Vietnam, Singapore sign US$11 billion worth of deals

Businesses of Vietnam and Singapore on February 25 signed dozens of agreements worth US$11 billion during the visit by Vietnamese President Nguyen Xuan Phuc.

The deals were reached at the Vietnam-Singapore Business Dialogue with the attendance of more than 100 companies of both countries working in seaport, smart city, renewable energy, sustainable development, and digital economy.

Sovico Chairwoman Nguyen Thi Phuong Thao and CEO of Keppel Group Loh Chin Hua at the event on Feb 25. Photo: Sovico

Half of the total deals ($5.2 billion) were signed by Vietnam’s Sovico Group owned by millionaire Pham Thi Phuong Thao and Singaporean partners.

Sovico and Singapore’s Keppel reached deals worth $1.5 billion on the development and roll-out of energy and environmental solutions for large-scale decarbonization; Sovico’s Vietjet and Changi Airport Group struck a deal worth $1.5 billion while Singapore’s ST Engineering will provide Vietjet with technical services costing $150 million.

One-third of the total commitment is destined to Bac Giang, Vietnam’s northern province that is only 50km north of Hanoi. At the event, Singaporean investors were committed to pouring $3.6 billion into the locality.

Chairman of the Bac Giang People’s Committee Le Anh Duong granted investment licenses to CapitaLand's industrial park, logistic, and urban building projects worth $1 billion; two projects worth $47 million and $50.4 million by Bac Giang Logistics I Development and Bac Giang Logistics II Development, respectively, both under real estate and capital development Mapletree Investments; a  project costing $2.5 billion on industrial and residential complex covering 700 ha by a joint venture of Vietnam’s SAIGONTEL, VinaCapital and Singapore’s Aurous Capital.

With the investment licenses, the investors hoped to kick off the projects in Bac Giang within 2022.

Chairman of the Bac Giang People’s Committee Le Anh Duong (R) and a Singaporean investor. Photo: VNA

Meanwhile, Vietnam’s HD Bank and the UK-based Thought Machine signed a deal on digital banking in Vietnam.

Vietnam’s T&T Group and Singapore’s YCH extended cooperation on logistics while Vietnam’s TH Group will promote market expansion through the support of Singapore’s HAO Mart.

Addressing the dialogue, President Phuc stressed the importance of investors in implementing the cooperation strategies, affirming that Vietnam will facilitate the investment by solving issues regarding high logistics frees, administrative procedures, site clearance, and manpower.

At the event, Phuc asked ministers and leaders of localities to directly answer all questions raised by Singaporean investors and shared Vietnam’s development vision in the next 10 years with the expectation of becoming a regional and world production hub with a roadmap for climate adaptation and sustainable development.

The Vietnamese President emphasized the need of partnership between local and Singaporean firms rather than merely foreign direct investment (FDI), he stressed the importance of innovation, digital transformation, and partnership in tapping free trade agreements.

Singaporean investors were informed that Vietnam is undertaking measures for the economic recovery with set targets for 2022 including 7% growth rate, inflation being tamed below 5%, and stable macroeconomics. It also targets GDP growth rate at 6.5%-7% and digital economy accounting for 20% of GDP by 2025.

Overview of the Vietnam-Singapore Business Dialogue on Feb 25. Photo: VNA