Singapore Investments Profile in Vietnam - LNT &...

Singapore Investments Profile

in Vietnam

Investment Profile

2 Singapore Investments Profile in Vietnam


Contents

Singapore Investments Profile in Vietnam ............................................................................ 1

Foreword ......................................................................................................................................................... 4

VIETNAM ....................................................................................................................................... 5

GDP Growth ................................................................................................................................................... 6

Population ....................................................................................................................................................... 6

Key Sector Strengths .................................................................................................................................. 7

Opportunities ................................................................................................................................................. 8

Overview of Key Legal Issues ................................................................................................................. 9

VIETNAM- SINGAPORE RELATIONS .................................................................................. 12

Key Singaporean Organizations.......................................................................................................... 13

ODA, Government Assistance and Investment Trends for Singaporean Businesses .. 13

Singaporean Investment Activity in Vietnam ............................................................................... 14

Key Agreements ......................................................................................................................................... 16

LNT & PARTNERS PROFILE .................................................................................................. 17

About Us ........................................................................................................................................................ 18

Our Team ...................................................................................................................................................... 18

Our Lawyers ................................................................................................................................................ 18

Our Practice Groups ................................................................................................................................. 19

Our Rankings............................................................................................................................................... 20

Our Awards .................................................................................................................................................. 21

Our Clients.................................................................................................................................................... 22

International Cooperation .................................................................................................................... 23

Our Strategic Partners ............................................................................................................................ 24

Appendix 1 ................................................................................................................................................... 25

Appendix 2 ................................................................................................................................................... 26


Foreword

Thanks to its dynamic economic growth and young, growing population of working

adults and better business infrastructure, Vietnam has been recognized as an attractive

destination for foreign investors.

As of June 2013, Singapore was Vietnam’s second largest investor with registered

cumulative investments of 28.3 billion USD in 1,165 projects. The economic cooperation

is bolstered by the multiple investor-friendly treaties and agreements between the two

countries. In addition, with the anticipation of Vietnam’s joining of the Trans-Pacific

Partnership agreement, to which Singapore is an original signatory, it is expected that

the economic, as well as the political, cultural and technological ties, will be reinforced in

the future.

Institutional support is also readily available, as the dedicated business associations and

governmental agencies in Singapore have successfully helped Singaporean businesses

with market research and transitioning into the Vietnamese market.

We hope this profile will give you some insight into why Singaporean businesses are

keen on expanding their operations in Vietnam and how your business will benefit from

also entering this country of opportunities


VIETNAM


GDP Growth

Thanks to its strengthening export-oriented economy, Vietnam’s GDP has been growing

year by year, much of which has been driven by key industries such as manufacturing,

electronics and agriculture.

As the Vietnamese Government continues to implement its roadmap of liberalizing the

country’s economy, GDP growth is expected to continue to remain stable and/or

increase. Furthermore, following Vietnam’s much awaited entry into the Trans-Pacific

Partnership (“TPP”) Agreement in late 2014 or early 2015, which will effectively tear

down trade barriers with Vietnam’s key trading partners (including Singapore), GDP is

expected to grow rapidly with the anticipated increase in exports.

Population

Vietnam is home to approximately 90 million people and is one of Asia’s most densely

populated countries. Over 70% of the population resides in rural areas, which rely

primarily on agricultural production.

Vietnam has a young population, with working-age adults representing over 50% of the

population. The younger generation is increasingly aspiring to achieve affluent lifestyles.

And with the introduction of jobs and an increase in wages, young people have more

disposable income, creating an ideal market for new products and services.

This youthful society presents an opportunity to foreign investors, both in terms of

potential markets and also in terms of human resources. The youth of Vietnam are

better educated than their predecessors and they have the drive to achieve a higher

standard of living, which makes them an eager and diligent workforce.

Graph compiled with data taken from The World Bank


Financial Health

The Vietnamese Government has taken efforts to curb the country’s recent high inflation

rates, which have hampered investment progress in the past several years. These efforts

have been successful and by the end of 2013, Vietnam’s average annual inflation rate

stood at 6.60%, the lowest it has been in 10 years. As the Government continues rolling

out its fiscal policies to slash inflation, which has decreased further as of early 2014,

investor interest is expected to rise and Singaporean businesses will benefit from the

ensuing economic growth.

The Government’s efforts to achieve monetary stability have also been successful. The

exchange rate of Vietnam’s official currency, the Vietnamese Dong (VND), has remained

steady over the course of the past couple of years.

Investors can take comfort in that the days of instability in Vietnam’s economy have

passed. A testament to the country’s positive financial outlook is the year-by-year

increase in the Vietnam Stock Market (VN-Index) and the Government’s continued

efforts to tackle its number of bad debts.

Key Sector Strengths

Electronics Manufacturing

Vietnam’s large supply of low wage workers and favorable tax incentives for the

industry have attracted a growing number of foreign companies assembling or

manufacturing electronics in the country. In 2013, computer and consumer electronics

products and components dominated Vietnam’s total exports.

Textiles

The country also boasts a strong textiles industry and the demand for these products is

expected to increase following entrance into the TPP Agreement. Vietnam’s

liberalization of business lines in this sector has led to unprecedented investor interest

to satisfy the growing demand from overseas markets. Growth is expected to jump from

12-13% to 15-20%, reaching 20 billion USD in 2017 and projected to surge to 50 billion

by 2025 USD.

Agriculture

With over 70% of the population living in rural areas, exports in agriculture remain one

of Vietnam’s major contributors of GDP. The country’s tropical climate and unique

geographical location have made it ideal for producing certain crops. Today, Vietnam is


one of the world’s largest exporters of rice, cashew nuts, coffee and black pepper. Other

major exports of the country include seafood, rubber and wooden products.

Banking

While the Vietnamese banking industry has traditionally been restrictive against

prospective foreign stakeholders, the Government has recently passed new regulations

that will allow investors to acquire a larger stake in the country’s national banks. The

loosening of these restrictions is expected to drive further interest in this industry as

large infusions of capital will be needed to upgrade the systems, operations and

branches of the current commercial and retail banking system.

Logistics

The growth potential of Vietnam’s logistics industry has been expanding as a result of

the country’s increasing export turnover. Foreign interest in this industry has been

supported by recent figures provided by the Deputy Minister for Transport, who cited

that local logistics providers are only able to handle 20% of market demand (with the

remaining 80% being handled by foreign companies).

Tourism

For services, Vietnam’s tourism industry has attracted some of the largest FDI

commitments into the country. In 2012, Vietnam welcomed over 7 million visitors.

These figures, which are growing, make tourism a key growth industry driven by strong

global and domestic demand.

Opportunities

While challenges remain in the country’s regulatory framework, Vietnam remains an

attractive destination for foreign investment – not least because of the Government’s

efforts to open its market to investors.

Today, almost all investment sectors in the country are open to foreign investors (many

as a result of the WTO commitments) and the rollout of further market openings is

expected to take place within the next 1-2 years. On the agenda is also Vietnam’s long

awaited entrance into the Trans-Pacific Partnership Agreement (TPP), the conclusion of

which is expected to considerably drive demand for commodities from the country.

It is, therefore, no surprise that in the 2014 ASEAN Business Outlook Survey by the U.S.

Chamber of Commerce, Vietnam was ranked as the second most popular ASEAN

destination for investment (after Indonesia). As a positive outlook, 85% of survey

respondents in Vietnam further expected profits to increase in 2014.


The total amount of FDI has been increasing since 2011 and it is expected to continue in

years to come.

This positive outlook, which is driven by a stabilizing economy, a liberalization of the

market and a dynamic labor force, has placed Vietnam on the radar as an emerging

market to watch.

Overview of Key Legal Issues

Investment Process in Vietnam

In 2007, Vietnam acceded to the WTO, which expanded foreign investors’ access to

Vietnamese markets. Vietnam’s WTO commitments have drastically altered the

investment environment by largely superseding the protective legislation which was

one of the greatest challenges to doing business in Vietnam.

Since accession, according to the Ministry of Finance, wholly foreign-owned entities

have become the most common legal structure for FDI, followed by joint ventures and

then BOT, BT, BTA and BCC contract arrangements.

Licenses for foreign investors will be largely granted on the discretion of the ministries.

