Singapore Investments Profile
in Vietnam
Investment Profile
2 Singapore Investments Profile in Vietnam
3 Singapore Investments Profile in Vietnam
Contents
Singapore Investments Profile in Vietnam ............................................................................ 1
Foreword ......................................................................................................................................................... 4
VIETNAM ....................................................................................................................................... 5
GDP Growth ................................................................................................................................................... 6
Population ....................................................................................................................................................... 6
Key Sector Strengths .................................................................................................................................. 7
Opportunities ................................................................................................................................................. 8
Overview of Key Legal Issues ................................................................................................................. 9
VIETNAM- SINGAPORE RELATIONS .................................................................................. 12
Key Singaporean Organizations.......................................................................................................... 13
ODA, Government Assistance and Investment Trends for Singaporean Businesses .. 13
Singaporean Investment Activity in Vietnam ............................................................................... 14
Key Agreements ......................................................................................................................................... 16
LNT & PARTNERS PROFILE .................................................................................................. 17
About Us ........................................................................................................................................................ 18
Our Team ...................................................................................................................................................... 18
Our Lawyers ................................................................................................................................................ 18
Our Practice Groups ................................................................................................................................. 19
Our Rankings............................................................................................................................................... 20
Our Awards .................................................................................................................................................. 21
Our Clients.................................................................................................................................................... 22
International Cooperation .................................................................................................................... 23
Our Strategic Partners ............................................................................................................................ 24
Appendix 1 ................................................................................................................................................... 25
Appendix 2 ................................................................................................................................................... 26
4 Singapore Investments Profile in Vietnam
Foreword
Thanks to its dynamic economic growth and young, growing population of working
adults and better business infrastructure, Vietnam has been recognized as an attractive
destination for foreign investors.
As of June 2013, Singapore was Vietnam’s second largest investor with registered
cumulative investments of 28.3 billion USD in 1,165 projects. The economic cooperation
is bolstered by the multiple investor-friendly treaties and agreements between the two
countries. In addition, with the anticipation of Vietnam’s joining of the Trans-Pacific
Partnership agreement, to which Singapore is an original signatory, it is expected that
the economic, as well as the political, cultural and technological ties, will be reinforced in
the future.
Institutional support is also readily available, as the dedicated business associations and
governmental agencies in Singapore have successfully helped Singaporean businesses
with market research and transitioning into the Vietnamese market.
We hope this profile will give you some insight into why Singaporean businesses are
keen on expanding their operations in Vietnam and how your business will benefit from
also entering this country of opportunities
5 Singapore Investments Profile in Vietnam
VIETNAM
6 Singapore Investments Profile in Vietnam
GDP Growth
Thanks to its strengthening export-oriented economy, Vietnam’s GDP has been growing
year by year, much of which has been driven by key industries such as manufacturing,
electronics and agriculture.
As the Vietnamese Government continues to implement its roadmap of liberalizing the
country’s economy, GDP growth is expected to continue to remain stable and/or
increase. Furthermore, following Vietnam’s much awaited entry into the Trans-Pacific
Partnership (“TPP”) Agreement in late 2014 or early 2015, which will effectively tear
down trade barriers with Vietnam’s key trading partners (including Singapore), GDP is
expected to grow rapidly with the anticipated increase in exports.
Population
Vietnam is home to approximately 90 million people and is one of Asia’s most densely
populated countries. Over 70% of the population resides in rural areas, which rely
primarily on agricultural production.
Vietnam has a young population, with working-age adults representing over 50% of the
population. The younger generation is increasingly aspiring to achieve affluent lifestyles.
And with the introduction of jobs and an increase in wages, young people have more
disposable income, creating an ideal market for new products and services.
This youthful society presents an opportunity to foreign investors, both in terms of
potential markets and also in terms of human resources. The youth of Vietnam are
better educated than their predecessors and they have the drive to achieve a higher
standard of living, which makes them an eager and diligent workforce.
