Strengthening relations with Singapore is set to have a positive effect on the investment and business environment of Vietnam.
Over the past year, Vietnam has become an attractive destination for foreign firms seeking to start production in the country, and this positive change is set to continue. It has also turned into a hub for foreign electronics manufacturing projects.
The year 2023 marks two key milestones for Singapore and Vietnam, as it is the 50th year since the establishment of its diplomatic relations and the 10th year of the establishment of the strategic partnership between the two countries. Bilateral trade stands at US$23b in 2022, whilst Singapore has become Vietnam's second-largest cumulative foreign investor, with around US$70.8b invested in around 3,097 projects as of 20 December 2022.
Foreign companies that have ventured into Vietnam include Samsung, which opened a new R&D Center in Hanoi, and the Lego Group, which signed with VSIP to build a new factory in the region. Meanwhile, Apple is also working towards moving MacBook production to the country amidst tensions between Washington and Beijing.
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