The process may take approximately anywhere from 3 months (average time for the

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2008 2009 2010 2011 2012 2013

Total FDI influx into Vietnam (US$ mil.)

Total number of FDI projects in Vietnam

FDI Trend (2008-2013)

2008 2009 2010 2011 2012 2013

Total FDI influx into Vietnam

(million USD)

15,428.9 16,345.4 12,100.9 9,914.5 7,854.1 14,272.4

Total number of FDI projects in

Vietnam 1171 839 833 919 1100 1275


service sector) to 12 months (for large-scale projects needing prime ministerial

approval).

However, there has been a proposal to amend the current Law on Enterprises, which is

expected to transform Vietnam into a more investment-friendly environment for

investors. In practice, foreign investors in Vietnam are often required to obtain HS codes

and investment licenses before commencing their business activities. The proposed

amendments will remove these hurdles; instead, foreign investors will only be required

to obtain a Business Registration Certificate in the same manner as Vietnamese

companies. Moreover, the abolition of HS codes will allow businesses to engage in any

business activities (other than those otherwise specifically prohibited such as activities

in weaponry and drugs).

Restrictions

Prior to investing in Vietnam, certain requirements, such as demonstration of financial

capacity and industry experience, will generally need to be fulfilled to the satisfaction of

the authorities.

Furthermore, while investment in a vast majority of sectors in Vietnam is open

nowadays, certain sectors will demand for additional conditions to be satisfied. For

example, projects in sectors that may have an adverse environmental effect (e.g.,

manufacturing) will likely require an environmental impact assessment report.

FDI approval for special services, such as banking, insurance, finance, and securities, will

also be subject to higher scrutiny by the authorities, and satisfaction of more stringent

conditions may be needed

Taxation

There is a double tax avoidance agreement in force between Vietnam and Singapore,

which allows tax paid in one of these countries to be offset against taxes payable in the

other.

Companies are generally subject to the corporate tax rate of 22%, which is applied from

January 1st, 2014 until December 31st, 2015. From January 1st, 2016 onwards, this tax

rate will be lowered to 20%.

Investors may also be able to enjoy preferential tax rates (or even tax exemptions) if

they satisfy some of the range of eligibility requirements set out under Vietnamese law

(e.g., by operating projects in encouraged sectors).


Legal Framework

However, Vietnamese laws are sometimes vague, ambiguous and inconsistent. This may,

at times, lead to inconsistent applications of the law by the authorities. For this reason,

we advise prospective investors to consult with the relevant authorities prior to

carrying out their investment projects if any regulatory ambiguity or inconsistency

arises.

For more information on Vietnam’s legal landscape pertaining to FDI, please refer to the

2014 IFLR Report by Bui Ngoc Hong, Do Huy and Nguyen Xuan Thuy at Appendix 3.


VIETNAM –SINGAPORE RELATIONS


Key Singaporean Organizations

Singaporean interest in Vietnam is bolstered by the strong financial and technical

support provided by various organizations in the country. These organizations have

assisted in facilitating the provision of support, such as Official Development Assistance

(ODA), which has been well-received by the Vietnamese Government.

The following key organizations are expected to play a more active role in Vietnam’s

economic development in the future, which will act as a catalyst for a boost in

Singaporean investment:

1. Singapore Business Association Vietnam (SBAV)

2. Singapore Business Group (SBG)

Singaporean investors who are interested in Vietnam may seek information from one of

the numerous dedicated business organizations in Singapore, including:

1. International Enterprise Singapore (IES)

2. Singapore Business Federation (SBF)

3. Singapore Manufacturing Federation (SMF)

Otherwise, there is a Vietnamese embassy located in Singapore

For more information on these organizations, please refer to Appendix 1.

ODA, Government Assistance and Investment

Trends for Singaporean Businesses

As part of the Singaporean Government’s pledge to assist developing countries in areas

including education, aviation, finance, trade promotion, information technology, public

administration, law and tourism in Vietnam, Singapore has focused on providing

scholarships and training programs to Vietnamese students and officials to develop

their capabilities and expand their practical knowledge for jobs.

