HCM City remains a magnet for Singaporean investment
HCM City remains a magnet for Singaporean investment
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, a trade official said.
Speaking at a meeting on Tuesday, Nguyen Phi Van, deputy director of HCM City Investment and Trade Promotion Centre (ITPC), 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 Viet Nam’s strong commitment to strengthening the wide-ranging cooperation in many areas, she added.
Located in Southeast Asia with an area of 710sq.m, Singapore is one of the world’s smallest countries with a population of some 5 million.
Its strategic location in the region along major shipping routes enabled it to become a central seaport with a highly developed market economy.
Singapore-Viet Nam ties have grown significantly since they first established diplomatic relations in 1973, illustrated by the strong growth of the 21-year-old Viet Nam-Singapore Industrial Park, according to Van.
Two-way trade expanded more than 23 per cent to reach US$8.3 billion last year despite the pandemic, and hit $4.75 billion in the first half of this year.
The city-state is currently the fourth largest trading partner and second biggest investor out of 140 countries and territories investing in Viet Nam, with a total registered capital of $66 billion.
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 $13.6 billion.
HCM City attractive destination
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 Viet Nam, 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 (SMEs) from Singapore are interested in investing in areas where Singapore has strengths and Viet Nam has demand, such as IT, banking and finance, retail, agriculture, oil and gas, construction, healthcare and transportation.
She also pointed out major challenges facing the country, such as low labour productivity, increasing labour costs, poor infrastructure and the high cost of renting premises in industrial parks. The country also still depends largely on cash payments.
She recommended Viet Nam focus on improving its legal framework and infrastructure to help keep foreign investors in the country long-term.
Located in the Southern Key Economic Zone (HCM City and seven surrounding provinces), the city is home to 17 industrial parks (IPs), including the 913-ha Saigon Hi-Tech Park, and two export processing zones (EPZs).
Its gross regional domestic product (GRDP) exceeded VND729 trillion ($31.3 billion) in the first half, a year-on-year rise of 3.82 per cent after drops of 25 per cent and 11.6 per cent in the third and fourth quarters of last year, respectively.
Revenue from imports and exports were more than $64 billion in the first seven months, ranking first in the country.
It received nearly 766,000 international visitors and more than 13 million domestic tourists in the period.
So far this year, the city has granted investment certificates to 373 foreign investment projects.
