong.” he said.
Dr Admad, who is also Group Managing Director of II-VI Singapore Pte.Ltd.said that from 2004 till now, his company has constructed six factories that provided high paying jobs for more than 800 workers in southern Binh Duong province’s Vietnam-Singapore industrial park (VSIP)
He added that Vietnamese workers are very intelligent, diligent and obedient to the laws and self-motivated to improve their working skills.
Low Beng Tin, Co-Chair of the ASEAN Business Group under SMF said that in the long term, it is good to do business in Vietnam. “At present, we have teamed up with Vietnamese companies and all these joint ventures are operating very effectively”, he said.
He affirmed that SMF will update Singaporean businesses with the latest information on investment in Vietnam and organize seminars which serve as an information channel for investment in Vietnam.
Businesses, through the event, can learn more about Singaporean Government’s incentive policies towards businesses keen to invest abroad and gain information on Vietnamese laws, tax and business potential.
For his part, Vietnam ambassador to Singapore, Tran Hai Hau affirmed that Vietnam boasts great potential for developing the economy in the long-term.
The ambassador pledged that Vietnam will do its best to ensure a competitive and transparent business environment as well as offering favorable conditions for businesses, especially the Singaporean business community.
In 2013, Singapore was Vietnam’s third largest trade partner within ASEAN. It also ranked second among 100 nations and territories investing in Vietnam with total FDI capital reaching US$29.3 billion.
Nguyen Viet Chi, Vietnam’s commercial counselor in Singapore said that last year’s two-way trade turnover hit US$14 billion including more thanUS$3 billion from Vietnam.
Vietnam’s Singaporean key exports included farm produce, food, seafood, garments and textiles, computers and mobile phones.
Meanwhile, Singapore’s key exports to Vietnam are oil and petrol, hi-tech products, chemicals and fertilizers.
Chi expressed her hope that this year’s bilateral trade turnover will increase by 10%-15% over the previous year.