ASEAN KEY DESTINATIONS
Singapore becomes leading investor in Vietnam
Singapore has become Việt Nam’s leading investment partner after investing more than US$36 billion in numerous local projects, including processing, technology, manufacturing, real estate, construction, transportation, and storage.
According to statistics provided by Vietnam’s Foreign Investment Agency, Singapore-based firms implemented 30 new projects and increased investment levels in six existing projects in the first two months of 2016. Total investment in newly-registered projects, and additional capitalisation of existing ones, reached $470 million.
To date, Singapore has invested in nearly 1,570 projects in Vietnam, ranking third out of 112 countries and territories investing in Vietnam.
The average capital investment per Singaporean project in Vietnam is $23 million, which is much higher than the average foreign investment of $14 million per project.
In the processing and manufacturing sector, Singaporean firms have invested a total of $15.6 billion in 480 projects, accounting for 43 percent of Singapore’s total investment in Việt Nam.
Singaporean capital is also invested in real estate ($11 billion), entertainment ($1.8 billion), construction ($1.7 billion) transportation and storage ($1.4 billion).
HCM City is an attractive destination for Singaporean investors, who funded nearly 780 projects there with $9.6 billion. These investments account for 50 per cent of the total projects in HCM City and 27 per cent of Singapore’s total investments in Việt Nam.
About 74 per cent of total Singaporean investment in Việt Nam is in the form of wholly foreign-owned projects. There are 1,163 such foreign-owned projects, worth a total of $23.4 billion. The rest of Singaporean investment in Việt Nam exists in the form of joint ventures, such as joint stock companies and business cooperation contracts.
Co-operation in seaport industry
Singapore also expects to further co-operation with Vietnam in maritime services and sea ports, Singaporean Ambassador to Việt Nam Ng Tech Hean said in a meeting with Deputy Minister of Transport Nguyễn Hồng Trường in Hà Nội last week.
The ambassador has witnessed development co-operation between Vietnam and Singapore during his term of office. During his service in Việt Nam, the ambassador has tracked privitisation of State-controlled businesses in Việt Nam.
Singaporean businesses have invested in many big projects, including Cái Mép – Thị Vải and Sài Gòn Port. Singaporean businesses expect to be given further information about the privitisation process of the Việt Nam National Shipping Lines (Vinalines), according to Hean.
Trường says that Singapore has a lot of experience in transportation management and seaport development, which Việt Nam is eager to learn and study
Vietnamese State-controlled maritime businesses under the transport ministry, are already in the process of being privatised, according to the deputy minister. Vinalines has also submitted its privatisation plan to Prime Minister Nguyễn Tấn Dũng for approval.
The PM had recently asked the transport ministry to build an overall plan for a seaport system. As soon as possible, the PM also wants to recoup all State capital investment in the nine seaports which are now to be privately owned, including including Khuyến Lương, Đà Nẵng, Vinalines – Đình Vũ, and Cam Ranh, apart from Năm Căn, Nghệ Tĩnh, Cần Thơ and Cái Lân.
Trường said he hoped Singaporean businesses would invest in these ports. With the SP-PSA joint venture port, the dredged system can now handle vessels weighing 50,000 tonnes.
The ministry has also submitted the proposed new fee structure for seaport use. The proposed charges would apply to seaports in Cái Mép-Thị Vải area and HCM City, according to Trường. — VNS
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