Nearly US$11 billion pledged for cooperation between Vietnam and Singapore firms

The forum featured the participation of an array of firms from the two countries in the fields of seaports, smart cities, clean and renewable energy, green and sustainable development, and the digital economy.

As part of his address at the event, President Phuc underlined the important role of businesses in carrying out co-operation strategies between both sides, especially in implementing new forms of co-operation. He called on enterprises from the two nations to make specific and practical contributions to the relationship in the lead up to the 50th anniversary of diplomatic relations and the 10th anniversary of the strategic partnership ahead in 2023.

Shifting from attraction to co-operation through FDI

The question raised by Singaporean businesses at the forum was the Vietnamese development vision over the next 10 years, the country's role as a regional and world production hub, along with a roadmap for implementing its commitments on climate change.

Singaporean investors believed that, with Vietnamese efforts to implement commitments at the 26th UN Climate Change Conference of the Parties (COP26), it will be an opportunity for Singaporean investors because developing clean and renewable energy, along with developing a green and sustainable economy, are the strengths of Singapore businesses.

The message given by President Phuc is that the nation always creates the most favourable conditions for firms of the two countries to do business successfully. Efforts include continuing to improve the business investment environment, increasing publicity and transparency, along with dealing with problems such as high logistics service costs, administrative procedures, premises, and human resources.

Vietnam will also strive to maintain high economic growth, averaging 6.5% to 7% annually by 2025, thereby bringing the digital economy to over 20% of GDP. This represents a good opportunity for Singaporean businesses to invest more strongly in the nation.

"Vietnam has changed from merely FDI attraction to co-operation with foreign investors in the spirit of equality, mutual development, mutual benefit, mutual responsibility to society and employees, environmental protection and sustainable development.

In line with this Vietnam prioritises co-operation with FDI projects with high technology and innovation, thus creating optimal conditions for domestic enterprises to become involved in the value chain, promoting the development of the nation's digital economy and sustainable development,” the Vietnamese State leader stated.

President Phuc added that on the basis that the mutual relationship is at its best for development, the leaders of both nations encourage the connection of the two economies on a digital platform. As a result, a memorandum of understanding on co-operation in this field was signed by the two countries' ministries and sectors during this visit.

With dozens of co-operation documents between enterprises from the two countries signed, President Phuc suggested that the agreements be concretised in practice, with a number of co-operation orientations outlined in the near future.

That aims to ramp up investment co-operation in priority areas such as high technology, digital transformation, and innovation, as well as promoting economic connectivity in ASEAN and the region. This will serve to effectively bringing into play the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and effectively carrying out the Regional Comprehensive Economic Partnership (RCEP).

Along with these efforts, the implementation of the vision of the agreement will connect the two economies via digital platforms, thereby opening investment opportunities and enhancing business connectivity overall.

According to Singapore's Minister of Human Resources Tan See Leng, with such great potential for co-operation between the two countries, Singaporean firms will continue to expand investment in the Vietnamese market. The strong participation of businesses therefore serves a strong demonstration of the business commitment of both sides, he added.

At the event, companies from both countries signed and exchanged co-operation documents worth approximately US$11 billion in many fields. In particular, SOVICO Group and related partners reached a series of agreements with a total value of up to US$5.2 billion.

Also on this occasion, the Ho Chi Minh City Development Bank (HD Bank) and the Thought Machine Company (UK) exchanged an agreement on integrating advanced technology solutions for digital banking services in Vietnam.