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EMBARGOED UNTIL 27 SEPTEMBER 2011, 8.30 SINGAPORE TIME MTI MEDIA RELEASE SINGAPORE-VIETNAM ECONOMIC TIES STRENGTHENING AS BILATERAL BUSINESS LINKAGES GROW Private sector companies between Singapore and Vietnam to conduct a feasibility study for potential new Industrial Park Singapore and Vietnam are reaffirming their commitment to strengthen bilateral business links at a dialogue and dinner event this evening, and tomorrow, companies from the two countries will sign a Memoradum of Understanding (MOU) to conduct a feasibility study for a potential new Vietnam-Singapore Industrial Park. The Singapore-Vietnam Business Dialogue and Dinner will be hosted by Minister for Trade and Industry Mr Lim Hng Kiang, as part of a state visit by President Truong Tan Sang, the Socialist Republic of Vietnam. More than 100 industry leaders from Singapore and Vietnam, representing sectors such as urban development, banking, information technology and telecommunications and utilities, will be attending the event. Opportunities in Central Vietnam On 28 September 2011, a Memorandum of Understanding (MOU) to embark on a feasibility study to explore a new Vietnam-Singapore Industrial Park (VSIP) in Central Vietnam, will be signed between Singapore and Vietnam private sector players. There are currently four VSIPs in Vietnam. The MOU will be witnessed by Singapore Prime Minister Mr Lee Hsien Loong and Vietnam President Sang.

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Strengthening Economic Relations Both Singapore and Vietnam are pleased to note the strengthening bilateral economic relations, underpinned by the Singapore-Vietnam Connectivity Framework1. In the first eight months of 2011, Singapore companies invested US$1.33 billion in 58 new projects in Vietnam. This brings Singapores total investments in Vietnam to US$23.2 billion in 930 projects as of August 2011, making Singapore the third largest foreign investor in Vietnam. Bilateral trade has increased four-fold since 2000 to reach US$10 billion in 2010. Minister Lim noted the growing number of business partnerships forged between Singapore and Vietnam companies. He said: The thriving business linkages are testament to the strong synergies between Singapore and Vietnam. Both countries will mutually benefit from the expanding bilateral economic trade and investments. As a fast-growing economy with a rising middle-income group, Vietnam offers considerable opportunities for Singapore companies with a range of competencies in areas such as urban development, healthcare and finance. Singapore Investments in Vietnam Singapore companies have established a strong presence in southern Vietnam since initial ventures the 1990s. This was marked by the establishment of the first VSIP in Binh Duong in 1996, a joint venture between SembCorp Industrial Parks and its Vietnamese partner, Becamex IDC. Over the years, with long-term confidence in Vietnams economy and its development potential, Singapore companies have ventured into the northern and central parts of Vietnam.

Please see more information on Singapore-Vietnam Connectivity Framework and the bilateral economic relations at Appendix 1

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Today, Singapore companies are present in various locations across Vietnam, and in diverse industry sectors ranging from industrial park and township developments, port management, to the provision of financial and lifestyle services.

27 SEPTEMBER 2011 MINISTRY OF TRADE AND INDUSTRY

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APPENDIX 1 About the Singapore-Vietnam Connectivity Framework Established in December 2005, the Singapore-Vietnam Connectivity Framework is the key platform for economic cooperation between Singapore and Vietnam. The co-chairs of the framework are Minister for Trade and Industry Mr Lim Hng Kiang, and then-Vietnamese Minister of Planning and Investment, His Excellency Vo Hong Phuc. Held regularly on an eightmonthly basis, the Connectivity meetings aimed to review the progress of the six sectors of cooperation under the framework, namely, education and training, finance, information technology and telecommunications, investment, trade and services, and transportation. Since its implementation in early 2006, the Connectivity Framework has successfully facilitated several private sector projects into Vietnam, and directly or indirectly contributed to nearly US$14 billion worth of Singapores registered investments into Vietnam. The projects include the development of the Vietnam-Singapore Industrial Parks (VSIP), PSAs joint venture with Saigon Port to build and operate a deep-sea container terminal in the Ba RiaVung Tau province as well as the establishment of branch offices by Singapore banks in Vietnam. The Connectivity Framework has also strengthened public sector cooperation in all six sectors. For example, Singapore agencies have organised a wide range of capacity building programmes for Vietnamese officials in urban development, education and civil aviation, amongst others. The agencies have also facilitated study visits and seminars to share Singapores experience in areas such as ICT regulations, monetary policy and technical education. Singapore-Vietnam Economic Relations Bilateral trade between Singapore and Vietnam has grown steadily in the last decade, and achieved an overall four-fold increase since 2000 to reach US$10 billion in 2010. Singapore was Vietnams fifth largest trading partner in 2009, while Vietnam was Singapores 16th largest trading partner in 2010. Singapore is the third largest investor in Vietnam with a total investment of about US$23.2 billion as of August 2011. Major Singapore companies in Vietnam include Keppel Land, UOL Group, Ascott Group, CapitaLand, SembCorp Industrial Parks, Mapletree Investments, Banyan Tree, Ascendas, NOL Group, Changi Airports International and Thomson Medical Center. . . . . .

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