Graph compiled with data taken from The World Bank
7 Singapore Investments Profile in Vietnam
Financial Health
The Vietnamese Government has taken efforts to curb the country’s recent high inflation
rates, which have hampered investment progress in the past several years. These efforts
have been successful and by the end of 2013, Vietnam’s average annual inflation rate
stood at 6.60%, the lowest it has been in 10 years. As the Government continues rolling
out its fiscal policies to slash inflation, which has decreased further as of early 2014,
investor interest is expected to rise and Singaporean businesses will benefit from the
ensuing economic growth.
The Government’s efforts to achieve monetary stability have also been successful. The
exchange rate of Vietnam’s official currency, the Vietnamese Dong (VND), has remained
steady over the course of the past couple of years.
Investors can take comfort in that the days of instability in Vietnam’s economy have
passed. A testament to the country’s positive financial outlook is the year-by-year
increase in the Vietnam Stock Market (VN-Index) and the Government’s continued
efforts to tackle its number of bad debts.
Key Sector Strengths
Electronics Manufacturing
Vietnam’s large supply of low wage workers and favorable tax incentives for the
industry have attracted a growing number of foreign companies assembling or
manufacturing electronics in the country. In 2013, computer and consumer electronics
products and components dominated Vietnam’s total exports.
Textiles
The country also boasts a strong textiles industry and the demand for these products is
expected to increase following entrance into the TPP Agreement. Vietnam’s
liberalization of business lines in this sector has led to unprecedented investor interest
to satisfy the growing demand from overseas markets. Growth is expected to jump from
12-13% to 15-20%, reaching 20 billion USD in 2017 and projected to surge to 50 billion
by 2025 USD.
Agriculture
With over 70% of the population living in rural areas, exports in agriculture remain one
of Vietnam’s major contributors of GDP. The country’s tropical climate and unique
geographical location have made it ideal for producing certain crops. Today, Vietnam is
8 Singapore Investments Profile in Vietnam
one of the world’s largest exporters of rice, cashew nuts, coffee and black pepper. Other
major exports of the country include seafood, rubber and wooden products.
Banking
While the Vietnamese banking industry has traditionally been restrictive against
prospective foreign stakeholders, the Government has recently passed new regulations
that will allow investors to acquire a larger stake in the country’s national banks. The
loosening of these restrictions is expected to drive further interest in this industry as
large infusions of capital will be needed to upgrade the systems, operations and
branches of the current commercial and retail banking system.
Logistics
The growth potential of Vietnam’s logistics industry has been expanding as a result of
the country’s increasing export turnover. Foreign interest in this industry has been
supported by recent figures provided by the Deputy Minister for Transport, who cited
that local logistics providers are only able to handle 20% of market demand (with the
remaining 80% being handled by foreign companies).
Tourism
For services, Vietnam’s tourism industry has attracted some of the largest FDI
commitments into the country. In 2012, Vietnam welcomed over 7 million visitors.
These figures, which are growing, make tourism a key growth industry driven by strong
global and domestic demand.
Opportunities
While challenges remain in the country’s regulatory framework, Vietnam remains an
attractive destination for foreign investment – not least because of the Government’s
efforts to open its market to investors.
Today, almost all investment sectors in the country are open to foreign investors (many
as a result of the WTO commitments) and the rollout of further market openings is
expected to take place within the next 1-2 years. On the agenda is also Vietnam’s long
awaited entrance into the Trans-Pacific Partnership Agreement (TPP), the conclusion of
which is expected to considerably drive demand for commodities from the country.
It is, therefore, no surprise that in the 2014 ASEAN Business Outlook Survey by the U.S.
Chamber of Commerce, Vietnam was ranked as the second most popular ASEAN
destination for investment (after Indonesia). As a positive outlook, 85% of survey
respondents in Vietnam further expected profits to increase in 2014.
9 Singapore Investments Profile in Vietnam
The total amount of FDI has been increasing since 2011 and it is expected to continue in
years to come.
