Home » Investment » Local investors told to take prudence in Singapore

Vietnamese entrepreneurs need to practice prudence when investing in Singapore although this country is described as an attractive destination for investment, heard a workshop on overseas investment opportunities for Vietnamese businesses.

Singapore has a favorable geographic location, a reliable banking system, good services, simple transactions, modern infrastructure and multilingual people. At present, many small companies in this country are mired in troubles, so their stock prices are very low, making it favorable for financially-capable investors, said Padraig Seif, a lawyer from Singapore.

To establish a company in Singapore, an investor needs statutory capital of only one Singapore dollar. However, financial issues must be transparent and there must be a Singaporean on the board of directors.

In addition, investors need to comprehend some rules in Singapore, such as how to quickly undergo legal procedures and how to apply for tax cut and exemption, said Seif.

Corporate income tax in Singapore is 16%, but companies hiring workers in the host country can enjoy tax reductions, he noted.

Banks in Singapore require properties as collateral for loans. They can offer lending rates of only 1% or as much as 18-19% depending on credit appraisals, said the Singaporean lawyer.

Singapore was the sixth largest destination for Vietnam overseas investment last year, with four projects worth US$63 million. As of end-2012, Vietnam had registered 46 projects in Singapore with total capital of US$149 million.

Vietnamese investors in Singapore are mainly State-owned enterprises and joint stock companies where the State holds dominant stakes.

The workshop on overseas investment opportunities for Vietnamese businesses was organized by Doanh Nhan Sai Gon newspaper in HCMC last weekend.

(SaiGon Times)

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