Singapore - Viettonkin

In a landscape characterized by shifting investment transitions and global economic adjustments, the choice to invest in Singapore as an alternative to China has gained substantial momentum. Investors are drawn to Singapore's compelling attributes, from its unwavering economic stability to its pivotal role in global finance. This strategic shift unfolds against the backdrop of an evolving global market, where investing in China and investing in Singapore have become pivotal considerations. In this article, we explore the dynamic forces driving this investment transition, shedding light on key sectors and considerations that investors are navigating.

Why Investors Are Choosing Singapore

Economic and Political Stability

Singapore's economic and political stability shines on the global stage, as evidenced by its remarkable performance in various indices. In the GlobalData Country Risk Index Q2 2022, Singapore secured a remarkable third place among 152 nations, underlining its exceptional resilience and reliability. Moreover, in 2021, the Heritage Foundation's Index of Economic Freedom ranked Singapore as the world's freest economy, a testament to its transparent and free-market ethos. The World Bank's Doing Business report further recognized Singapore as the second most pro-business regime globally. Despite its modest domestic market and the absence of natural resources, Singapore has consistently demonstrated its economic prowess. Additionally, the nation's exceptional "Political Stability and Absence of Violence" is affirmed by the World Bank's Worldwide Governance Indicators, positioning Singapore in the top 10th percentile globally. With no foreign debt, high government revenue, and a consistently positive surplus, Singapore presents an attractive destination for investors seeking long-term stability.

Access to Global Markets

Singapore's strategic location in the heart of Asia offers investors unparalleled access to global markets. The city-state's port, one of the busiest in the world, manages about one-fifth of the world's shipping, facilitating seamless trade. Additionally, Singapore's Changi International Airport consistently ranks among the world's top three airports, enhancing international connectivity. Its close relationship with ASEAN countries, including Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos, and Vietnam, ensures access to free trade under the ASEAN Free Trade Agreement. These factors position Singapore as an international gateway, propelling businesses toward a broader global reach.

Business-Friendly Policies

Singapore's commitment to a conducive business environment is underscored by its impressive rankings in various global indicators. Known for having one of the most competitive tax environments in the Asia-Pacific region, Singapore has entered into agreements related to the avoidance of double taxation, including both comprehensive and limited agreements, alongside arrangements for the exchange of information with approximately 100 different jurisdictions, reducing tax complexities for investors. Singapore consistently secures the top spot in the World Bank's Ease of Doing Business Index, offering a welcoming atmosphere for businesses of all sizes. It excels in "protecting investors" and "trading across borders," further enhancing the appeal of its business-friendly policies. With a strong emphasis on fostering entrepreneurship and providing comprehensive support to businesses, Singapore continues to attract investments that thrive in its pro-business climate.

Key Sectors Attracting Investment

Manufacturing Industry

The manufacturing sector stands as Singapore's largest industry, playing a crucial role in contributing to the country's annual GDP, accounting for more than 20%. Singapore's manufacturing industry boasts diverse key clusters, including electronics, chemicals, biomedical sciences, logistics, and transport engineering. According to Statista, Singapore's manufacturing output in 2021 reached its highest point in a decade, despite the persistent challenges posed by the COVID-19 pandemic. At the beginning of 2022, Singapore unveiled its “Manufacturing 2030” initiative, aiming to achieve a 50 percent expansion of the manufacturing sector by the year 2030.

Key Sectors Attracting Investment in Singapore — The manufacturing sector plays a crucial role in contributing to Singapore's annual GDP. Source: Statista

Financial Services Landscape

The finance and insurance sector constitutes a substantial portion of the country's nominal gross value added. As a key driver of the nation's economic progress, Singapore's banking system is well-regarded for its security, stability, and confidentiality, making it an appealing choice for numerous international clients. This sector comprises both domestic and foreign banks, all subject to regulatory oversight by the Monetary Authority of Singapore. The domestic banking landscape has undergone substantial changes, including the merger of six local banking entities into three major domestic banks. DBS Group, United Overseas Bank (UOB), and OCBC Group, the three leading banks, have become integral to Singapore's economy due to their robust financial standing and global influence. Foreign banks, primarily wholesale banks, play a significant role within the sector, with a total of 127 such institutions.

Additional Emerging Industries

Apart from the prominent sectors, Singapore's economy is witnessing the rapid growth of various emerging industries. The country's significant contributions come from sectors such as medical technology, aerospace engineering, clean energy, healthcare, and content development. These industries showcase Singapore's commitment to fostering a diverse and thriving economic landscape, presenting an array of investment opportunities for both domestic and international investors.

Challenges and Considerations for Investing in Singapore

Navigating the Regulatory Landscape

While Singapore offers a business-friendly environment, it's essential for investors to understand and navigate the regulatory considerations. Compliance with local laws and regulations is imperative. Singapore maintains strict regulations to ensure ethical business practices, protect investors, and maintain its transparent financial system. This may require additional resources and expertise, but it's a crucial aspect to thrive in Singapore's marketplace. Seeking legal counsel and expert advice can facilitate smoother compliance and help businesses flourish in this well-regulated landscape.

Talent Acquisition and Workforce Development

Building a skilled workforce in Singapore is a priority for investors. The nation's growing industries require a constant influx of talent to meet the demands of a dynamic market. Challenges and opportunities in talent acquisition exist simultaneously. Singapore's educational institutions produce a stream of highly skilled graduates, but competition for the best talent can be fierce. To address this, investors should establish robust talent acquisition strategies, potentially partnering with local educational institutions to tap into the emerging workforce. Additionally, the Singapore government offers various initiatives and grants to support skills development and workforce training, making it beneficial for investors to explore these resources to nurture and sustain a skilled workforce.

In conclusion, Singapore shines as a prime alternative for investment transition from China. The nation's unwavering economic and political stability positions it as a reliable and resilient destination for those seeking to invest. Its favorable location and access to global markets, along with business-friendly policies, offer an attractive environment for investors. Nevertheless, prudent consideration of the regulatory landscape and talent acquisition remains crucial. As you weigh the opportunities and challenges presented by this investment transition, we encourage you to explore Viettonkin's expert guidance, tailored to facilitate your strategic investments in Singapore's dynamic and ever-evolving financial and investment landscape.

Remote Working in Singapore - As companies begin to focus on recovering from the pandemic, uncertainty circumstances, however there is one thing to be clear, remote working is still here to stay. Most businesses will not return to the old orders of crowded offices and face-to-face meetings, or it might be happening again but not anytime soon. Furthermore, companies that were ‘remote-friendly’ before or during the crisis may be about to shift to being ‘remote-first.’

Thus, this article will give you information about remote working and the tips to build safe remote-first companies in Singapore, especially the year of 2021. Let’s keep reading!

