Your Excellency, Nguyen Thien Nhan,

Standing Vice Chairman of The People’s Committee of Ho Chi Minh City,

Your Excellency, Duong Van Quang,

Ambassador of Vietnam to Singapore,

Distinguished Guests,

Ladies and Gentlemen,

Good morning.

Introduction

1               First, let me warmly welcome Vice Chairman Nhan and your delegation to Singapore.  I am also delighted to join you in  witnessing the opening of The Vietnam House in Singapore.

2                I am told that The Vietnam House is the first overseas office of the Investment Trade and Promotion Centre (or ITPC) of Ho Chi Minh City.  We are honoured that the ITPC has chosen Singapore to locate its first centre abroad. My heartiest congratulations to you on The Vietnam House’s opening.

Bilateral Economic Linkages Between Vietnam and Singapore

3               Vietnam and Singapore enjoy good bilateral relations and strong economic linkages. In 2004, our total bilateral trade was S$7.7 billion.  Its value doubled in 5 short years. Singapore is also Vietnam’s top foreign investor, with cumulative contractual investments reaching US$8 billion as at end 2004[1].

4               In recent years, the Vietnamese economy has grown strongly. In 2004, it grew by 7.7%. For 2005, it is expected to grow at an even more robust pace of 8.5%.[2]. Such a growth rate makes Vietnam one of the fastest growing economies in Asia.  With sustained growth, Vietnam’s population of over 80 million is also becoming a significant market in itself. 

5               We in Singapore are optimistic about the economic prospects in Vietnam.  Many Singapore-based companies have increased their investments into your country in recent years to tap on the growing markets created by sustained growth and an improving business environment.  Asia Pacific Breweries, Keppel Land, and SembCorp Industries are some examples of Singapore-based companies which have made substantial investments in Vietnam.  More recently, Tiger Airways has also started flights from Singapore to Hanoi and Ho Chi Minh City.

6               Other companies also show a growing interest.  In a while, Glowtec will be signing an MOU with the Saigon Trading Corporation (or SATRA) to provide waste water treatment facilities in Ho Chi Minh City. SATRA will also become the first tenant in The Vietnam House.  The Glowtec-SATRA partnership shows how companies from both countries can leverage on one other for mutual benefit.

Enhancing Connectivity

7               The setting up of The Vietnam House in Singapore also marks an important milestone in the Vietnam-Singapore Economic Connectivity initiative. This Connectivity initiative was mooted by our then Prime Minister Goh Chok Tong to Prime Minister Phan Van Khai when he visited Singapore in March last year. The initiative envisages a comprehensive partnership that connects production, trade, investment and consumption between Singapore and Vietnam by capitalising on the comparative advantages of each country.

8               Through this connectivity with Singapore, we believe that Vietnam’s growth can be further accelerated.  For example, Vietnam could benefit from tapping on Singapore’s infrastructure, financial expertise, global trading links and tourist hub status to expand the different sectors of its economy.  Singapore will gain from the additional business and market access.  This will be win-win. 

9               The presence of The Vietnam House in Singapore would not only encourage more Vietnamese firms to export and expand internationally through Singapore, it would also attract more Singapore firms to work with Vietnamese businesses on trade and investments.  I hear that The Vietnam House has already signed up two tenants.  This is a good sign. 

10           And The Vietnam House will be in good company.  It will join the growing family of foreign associations and chambers that have established business centres in Singapore under the “IE Hub initiative”.  These include the Berlin-Brandenburg Centre, China Zhejiang Centre, the Japan Business Support Centre and the Singapore China Merchandise Centre. The opening of The  Vietnam House will certainly add to the vibrancy and richness of the international network of business centres in Singapore.

Conclusion

11           On this happy note, I wish The Vietnam House every success.  

Thank you.