A glove production line for exports to South Korea and Singapore at ACE Glove Trading Company in Ninh Binh Province. Bilateral trade between Viet Nam and Singapore topped $14 billion for the first time in 2013. — VNA/VNS Photo Trong Dat

SINGAPORE (Biz Hub) — Potential investors should consider Viet Nam as an investment destination, particularly in manufacturing operations, said Ahmad Md Magad, Group Managing Director of II-VI Singapore Pte Ltd.

In an interview with the Vietnam News Agency's Singapore-based reporter on the sidelines of the "Doing Business in Viet Nam" seminar, held by the Singapore Manufacturing Federation and sponsored by Sembcorp, Ahmad said the legal framework of doing business in Viet Nam has improved over the years.

The law has become more and more flexible and seems to be quite friendly. Combined with a vast market and the ASEAN economic framework, which will come into effect in 2015, it will provide very good opportunities to potential investors, he said.

Addressing the seminar, Daniel Pok, Investment Promotion Manager of Sembcorp Parks Management Pte Ltd, affirmed that Viet Nam is the next investment destination.

Sembcorp is one of Singapore biggest investors in Viet Nam with five Viet Nam-Singapore Industrial Parks (VSIP) located in the Bac Ninh, Hai Phong, Quang Ngai and Binh Duong provinces. It has about 500 tenants, including 56 Singaporeans, and employs more than 100,000 Vietnamese workers.

Low Beng Tin, Vice President and Chairman of ASEAN Regional Business Group of Singapore Manufacturing Federation (SMF), said that "the long-term outlook is good" for doing business in Viet Nam and "we have joint ventures with Vietnamese companies and they are good now."

He affirmed that the SMF will provide businesses with information to enter Viet Nam easily, and will organise a seminar for the said purpose.

According to Low Beng Tin, the seminar will help SMF members understand about doing business in Viet Nam, the Singapore Government's scheme to help local businessmen invest in other countries, taxation and the business law of Viet Nam.

Vietnamese Ambassador to Singapore Tran Hai Hau said that about 80 businessmen are taking part in the event and that in the medium – to long-term, Viet Nam has great potential for economic growth.

"We will do our utmost to ensure a competitive and transparent business environment, to create more favourable conditions for Singaporean enterprises," he stated.

In 2013, Singapore continued to be the third largest trading partner of Viet Nam in ASEAN, and invested US$4.2 billion. With the total registered FDI from Singapore to Viet Nam reaching $29.3 billion, Singapore is Viet Nam 's second largest investor.

The bilateral trade between Viet Nam and Singapore for the first time exceeded the threshold of $14 billion in 2013, up 11 per cent over the previous year, said Nguyen Viet Chi, Viet Nam's Commercial Counsellor in Singapore.

She expressed the hope that the figure will increase between 10 and 15 per cent this year. — VNS