(MPI) - Speaking at the Vietnam - Singapore Online Investment Promotion Conference held on September 17th, 2020, Deputy Minister Tran Quoc Phuong said that the Ministry of Planning and other ministries, line ministries and localities Investment pledged to accompany Singaporean investors to co-operate and develop sustainably towards the success and efficiency, contributing to strengthening and promoting Vietnam - Singapore strategic partnership to a new height.
The conference was organized by the Ministry of Planning and Investment in coordination with the Vietnam Embassy in Singapore, the Singapore Manufacturing Federation and the Singapore Business Federation with the participation of nearly 500 businesses which belong to more than 80 Singapore Business Associations and Chambers of Commerce at teleconference terminals in Singapore and around the world.This shows the great interest and expectation of the Singaporean business community to Vietnam.
The conference took place in the context that global businesses tend to restructure their production and supply chains to multilateralize and diversify investments to avoid depending on one country, one partner and look for new investment locations that are safer and more efficient.
Deputy Minister Tran Quoc Phuong speaking at the Conference.Photo: MPI
Vietnam - Singapore Investment Cooperation is complementary to support each other and develop together
Speaking at the Conference, Deputy Minister Tran Quoc Phuong emphasized that this Online Investment Promotion Conference showed great interests and expectations of the Singapore business community to Vietnam.This is a very optimistic signal and a driving force for Vietnam to fulfil its economic rebound and development goals in a new normal state.The conference is also a good opportunity for Vietnam and Singapore to share new investment trends, solutions of investment environment reform, and proposing recommendations to improve cooperation efficiency towards success when investing and doing business in Vietnam.
Deputy Minister Tran Quoc Phuong said that, in the context of the complicated Covid-19 pandemic, Vietnam remained steadfast with proactive and effective solutions to achieve the dual goal of repelling the pandemic safely associated with economic development, ensuring normal economic operation and preventing economic breakdowns.The macroeconomic stability in the first eight months of 2020 is basically maintained. Major financial, monetary and credit balances stay firm.Consumer price index is controlled at less than 4%.Import and export is estimated to reach over 174 billion USD, up by 1.6% over the same period last year.
The World Bank and the International Monetary Fund have a pretty good assessment on Vietnam's economic growth prospects in 2020. Vietnam is one of the few countries in the world achieving positive growth.Vietnam expects GDP growth to reach 6.7% by 2021.Vietnam is currently the destination of more than 32,000 projects with total registered capital of more than 381 billion USD from 137 countries and territories, of which Singapore is the third largest investor with the capital value of more than 55 billion USD.Particularly, Singapore is the largest investor with total investment capital of 6.54 billion USD in the first 8 months of 2020, accounting for 33.5% of total investment capital in Vietnam.
In order to continue to develop in the volatile international environment, trade conflicts and increasingly fierce international competition, Vietnam is stepping up economic restructuring, proactively participating in the world integration, increasing growth quality based on productivity growth, innovation, creativity and digital economic development in the context of the Fourth Industrial Revolution, enhancing the competitiveness of the national investment environment and improving quality of foreign investment capital.
At the 9th session of the 14th National Assembly, a series of legal documents such as: Investment Law (amended), Enterprise Law (amended), Law on Public-Private Partnership Investment (PPP) were approved with many new provisions in the direction of simplifying investment procedures, enhancing decentralization, transparency, diversifying investment forms, and supplementing special investment incentives for large-scale projects which meet the requirements and making significant contributions to the socio-economic development of Vietnam. Besides, given the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), The European Union - Vietnam Free Trade Agreement (EVFTA) having come into effect and other free trade agreements, Vietnam will become a strategic investment destination in the process of restructuring the global and regional supply chain, a potential domestic market to attract international corporations.According to a recent World Bank study, the simultaneous implementation of the EVFTA and CPTPP Agreement will help Vietnam's GDP increase by up to 3.2% in the decade 2021-2030.
Vietnam and Singapore have a strategic partnership with close economic cooperation frameworks such as the Joint Statement on Comprehensive Cooperation in the 21st Century, the Framework Agreement on Vietnam - Singapore Connection, the ASEAN Trade and Investment Agreements, the CPTTP Agreement, and so on. All of them have created a full legal framework and the favorable policy environment for enterprises to operate effectively.
Vietnam encourages Singaporean enterprises to invest in high technology, processing and manufacturing industry, supporting industries, and high-quality services, establishing innovation centers, R&D centers, constructing and developing infrastructure of industrial parks, participating in the equitization of state-owned enterprises. Vietnam - Singapore Investment Cooperation is complementary to develop together, Deputy Minister Tran Quoc Phuong emphasized.
Vietnam - a safe and attractive destination for investment
Speaking at the Conference, President of the Singapore Manufacturing Federation cum Vice President of the Singapore Business Federation Douglas Foo said that in the context of the Covid-19 pandemic getting complicated, the Conference still took place in an online form demonstrating the interest and great expectations of Singaporean businesses in Vietnam's investment environment and their ability to adapt to the situation to boost production, business and investment between the two countries.