Overview of Remote-first Company

Remote-first is a strategy that makes working remotely the primary option for most or all employees. In addition, remote-first means that few people (if any) regularly require to perform their jobs from a centralized office. The employees can work from another location, such as a home office or co-working space.

This might be not a brand new approach, but remote-first began receiving a lot more attention because of the COVID-19 pandemic, which forced many companies to adapt their business operations to start working from home.

In a remote-first workplace, working outside of a main workspace or corporate office is the default mode of working rather than an exceptional occasional practice. Nonetheless, it makes things different from a remote-friendly company.

In a remote-friendly company, it enables some employees to work outside the office for various reasons, but it still conducts most of its daily operations in person. A remote-friendly company might allow employees to work remotely a certain number of days a week, or hire remote staff for specific job roles, but this is not the company's primary mode of working.

For instance, in a remote-friendly environment, a person working from home one day per week might join a conference room where most of the other employees are meeting face-to-face.

Conversely, remote-first companies operate a physical workplace of some kind, which is available to employees who need or prefer a traditional office space rather than a home. The majority of people in a remote team work most often from home or another location outside the corporate offices.

These remote-first companies culture establish remote work as the norm rather than something approved for only in certain circumstances. The number of companies that plan to become remote-first on a permanent basis are growing, because they realize the benefits of shifting to a work-from-home model during the COVID-19 crisis.

Tips to Build a Safe Culture of Remote Working in Singapore 2021

Tips to Build a Safe Remote first Company in Singapore

There are some tips to create a safe remote-first company in Singapore, especially the year of 2021. The tips indeed ensure the remote-first transition is seamless for everyone involved in the company. Thus, these are the tips for you to understand:

1. Do Your Homework

It might be a little complicated to switch from in-office to remote-first work, but it is possible to do. Therefore, you must have a solid game plan for how to transition your company to remote-first life. It includes all the details about how and when you plan to make this happen.

If your rent prices push you out of your office lease and you know you would not renew it, then you need to have a firm starting date for your official remote transition. You will also want to have a list of what each employee needs to do their job effectively out of the office.

You also need to consider things, such as “will you be providing employees with a remote work setup? Like a computer, internet stipend, and office chair?”

However, this is the time to start researching tools the most successful remote companies use for your teams as well.

2. Do Invest In The Right Remote Work Tools and Software

Communication and project tools may seem like an added cost, but they are worth the investment. They ensure that everyone on your team knows what is going on and can easily reach out to each other if something comes up.

Communication tools like Slack, Twist and Help Scout make great choices for staying in touch with remote team members and customers alike.

Project management tools like Trello, Basecamp and Asana also help show your team what is going on and when milestones or projects are due, which keeps everyone in the loop and accountable.

In addition, you can be more open to try out a few options to see which are really worth the investment and which are wasting money.

3. Don’t Rework Your Company Policy; Have a Remote Working Policy in Place

You should create a remote working policy, before you make the transition. This document outlines your policies, sets expectations, and creates a standard of fairness that everyone must comply.

It will give your team a sneak-peek into what they can expect once you turn remote-first. They need to use the list of all tools, such as Slack or Trello, so they know exactly how to manage their projects and stay in touch despite working remotely.

It is great for helping people see that the transition will not be so alarming, especially since there is a plan in place.

4. Don’t Keep It a Secret Until The Last Minute

Once you have the details worked out, the formalities taken care of and have a remote working policies in place, you should tell your employees that the company is planning to be a remote-first.

Though, keep it in mind that remote work might not be for everyone. You will likely find that some team members may not want to switch to this way of working.

If you wait until the transition is started, then someone decides to back out, you will be left contending to hire someone last-minute while you go through the turmoil of transitioning. It will be going to stress you out towards the situation.

Hence, you must give your team a heads up by holding a meeting to address your plan, what everyone can expect, and how this would affect them moving forward. Let your team know that they should think about whether this is a good fit for them or not. Lastly, encourage them to let you know if it is not as soon as possible.

5. Do Consider Hiring Remote Employees for Remote Working in Singapore

You should examine to hire people who have experience in the virtual workplace and actually prefer remote working. As they would not need to go through a transition, and they might help guide your in-office team members on their remote-first journey.

Additionally, post your job advertisement on We Work Remotely, and you will have applicants from all over the world with the skills and experience you are looking for.

These tips are important for those who are in transition from an in-office company into the remote-first company. Since the idea might be a little shocking for most of your employees, but this actually might be working best for your employees and your company. In conclusion, despite the hassle, you would want to consider the tips to build a safe remote-first company in Singapore in the year of 2021.

As we already knew that Singapore is a very attractive place for entrepreneurs to set up a business. Despite the low tax rates and the ease of doing business, there is another important factor that attracts entrepreneurs from around the world to the country is the multiplicity of financing sources for companies, such as startups. If you are keen to know how to get and utilize the business grant in Singapore, let’s keep reading until its end. This article will introduce you to the government sources of funding for companies like startups.

Guide to Business Grant in Singapore

If you decide to incorporate your startup in Singapore, the government offers several attractive grants and funding schemes that help grow a business through its various early stages. In addition to the government support, there are many angel investing networks, venture capital firms, private equity firms, startup incubators and accelerator programs that assist entrepreneurs in raising capital.

The government agencies in Singapore will provide the following cash grants and equity financing schemes to local startups in the country. The startups are eligible for these grants and schemes on the basis of qualifying criteria that is set by the government. This is the government agency will offer you a business grant:

Startup SG

The Standards, Productivity and Innovation Board Spring (SPRING) has strengthened its previous startup assistance schemes under one program, which is now called Startup SG. The goal of Startup SG is to accommodate Singapore-based startups with access to funding sources and mentorship programs and help turn innovative business ideas into thriving companies.

Under Startup SG, qualifying startups can access cash grants, equity financing and business loans. The following provides an overview of the funding programs offered by Startup SG:

Startup SG Equity

It is an investment fund managed by SPRING Seed Capital and SGInnovate. Under the Startup SG Equity scheme, the Singapore government will co-invest with 11 private investment partners in startups which require significant capital expenditure and may take longer to be commercially feasible.

For startups that are improving existing technologies, the Singapore government will provide 70% of the funding in an initial investment round of S$250K. Thereafter, the Singapore government will invest S$1 for every S$1 invested by private investors up to a cap of S$2 million.

For startups classified as “deep tech”, the Singapore government will provide 70% of the funding in the initial round investment of S$500K. After that, the Singapore government will invest S$1 for every S$1 invested by private investors up to an investment cap of S$4 million.

The Singapore government defines deep tech companies as developing products based on scientific or technological breakthroughs that are unique, comprehend and hard to reproduce. Generally, the technology a deep tech startup is developing the result of years of research and lab testing, and also requires a longer period to reach market viability.

