17:20 | 28/05/2016 Economy
(VEN) - Singapore ranked third among the 114 countries and territories investing in Vietnam, with increased investment in a range of different sectors according to the Ministry of Planning and Investment.
Bac Ninh-based Vietnam-Singapore Industrial Park
Investment tops US$36 billion
According to the Ministry of Planning and Investment’s Foreign Investment Agency, as of April, Singaporean investors owned 1,600 foreign direct investment (FDI) projects with total investment capital of US$36.28 billion. In April alone, 50 new FDI project began while 23 increased their registered capital valued at total investment of US$730 million.
Singaporean investment averaged US$22.7 million, about US$13.8 million higher than the national FDI average. Singaporean investors are increasingly interested in Vietnam, investing in more provinces and cities and broadening out from their initial focus of Ho Chi Minh City, Hanoi and Hai Phong.
To date, Singaporean investors have invested in 46 of 63 provinces and cities across the country, with Ho Chi Minh City attracting 799 FDI projects worth US$9.75, accounting for 26.7 percent of the total registered capital. Hanoi attracted 256 FDI projects worth US$4.65 billion, accounting for 12.8 percent and Quang Nam attracting 6 FDI projects worth US$4 billion, accounting for 11.3 percent.
Engineering and processing in focus
Singaporean investors have invested in 18 of Vietnam’s 21 economic sectors, with 494 engineering and processing projects worth of US$16.1 billion accounting for 44.3 percent of the total Singaporean investment in Vietnam, 81 real estate projects worth of US$10.9 billion accounting for 30 percent.
The Ministry of Planning and Investment has praised the efficiency of Singaporean investment, contributing significantly to the country’s socioeconomic development. The most prominent projects include seven Vietnam-Singapore Industrial Parks established in Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong and Nghe An.
The ministry predicted that Singaporean investment will increase in the coming time based on improved bilateral relations and strengthened partnerships in the ASEAN Economic Community which were shaped in 2015 with the intention of providing member countries equal treatment in terms of trade.
Vietnam has positively integrated into the world economy through participating in bilateral and multilateral free trade agreements while improving investment environment and policies to further attract investors.