Regional collaboration can assist in sustainable growth

What is the theme of the event taking place in Hanoi?

Kok Ping Soon, CEO of the federation

The theme, on strengthening regional collaboration for sustainable growth, was chosen to highlight the importance of collaboration, sustainability, and inclusive growth in driving the region’s economic development. It reflects our commitment to be inclusive and promote sustainable development that benefits not only businesses but also the local and regional business communities.

Strengthening regional collaboration can lead to job creation, skills development, technology transfer, and improved livelihoods, fostering social progress and shared prosperity across the region.

The governments of Vietnam and Singapore recently concluded MoUs on enhanced trade and investment, as well as in green and digital economy. The forum will provide a platform to look forward to even more.

How does the Singapore Business Federation (SBF) assess the potential of doing business in Vietnam?

Singapore companies’ interest in expanding into Vietnam remains strong, attracted by the growing middle class domestic market and a strong manufacturing base to support exports. According to the SBF National Business Survey 2022/2023, it is encouraging to see that Vietnam is ranked as one of the top three countries for overseas expansion by Singapore companies in the short term. The key sectors of interest from Singapore companies include manufacturing, infrastructure, wholesale, and retail trade.

The decision to hold an international flagship business event in Vietnam reflects the importance Singapore places on growing our bilateral relationship and expanding business cooperation into new growth areas.

As we look to the future, Singapore and Vietnam are exploring partnerships in the digital and green economy. There is much that Singapore and Vietnam can complement each other in these fields, to address our international and regional interests and commitments.

This is evidenced by the slew of MoUs signed between both countries in the last two years, including on energy cooperation between Singapore’s Ministry of Trade and Industry and Vietnam’s Ministry of Industry and Trade, and carbon credit collaboration between the former and Vietnam’s Ministry of Natural Resources and Environment.

Singapore wants to cooperate with Vietnamese companies to assist in Vietnam’s digital transformation, particularly in priority areas such as e-commerce, finance and banking, and cybersecurity.

In green economy, Singapore would like to work with Vietnam in its fair energy transition, with an eye towards zero emissions targets in both countries. We are looking to develop an electricity grid that links Singapore and Vietnam, which can become a model for electricity trade and cooperation in ASEAN.

At the regional level, Singapore and Vietnam are like-minded partners in free trade agreements like the Regional Comprehensive Economic Partnership and more. It is with this strong foundation that Singapore and Vietnam trade and investment ties have emerged stronger.

What will the SBF do to promote Singapore’s investment in Vietnam?

Vietnam continues to be an attractive market for Singaporean investments. As one of the fastest growing Southeast Asian economies, our companies are attracted to Vietnam’s economic potential, large domestic market, a growing middle class and a highly educated, skilled, and increasingly tech-savvy population.

Bilateral trade between Singapore and Vietnam increased 16.4 per cent on-year to reach $31.3 billion in 2022. Singapore’s investment in Vietnam in 2022 amounted to nearly $6.46 billion, making Singapore the largest foreign investor for the year. As of June 20, Singapore is Vietnam’s second-largest cumulative foreign investor, with a stock investment amount of $73.43 billion.

In 2021, the federation was also honoured to receive a certificate of merit from the Ministry of Planning and Investment. The award serves to recognise foreign organisations which have made major contributions towards building the overall socioeconomic developments in Vietnam. This is a strong demonstration of SBF’s cumulative efforts and the tangible contributions in enabling greater bilateral economic cooperation. Through our GlobalConnect@SBF initiative, supported by Enterprise Singapore, the federation has provided more than 700 advisories to Singapore companies on the Vietnam market since November 2019 and facilitated 45 projects with Singaporean companies keen to expand into Vietnam.

We have also set up three Singapore Enterprise centres, in Ho Chi Minh City, Jakarta, and Bangkok to provide on the ground customised business assistance and support for our companies entering those markets. The centres actively look for partnership opportunities with government agencies, trade associations and chambers and in-market accelerators, such as banks, professional services firms, and channel partners. These partners serve as our multipliers to help our businesses land successfully in the markets. We will announce some of these partnerships at the forum.

With Singapore being the Southeast Asian region’s gateway, how does the federation see itself facilitating regional economic growth? 

As the apex business chamber in Singapore, the SBF helps catalyse business partnerships and opportunities. We engage a wide variety of stakeholders at the government, industry and business levels to scope out business opportunities and bring these to our companies through outreach efforts such as overseas market workshops, mission trips, and business seminars.

Regional events such as the forum and the Singapore Apex Business Summit, which we launched last year, are also platforms that we organise to bring together business leaders and policymakers across the region to discuss future trends and growth opportunities and to build stronger businesses and economies.

In the face of an uncertain global economic climate, it is crucial for Southeast Asian nations to collaborate and take collective measures to grow our economies and mitigate the negative impact of global uncertainty. Investing in human capital development and fostering a skilled workforce is also essential. Southeast Asia should continue to prioritise education and training programmes that equip its people with the necessary skills for the jobs of the future.

Another area that we should focus is strengthening regional collaboration, to facilitate trade flows and standardise a set of principles and frameworks to encourage greater trade and investment flows among the country.

Enhancing collaboration between institutes of higher learning, industry, and governments will play a vital role in preparing our workforce for the challenges and opportunities ahead.

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