Vietnam and Singapore enjoy a robust strategic partnership, with Singapore contributing to 18% of Vietnam’s FDI in 2023. More than 3,000 Singaporean firms are investing in vital sectors, and Foxconn is broadening its operations.
Flourishing Strategic Partnership
Vietnam and Singapore have fostered a robust and expanding strategic partnership in trade and investment. This relationship is marked by significant achievements and ongoing cooperation, reflecting mutual benefits and shared goals. Both nations continue to leverage their strengths to enhance economic ties, contributing to notable growth in investment and collaborative ventures.
Impressive Investment Growth
In 2023, Singapore’s contribution to Vietnam’s Foreign Direct Investment (FDI) was substantial, accounting for 18 percent of the total, equating to US$6.9 billion, a 5.4 percent increase year-on-year. By 2024, over 3,000 Singaporean companies had set their sights on Vietnam, establishing the city-state as Vietnam’s largest foreign investor. Singaporean firms have been notably active in sectors such as manufacturing, real estate, retail, and financial services, driving forward the economic synergy between the two countries.
Key Sectors for Singapore’s Investments in Vietnam
Foxconn Singapore, a key player in the electronics manufacturing sector, is making significant strides in Vietnam. The company plans to produce Nokia’s 5G AirScale equipment, including AirScale Massive MIMO radios, at its factory in Bac Giang. Furthermore, Foxconn Singapore has received approval for two projects in Quang Ninh province, valued at US$551 million. These projects will focus on manufacturing smart entertainment products and smart-system equipment, with construction expected to finish by July 2026 and production starting in May 2027.
Vietnam and Singapore have a strong and expanding strategic partnership in trade and investment, defined by substantial achievements and cooperation.
The city-state accounted for 18 percent of total FDI in Vietnam in 2023, amounting to US$6.9 billion, an increase of 5.4 percent year-on-year.
As of 2024, over 3,000 Singaporean companies are investing in Vietnam, making Singapore the largest foreign investor in the country. Singaporean firms have invested significantly in various sectors, including manufacturing, real estate, retail, and financial services.
Critical sectors for Singapore’s investments in Vietnam
Foxconn Singapore, a prominent player in the electronics manufacturing industry, is expanding its operations in Vietnam through significant investments, Foxconn will begin producing Nokia’s 5G AirScale equipment, including AirScale Massive MIMO radios at its factory in Bac Giang, Vietnam.
In addition, Foxconn Singapore has won approval for two projects in Vietnam’s Quang Ninh province valued at US$551 million. The projects will produce smart entertainment products and smart-system equipment, with investments of US$263.7 million and US $287.2 million, respectively. Construction is projected to be complete by July 2026, with production beginning in May 2027.
Read the original article : Singapore’s Growing Investments in Vietnam: Key Sectors
This article was first published by ASEAN Briefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected].
ASEAN Briefing features business news, regulatory updates and extensive data on ASEAN free trade, double tax agreements and foreign direct investment laws in the region. Covering all ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)
Continue Reading