This positive outlook, which is driven by a stabilizing economy, a liberalization of the
market and a dynamic labor force, has placed Vietnam on the radar as an emerging
market to watch.
Overview of Key Legal Issues
Investment Process in Vietnam
In 2007, Vietnam acceded to the WTO, which expanded foreign investors’ access to
Vietnamese markets. Vietnam’s WTO commitments have drastically altered the
investment environment by largely superseding the protective legislation which was
one of the greatest challenges to doing business in Vietnam.
Since accession, according to the Ministry of Finance, wholly foreign-owned entities
have become the most common legal structure for FDI, followed by joint ventures and
then BOT, BT, BTA and BCC contract arrangements.
Licenses for foreign investors will be largely granted on the discretion of the ministries.
The process may take approximately anywhere from 3 months (average time for the
0
200
400
600
800
1000
1200
1400
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2011 2012 2013
Total FDI influx into Vietnam (US$ mil.)
Total number of FDI projects in Vietnam
FDI Trend (2008-2013)
2008 2009 2010 2011 2012 2013
Total FDI influx into Vietnam
(million USD)
15,428.9 16,345.4 12,100.9 9,914.5 7,854.1 14,272.4
Total number of FDI projects in
Vietnam 1171 839 833 919 1100 1275
10 Singapore Investments Profile in Vietnam
service sector) to 12 months (for large-scale projects needing prime ministerial
approval).
However, there has been a proposal to amend the current Law on Enterprises, which is
expected to transform Vietnam into a more investment-friendly environment for
investors. In practice, foreign investors in Vietnam are often required to obtain HS codes
and investment licenses before commencing their business activities. The proposed
amendments will remove these hurdles; instead, foreign investors will only be required
to obtain a Business Registration Certificate in the same manner as Vietnamese
companies. Moreover, the abolition of HS codes will allow businesses to engage in any
business activities (other than those otherwise specifically prohibited such as activities
in weaponry and drugs).
Restrictions
Prior to investing in Vietnam, certain requirements, such as demonstration of financial
capacity and industry experience, will generally need to be fulfilled to the satisfaction of
the authorities.
Furthermore, while investment in a vast majority of sectors in Vietnam is open
nowadays, certain sectors will demand for additional conditions to be satisfied. For
example, projects in sectors that may have an adverse environmental effect (e.g.,
manufacturing) will likely require an environmental impact assessment report.
FDI approval for special services, such as banking, insurance, finance, and securities, will
also be subject to higher scrutiny by the authorities, and satisfaction of more stringent
conditions may be needed
Taxation
There is a double tax avoidance agreement in force between Vietnam and Singapore,
which allows tax paid in one of these countries to be offset against taxes payable in the
other.
Companies are generally subject to the corporate tax rate of 22%, which is applied from
January 1st, 2014 until December 31st, 2015. From January 1st, 2016 onwards, this tax
rate will be lowered to 20%.
Investors may also be able to enjoy preferential tax rates (or even tax exemptions) if
they satisfy some of the range of eligibility requirements set out under Vietnamese law
(e.g., by operating projects in encouraged sectors).
11 Singapore Investments Profile in Vietnam
Legal Framework
However, Vietnamese laws are sometimes vague, ambiguous and inconsistent. This may,
at times, lead to inconsistent applications of the law by the authorities. For this reason,
we advise prospective investors to consult with the relevant authorities prior to
carrying out their investment projects if any regulatory ambiguity or inconsistency
arises.
For more information on Vietnam’s legal landscape pertaining to FDI, please refer to the
2014 IFLR Report by Bui Ngoc Hong, Do Huy and Nguyen Xuan Thuy at Appendix 3.
12 Singapore Investments Profile in Vietnam
VIETNAM –SINGAPORE RELATIONS
13 Singapore Investments Profile in Vietnam
Key Singaporean Organizations
Singaporean interest in Vietnam is bolstered by the strong financial and technical
support provided by various organizations in the country. These organizations have
assisted in facilitating the provision of support, such as Official Development Assistance
(ODA), which has been well-received by the Vietnamese Government.
