Singaporeans Embarking on New Ventures
In mid-July, a significant transaction worth $381.4 million took place in Vietnam’s healthcare market. Singaporean healthcare group Thomson Medical Group (TMG) acquired Far East Medical Vietnam Ltd., including FV Hospital and a network of clinics, expanding TMG’s presence in Southeast Asia. Kiat Lim, executive vice-chairman of TMG, expressed excitement about Vietnam’s growing private healthcare market, driven by foreign investment, a rising middle class, and the country’s path towards becoming a high-income nation by 2045.
Singaporean companies are increasingly targeting Vietnam’s thriving healthcare market, fueled by a growing middle class, an aging population, and an expanding expatriate community. In another development, biopharmaceutical company SciGen partnered with DKSH to supply the cancer drug Zometa to the Vietnamese market, emphasizing their commitment to enhancing access to healthcare in Vietnam.
Doctor Anywhere Singapore, a leading telemedicine company in ASEAN, has been actively creating a comprehensive healthcare ecosystem in Vietnam. With millions of users across Southeast Asia, they plan to establish a chain of clinics in Vietnam. The interest of Singaporean companies in expanding into Vietnam remains strong, particularly in sectors such as manufacturing, infrastructure, wholesale and retail trade, and property.
The Singapore Business Federation (SBF) highlighted Vietnam as one of the top three countries for overseas expansion by Singaporean companies in the short term. Sectors of interest include manufacturing, infrastructure, and wholesale and retail trade. Notable partnerships, such as the collaboration between YCH Group and T&T Group to develop a smart logistics connectivity infrastructure project in Vinh Phuc province, demonstrate the growing investment in Vietnam’s manufacturing supply chain.
The Singapore Regional Business Forum further strengthened the trend of Singaporean investment in Vietnam, with multiple Memoranda of Understanding (MoUs) signed between the two countries in technology, banking and finance, and manufacturing. The focus on digital and green economy partnerships highlights the potential for collaboration to address international and regional interests.
Despite the thriving partnership between Vietnam and Singapore over the past 50 years, concerns remain regarding the upcoming global minimum tax regime. Singaporean companies urge the Vietnamese government to adopt a consultative approach to retain competitiveness and attract foreign investments. By improving the business environment and the quality of the workforce, Vietnam can sustain its appeal as an investment destination. Edwin Tan, deputy CEO at Frasers Property Vietnam, expressed confidence that foreign investments will continue to thrive in Vietnam as long as supportive policies and clarity are maintained.