The startups must meet the requirements that Startup SG has been set. These are:

Be a Singapore-based company
The core operations of the company must take place in Singapore
Be incorporated as a private limited company for fewer than 5 years
Have paid-up capital of at least S$50.000
Be able to prove substantial innovative and intellectual property
Have high-growth potential with clear ability to scale in the international market
Have identified an independent third-party investor
The business must not be involved in gambling, tobacco-related products, or any other activities which are in violation of the law, or against public interest
The company cannot be a subsidiary of joint-venture.

Startup SG Tech

This grant offers project funding for local Singapore companies to develop breakthrough technology that can rattle current markets or create new markets. The companies will receive funding for both Proof-of-Concept (POC) and Proof-of-Viability (POV) projects. POC projects are designed to test the technical and scientific viability of the new technology and can receive funding of up to S$250.000. Meanwhile, the POV projects are for testing the commercial viability of a lab-proven technology that can receive up to S$500.000 in funding.

Moreover, the qualifications for the companies to obtain the Startup SG Tech grants are:

The company must register as a Singapore company less than 5 years old.
The company must operate in Singapore
The company must have at least 30% local shareholding
Annual revenue must be less than S$100 million or the company must employ fewer than 200 people.

Startup SG Founder

The scheme is for new entrepreneurs with innovative businesses. Startup SG Founder provides up to S$30.000 by matching S$3 every S$1 raised by the startup. In addition, entrepreneurs receive mentorship and business guidance from Singapore-based incubators. The program is open to Singapore citizens and permanent residents.

How To Apply for Business Grant from Startup SG?

Applying for a business grant is relatively easy as long as you prepare the important documents. Furthermore, these following documents that you need to submit for first level assessment:

Business plan
Financial statements or management accounts
Background of potential co-investor (if available)

You need to submit the documents above along with a two page executive summary providing the following details:

Company profile

Provide details on existing products or services, traction achieved, and management profile.

Proposed Product or Solution and its Distinct Advantage

Explain the needs or problems of the market which need to solve. Also, describe the novelty and merits.

Technology or Innovation to Develop (if applicable)

Describe the technology involved, stage of its development, potential hurdles in the development and prospective partners, if any.

Business Roadmap

Describe the go-to-market strategy, revenue model and scalability.

Competitive Landscape

Describe potential or existing competitors and your edge over the competition.

Use of Funds

Provide details on estimated fund requirement and allocation along with information on any existing or potential investors.

If your application is successful for a shortlist (both POC and POV), the Enterprise Singapore will invite and you need to present your proposals for a final evaluation panel comprising industry experts. The decision of the evaluation panel is final. If you want to know more information related to this, you can visit Startup SG website.

Now, you know how to utilize the business grant in Singapore, starting from the overview of the business grant in Singapore, the types of the business grant, to the steps to apply it. The business grant information above is necessary for startup founders. In conclusion, preparation is the key for a successful application, just keep it mind that you need to equip yourself with a complete document before submitting it!

The small city-state of Singapore rose to the top of the World Bank’s best places to do business and also became the most business-friendly economy in the world. Singapore’s regulatory environment is highly beneficial for entrepreneurs. It is no wonder to us if many foreign investors like venturing into the country. However, there are things that you should do’s or don'ts when setting up a business in Singapore. Thus, this article will provide information about how to start a business in Singapore: do’s and don’ts. Let’s find out!

READ MORE: Viettonkin Consulting Global Business Registration service to help you start a business in Singapore

How to Start a Business in Singapore?

All types of businesses in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA). These business activities may refer to carry out on a continual basis for gaining a purpose, including web-based business and home-based business.

But, before registering your business, there are some considerations that you will need to decide. What are these? Let’s check them out!

Business Structure

The first important step is to choose a business structure based on your considerations, regarding capital, number of owners and risks. If you are the only person running a business, you can register as a sole proprietorship, which has less administrative requirements and requires less management.

If you want to form a business firm with one or more partners, you can register as a partnership, because a partnership does not have to file its accounts or have them audited. The next choice is an LLP, which your partners and you wish to limit your liabilities by not being personally liable for partnership’s debts.

Lastly, if you intend to expand your business and would like to raise your capital easier in the future, you can incorporate a Singapore company. This would be a separate legal entity which would allow you to limit your liabilities.

Business Name

The second step is to decide on a business name. You should do research on Google to find out if your proposed name has already been used by a currently registered business, or if it is extremely similar to the name of an existing business. In addition, you should run your proposed business name through the entity search function on the BizFile+ website, which is ACRA’s online filling and information retrieval system.

Registered a Business Address

The last step is to have a business address. If you do not intend to rent any office space, you can consider registering your home address as your business address under the Home office Scheme. This is a residential scheme by the Housing and Development Board (HDB), and the Urban Redevelopment Authority (URA), which allows you to run an approved small-scale registered business from your home address.

Register a Business in Singapore

You need to submit an online application via the BizFile+ website to register your business.The application itself will take about 15 minutes to complete. However, certain types of business require approval from certain regulatory authorities before registering it, for instance, architecture, real estate, and defence businesses.

Additionally, the regulatory authority may only get involved in approving your registration after it has been submitted to ACRA. Getting the approval may require an additional 14 working days to 2 months.

When the period of registration has expired, you need to renew your registration. There is a renewal fee of $30 for 1 year or $90 for 3 years. Unless you have incorporated a company, then it will not expire.

After that, you also need to register online with the Accounting and Corporate Regulatory Authority, where a name search can be conducted and filling for the company incorporation and tax number (GST) can be completed. A company seal and registration for Work Injury Compensation Insurance at an insurance agency should be completed too.

Nonetheless, the process of doing business in Singapore should be unhurried and based on your personal development, rather than the facts and figures of corporate life. In the end, Singapore draws influences from both East and West, which can make it a centre of cultural values.

What Should You Not Do When You Start a Business in Singapore?

The journey to start a business can be a little daunting and risky. It is inevitable to commit mistakes when setting up a business. However there are errors that you can avoid before starting your business, so that you can do it carefully!

Late Renewal or Failure to Renew Business

You can get the penalty up to $250 if you are late for renewal. Additionally, for a sole proprietorship or partnerships, the registration will expire once it has expired and was not renewed. However, the business name remains registered until the registration is cancelled. If you keep carrying on a business, after its registration has expired, it will be liable upon conviction to a fine of up to $10.000 or a term of imprisonment up to 2 years or both.

Small Networking Won't Help You on How To Start a Business

Growing a network is the essential thing to do because your network will determine the net worth of your business. The wider your network is, and the deeper your engagement with them, the more ammunition you have to succeed in your business.