The following key organizations are expected to play a more active role in Vietnam’s
economic development in the future, which will act as a catalyst for a boost in
Singaporean investment:
1. Singapore Business Association Vietnam (SBAV)
2. Singapore Business Group (SBG)
Singaporean investors who are interested in Vietnam may seek information from one of
the numerous dedicated business organizations in Singapore, including:
1. International Enterprise Singapore (IES)
2. Singapore Business Federation (SBF)
3. Singapore Manufacturing Federation (SMF)
Otherwise, there is a Vietnamese embassy located in Singapore
For more information on these organizations, please refer to Appendix 1.
ODA, Government Assistance and Investment
Trends for Singaporean Businesses
As part of the Singaporean Government’s pledge to assist developing countries in areas
including education, aviation, finance, trade promotion, information technology, public
administration, law and tourism in Vietnam, Singapore has focused on providing
scholarships and training programs to Vietnamese students and officials to develop
their capabilities and expand their practical knowledge for jobs.
For instance, Singapore opened a Vietnam-Singapore Training Center (VSTC) in Hanoi
in 2001. Singapore, since the inception of its scholarship program, has granted 163
scholarships to Vietnamese students. In addition, Singapore ran 3-month English
courses for senior officials in Ho Chi Minh and Hanoi between 2002 and 2006. The total
amount of assistance Singapore has offered to Southeast Asian countries, including
Vietnam, totaled 119 million USD.
Moreover, the government organization International Enterprise Singapore (IES) has
been supportive of Singaporean businesses interested in entering the Vietnamese
14 Singapore Investments Profile in Vietnam
market and vice versa. For example, IES renders services such as match-making and
project-facilitation for Singaporean businesses that wish to enter the Vietnamese
market. IES also encourages inbound investment from Vietnam into Singapore. For
instance, IES once invited a number of Vietnamese companies in the fashion industry to
visit Singapore to participate in the Asia Fashion Exchange event to learn more about
recent trends.
Apart from government-level ODA, prominent Singaporean businesses have expanded
their operations in Vietnam. In particular, Singaporean businesses have invested in real
estate and property development industries. For example, the Vietnam-Singapore
Industrial Park will be establishing yet another industrial park in Quang Ngai Province
after having already built four other industrial parks in Vietnam.
Furthermore, prominent Singaporean businesses are taking the lead in Vietnam’s real
estate industry, such as CapitaLand, Keppel Land and Mapletree. Moreover, Temasek
Holdings has participated in the Vietnamese stock market by acquiring shares in
Indochina Capital in 2005, Kinh Do Corporation in 2005 and Vietnam Infrastructure Ltd
in 2006
Singaporean Investment Activity in Vietnam The trend of Singaporean investment in Vietnam is shown in the following table:
2009 2010 2011 2012 2013
FDI inflow from Singapore (million USD)
469.1 333.3 1435.3 488.4 3014.1
Number of Singaporean FDI projects
98 70 86 89 105
15 Singapore Investments Profile in Vietnam
The following lists the 17 largest Singaporean companies that have made Vietnam a
critical investment partner:
No. COMPANY INDUSTRY
1 Bizlink Lawyers & Consultants Legal services
2 Kelvin Chia Partnership Legal services
3 DBS Banking
4 Maybank Kim Eng Banking
5 Temasek Holdings Investment
6 Mapletree Property development
7 CapitaLand Property development
8 Keppel Land Property development
9 Vietnam Singapore Industrial Park Property development
10 Sembcorp Property development
11 Tham & Wong M&E Co. Ltd Civil and structural engineering
12 Falcon Incorporation Furniture
13 Somerset (The Ascott) Real estate/hospitality
14 Blitz IT Consultants Ptd Ltd IT
15 Singapore Technologies Telemedia IT
16 KinderWorld Education Group Education
17 Miltrade Group Aerospace
0
20
40
60
80
100
120
0
500
1000
1500
2000
2500
3000
3500
2009 2010 2011 2012 2013
FDI from Singapore (US$mil.)
