Mr Lim Hng Kiang at the Business Lunch: "Investing in Vietnam"

OPENING REMARKS BY MR LIM HNG KIANG, MINISTER OF TRADE AND INDUSTRY, SINGAPORE AT THE BUSINESS LUNCH, STAMFORD BALLROOM, RAFFLES CITY CONVENTION CENTRE, SINGAPORE ON MONDAY, 13 AUGUST 2007, 1.15PM “INVESTING IN VIETNAM”

Your Excellency, Prime Minister Nguyen Tan Dung,

Your Excellency, Deputy Prime Minister Pham Gia Khiem,

Honorable Ministers from Vietnam,

Distinguished Guests,

Ladies and Gentlemen,

A very good afternoon to all. It is my great pleasure to welcome Prime Minister Dung to Singapore. It is an even greater privilege that Prime Minister Dung is able to join us for lunch despite your very tight schedule and address us on the topic of “Investing in Vietnam”.

As I note from the large turn-out for this lunch today, this is a topic of high interest amongst the Singapore business community. But this comes hardly as a surprise to me. Vietnam’s phenomenal growth story has been a natural magnet for local, regional and international investors. They recognize the tremendous potential in Vietnam.

Vietnam's Economic Stature

In this era of a rapidly changing and dynamic global economy, Prime Minister Dung has demonstrated strong stewardship, driving Vietnam’s economy in the right direction. Under your able leadership, Vietnam’s domestic economy has reached new heights. Vietnam has pressed on with its Doi Moi economic reform programme of transition to a market economy and progressive liberalization of trade and investments. Administrative reforms were implemented and the bureaucracy was streamlined. Several business friendly measures were introduced to enhance Vietnam’s investment climate. For instance, the Unified Enterprise Law and Common Investment Law

[1]

were passed to create a more level playing field for foreign and local investors. To simplify licensing procedures for businesses, a Working Group was set up to oversee these investment and enterprise laws. Investors welcome the steps taken in streamlining administrative processes.

Beyond its domestic achievements, Vietnam is steadily gaining international recognition. It attracted a record level of foreign direct investment of US$10.2 billion in 2006 and is poised to do even better in 2007. It is becoming a destination of choice for international investors from Singapore, Japan, Taiwan, Korea, the EU and the US. Within ASEAN, Vietnam is the fastest growing economy. Vietnam successfully hosted the APEC Summit last year. This year, we welcomed Vietnam to the WTO. The World Bank has summed it up well, and I quote, “Vietnam is one of the best-performing developing economies in the world. It is going through a far-reaching transformation from an inward-looking planned economy to one that is globalized and market-based.”, unquote.

Vietnam-Singapore Partnership

Singapore has been an early partner in Vietnam’s growth story and our two countries enjoy close and warm relations. Singapore is one of Vietnam’s top foreign investors with a cumulative investment currently at US$9.6 billion. Singapore also remains one of Vietnam’s top trading partners, with trade between our two countries growing by 8.6% last year. There has been a sustained increased flow of tourists both ways for some years now. Last year, Vietnamese tourist arrivals into Singapore increased by 9.6% to over 165,000.In December 2005, Singapore and Vietnam brought our relations to a new height by launching the Connectivity Framework Agreement. The Connectivity Framework provides an overarching platform for bilateral economic cooperation in specific areas and allows our two countries to leverage on each other’s strengths and competencies.

Investment Opportunities In Vietnam And Singapore

To our Singapore companies venturing abroad, Vietnam is a priority market. Singapore companies bring with them their international experience and capabilities in many sectors such as urban and industrial infrastructure, port and logistics, manufacturing and services. As Vietnam continues to develop further, Singapore companies can take on even larger and more ambitious projects such as townships and other urban infrastructure type projects.

Together, Singapore and Vietnam offer a unique proposition to investors. We easily complement each other for investments, be it in manufacturing, HQ activities, logistics or R&D.I would like to encourage the Singapore business community to consider this unique complementary proposition in your business strategies. I would also like to welcome the Vietnamese business community to internationalize through Singapore and use Singapore as your hub of operation.

Introducing PM Dung

Today, it is an honor for me to introduce Prime Minister Dung, a seasoned and experienced leader in government, with a distinguished record of over 20 years in politics and government. The Prime Minister rose quickly up the ranks of the provincial and central governments, was appointed Permanent Deputy Prime Minister from 1997 to 2006, and concurrently headed several committees including those dealing with the Reorganization of State-Owned Enterprises and Key National Projects.

We are very honored to have the Prime Minister personally speak to us on business opportunities in Vietnam. Without further ado, please let me welcome Prime Minister Dung to the stage. Prime Minister, please.

[1] The Unified Enterprise Law (UEL) and Common Investment Law (CIL) came into effect on 1 Jul 2006.The UEL specifies the forms of enterprises foreign businesses can establish in Vietnam. CIL and Decree 108 to guide its implementation contain provisions to streamline and liberalize investment procedures, such as the devolution of licensing authority to the provinces.