Mr. Douglas Foo stated that 2020 is a year with many changes and epidemics affecting the global economy. Businesses have to "struggle" with various challenges, requiring them to be resilient, adopting solutions to join the supply chain and to develop.In order to strengthen and reinforce the cooperative relationship, to help businesses participate in each other's value chains smoothly, the two countries have signed free trade agreements.By joining Free Trade Agreements as ASEAN and CPTPP members, businesses of the two countries will have more opportunities to take advantage of bilateral advantages, and promoting business investment.
Photos at the teleconference terminal of the Ministry of Planning and Investment.Photo: MPI
Vietnamese Ambassador to Singapore Tao Thi Thanh Huong emphasized that the relationship based on the long-term and sustainable development foundation between Vietnam and Singapore, in which economic relationship is one of the important pillar.She also emphasized that the bilateral traderelationship between the two countries has been increasing, and many important documents have been signed.The two countries have a similar culture and economic structure and take advantage of the potentials in the framework of bilateral, regional and multilateral cooperation to enhance investment cooperation.
Ambassador Cao Thi Thanh Huong said that Vietnam has implemented well measures to prevent and control the Covid-19 pandemic without new infections in the community recently.As the President of ASEAN, a non-permanent member of the United Nations Security Council for the term 2020-2021, Vietnam has been working closely with Singapore and other ASEAN member states as well as partners to find effective solutions to prevention and fight against Covid-19 pandemic.Although there are negative impacts from the pandemic, many businesses have been investing effectively in Vietnam.
Currently, Singapore's FDI enterprises in Vietnam are large enterprises. However, the majority of Singapore enterprises are small and medium and there are still many opportunities for them to invest in Vietnam.Vietnam encourages Singapore's small and medium-sized enterprises to explore and invest in Vietnam.In the coming time, Vietnam and Singapore should continue to strengthen investment cooperation.Accordingly, the two sides need to improve the investment environment, creating conditions for businesses to reach out to regional and global markets.Singapore has strengths in finance, knowledge economy, science and technology, and Vietnam has strengths in market capacity, land fund, human resources, etc. Therefore, Vietnam wants to promote investment activities in these fields in order to complement each other, "inventions in Singapore, made in Vietnam and supply to the ASEAN region and the world".
Ready to catch new FDI inflows
At the conference, Director General of Foreign Investment Agency, Ministry of Planning and Investment, Do Nhat Hoang emphasized the reasons why Singaporean enterprises should add Vietnam to their global supply chain and informed that there are many large enterprises and corporations present in Vietnam.Vietnam has hosted and co-hosted many events and is highly appreciated by the international community.Besides, Vietnam is considered as a successful country in fighting the Covid-19.FDI attraction in the past 30 years has achieved many important results.
Director General Do Nhat Hoang speaking at the Conference.Photo: MPI
Mr. Do Nhat Hoang said that Singapore's investment in Vietnam is increasing, in which the processing and manufacturing sector accounts for the highest proportion, followed by trade and real estate.Singapore is the third largest partner in terms of investment (accounting for about 14% of total FDI in Vietnam), and the 12th largest trading partner (bilateral trade turnover reached more than 7.3 billion USD in 2019).
Many investors have chosen Vietnam as the investment destination given its advantages such as political stability;high and stable economic growth;competitive production costs;abundant human resources, golden population;potential market;comprehensive international integration;open policies with various competitive incentives;and strategic geographical location.To prepare for the wave of investment, Vietnam is conducting a review of the industrial park land reserve;training human resources, proposing action plans and cooperation programs for human resource training to meet the demands;promoting supporting industries, connecting with major FDI projects;building a more and more favorable legal framework with open mechanism, enhancing decentralization and transparency, diversifying investment forms, providing more investment incentives and support;establishing a Working Group to promote foreign investment cooperation to focus on removing bottlenecks in investment.Vietnam needs to carry out domestic and foreign investment promotion activities to attract innovative quality projects withlarge capital scale,high technology,spillover effects, committing to cooperate and create favorable conditions for Vietnamese enterprises to participate in the value chain, to invest in high value-added stages associated with human resource training cooperation;research and development,promoting digital economy and making positive contributions to the sustainable socio-economic development of Vietnam.
The conference provided the latest information on the investment environment, Vietnam's readiness to welcome new FDI inflows,policies to develop the ecosystem of product clusters and industries, especially in the industries of electronics, textile, automobile, food processing,digital transformation and smart city development in Vietnam.Mr. Hoang also shared a number of orientations for more sustainable cooperation between Vietnam and Singapore in the context of complicated global economic developments and the reshaping of supply chains.The comments at the Conference highlighted Vietnam's growing role in the international community, especially its impressive achievement in controlling Covid-19 and affirming to be a safe country and an attractive investment destination./.