Number ofFDI projects
FDI Inflow from Singapore
16 Singapore Investments Profile in Vietnam
Key Agreements
The promotion of Singaporean investment into Vietnam is facilitated by the strong
bilateral investment relations between the two countries. This relationship has been
encapsulated by multiple bilateral agreements and treaties. Some key agreements
include:
(i) Memorandum of Understanding on Educational Cooperation
Signed in April 2007
This Memorandum of Understanding, together with the Framework Agreement below,
is a milestone agreement which precipitated the process of allowing training centers to
be established in Vietnam and universities of both countries to engage in student and
teacher exchanges under the Framework Agreement.
(ii) Vietnam-Singapore Bilateral Connectivity Framework Agreement
Signed in 2006
The Framework Agreement was a lead-up to the development of an action plan from
Singapore to implement scholarship programs and training opportunities to
government officials and students in Vietnam.
(iii) Trans-Pacific Partnership Agreement (TPP)
Pending
Singapore is one of the original signatories to the TPP agreement. Vietnam’s entrance
into the TPP is expected to considerably strengthen the trade relationship between the
two countries.
17 Singapore Investments Profile in Vietnam
LNT & PARTNERS
PROFILE
18 Singapore Investments Profile in Vietnam
About Us LNT & PARTNERS is a leading full-service independently ranked local law firm in
Vietnam with offices in Ho Chi Minh City, Hanoi, Hong Kong (affiliate), and San
Francisco. The firm is among Vietnam’s most prominent, representing a wide range of
multinational and domestic clients, including Fortune Global 500 companies as well as
well-known Vietnamese listed companies on a variety of business and investment
matters.
Our Team Our Lawyers
Mr. Hong Bui
Practice areas
• Compliance
• Foreign Investment
• M&A
Mr. Huy Do
Practice areas
• Intellectual Property
• Dispute Resolution
• Antitrust/ Competition
Ms. Quyen Hoang
Practice areas
• Corporate
• Employment & Benefits
• Foreign Investment
• M&A
Dr. Net Le
Practice areas
• Banking & Finance
• M&A
• Tax
Dr. Tuan Nguyen
Practice areas
• Antitrust/ Competition
• Bankruptcy
• Employment & Benefits
• M&A
Dr. Vinh Nguyen
Practice areas
• Dispute Resolution
• Employment &
Benefits
• Tax
Mr. Binh Tran
Practice areas
• Real Estate/ Infrastructure
• Dispute Resolution
• Employment & Benefits
Mr. Su Tran
Practice areas
• Dispute Resolution
• Real Estate/
Infrastructure
• Banking & Finance
19 Singapore Investments Profile in Vietnam
Our Of Counsel and Senior Advisor
Our Practice Groups LNT & PARTNERS has domain expertise in key legal disciplines organized into five
Practice Groups:
(i) Corporate Group: Our highly-regarded corporate team regularly handle M&A
deals, advise on complicated business licenses, guide investors with their inbound and
outbound investments, and navigate regulatory compliance issues (including in matters
of competition, labor and taxation) to deliver commercially-practical solutions to our
clients.
(ii) Dispute Resolution Group: Our award-winning dispute resolution lawyers,
which include two former judges, have represented major companies in both court and
international arbitral proceedings
(iii) Banking and Finance Group: Our banking and finance team has been at the
forefront of millions of dollars’ worth of financial transactions for large financial
institutions, funds, and private companies.
(iv) Intellectual Property/TMT Group: Our IP/TMT professionals have extensive
experience in advising and representing major clients in some of the most complex and
high-profile IP related matters in various industries, including, biotech pharmaceutical,
electronics and software.
(v) Real Estate and Infrastructure Group: Our real estate and infrastructure team
has been behind some of Vietnam’s largest development projects.
Mr. Kiyoshi Hirasawa Practice areas
• Japan Practice • Corporate, M&A • Foreign Investment
Dr. Sy Chung Pham Practice areas
• Corporate Compliance • Foreign Investment • M&A
20 Singapore Investments Profile in Vietnam
Our Rankings
PUBLICATION PRACTICE AREAS RANKING YEAR
Asia Pacific Legal 500
Banking and Finance Leading Lawyers 2013 / 2012
Corporate/ M&A Leading Lawyers 2013 / 2012
Dispute Settlement Leading Lawyers 2013 / 2012
Tax Leading Lawyers 2013 / 2012
Chambers and partners
Banking and Finance Vietnam Leading
Law Firm 2013 / 2012 / 2011
/ 2010
Corporate/ M&A Vietnam Leading
Law Firm 2013 / 2012 / 2011
/ 2010 / 2009
Projects, Infrastructure & Energy
Vietnam Leading Law Firm
2013 / 2012
International Financial Law Review (IFLR)
Banking and Finance Notable 2013 / 2012
Mergers & Acquisitions Notable 2013 / 2012
Project Finance Leading Lawyers 2012 / 2011
PLC Which Lawyer?
Recommended Law Firm 2012 / 2011
21 Singapore Investments Profile in Vietnam
Our Awards
Leading Law Firm 2014 – Asia Pacific Legal 500
Recognised Firm 2014 – International Financial Law Review
Most Trusted Law Firm of the Year – Lawyers World Magazine
Vietnam Deal Firm of the Year 2014 – Asia Legal Business, a Thomson Reuters Company, SE Asia Awards 2014
Full Service Law Firm of the Year 2014 – Vietnam
Intellectual Property Innovators of the Year – Vietnam
Commitment to Cross-Border Investment – Vietnam
- Acquisition International
Corporate Finance Law Firm of the Year in Vietnam
– 2014 Corporate Intl Magazine Global Award
ALB Award Deal Firm of the Year – Finalist 2013, 2012 Employer of Choice 2012 – ALB 2nd position
22 Singapore Investments Profile in Vietnam
Our Clients
Our partners have had the privilege of representing multiple Singaporean clients, from
major conglomerates to branch offices, in a broad spectrum of industries and matters,
including:
23 Singapore Investments Profile in Vietnam
International Cooperation
The Firm’s partners have established strong relationships with attorneys at
international law firms such as:
US Law Firms
European Law Firms
Asian Law Firms
24 Singapore Investments Profile in Vietnam
Our Strategic Partners LNT & PARTNERS has developed an active presence across a broad range of industries through its strategic partnerships with leading industry publications and sector groups, including:
Vietnam Investment Review
Quang Trung Software City
Colliers International Vietnam
25 Singapore Investments Profile in Vietnam
Appendix 1
Key Singaporean Organizations
1. Singapore Business Association of Vietnam Address: 6B Lang Ha Street, Ba Dinh District, Hanoi
Tel: +84-4-772-0833
E-mail: [email protected]
URL: http://www.sbav-hanoi.org/
2. Singapore Business Group Address: 6th Floor, Unit 601, Tran Quy Building
57 Le Thi Hong Gam Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh CIty
Tel: +84-8-3823-3046
Fax: +84-8-3829-9800
E-mail: [email protected]
URL: http://www.sbghcm.org/en/
3. International Enterprise Singapore (IES)
Address: 230 Victoria Street, Level 10, Bugis Junction Office Tower, Singapore 188024
Tel: +65 6337 6628 (Overseas)
1800 437 7673 (Domestic)
Fax: +84-61-383-4841
URL: http://www.iesingapore.gov.sg/
4. Singapore Business Federation
Address: 10 Hoe Chang Road #22-01, Keppel Towers, Singapore 089315
Tel: +65-6827-6828
Fax: +65-6827-6807
URL: http://www.sbf.org.sg/
5. Singapore Manufacturing Federation Address: 2985, Jalan Bukit Merah, Singapore 159457
Tel: +65-6826-3000
Fax: +65-6826-3008
Email: [email protected]
URL: http://www.smfederation.org.sg/
6. Embassy of Vietnam in Singapore
Address: 10 Leedon Park, Singapore 267887
Tel: +65-6462-5938
Fax: +65-6463-2817
Email: [email protected]
URL: http://www.vietnamembassy-singapore.org/en/
26 Singapore Investments Profile in Vietnam
Appendix 2
Recent Press Announcements
Mass and high-end homes make CapitaLand’s wings April 14th, 2014
http://www.vir.com.vn/news/en/property/mass-and-high-end-homes-make-capitalands-wings.html
Veteran Singapore-based property developer CapitaLand is capitalising on both the
high-end and mass housing segments in Vietnam for its long-term growth strategy.
The company currently has three apartment projects available for sale in the country –
the high-end Vista and mass housing ParcSpring in Ho Chi Minh City’s District 2, and
high-end Mulberry Lane in Hanoi’s Ha Dong district. The Vista has 750 residential units
and 100 serviced apartments, ParcSpring has 972 apartments. Meanwhile, Mulberry
Lane includes 1,478 apartments.
ParcSpring was originally owned by a Vietnamese developer and then transferred to
CapitaLand. After the deal, CapitaLand decided to convert two apartments into a gym
and swimming pool, and added other facilities like children’s playgrounds and flower
gardens.
CapitaLand’s South Vietnam general manager Lim Hua Tiong said the Vietnamese
property market had been challenging in recent years but CapitaLand believed there
were opportunities for the group. He added the Vista had few units left for sale and that
22 per cent of ParcSpring’s units had already been sold. This year, CapitaLand has about
500-600 apartments from Mulberry Lane and ParcSpring up for sale, including some
300 mass housing units.
Meanwhile, CapitaLand plans to launch another high-end apartment project in Ho Chi
Minh City’s District 2 in the second half this year.
“We see that local buyers are looking for good quality homes that they can afford,
therefore we are developing both segments. In Vietnam buying a home is often a life
decision and we’re here to provide good quality products to home buyers. In addition to
our own quality control teams, we have a separate team that works as if they are real
home buyers. When they find anything not like in our house samples, we have to fix it
before delivery,” Lim added.
Lim also believed the amended property law could open new opportunities as
foreigners were given greater rights to buy homes.
27 Singapore Investments Profile in Vietnam
“Opening the market wider is necessary to support the economy. However, the
government has to track foreign money sources coming into Vietnam to prevent
negative effects on the mass housing segment.”
ParcSpring is CapitaLand’s first mass housing project in Vietnam. Lim said the company
was focusing its investment on a 70-30 ratio based on high-end and mass housing
segments.
“I don’t think foreigners will buy mass housing apartments as they target the high-end
segment.
However, in terms of human resources, the ratio is equal. “We concentrate equally on
both segments as we want to maintain our quality and good reputation,” said Lim.
Another way to support
CapitaLand’s long term business in Vietnam is to replace foreign staff with Vietnamese.
When it started operations in Vietnam in 2006, a year before the group launched The
Vista as a symbol of its Vietnam business drive, 35 per cent of its staff were foreigners.
This has since plunged to just 5 per cent now, according to Lim. “Today, 70 per cent of
section heads here are Vietnamese,” he added.
The Singapore-backed developer also has a spotless corporate social responsibility
agenda, with CapitaLand devoted 0.5 per cent of the group’s profits to its philanthropic
CapitaLand Hope Foundation which focuses on education development in Vietnam. This
charitable funding is used to upgrade schools nationwide.
28 Singapore Investments Profile in Vietnam
Vietnam, Singapore hold economic connectivity talks April 30th, 2014
http://www.vir.com.vn/news/en/hightlight/vietnam-singapore-hold-economic-connectivity-talks.html
The tenth Vietnam-Singapore Ministerial Meeting on Economic Connectivity took place
in Singapore on April 29 under the chair of Minister of Planning and Investment Bui
Quang Vinh and Singaporean Minister of Trade and Industry Lim Hng Kiang.
