Vietnam’s long-term potential for business is promising, Teo Eng Cheong, Chief Executive Officer of International Enterprise Singapore, a government agency driving Singapore’s external economy, has said.
In a press release issued on June 2 on IE Singapore Global Conversations session with Prime Minister Nguyen Tan Dung on June 1, CEO Teo mentioned fundamentals, like rapid urbanisation, a large domestic economy and abundant natural resources as opportunities to invite businesses.
He highlighted the consumer sector as a growing area, fuelled by an expanding urban population, better educational qualifications and rising disposable incomes.
This month, NTUC opened its first hypermarket in Ho Chi Minh City, the first in a series of hypermarkets planned for the Vietnam market.
With urban populations in Vietnam’s three largest cities of Hanoi, Ho Chi Minh City and Hai Phong expected to triple by 2020, demand for urban solutions and infrastructure development is set to rise.
Sembcorp Development is currently operating four Vietnam – Singapore Industrial Parks (VSIPs), with progress underway for a fifth VSIP in central Quang Ngai province.
In the tourism and hospitality sector, Vietnam received 6.8 million international tourists and 32.5 million domestic tourists in 2012. This generated revenues of nearly 7.7 billion USD. In November 2012, Banyan Tree opened Vietnam’s first large-scale luxury integrated resort in Central Vietnam.
Singapore is the third largest foreign investor in Vietnam, with cumulative registered capital of 27.2 billion USD across more than 1,000 projects to date.
In the first three months of 2013, Singapore overtook Thailand and Japan as the top foreign investor. Singapore is Vietnam’s sixth largest trading partner, with total trade reaching 15.8 billion SGD in 2012, about 12.6 billion USD.