17:26 | 01/04/2016 Investment
(VEN) - Singaporean businesses poured US$469 million in Vietnam in the first two months of this year leading the 35 countries and territories investing in the country.
Investing more than US$36 billion in Vietnam
According to the Ministry of Planning and Investment, Singaporean businesses invested US$435 million via 30 new projects in Vietnam in the first two months of the year, apart from the six ongoing projects which increased their capital by US$33.8 million.
By the end of February, Singaporean investors had 1,569 projects with total registered capital of more than US$36 billion in Vietnam, ranking third among the 110 countries and territories investing in the country.
Singaporean projects posted average capital of US$23 million compared with an average US$13.96 million of FDI projects in Vietnam.
Examples of successful projects include the Vietnam-Singapore Industrial Parks Joint Venture Company (VSIP). There are seven VSIPs in the six provinces of Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong and Nghe An. Of these, the Nghe An VSIP began construction in September 2015.
Singaporean companies have invested in a variety of different sectors. Major sectors include processing and manufacturing with 481 projects and total registered capital of US$15.6 billion accounting for 30.65 percent of all Singaporean projects and 43.47 percent of all Singaporean investment capital in Vietnam; real estate 80 projects, US$10.8 percent, 5 percent and 29.95 percent; arts and entertainments US$1.8 billion; construction US$1.7 billion; and logistics US$1.4 billion.
Investment localities are expanding
In previous years Singaporean projects were focused on several major cities and provinces with favorable socioeconomic infrastructure such as Ho Chi Minh City, Hanoi, Hai Phong and Binh Duong. However, Singaporean investment has recently expanded to many localities with less developed infrastructure like Nghe An and Thai Nguyen.
Singaporean investors are currently present in 57 of the country’s 63 cities and provinces. Ho Chi Minh City has attracted the largest number of Singaporean projects (786) with capital of US$9.6 billion accounting for 50 percent of total Singaporean projects and 26.71 percent of total Singaporean capital in Vietnam. Hanoi took second place with 249 projects, US$4.6 billion, 16 percent and US$12.8 percent. Quang Nam ranked third with 6 projects, US$4 billion and 11.3 percent, respectively. In addition, Bac Ninh, Binh Duong, Dong Nai and Thai Nguyen have recently attracted Singaporean projects.
The Ministry of Planning and Investment said that Singaporean investment has strongly increased partly due to recent improvements in the Vietnamese investment environment and Vietnam’s increased integration into the global economy via free trade agreements with many countries and the Trans Pacific Partnership agreement. In particular, the ASEAN Economic Community was established at the end of 2015 contributing to promoting Singaporean investment in Vietnam.
Singaporean direct investment projects have greatly contributed to creating jobs and increasing export revenues.