Minister Vinh said the meeting was a success, with new links established and recently
arising problems solved, helping enhance the friendship and bilateral cooperation in all
aspects between the two countries.
At the meeting, the two sides focused attention on the six cooperation fields specified in
the Vietnam-Singapore Economic Connectivity Agreement, which are finance, education
and training, transport, information technology and communications, investment, and
trade and services.
The two sides also proposed new models for cooperation, including coordination to
develop Phu Quoc Island in Vietnam's southern province of Kien Giang.
The next meeting will be held in Vietnam next April.
According to Minister Vinh, Phu Quoc was an important issue at this event, adding that
he has made clear Vietnam's wish to have Singapore as the main partner in technical
designing and investment arrangement for the island.
He said the Singaporean side has proposed holding a roundtable conference on
investment in Phu Quoc to discuss issues such as planning, infrastructure building and
mechanisms for investors.
The minister also said a forum promoting investment in Vietnam held on April 28 had
attracted attention from many Singaporean businesses. He stressed that Vietnam
should seize the chance and continue to improve its business and investment
environment to lure more Singapore investors, who are doing serious business in
Vietnam.
Singapore is currently the third largest foreign investor in Vietnam with 1,258 valid
projects worth more than US$30 billion.
MoIT economists forecast Taiwan will continue to be Vietnam’s promising export market in the coming years, especially for three key items – telephones and spare parts, garments and textiles, and seafood.
Vietnamese exports to Taiwan particularly timber products, footwear, porcelains, and ceramics will reap higher revenue, the MoIT concludes.
29 Singapore Investments Profile in Vietnam
Singaporean Firms Keen on Vietnam Market March 12th, 2014
http://stoxplus.com/News/138564/1/188/singaporean-firms-keen-on-vietnam-
market.stox
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.
30 Singapore Investments Profile in Vietnam
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.
.
Singaporean Investment in Vietnam Up 157% in 2013
January 19th, 2014
http://businesstimes.com.vn/singaporean-investment-vietnam-157-2013/
Singapore invested US$4.37 billion worth of newly registered and additional capital in
Vietnam last year, up 153% against 2012.
Vietnamese authorities licensed 105 Singaporean-invested projects with total
registered capital of more than US$3 billion and approved 34 other existing projects
with total increased capital of nearly US$1.4 billion.
Worthy of note are a US$2 billion Samsung Electronics Vietnam plant in Thai Nguyen
province, and US$1 billion in increased capital for the Samsung Electronics Vietnam
plant in Bac Ninh province.
These are Singapore’s biggest investment projects and among the 10 biggest foreign
investment projects in Vietnam last year.
By the end of 2013, there were 1,219 operational Singaporean-invested projects
capitalized at more than US$29 billion, making the island nation second among foreign
investors in Vietnam.
Vietnamese businesses also poured nearly US$35.7 million into Singapore, raising their
total investment there to nearly US$185 million.
31 Singapore Investments Profile in Vietnam
32 Singapore Investments Profile in Vietnam
FOR MORE INFORMATION PLEASE CONTACT:
Ms. Quyen Hoang
Managing Partner
Ho Chi Minh City Head Office
Unit 03, Level 21, Bitexco Financial Tower
No.02 Hai Trieu Street, District 1
Ho Chi Minh City, VIETNAM
Tel: +84 8 3821 2357
Fax: +84 8 3910 3733
Hanoi Office
Unit 08A, Level 2, International Centre
17 Ngo Quyen Street, Hoan Kiem District
Hanoi, VIETNAM
Tel: +84 4 3824 8522
Fax: +84 4 3824 8580
Mr. Huy Do
Partner
San Francisco Office
101 California Street
Suite 2710
San Francisco, CA 94111 USA
Tel: +1 415 633 8831
Fax: +1 415 689 6821
Hong Kong Office (affiliate)
Two International Finance Centre
Level 19, 8 Finance Street
Central, Hong Kong, CHINA
Tel: +85 2 3125 7639
Fax +85 2 3125 7629
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