According to Li Ka-shing, Hong Kong business magnate, an aspiring entrepreneur should be prepared to dedicate one-fifth of their time to network. This includes building relationships and establishing contacts at conferences, fairs and events. You may taste success in your business with proper follow-up and sincerity in friendship. After all, people would depend on other people that they can count on, to do the business.

Focusing on a Niche Market

Targeting a niche and small segment of the market is a crucial risk, and your business may not be taking off because it failed to connect with the more consumers. A sizable market allows room to be flexible with ideas and experimentation.

A good example to demonstrate the significance of market size is the success of instagram. At first, it had failed because it was pitched as a way to check-in at various locations and only appealed to a small market. Then, after restructuring itself as a photo-sharing app, Instagram has landed a huge market demand, and until today, we cannot live without Instagram.

Expecting Immediate Profit

It has been long said that an entrepreneur should not expect profits for at least 2 years from the time of incorporation. In this growing and learning phase, the entrepreneur should have enough financial backup to support the daily needs, as well as liquidity for spending on the business. Once you accept this fact, you should stay afloat and avoid getting disappointed in not gaining profits in less than 2 years.

Multi-tasking All by Oneself

An entrepreneur will need assistance in many fields, such as taxes, legal and compliance, bookkeeping, accounting, and so on. If entrepreneurs try to handle something in which they are incapable, then they may commit mistakes that are difficult to fix. Therefore, it is advised to take assistance from the most reliable expertise in the area.

Setting up a business in Singapore may be relatively easy, if you know the drill and avoid the errors from day one. In order to have a successful business, you have to be well-prepared. In conclusion, if you are still unsure about how to start a business in Singapore, you can contact us below. Viettonkin will always be ready to assist you anytime!

As we have already known, Singapore is having a good reputation for economic growth in Southeast Asia, and even around the world. Thus, many foreign companies would like to enter the market there. One of the strategies that can be done is through Mergers and Acquisitions (M&A). In this article, we will introduce you to a guide for M&A in Singapore, so you will know the useful tool for corporations to venture the business internationally. Let’s find out!

Overview of Mergers and Acquisitions by Value and Industries

Since 1985, more than 16.139 M&A transactions have been announced with a value of almost 849.67 billion USD, and it is over 925 deals with a total value of more than 78 billion.

In January 2018, there were 54 transactions with a value of 2.30 billion USD which represented the highest number of deals in March 2011 with 103 announced deals and a value of 3.75 billion USD.

In the year of 2019, M&A in Singapore was entering a healthy phase, even though there was a lower level of deal activity compared to 2018 and 2017. The Singapore M&A market registered 630 deals, valued at a total of USD72.4 billion in November 2019.

The industry with the largest M&A activity in terms of transaction value has been in the financial sector. It represented 16.8% of all deals with a total value of 753 billion USD. The second largest industry by value is the materials sector with 558 billion USD worth of transactions. The industrial industry reached the third rank with 527 billion USD.

M&A Activity and Trend in Singapore

Mergers and Acquisitions situation in Singapore

Singapore’s M&A activity in 2019 has a total of approximately 35.3 billion USD, with a total deal count of 134, which was up approximately 125.6% from a year ago.

At the beginning of 2020, an unexpected challenge due to COVID-19 outbreak. The global markets have plunged, heavy losses on Wall Street as the outbreak triggered a sharp global economic downturn. However, the stock market in Singapore has fallen to a ten-year low as of mid-March 2020, following the global rout that saw the US stock market recording their biggest one-day loss since the 1987 market crash.

M&A trends in Singapore saw significant private equity and venture capital deal activity in 2019 increased. Additionally, the technology remained the most active sector in 2019. Singapore’s start-up ecosystem is now flourishing with over 220 venture capital deals per year that is worth close to 4.2 billion USD. Singapore’s Finance Minister stated in the 2019 Budget Speech, there were more than 150 global venture capital funds, incubators, and accelerators that are based in Singapore.

The private equity and venture capital funding that has fueled M&A activity in the SEA region is expected to continue growing.

The Mergers and Acquisitions Scheme in Singapore

The M&A scheme offers benefits for companies that acquire shares in a target company. The scheme is also applicable to Singapore registered companies that acquire the ordinary shares to a target company, either directly or through wholly-owned subsidiaries.

According to M&A scheme, the government will grant the following benefits to an acquiring company, such as, an M&A allowance, which is calculated on the total cost of the acquisition of shares in the target company, second is a stamp duty relief, and the last is Double Tax Deduction (DTD) on the transaction cost.

The M&A allowance is a tax allowance granted to the acquiring company for each year of assessment (YA). Furthermore, the allowance granted is equal to 25% of the total acquisition value for each YA, with a purchase consideration cap fixed at $40 million.

Meanwhile, the stamp duty relief covered at $80.000 for each financial year, and the DTD on transaction costs which earned during the share acquisition process. These transaction costs include legal fees, professional fees, valuation fees, and so on. For this deduction, the cap on the transaction cost is $100.000.

Mergers and Acquisitions Structure and Regulation in Singapore

This part is about the acquisitions of owned companies that are structured in Singapore’s jurisdiction. However, the acquisition of shares or the business and assets or privately owned company is affected by the sale and purchase agreement between the relevant parties.

Acquisitions may also be structured as put-and-call arrangements, but are less common. The acquisition of privately-owned companies can also be structured by way of a contractual offer, which is followed by a scheme of arrangement under section 210 of the Companies Act or the statutory amalgamation procedures under section 215A of the Companies Act.

Furthermore, the transaction process depends on the complexity of the issues, the type of your business, the number of parties involved, and whether the transaction involves a bilateral negotiation or formal auction sale process. The parties will typically enter into a confidentiality or non-disclosure agreement at the outset of the acquisition transaction.

The laws regulate the acquisition in which parties are generally free to negotiate the terms and conditions of the sale and purchase agreement for private M&A transactions. In doing so, they would need to take into account the Companies Act that is applicable for all companies incorporated, registered or carrying on business in Singapore.

The other statutes and regulations may be applicable or relevant to private M&A transactions, including those relating to the transfer of employees, data protection, ownership and transfer of real estate and competition. If the buyer of the seller is a company listed on the Singapore Exchange Limited (SGX), the SGX’s listing rules will also be applicable in relation to the acquisitions and disposals.

Moreover, parties are free to decide on the governing law of the transaction documents. Most transaction documents for the sale of Singapore companies are governed by Singapore law. The legal formalities and procedures are also for the transfer of shares, liabilities, business or assets that are subject to Singapore law.

With these interesting M&A activities, schemes and regulation, many foreign companies decided to expand their businesses in the country through acquisitions. In conclusion, there are guides for you if you wish to do M&A in Singapore one day. However, if you are unsure or need assistance, you can contact us below. Viettonkin will always be ready to help you!

Singapore has become a major trading and financial hub. It also has the infrastructure and expertise that Chinese corporates need to access other ASEAN markets. The country has a stable tax, legal and regulatory systems, business-friendly environment that will make it easier to do business there. With all these topnotch infrastructure and services, Singapore offers an excellent base to expand to the rest of ASEAN markets. This article will give you information about how Singapore became a trade and logistic hub, also the opportunities for ASEAM traders. Let’s find out!

Overview of Singapore as a Trade and Logistic Hub

The location of Singapore in the major East and West shipping lanes coverage was equaling $5 trillion, and it also makes the country one of Asia’s largest trading hubs. The country’s central role in ASEAN and economic partnership with China is becoming a strong point of commercial activity there and making it an effective springboard for regional opportunities.

The Minister for Trade and Industry, Mr S Iswaran has an opinion that eight out of ten of the world’s leading commodities trading companies have a presence in Singapore, and the government will also continue to strengthen the ecosystem to maintain its status as a leading centre for commodities.

In addition, Changi Airport has been addressed as the world’s best airport by travellers for the third year in a row, based on the 2015 World Airport Awards. Port of Singapore Authority (PSA) is also considered as the world’s second-busiest port in the globe, and it means trading with the country for both small and large business investments is going well.

The rise of Singapore as a commodity trading hub is well known amongst ASEAN countries, it has also been responsible for the generation of demand for the professionals from this domain. As it continues to attract professionals from all walks of life, the commodity traders find it easy to recruit highly qualified English-speaking professionals.

Furthermore, Singapore has kept its doors open to trade, and it has allowed it to draw considerable foreign direct investment (FDI), and become one of the top countries in the world for FDI. For instance, back in 2018, it attracted around USD77 billion investments, and it was more than 53% of the USD145 billion that has flown into Asia.

As the third-largest foreign exchange market, Singapore offers the best US dollar liquidity in Asia. It comes handy to the commodity players in the value chain, such as the large miners to the independent brokers and traders who chose to open a company in Singapore at the right time.

In 2015, Singapore was ranked at the top in the Ease of Doing Business, because Singapore has political stability and makes the country a high-value place of doing businesses. In addition, its ability to retain AAA credit rating in the global economy is appreciated. The rating is important for volume traders because it brings the cost of inventory down.

A large number of traders in Singapore is playing a vital role in the demand and supply chain. It also drives the costs of commodities down and increases the supply. Eventually, it gives them better security and provides opportunities.

The Opportunities for ASEAN Traders

Singapore trading hub is the leader in all major commodity sectors. Moreover, Singapore ranked 4th largest trading hub in the energy sector, also ranked 2nd largest trading hub in the metals sector and lastly has ranked 2nd largest trading hub in the agriculture sector.

Singapore’s effort to be the great traders doesn't stop there, and the country has established itself as a reputable global trading hub with a significant number of key international players who have set up the base. Not only that, the government aims to create a supportive environment that will enhance Singapore’s position as a global trading hub.

The International Trading Institute is working together with the Singapore Management and Industry Partners to offer a business degree specialised in international commodity trading. The International Trader Development Fund offers to fund the course fees for companies to send their employees to the ITI for professional education courses. The Trader Development also aims at developing talent in the trading sector.

There is an exclusive event in Singapore that happens every two years in order to boost economic growth in the trading industry. It’s The Global Trader Summit (GTP), where the top business leaders in the trading industry are invited to discuss major trends and fundamental issues in order to shape the future global trading markets.

The GTP aims to achieve its objective by allowing companies who are part of its programme, to benefit from a 10% concessionary tax rate on their qualifying trade income for a five-year renewable period. During this period, the companies can establish their regional or global trading network with Singapore as their base. Once they are able to demonstrate sustainable growth projections that are in line with GTP’s requirements, they can apply for the 5-year renewable GTP scheme.

For all these years, the seaport has been a key role in the Singaporean economy. The government has the policy to maintain low import tariffs for the port’s revenues, technological progress, and dynamically growing trade with China, Hong Kong, Indonesia, Japan, South Korea, and Malaysia.

Furthermore, this small city-state has been consistently implementing the free trade’s policy and discovers it as an opportunity for further development of Asia's economies.

One of the reasons why ASEAN countries want to venture business in Singapore is its high-end manufacturing with the latest technologies, including semiconductors and consumer electronics, as well as machinery, transport equipment and ships.

The Singaporean government also pays attention to give more funds that are allocated in other sectors, such as aviation and aeronautics, precision engineering and life sciences, biotechnology, medical equipment and pharmaceuticals. Moreover, the government is committed to investing in infrastructure projects and new industrial parks.

There are a lot of opportunities for ASEAN traders to have a business in Singapore, as the government itself has poured investments to keep the sectors growing. In conclusion, the trade and logistic sector will be key to support the long-term economy of Singapore!

It’s been 9 months since Singapore’s first COVID-19 case, and the economy starts to show signs of a slow recovery. The businesses are now re-opening and people are adjusting to the new normal as the Circuit Breaker restrictions ease quite a while ago. The COVID-19 has caused dire economic consequences, but it also shines a spotlight on the digital economy. It’s also great to see how consumers and businesses have adapted to the pandemic. Thus, the article provides you information about the trend of the tech industry in Singapore after the pandemic!

Tech Industry Trend After COVID-19

The importance of digital transformation has been in the limelight for many years, and also one of the key priorities of the Singapore government. Many businesses across the country have been adopting tech and benefiting from its power to resolve key challenges and unlock new growth opportunities.

The impact of tech adoption on business has been more apparent now. However, when the circuit breaker measures had to curb the spread of COVID-19, it was heavily reliant on digital tech, from collaboration platforms to cloud-based services and cybersecurity solutions. Eventually, it became the lifeline of all businesses in the industry sector.

There are some of the tech industry trends that may continue to accelerate Singapore’s economic growth in the post-COVID-19 situation!

1. E-commerce and on-demand food & services tech

The popularity of e-commerce has been flourishing recently, and it’s even against conventional shopping. People also get used to consuming more goods and services online, especially in the on-demand space.

The consumers who have traditionally purchased groceries at the supermarket are trying out grocery deliveries, as well as dine-in or takeout meals at the restaurant are transforming into the delivery right to your doorstep. For instance, Grab, Deliveroo and FoodPanda are doing contactless delivery in 60 mins or even less.

Not only that, recent innovation such as telemedicine, consulting with your doctor through an app is also gaining popularity.

These services initially step out of convenience as they have evolved into almost a necessity for urbanites during the pandemic. Moreover, merchants who are reluctant to jump on the technological bandwagon, and still preferred to rely on their in-store sales are eventually being forced to adapt, or they will face zero revenue as there is no other alternative.

In the post pandemic, there is a possibility that merchants may realize having an online business will not cannibalize their offline business, but it can continue to help as an additional source of revenue for their business.

2. Digital Contactless Payment

During the pandemic, we are worried that everything can carry the virus, including cash money. Thus, central banks in China, the US, South Korea, and Singapore have implemented various measures to ensure banknotes are clean before going into circulation.

However, it may not be the most effective solution, but another recommendation payment method to avoid the spread of COVID-19 is through contactless digital payments, either in the form of cards or e-wallets.

In order to accelerate digital transformation and boost e-payment during the outbreak, the Singapore government is also choosing the nationwide e-payment service called Paynow. It’s preferably mode to distribute its stimulus package to eligible citizens, and have seen a sharp increase of more than 50.000 businesses adopting Paynow Corporate since this April.

3. Remote Working and Home-based Learning

As companies ask employees to work from home and governments shut schools and move into home-based learning during the pandemic, there are some technologies that support these activities. Starting from virtual private networks (VPNs), voice over internet protocols (VoIP), virtual meetings, cloud technology, work collaboration tools, to facial recognition technologies.

However, existing web conferencing systems such as Microsoft Teams and Cisco Webex gained traction, but a relatively unknown player in the pre-pandemic period like Zoom has suddenly become popular in 2020. Zoom has been used across industries for holding classes, webinars, meetings, and even large-scale events, and it leads a share price from $68.72 in January to $204.15 just six months later.

To support this long-term remote work trend and to bolster its enterprise offerings is telecommunications giant Verizon which was announced in April 2020 on its $400 million acquisition of video conferencing service and Zoom competitor, BlueJeans.

4. Robotics and Drones

Somehow COVID-19 makes the world realize how heavily we rely on human interaction to make things work. The businesses such as retail, F&B, manufacturing and logistics which rely heavily on labour, are the worst hit. In recent times, robots have been used to disinfect areas and deliver food to those in quarantine.

Singapore is also increasingly turning to robots, drones, and machines to address labour shortages and to lower costs. For example, Singapore Technologies Aerospace (ST Aerospace) is deploying drones as robotic guards in simulated security attacks. During a recent trial, a black ST Aeroplane drone followed a role-playing intruder, transmitting live images back to a command centre enabling security officers to be directed to the breach.

However, this could mean that while new jobs will be created in the process, many blue-collar workers could be replaced in the near future and policies must be here to provide sufficient training, also social welfare to the labour force for embracing the change.

5. Information and Communications Technology (ICT)

The high speed and affordable internet 5G network technology is acknowledged as the future of communication for the entire mobile industry. It provides super-fast download and upload speeds as well as a more stable connection.

In addition, one of the applications of the Internet of Things (IoT) will enable us to predict and treat health issues in people even before symptoms appear through various IoT devices. In 2019, there were about 26 billion IoT devices and it’s estimated the number will increase to 75.44 billion in 2025, with 15 IoT devices per person in the US by 2030.

Many companies have already embarked on their digital transformation journey or working on one, but some of the companies are not far enough to fight the COVID-19. The COVID-19 situation seems to be a wake-up call for the companies’ management to recognize how important the digital transformation is.

In conclusion, the tech will continue to take the lead even after the COVID-19, you and your business should adapt to that. As today, we live in the digital era and cannot be denied if almost everything is connected to the internet. Also, digital technologies are dissolving the boundaries between industry sectors.

Located at the heart of Asia, Singapore serves the fast-growing markets for the Asia-Pacific region, and as well as the rest of the world. It also offers world-class connectivity and well-developed infrastructure which enables easy access to global markets. No surprise to us, many foreign entrepreneurs have an eye to invest in. But, what are other essential things that you will get there? Thus, this article will provide you information about the considerations for expanding the business to the country!

Why Do Business in Singapore?

Singapore has a strong position as Asia’s risk management centre. Its global currency and derivative trading hub could enable international investors and traders to manage their investment, as well as trading portfolios efficiently from a single location. However, it makes Singapore consistently ranked as the world’s most active trading centre, besides London, New York, and Tokyo.

There are also some big industries in Singapore, and foreign entrepreneurs are interested in the country. The industries are financial services, electronics, chemicals, oil drilling equipment, petroleum refining, ship repair, tourism, manufacturing, and forth.

Based on the World Bank’s Doing Business Ranking 2020, Singapore has ranked second in Asia on a ranking of the simplest place doing business. In addition, Singapore has made dealing with construction permits to enhance its risk-based approach, to improve public access, and to streamline the process to obtain a construction permit.

Over the years, Singapore is well known as the world’s most business-friendly country. However, its economic freedom score is 89.4, making it the world’s freest economy in the 2020 Economic Freedom Index. The Singaporean government has also poured a budget to fund generous housing, transport, and healthcare programs.

Doing business in Singapore can save your money, as the costs of office rental here remain significantly lower than the rival financial centres, such as London, New York, Hong Kong, and Tokyo. In CBRE’s 2019 Global Prime Office Occupancy Costs, Singapore came on 14th places of the most expensive locations globally, but it’s much far behind Hong Kong Central (1st), London West End (2nd), Hong Kong Kowloon (3rd), New York Midtown Manhattan (4th), Tokyo Marunouchi / Otemachi (8th), and London City (9th).

Last but not least, Singaporean labor is more skillful and educated, especially in the IT industry and financial services industry. Singapore also has a globally competitive workforce, and it’s a plus point for foreign investors to expand the businesses there.

Essential Things You Should Know Before Expanding The Business There

Singaporean entrepreneurs have a desire to expand their businesses abroad, in order to do so they need to gain access to a larger consumer market. It means an increment in the overall revenue of the company is needed. Hence, there are many plus points that can be derived from international company expansion.

There are essential things that you should pay attention, before expanding your business to Singapore. And, they are:

1. The Easiness of Company Incorporation

As mentioned above, Singapore is an easy place to conduct a business by registering and incorporating a company there. As long as you have all necessary requirements, you can submit the application, and your company is eventually established in a suitable way. Both local and foreign entrepreneurs can be legally permitted to set up a company in the country.

The first step of processing to set up a foreign company is creating a representative office. An authorized representative office will assist a business owner with market research, compliance, and pricing schemes.

However, foreigners entering Singapore for business purposes have three options in which they can use to establish a business. They can set up a subsidiary company, set up a branch, or incorporate it with a local company to facilitate their business activities. This depends on your business needs.