For instance, Singapore opened a Vietnam-Singapore Training Center (VSTC) in Hanoi

in 2001. Singapore, since the inception of its scholarship program, has granted 163

scholarships to Vietnamese students. In addition, Singapore ran 3-month English

courses for senior officials in Ho Chi Minh and Hanoi between 2002 and 2006. The total

amount of assistance Singapore has offered to Southeast Asian countries, including

Vietnam, totaled 119 million USD.

Moreover, the government organization International Enterprise Singapore (IES) has

been supportive of Singaporean businesses interested in entering the Vietnamese


market and vice versa. For example, IES renders services such as match-making and

project-facilitation for Singaporean businesses that wish to enter the Vietnamese

market. IES also encourages inbound investment from Vietnam into Singapore. For

instance, IES once invited a number of Vietnamese companies in the fashion industry to

visit Singapore to participate in the Asia Fashion Exchange event to learn more about

recent trends.

Apart from government-level ODA, prominent Singaporean businesses have expanded

their operations in Vietnam. In particular, Singaporean businesses have invested in real

estate and property development industries. For example, the Vietnam-Singapore

Industrial Park will be establishing yet another industrial park in Quang Ngai Province

after having already built four other industrial parks in Vietnam.

Furthermore, prominent Singaporean businesses are taking the lead in Vietnam’s real

estate industry, such as CapitaLand, Keppel Land and Mapletree. Moreover, Temasek

Holdings has participated in the Vietnamese stock market by acquiring shares in

Indochina Capital in 2005, Kinh Do Corporation in 2005 and Vietnam Infrastructure Ltd

in 2006

Singaporean Investment Activity in Vietnam The trend of Singaporean investment in Vietnam is shown in the following table:

2009 2010 2011 2012 2013

FDI inflow from Singapore (million USD)

469.1 333.3 1435.3 488.4 3014.1

Number of Singaporean FDI projects

98 70 86 89 105


The following lists the 17 largest Singaporean companies that have made Vietnam a

critical investment partner:

No. COMPANY INDUSTRY

1 Bizlink Lawyers & Consultants Legal services

2 Kelvin Chia Partnership Legal services

3 DBS Banking

4 Maybank Kim Eng Banking

5 Temasek Holdings Investment

6 Mapletree Property development

7 CapitaLand Property development

8 Keppel Land Property development

9 Vietnam Singapore Industrial Park Property development

10 Sembcorp Property development

11 Tham & Wong M&E Co. Ltd Civil and structural engineering

12 Falcon Incorporation Furniture

13 Somerset (The Ascott) Real estate/hospitality

14 Blitz IT Consultants Ptd Ltd IT

15 Singapore Technologies Telemedia IT

16 KinderWorld Education Group Education

17 Miltrade Group Aerospace

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2009 2010 2011 2012 2013

FDI from Singapore (US$mil.)

Number ofFDI projects

FDI Inflow from Singapore


Key Agreements

The promotion of Singaporean investment into Vietnam is facilitated by the strong

bilateral investment relations between the two countries. This relationship has been

encapsulated by multiple bilateral agreements and treaties. Some key agreements

include:

(i) Memorandum of Understanding on Educational Cooperation

Signed in April 2007

This Memorandum of Understanding, together with the Framework Agreement below,

is a milestone agreement which precipitated the process of allowing training centers to

be established in Vietnam and universities of both countries to engage in student and

teacher exchanges under the Framework Agreement.

(ii) Vietnam-Singapore Bilateral Connectivity Framework Agreement

Signed in 2006

The Framework Agreement was a lead-up to the development of an action plan from

Singapore to implement scholarship programs and training opportunities to

government officials and students in Vietnam.

(iii) Trans-Pacific Partnership Agreement (TPP)

Pending

Singapore is one of the original signatories to the TPP agreement. Vietnam’s entrance

into the TPP is expected to considerably strengthen the trade relationship between the

two countries.


LNT & PARTNERS

PROFILE


About Us LNT & PARTNERS is a leading full-service independently ranked local law firm in

Vietnam with offices in Ho Chi Minh City, Hanoi, Hong Kong (affiliate), and San

Francisco. The firm is among Vietnam’s most prominent, representing a wide range of

multinational and domestic clients, including Fortune Global 500 companies as well as

well-known Vietnamese listed companies on a variety of business and investment

matters.

