Vietnam can attract investment as ASEAN gateway: UOB

Victor Ngo, CEO of UOB Vietnam, shared these comments in his welcoming speech to 600 guests, including experts, business leaders, trade partners from Southeast Asia, Hong Kong (China), mainland China, and representatives of Vietnamese agencies, at the annual regional conference "Gateway to ASEAN," organized by UOB in Ho Chi Minh City on Sept. 6.

Victor Ngo, CEO of UOB Vietnam. Photo courtesy of UOB

This is the first time this regional conference has taken place in Vietnam, after Singapore and Indonesia. This once again affirms the importance and position of Vietnam in Southeast Asia.

Vietnam's FDI attraction

Vietnam has attracted foreign investment in many fields, with processing and manufacturing being the main factors, accounting for more than 72% of FDI registered in 2023.

In 2023, Vietnam witnessed a sudden increase in FDI, with a total registered capital of about US$36.6 billion, the second highest in history, almost equal to the record of $38 billion in 2019.

Vietnam received $13 billion in the first 7 months this year.

For many years, HCMC has been leading in attracting foreign investment in the country.

Speaking at the conference, Chairman of HCMC People's Committee Phan Van Mai said that the city has contributed 16% of the country's GDP, 26% of the national budget.

The city's unique and outstanding policy mechanism is a condition to attract strategic investors in the fields of IT, biotechnology, automation, semiconductor integrated circuits, component manufacturing, electronic microcircuits, chips, batteries, and clean energy, Mai said.

"Ho Chi Minh City brings together the essence of many other cities; it is open-minded, hospitable, and a livable place where investors can place their trust. Their success is also the government's and people's success," he added.

Chairman of the Ho Chi Minh City People's Committee Phan Van Mai speaking at the event on Sept. 6, 2024. Photo courtesy of UOB

Ngo said that UOB can play a role as a catalyst and supporter of Vietnam's FDI attraction.

Thanks to its extensive regional network and connections with government agencies, investors, and partner ecosystems, the bank is well-positioned to support businesses in Vietnam in particular and ASEAN in general.

"I believe we are the right partner and connector for successful entry into Vietnam and expansion into ASEAN through Vietnam," Ngo added.

The rise of ASEAN

Not only Vietnam as a bright spot, the ASEAN region also affirms its important position in the global economic picture, along with a series of positive future forecasts, according to experts and business leaders at the conference.

The region has many advantages, such as a large population, a young workforce, and a growing middle class.

Wee Ee Cheong, Deputy Chairman and CEO of UOB (Singapore), pointed out three factors that power the continued growth of the region: government policies to facilitate cross-border business activities; the trend of decentralizing supply chains to promote trade activities; and industries promoting the green economy.

Wee Ee Cheong, Deputy Chairman and CEO of UOB (Singapore), at the conference. Photo courtesy of UOB

Cheong explained that with the motto of focusing on ASEAN and contributing to economic development and sustainable growth here, UOB supports customers to meet the financial needs of the entire supply chain.

On the other hand, the bank also helps businesses take advantage of cross-border capital flows to seize opportunities and deploy sustainable initiatives towards the goal of decarbonization.

The bank established the Foreign Direct Investment Advisory Center in 2011 to support businesses in the region.

Over the past 10 years, more than 4,500 companies have used UOB's FDI advisory services to expand their operations internationally, especially into ASEAN.

In Vietnam, over the past 5 years, the bank has supported more than 300 international companies to penetrate the market.

"These businesses have committed to invest SGD7.3 billion (US$5.6 billion) and plan to create jobs for more than 50,000 workers here," Cheong added.

Before closing the conference, domestic and international businesses participated in three simultaneous discussion sessions, revolving around the topics "Growing in ASEAN through Vietnam", "Innovation with sustainability" and "Managing supply chain showcase."