Singapore Increases Investment into Vietnam

Posted by Reading Time: 4 minutes

HCMC – Singapore has become the third largest investor in Vietnam. According to Vietnam’s Foreign Investment Agency, at the end February, Singapore had poured US$33 billion worth of investment capital into the country. In the first two months of 2015, Singapore implemented 12 newly-invested projects and increased investment levels at a further eight projects.

Singapore has invested in 1,379 effective investment projects in Vietnam. Not only has it upped the number of projects it is conducting, but also the level of its investment into these projects, which is much higher than other investors. The average capital scale for Singapore’s projects is US$24 million, significantly higher than the average capital scale (US$14 million) for other investment projects.

While these investments have been scattered throughout Vietnam, the vast majority have been centered on Hanoi and Ho Chi Minh City, with US$4.17 billion and US$9 billion respectively in total registered capital.

Investors from Singapore have put money into 18 out of 21 economic sectors in Vietnam. The top investment areas include the following:

  • Processing and manufacturing – with 426 projects and a total registered capital of US$13.37 billion (40.5 percent)
  • Real estate – with 74 projects and a total registered capital of US$10 billion (30.1 percent)
  • Accommodation and catering – with a total registered capital of US$1.88 billion
  • Construction – with a total registered capital of US$1.86 billion
  • Entertainment – with a total registered capital of US$1.78 billion

Vietnam offers a range of investment vehicles, however, 63 percent of total Singaporean registered capital has been in the form of wholly foreign owned projects – 995 projects worth a total of US$20.75 billion. A further 27 percent of Singaporean investment has been in the form of joint ventures, joint stock companies, and business cooperation contracts.

Related Link IconRELATED: Key Steps for Setting Up a Business in Vietnam

Vietnam and Singapore have been working to build up bilateral trade for some time now. In 2014, trade between the two countries was up 20.3 percent year on year. Vietnam’s strategic location, low-cost labor, burgeoning consumer class, and plentiful financial incentives for foreign investors have made the country an attractive destination for Singaporean foreign direct investment. In turn, Singapore, with the highest GDP per capita in ASEAN, remains a prime market for Vietnamese exporters.

South Korea and Japan remain Vietnam’s largest foreign investors, with 4,240 projects worth US$37.84 billion in total and 2,556 projects worth US$37.37 billion respectively. Over 100 countries and territories have investments in Vietnam.

Professional Service_CB icons_2015RELATED: Dezan Shira & Associates’ Pre-Investment and Entry Strategy Advisory


About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

‍

Related Reading Icon-VB

Import and Export: A Guide to Trade in Vietnam
In this issue of Vietnam Briefing Magazine, we provide you with a clear understanding of the current business trends related to trade in Vietnam, as well as explaining how to set up your trading business in the country. We also attempt to give perspective on what will be Vietnam’s place in the Association of Southeast Asian Nations (ASEAN) in 2015, and look at some of the country’s key import and export regulations.

Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.

An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance