Vietnam - a magnet for Singaporean investors: Ambassador

Hanoi (VNA) – Vietnam remains an attractive destination for foreign investors, including those from Singapore, thanks to the Government’s concerted efforts and measures to improve business climate and the expansion of free trade agreements, according to Singaporean Ambassador to Vietnam Jaya Ratnam.

In an interview granted to the Vietnam News Agency on the threshold of the Lunar New Year, the diplomat highlighted that Singapore has been the leading source of foreign direct investment (FDI) into Vietnam for two consecutive years, with money injected into a wide range of areas such as financial and insurance services, manufacturing, real estate, and whole sale and retail trade.

The Vietnam – Singapore Industrial Parks (VSIP) are the cornerstone of Singapore’s economic engagement with Vietnam, he said, adding they have attracted some 14 billion USD and generated over 270,000 jobs in Vietnam over the past 25 years.


Developing digital economy will be a key priority for both nations in the coming decades, the diplomat added.

Singapore welcomes the deepening of digital economic collaboration with Vietnam, particularly as Vietnam has identified the digital economy as one of the key drivers of its growth that will, in turn, propel the nation towards its ambitious goal of becoming a high-income country by 2045.

Cooperation across cross-border data flows, cybersecurity and AI governance will provide the foundation for Vietnamese and Singapore start-ups and companies to transact with each other easily and securely, and enable them to grow their digital businesses, he underscored.

“COVID-19 has highlighted the crucial role of digital trade and e-commerce in ensuring supply chain resilience and transport connectivity. Moving forward, we hope that Vietnam will join our network of digital alliances to foster interoperability of standards and systems,” the diplomat said.

He also stressed the importance of the resumption of commercial flights between the two countries, describing it a vital step to recover safe travel supporting economic growth and people-to-people ties.

“We are working closely with Vietnam on mutual recognition of our vaccine certificates, allowing us to further open up our borders in a safe and calibrated manner.”

The ambassador also said Vietnam continues to consolidate its position as a key link in global supply chains, and this presents opportunities for Singapore companies to collaborate with Vietnamese partners in the logistics and e-commerce industries.

Given the massive potential of the Vietnamese e-commerce market, Singapore-based companies like Grab and Shopee have been steadily expanding their presence in Vietnam.

“I have no doubt that Vietnam’s economy will not only recover this year, but also recover strongly. I am fully confident that Singapore companies will continue to seize opportunities to plug themselves into Vietnam’s growth,” he said.  

On the bilateral ties, the diplomat said they are built on a strong foundation of mutual trust and support, have been further cemented over the past two years despite numerous difficulties caused by the  raging COVID-19.

High-level bilateral engagements have been sustained, including an in-person meeting between Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lee Hsien Loong in Jakarta in April in 2021, and an official trip to Vietnam by Singaporean Foreign Minister Dr Vivian Balakrishnan in June last year. 


In Hanoi and Ho Chi Minh City, the Singapore community rallied to collect funds to purchase and distribute essentials for the needy, mindful of Vietnam's timely support to Singapore when the situation was difficult back in their country.

“For me, this crisis has once again underlined that Singapore and Vietnam are not fair-weather friends. We can count on each other in both good times and bad,” the diplomat said, concluding that building on strong foundations, Vietnam and Singapore will further expand their cooperation into new areas of digital economy and sustainable development./.