Our Team Our Lawyers

Mr. Hong Bui

Practice areas

• Compliance

• Foreign Investment

• M&A

Mr. Huy Do

Practice areas

• Intellectual Property

• Dispute Resolution

• Antitrust/ Competition

Ms. Quyen Hoang

Practice areas

• Corporate

• Employment & Benefits

• Foreign Investment

• M&A

Dr. Net Le

Practice areas

• Banking & Finance

• M&A

• Tax

Dr. Tuan Nguyen

Practice areas

• Antitrust/ Competition

• Bankruptcy


• M&A

Dr. Vinh Nguyen

Practice areas


• Employment &

Benefits

• Tax

Mr. Binh Tran

Practice areas

• Real Estate/ Infrastructure



Mr. Su Tran

Practice areas


• Real Estate/

Infrastructure

• Banking & Finance


Our Of Counsel and Senior Advisor

Our Practice Groups LNT & PARTNERS has domain expertise in key legal disciplines organized into five

Practice Groups:

(i) Corporate Group: Our highly-regarded corporate team regularly handle M&A

deals, advise on complicated business licenses, guide investors with their inbound and

outbound investments, and navigate regulatory compliance issues (including in matters

of competition, labor and taxation) to deliver commercially-practical solutions to our

clients.

(ii) Dispute Resolution Group: Our award-winning dispute resolution lawyers,

which include two former judges, have represented major companies in both court and

international arbitral proceedings

(iii) Banking and Finance Group: Our banking and finance team has been at the

forefront of millions of dollars’ worth of financial transactions for large financial

institutions, funds, and private companies.

(iv) Intellectual Property/TMT Group: Our IP/TMT professionals have extensive

experience in advising and representing major clients in some of the most complex and

high-profile IP related matters in various industries, including, biotech pharmaceutical,

electronics and software.

(v) Real Estate and Infrastructure Group: Our real estate and infrastructure team

has been behind some of Vietnam’s largest development projects.

Mr. Kiyoshi Hirasawa Practice areas

• Japan Practice • Corporate, M&A • Foreign Investment

Dr. Sy Chung Pham Practice areas

• Corporate Compliance • Foreign Investment • M&A


Our Rankings

PUBLICATION PRACTICE AREAS RANKING YEAR

Asia Pacific Legal 500

Banking and Finance Leading Lawyers 2013 / 2012

Corporate/ M&A Leading Lawyers 2013 / 2012

Dispute Settlement Leading Lawyers 2013 / 2012

Tax Leading Lawyers 2013 / 2012

Chambers and partners

Banking and Finance Vietnam Leading

Law Firm 2013 / 2012 / 2011

/ 2010

Corporate/ M&A Vietnam Leading

Law Firm 2013 / 2012 / 2011

/ 2010 / 2009

Projects, Infrastructure & Energy

Vietnam Leading Law Firm

2013 / 2012

International Financial Law Review (IFLR)

Banking and Finance Notable 2013 / 2012

Mergers & Acquisitions Notable 2013 / 2012

Project Finance Leading Lawyers 2012 / 2011

PLC Which Lawyer?

Recommended Law Firm 2012 / 2011


Our Awards

Leading Law Firm 2014 – Asia Pacific Legal 500

Recognised Firm 2014 – International Financial Law Review

Most Trusted Law Firm of the Year – Lawyers World Magazine

Vietnam Deal Firm of the Year 2014 – Asia Legal Business, a Thomson Reuters Company, SE Asia Awards 2014

Full Service Law Firm of the Year 2014 – Vietnam

Intellectual Property Innovators of the Year – Vietnam

Commitment to Cross-Border Investment – Vietnam

- Acquisition International

Corporate Finance Law Firm of the Year in Vietnam

– 2014 Corporate Intl Magazine Global Award

ALB Award Deal Firm of the Year – Finalist 2013, 2012 Employer of Choice 2012 – ALB 2nd position


Our Clients

Our partners have had the privilege of representing multiple Singaporean clients, from

major conglomerates to branch offices, in a broad spectrum of industries and matters,

including:


International Cooperation

The Firm’s partners have established strong relationships with attorneys at

international law firms such as:

US Law Firms

European Law Firms

Asian Law Firms


Our Strategic Partners LNT & PARTNERS has developed an active presence across a broad range of industries through its strategic partnerships with leading industry publications and sector groups, including:

Vietnam Investment Review

Quang Trung Software City

Colliers International Vietnam


Appendix 1

Key Singaporean Organizations

1. Singapore Business Association of Vietnam Address: 6B Lang Ha Street, Ba Dinh District, Hanoi

Tel: +84-4-772-0833

E-mail: [email protected]

URL: http://www.sbav-hanoi.org/

2. Singapore Business Group Address: 6th Floor, Unit 601, Tran Quy Building

57 Le Thi Hong Gam Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh CIty

Tel: +84-8-3823-3046

Fax: +84-8-3829-9800

E-mail: [email protected]

URL: http://www.sbghcm.org/en/

3. International Enterprise Singapore (IES)

Address: 230 Victoria Street, Level 10, Bugis Junction Office Tower, Singapore 188024

Tel: +65 6337 6628 (Overseas)

1800 437 7673 (Domestic)

Fax: +84-61-383-4841

URL: http://www.iesingapore.gov.sg/

4. Singapore Business Federation

Address: 10 Hoe Chang Road #22-01, Keppel Towers, Singapore 089315

Tel: +65-6827-6828

Fax: +65-6827-6807

URL: http://www.sbf.org.sg/

5. Singapore Manufacturing Federation Address: 2985, Jalan Bukit Merah, Singapore 159457

Tel: +65-6826-3000

Fax: +65-6826-3008

Email: [email protected]

URL: http://www.smfederation.org.sg/

6. Embassy of Vietnam in Singapore

Address: 10 Leedon Park, Singapore 267887

Tel: +65-6462-5938

Fax: +65-6463-2817

Email: [email protected]

URL: http://www.vietnamembassy-singapore.org/en/

mailto:[email protected]

http://www.sbav-hanoi.org/


http://www.sbghcm.org/en/

http://www.iesingapore.gov.sg/

http://www.sbf.org.sg/


http://www.smfederation.org.sg/


http://www.vietnamembassy-singapore.org/en/


Appendix 2

Recent Press Announcements

Mass and high-end homes make CapitaLand’s wings April 14th, 2014

http://www.vir.com.vn/news/en/property/mass-and-high-end-homes-make-capitalands-wings.html

Veteran Singapore-based property developer CapitaLand is capitalising on both the

high-end and mass housing segments in Vietnam for its long-term growth strategy.

The company currently has three apartment projects available for sale in the country –

the high-end Vista and mass housing ParcSpring in Ho Chi Minh City’s District 2, and

high-end Mulberry Lane in Hanoi’s Ha Dong district. The Vista has 750 residential units

and 100 serviced apartments, ParcSpring has 972 apartments. Meanwhile, Mulberry

Lane includes 1,478 apartments.

ParcSpring was originally owned by a Vietnamese developer and then transferred to

CapitaLand. After the deal, CapitaLand decided to convert two apartments into a gym

and swimming pool, and added other facilities like children’s playgrounds and flower

gardens.

CapitaLand’s South Vietnam general manager Lim Hua Tiong said the Vietnamese

property market had been challenging in recent years but CapitaLand believed there

were opportunities for the group. He added the Vista had few units left for sale and that

22 per cent of ParcSpring’s units had already been sold. This year, CapitaLand has about

500-600 apartments from Mulberry Lane and ParcSpring up for sale, including some

300 mass housing units.

Meanwhile, CapitaLand plans to launch another high-end apartment project in Ho Chi

Minh City’s District 2 in the second half this year.

“We see that local buyers are looking for good quality homes that they can afford,

therefore we are developing both segments. In Vietnam buying a home is often a life

decision and we’re here to provide good quality products to home buyers. In addition to

our own quality control teams, we have a separate team that works as if they are real

home buyers. When they find anything not like in our house samples, we have to fix it

before delivery,” Lim added.

Lim also believed the amended property law could open new opportunities as

foreigners were given greater rights to buy homes.


