Vietnam and Singapore have a flourishing strategic partnership, with Singapore contributing 18% of Vietnam’s FDI in 2023. Over 3,000 Singaporean firms invest in key sectors, including electronics (Foxconn).
Flourishing Strategic Partnership
Vietnam and Singapore have built a strong strategic partnership in trade and investment, characterized by significant achievements and ongoing cooperation. Their relationship continues to leverage mutual strengths to enhance economic ties, contributing to notable growth in investment and collaborative ventures.
Impressive Investment Growth
In 2023, Singapore accounted for 18% of Vietnam’s Foreign Direct Investment (FDI), equating to US$6.9 billion—a 5.4% year-on-year increase. By 2024, over 3,000 Singaporean companies invested in Vietnam. Significant sectors include manufacturing, real estate, retail, and financial services.
Given Singapore’s strategic vision for leveraging economic opportunities in emerging markets, it is imperative to highlight critical sectors in Vietnam that beckon for investment. One prominent sector is manufacturing and industrials. Vietnam offers a cost-effective labor force and favorable production costs, attracting numerous global manufacturers. Singaporean firms could benefit from setting up factories, engaging in joint ventures, or exploring supply chain integrations.
Another growth area is the digital economy. Vietnam boasts a burgeoning tech-savvy population and a thriving startup ecosystem. Fintech, education technology (EdTech), and e-commerce present lucrative opportunities for Singaporean investors. By fostering bilateral collaboration in digital innovations and platforms, investors can capture market share in Vietnam’s rapidly digitizing economy.
Real estate and infrastructure development are also key sectors drawing substantial interest. With urbanization accelerating, Vietnam requires expansive urban planning, housing projects, and commercial facilities. Singapore’s expertise in property development and urban solutions can offer substantial value, while public-private partnerships can facilitate the planning and execution of infrastructure projects, including roads, ports, and airports.
Renewable energy is another sector with untapped potential. Vietnam’s commitment to reducing carbon emissions bolsters demand for sustainable energy solutions like solar, wind, and hydroelectric power. Singaporean investors who specialize in green technologies can find meaningful projects in Vietnam’s expanding renewable energy landscape.
Healthcare and biotechnology also deserve attention. As Vietnam’s middle class grows, so does the demand for quality healthcare services and pharmaceuticals. Singapore, known for its advanced medical research and biotechnology capabilities, can contribute significantly to Vietnam’s healthcare sector through investments, R&D partnerships, and establishing medical facilities.
Finally, the consumer goods market holds promise. With increasing disposable incomes, Vietnamese consumers are embracing modern retail and lifestyle products. Singaporean companies in food and beverage, fashion, electronics, and personal care can leverage this trend by entering the Vietnamese market through direct investment, franchising, or strategic alliances.
In summary, these pivotal sectors — manufacturing, digital economy, real estate, renewable energy, healthcare, and consumer goods — offer substantial opportunities for Singaporean investors aiming to diversify and expand their portfolios in Vietnam.
Source : Critical Sectors for Singapore’s Investments in Vietnam
