A magnet for Singapore companies

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Favourable environment: A woman posing in front of the Opera House in HCM City. The city has adopted measures to improve its attraction of foreign direct investment based on equality and mutual benefit. — AFP

HO CHI MINH CITY: Ho Chi Minh City (HCM City) will continue improving its business climate and creating the most favourable conditions for foreign investors, especially those from Singapore, to expand their investment in the city, according to a trade official .

Speaking at a meeting, Nguyen Phi Van, deputy director of HCM City Investment and Trade Promotion Centre, said the city has adopted measures to improve its attraction of foreign direct investment, especially from Singapore, based on a spirit of equality, mutual benefit, social responsibility, environmental protection and sustainable development.

The recent visit by President Nguyen Xuan Phuc to the city-state early this year confirmed Vietnam’s strong commitment to strengthening the wide-ranging cooperation in many areas, she added.

Singapore-Vietnam ties have grown significantly since they first established diplomatic relations in 1973, illustrated by the strong growth of the 21-year-old Vietnam-Singapore Industrial Park, according to Van.

Two-way trade expanded more than 23% to reach US$8.3bil (RM37bil) last year despite the pandemic and hit US$4.75bil (RM21bil) in the first half of this year.

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The city-state is currently the fourth largest trading partner and second biggest investor out of 140 countries and territories investing in Vietnam, with a total registered capital of US$66bil (RM296bil).

It is also the largest investor among 116 countries and territories investing in HCM City with 1,557 projects worth a total investment of nearly US$13.6bil (RM61bil).

Nguyen Quoc Vinh, head of the centre’s Department of Investment Promotion, said with a favourable strategic location and a population of more than 10 million, HCM City has great potential to attract foreign investors, especially those from Singapore.

The country’s largest city is calling for investment in 197 projects in the fields of information and technology, finance and banking, transportation, oil and gas, infrastructure, retail, support industry, healthcare, education and others.

Amy Wee, director of the Singapore Business Federation in Vietnam, said despite the strong headwinds brought about by the Covid-19 pandemic, Viet Nam remains an attractive destination for foreign investors, especially those from Singapore.

She attributed it to the country’s incentive policies, political stability, open and transparent business climate, large population, impressive growth and highly skilled workers. Small and medium-sized enterprises from Singapore are interested in investing in areas where the city-state has strengths and Vietnam has demand, such as information technology, banking and finance, retail, agriculture, oil and gas, construction, healthcare and transportation.