“Opening the market wider is necessary to support the economy. However, the

government has to track foreign money sources coming into Vietnam to prevent

negative effects on the mass housing segment.”

ParcSpring is CapitaLand’s first mass housing project in Vietnam. Lim said the company

was focusing its investment on a 70-30 ratio based on high-end and mass housing

segments.

“I don’t think foreigners will buy mass housing apartments as they target the high-end

segment.

However, in terms of human resources, the ratio is equal. “We concentrate equally on

both segments as we want to maintain our quality and good reputation,” said Lim.

Another way to support

CapitaLand’s long term business in Vietnam is to replace foreign staff with Vietnamese.

When it started operations in Vietnam in 2006, a year before the group launched The

Vista as a symbol of its Vietnam business drive, 35 per cent of its staff were foreigners.

This has since plunged to just 5 per cent now, according to Lim. “Today, 70 per cent of

section heads here are Vietnamese,” he added.

The Singapore-backed developer also has a spotless corporate social responsibility

agenda, with CapitaLand devoted 0.5 per cent of the group’s profits to its philanthropic

CapitaLand Hope Foundation which focuses on education development in Vietnam. This

charitable funding is used to upgrade schools nationwide.


Vietnam, Singapore hold economic connectivity talks April 30th, 2014

http://www.vir.com.vn/news/en/hightlight/vietnam-singapore-hold-economic-connectivity-talks.html

The tenth Vietnam-Singapore Ministerial Meeting on Economic Connectivity took place

in Singapore on April 29 under the chair of Minister of Planning and Investment Bui

Quang Vinh and Singaporean Minister of Trade and Industry Lim Hng Kiang.

Minister Vinh said the meeting was a success, with new links established and recently

arising problems solved, helping enhance the friendship and bilateral cooperation in all

aspects between the two countries.

At the meeting, the two sides focused attention on the six cooperation fields specified in

the Vietnam-Singapore Economic Connectivity Agreement, which are finance, education

and training, transport, information technology and communications, investment, and

trade and services.

The two sides also proposed new models for cooperation, including coordination to

develop Phu Quoc Island in Vietnam's southern province of Kien Giang.

The next meeting will be held in Vietnam next April.

According to Minister Vinh, Phu Quoc was an important issue at this event, adding that

he has made clear Vietnam's wish to have Singapore as the main partner in technical

designing and investment arrangement for the island.

He said the Singaporean side has proposed holding a roundtable conference on

investment in Phu Quoc to discuss issues such as planning, infrastructure building and

mechanisms for investors.

The minister also said a forum promoting investment in Vietnam held on April 28 had

attracted attention from many Singaporean businesses. He stressed that Vietnam

should seize the chance and continue to improve its business and investment

environment to lure more Singapore investors, who are doing serious business in

Vietnam.

Singapore is currently the third largest foreign investor in Vietnam with 1,258 valid

projects worth more than US$30 billion.

MoIT economists forecast Taiwan will continue to be Vietnam’s promising export market in the coming years, especially for three key items – telephones and spare parts, garments and textiles, and seafood.

Vietnamese exports to Taiwan particularly timber products, footwear, porcelains, and ceramics will reap higher revenue, the MoIT concludes.


Singaporean Firms Keen on Vietnam Market March 12th, 2014

http://stoxplus.com/News/138564/1/188/singaporean-firms-keen-on-vietnam-

market.stox

Dr Admad Md Magrad, Vice President of the ASEAN Business Group under the

Singapore Manufacturing Federation (SMF) has said that companies in Singapore find

Vietnam a highly lucrative location to expand production activities.

Speaking on the sidelines of a recent seminar “Doing Business in Vietnam”, Dr Admad

stated that Vietnam’s laws on business activities have been much improved in recent

years. “This in conjunction with a strong labour force, a huge retail market potential and

the impetus for establishment of the ASEAN economic region by 2015 provide ample

incentives for investment attraction” he said.

Meanwhile, Daniel Pok, Investment Promotion Manager of Sembcorp Parks affirmed the

consensus of Singaporean businesses assess Vietnam as an attractive investment

market.

“Sembcorp is one of Singapore’s largest investors in Vietnam with five Vietnam-

Singapore Industrial Parks located in Bac Ninh, Hai Phong, Quang Ngai and Binh

Duong.” he said.