2. Singapore’s Outstanding Tax System

Taxes are quite an interesting topic for any entrepreneur, and one of the key considerations for setting up a business in Singapore, or even anywhere in the world. One of Singapore’s unique advantages is its low effective personal and corporate tax rates. Personal income tax has a tier system that starts from 9% and goes up to 22% for income above S$320.000.

Then as well, corporate tax rate is capped at a flat rate of 17% on a company’s chargeable income. There are no capital gains taxes in Singapore, which follows a single-tier tax policy for income that has been taxed at the corporate level, but dividends can be distributed to its shareholders tax-free.

The government itself has adopted a more broad-based consumption tax called Goods and Service Tax (GST) in order to be a dependency on income taxes to make the country’s economy more competitive. In addition, Singapore maintains one of the world’s lowest GST rates at currently 7%, ranking below the global average VAT/GST rate of 16.4%, and the Asia-Pacific average of 10.5%.

3. Flexible Immigration Policies

Singapore has an open immigration policy that facilitates the relocation of foreign nationals for those who want to set up business there. If you are an entrepreneur who wants to expand or run your business there, the government has prepared for your needs and made appropriate Singapore work visa provisions.

In order to help value-adding individuals settle permanently, Singapore has a flexible immigration policy, making it easier for foreign business owners to gain Singapore Permanent Residence (PR) status.

4. Trade Agreements

Singapore is part of many trade agreements that have been offered to facilitate business activity across the country. The first trade agreement whichever included Singapore was regarding the ASEAN Free Trade Area (AFTA).

The trade agreement first came into force in 1993, and until today, Singapore becomes a part of a great many trade agreements with countries all over the world. The country also continues to be involved in trade agreement negotiations with other countries.

Singapore’s many free trade agreements facilitate the conduction of business and trade activities with other countries. Thus, it’s allowing foreign businesses to be able to expand business operations to Singapore.

In conclusion, many foreign investors definitely have an eye on Singapore as an emerging market to expand their businesses. All these reasons can convince foreign investors to invest and open a business in Singapore. Furthermore, the investors have to prepare everything before venturing into the country, such as prepare the related documents in advance as well as be aware of all the regulations. If you need help to expand your business, you can contact us below. Viettonkin will always be here to assist you anytime!

Vietnam has long become an emerging economy in Southeast Asia, since a lot of improvements and achievements in diplomatic relations in integration policies. Moreover, Vietnam’s economic performance is strong and stable over the years, and it has been an attractive magnet for Singaporean investors. Furthermore, Singapore's business community has listed Vietnam as its top market of interest, and Singapore is investing there for various sectors, from manufacturing, real estate, energy, retail and construction, arts, tourism, and entertainment. But, you may be curious about the most popular Vietnam FDI sectors in Vietnam that Singapore would want to venture into. This article provides you the information about the most popular FDI trends in Vietnam. Let’s keep reading!

Overview of Vietnam FDI Sectors

Since the beginning of this year, the total FDI capital poured into Vietnam accounted for 84.5% of that in the same period last year. However, foreseeable investment inflows to Vietnam will be affected due to COVID-19, but high economic growth will provide a buffer for the country.

According to Nguyen Bich Lam, general director of the General Statistics Office (GSO), Vietnam is in a favourable position to attract more foreign investments, including the relocation plans of foreign investments in China to evade the US-China trade war and many free trade agreements (FTA) that Vietnam has signed.

In January this year, there is $5.3 billion of FDI landed in Vietnam, a surge of 179.5% year-on-year. It is an opportunity to attract foreign investors to invest in Vietnam even during this pandemic, also to continue improving the investment and business environment, amending policies and strategies to attract the quality of foreign investments.

Moreover, investors have poured money into 18 fields and sectors, such as manufacturing and processing with a capital of nearly US$6 billion, accounting for 48.4% of the registered tally. The electricity production and supply came second with US$3.9 billion, or 31.9% of the total, followed by wholesale and retail with US$776 million, real estate with US$665 million. The data shows that out of 93 countries and territories investing in Vietnam in the first months of 2020, Singapore took the lead with US$5.07 billion.

This year, the praises have showered on Vietnam as it is successful in fighting against the pandemic. As a result, it has created a positive influence on foreign investors’ decisions.

A report of VNDirect Securities released recently cited that foreign sources show that Google and Microsoft are relocating some production lines from China to Vietnam. For instance, the two giant technology firms are considering selling Pixel4A, Pixel5, and Surface computers in Vietnam.

No surprise to us, Vietnam’s technology sector has been gaining power recently as the country is now moving from low-tech manufacturing to a service-oriented economy. But, what are the technology sectors that Singaporean investors have an eye to invest in? Let’s take a look closer!

The Popular Technology Sectors in Vietnam That Singaporean Investors Venture Into

When it comes to investing in Vietnam, foreign investors will have drastic growth due to Vietnam’s recent adoption of Industry 4.0 across every industry. Furthermore, the Vietnamese government also prioritizes advanced technology projects of the trend 4.0 revolution, projects with modern management, and the connection between production chains and global supply.

This year The Politburo of Vietnam issued Resolution No. 50-NQ / TW on the orientation to attract FDI in the future and also paying special attention to attract FDI projects that consisted of advanced and high technology.

Additionally, the technology sectors in Vietnam are mostly funded by foreign investors, with projects focused on building electronic components. Data has shown, more than 86% of total Information Technology (IT) revenues came from hardware in 2017.

Recently, Samsung from South Korea has decided to set up an R&D center and eight factories in Vietnam and Intel Corporation has also built a testing facility and assembly companies in Ho Chi Minh City.

There are the top three technology sectors that have great potential for Singaporean investors to venture into Vietnam. Let’s take a look!

1. E-commerce

Based on the Vietnam E-Commerce Association (VECOM), the e-commerce sector is forecasted to reach a value of $23 billion in 2025. VECOM also reported that Vietnam’s e-commerce market grew at an average annual rate of 30% from 2015 to 2019.

Most of Vietnam’s e-commerce activities are in Hanoi and Ho Chi Minh City. The sales contribute to 70% of the country’s total e-commerce sales. The internet economy in Vietnam has brought more than US$1 billion in funding in the past four years.

The other reason that Singaporean investors should invest in this sector is that 30% of Vietnamese will shop online, and with a current population of 96 million people, the rapid increasing number of smartphones and internet users will make the country become a successful e-commerce business.

2. Fintech

Vietnam’s fintech industry gained pace in 2019. Also, in 2019, Vietnam ranked second in ASEAN in terms of fintech funding with 36%, second only to Singapore with 56%. The sharp increase in funding was attributed to two large deals going to payment companies VNPay with US$300 million and MoMo with US$500 million.

Furthermore, there are at least 120 fintech-related companies in Vietnam, starting from digital payment until wealth management, blockchain, and cryptocurrency.

Over 66% of Vietnamese fintech companies are involved in digital payment services via online payment apps, and they have taken over 87% of the fintech market share.

The State Bank of Vietnam (SBV) issued licenses to 27 intermediary payment service providers, and most of them are e-wallet service providers. These signs that digital payment fintech companies are on the rise.

3. Education Technology

In 2018, Vietnam gained investments worth US$55 million for Vietnam’s Education Technology (Edtech). It’s because the Edtech Centers are able to build a gap between traditional education environments and learning needs which is inspired by the private sector.

Most recently, a Hong Kong-based equity firm has poured US$4 million to a Vietnamese startup called Everest Education. Organizations like Everest Education offer tech-enabled personal learning through a network of centers and partner schools.

There are other successful Edtech firms in Vietnam, such as Violet.vn, Hocmai.vn, and Topical. It is surely an enticement to attract foreign investors from Singapore for venturing into Edtech in Vietnam.

The popular FDI sectors in Vietnam have long been attractive for Singaporean investors, and yet they are promising to be successful in the future. In conclusion, Vietnam’s technology sectors are expected to remain intact growing approximately 30% a year. That means, there are a lot of opportunities for Singaporean investors to expand their businesses in the country!

Vietnam has become an emerging economy in Southeast Asia with a lot of improvements and achievements in diplomatic relations and integration policies. Not only that, many foreign investors, especially Singapore are interested in investing in Vietnam for various sectors, from manufacturing, real estate, energy, retail and construction, arts, tourism, and entertainment. But, what happens after the COVID-19 hits the global economy? However, FDI could play an important role in supporting economies during a hard time, but there might be some changes. Thus, the article provides you with information about the FDI trend between Vietnam and Singapore in times of COVID-19!

Overview of FDI Between Both Countries From Q1 2020 Until Now

Vietnam has long been appreciated for its safety, political, and economic stability in the business environment. It is indeed strengthened when Vietnam is becoming one of the few countries in the world that won the COVID-19 battle by recovering the production and business activities.

These actions in maintaining economic activities during a hard time will significantly improve its reputation in the eyes of foreign investors, especially Singaporean investors.

Back in January 2020, Vietnam raised the foreign ownership cap in domestic airlines, and it gained the assumption that the firm's benefit from start-up registration which was expanded access to credit legal protection has compensated for the additional costs. However, the benefits of the ease of start-up regulation in Vietnam added the value of the firms increased by 20% on average.

Also this year, Singapore leads with total investment capital of 6.77 billion USD, accounting for 32% of total investment capital in Vietnam. The number has beaten other countries, such as South Korea with total investment capital of 3.17 billion USD, and China with a total registered investment capital of 1.87 billion USD.

There were some major deals in the first six months, including e-commerce Tiki which raised $130 million from a group of investors led by Singapore-based equity fund Northstar Group.

Then, in September 2020, Vietnam and Singapore have some major projects together, for instance, Bac Lieu Liquefied Natural Gas (LNG) Power Plant Project under LNG Bac Lieu Thermal Power Center (Singapore), with registered investment capital of 4 billion USD. It has a purpose to produce electricity from liquefied natural gas LNG. The other office project at 29 Lieu Giai (Singapore) adjusted to increase investment capital by an additional 246 million USD.

Based on the fact that Singapore and Vietnam projects have been going well, thus the Ministry of Planning and Investment has organized online investment promotion conferences to attract more foreign investors to invest in Vietnam.

Due to the pandemic, Vietnam still continues to restrict the entry of all foreigners, except the diplomats, high-skilled workers, and investors with very strict health protocols.

Guidance for FDI Investors to Cope with COVID-19’s Impact

From October 8, 2020 Singapore has lifted the border restrictions on visitors from Vietnam, it means there won’t be an obstacle for Vietnamese investors to expand the markets in the country. As well as, the visitors who only want to spend their time there.

However, there is a regulation that Vietnamese visitors need to pay attention to when entering Singapore. The Singaporean authorities said that Vietnamese visitors that come to Singapore from October 8, 2020 will have to submit an online application for entry approval from at least 7 ro 30 days before the entry date.

They also are required to undergo the Covid-19 test upon arrival and install the Covid-19 tracing application in their mobile devices. If the test result is negative, the visitors are free to travel within Singapore. Otherwise, visitors have to be treated in Singapore and bear all the medical expenses.

According to the President of The Singapore Manufacturing Federation (SMF), Douglas Foo stated that Singaporean firms have high expectations for Vietnam’s business environment because Vietnam is currently home to over 32.000 projects worth US$381 billion from 137 countries and territories, in which Singapore is Vietnam’s third largest investor with US$55 billion in investment capital.

The investment cooperation between Vietnam and Singapore would complement each other and serve mutual benefits. Furthermore, the majority of Singaporean first in Vietnam are large-scale, and the opportunities remain abundant for those of small and medium enterprises. Hence, the FDI projects between both countries in the times of COVID-19 are still big and even have more chances to be even greater.

What does The Future Hold for Both Countries Next Year?

As we know that Vietnam and Singapore’s investments are complementary to each other. Also, Vietnam has been seen as a rising star for high technology and it attracts Singaporean investment in the near future.

The Vietnamese government would encourage Singapore’s investment in fields of hi-tech, manufacturing, supporting industries, high quality services, privatization of state firms, as well as setting up innovation and R&D centers.

Singapore also has advantages in finance, knowledge, and technologies, at this point Vietnam could support this expertise with a large market, land and human resources. As a result, Singapore will innovate in the manufacturing sector in Vietnam and internationally as well.

Based on the Singapore Business Federation for HSBC survey, there are 1036 companies interested in overseas expansion. 86% of them are SMEs which are defined with an annual turnover of S$100 million or less than 200 workers. 76% already have operations in Vietnam and 30% of them expected to expand their businesses in Vietnam in the next two years.

Vietnam’s growing consumer market and the investment climate are the key drivers for future inbound investment. Still, on the survey, 81% of respondents are planning to invest or expand in Vietnam, since it cited a potential consumer demand. Meanwhile, 75% highlighted the overall investment climate and 63% pointed to business costs.

Singaporean corporations recognized Vietnam’s growing consumer market, and they are now looking to double down on Vietnam’s demographic dividend. Beyond the consumer market, Vietnam’s manufacturing is strong too, and today it is entering into the higher-end space.

No surprise, if Vietnam has been acknowledged as a top destination for investment in the next 12 months because 55% of investors have already selected Vietnam as their first priority, and followed by Indonesia which gained 42%.

In conclusion, there was a hard time for the global economy, but both Vietnam and Singapore can gradually resume their economic activities. Their investments are complementary to each other, and inspire other countries to invest or expand the businesses internationally.