Dr Admad, who is also Group Managing Director of II-VI Singapore Pte.Ltd.said that

from 2004 till now, his company has constructed six factories that provided high paying

jobs for more than 800 workers in southern Binh Duong province’s Vietnam-Singapore

industrial park (VSIP).

He added that Vietnamese workers are very intelligent, diligent and obedient to the

laws and self-motivated to improve their working skills.

Low Beng Tin, Co-Chair of the ASEAN Business Group under SMF said that in the long

term, it is good to do business in Vietnam. “At present, we have teamed up with

Vietnamese companies and all these joint ventures are operating very effectively”, he

said. He affirmed that SMF will update Singaporean businesses with the latest

information on investment in Vietnam and organize seminars which serve as an

information channel for investment in Vietnam.

Businesses, through the event, can learn more about Singaporean Government’s

incentive policies towards businesses keen to invest abroad and gain information on

Vietnamese laws, tax and business potential. For his part, Vietnam ambassador to

Singapore, Tran Hai Hau affirmed that Vietnam boasts great potential for developing the

economy in the long-term.


The ambassador pledged that Vietnam will do its best to ensure a competitive and

transparent business environment as well as offering favorable conditions for

businesses, especially the Singaporean business community.

In 2013, Singapore was Vietnam’s third largest trade partner within ASEAN. It also

ranked second among 100 nations and territories investing in Vietnam with total FDI

capital reaching US$29.3 billion.

Nguyen Viet Chi, Vietnam’s commercial counselor in Singapore said that last year’s two-

way trade turnover hit US$14 billion including more thanUS$3 billion from Vietnam.

Vietnam’s Singaporean key exports included farm produce, food, seafood, garments and

textiles, computers and mobile phones. Meanwhile, Singapore’s key exports to Vietnam

are oil and petrol, hi-tech products, chemicals and fertilizers. Chi expressed her hope

that this year’s bilateral trade turnover will increase by 10%-15% over the previous

year.

.

Singaporean Investment in Vietnam Up 157% in 2013

January 19th, 2014

http://businesstimes.com.vn/singaporean-investment-vietnam-157-2013/

Singapore invested US$4.37 billion worth of newly registered and additional capital in

Vietnam last year, up 153% against 2012.

Vietnamese authorities licensed 105 Singaporean-invested projects with total

registered capital of more than US$3 billion and approved 34 other existing projects

with total increased capital of nearly US$1.4 billion.

Worthy of note are a US$2 billion Samsung Electronics Vietnam plant in Thai Nguyen

province, and US$1 billion in increased capital for the Samsung Electronics Vietnam

plant in Bac Ninh province.

These are Singapore’s biggest investment projects and among the 10 biggest foreign

investment projects in Vietnam last year.

By the end of 2013, there were 1,219 operational Singaporean-invested projects

capitalized at more than US$29 billion, making the island nation second among foreign

investors in Vietnam.

Vietnamese businesses also poured nearly US$35.7 million into Singapore, raising their

total investment there to nearly US$185 million.


FOR MORE INFORMATION PLEASE CONTACT:

Ms. Quyen Hoang

Managing Partner

[email protected]

Ho Chi Minh City Head Office

Unit 03, Level 21, Bitexco Financial Tower

No.02 Hai Trieu Street, District 1

Ho Chi Minh City, VIETNAM

Tel: +84 8 3821 2357

Fax: +84 8 3910 3733

Hanoi Office

Unit 08A, Level 2, International Centre

17 Ngo Quyen Street, Hoan Kiem District

Hanoi, VIETNAM

Tel: +84 4 3824 8522

Fax: +84 4 3824 8580

Mr. Huy Do

Partner

[email protected]

San Francisco Office

101 California Street

Suite 2710

San Francisco, CA 94111 USA

Tel: +1 415 633 8831

Fax: +1 415 689 6821

Hong Kong Office (affiliate)

Two International Finance Centre

Level 19, 8 Finance Street

Central, Hong Kong, CHINA

Tel: +85 2 3125 7639

Fax +85 2 3125 7629

www.LNTpartners.com

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