Investment landscape in Vietnam evolving in favor of Singaporean interests
Singaporean Businesses Embrace Digitalization, Sustainability, and Diversification in Vietnam
In the face of global trade uncertainties, particularly US tariff policies and supply chain risks, Singaporean businesses operating in Vietnam are focusing on digital connectivity, green transition, and supply chain resilience as key strategies.
The launch of the Vietnam–Singapore B2B e-commerce platform (vietnamsgp.arobid.com) is a prime example of this shift. Integrating AI and big data, the platform streamlines cross-border trade, enabling faster, smarter, and greener transactions. By enhancing digital connectivity and facilitating direct business matchmaking between Vietnamese and Singaporean firms, it helps mitigate risks of supply chain disruptions [1].
Investment in digital infrastructure is another significant trend. The new Vietnam-Singapore Terrestrial Network (VSTN), a 3,900-km land cable directly linking Vietnam to Singapore, strengthens Vietnam’s telecom resilience and data center capacity. This terrestrial cable provides a high-capacity alternative to undersea routes, reducing vulnerability to disruptions and supporting digital businesses in both countries, thereby enhancing supply chain and communication reliability [2].
Singaporean firms are also adopting advanced technologies in key sectors. For instance, M1, a Singaporean telecommunications company, is partnering with Vietnamese telecommunications groups to deploy 5G in critical sectors such as maritime operations, which is crucial for improving logistics and supply chain efficiency amid shifting manufacturing bases towards Vietnam due to US-China trade tensions and tariffs [5].
Trade promotion and market diversification are other key strategies. Singapore organizes trade events to support Vietnamese exporters in accessing new markets, especially in agricultural sectors. This fosters bilateral trade ties and helps companies reduce dependency on any one market by tapping into Singapore’s extensive network [3][4].
The evolution of US tariffs has catalysed a deeper transformation in investor behaviour, shifting from a China+1 strategy to a broader investment reconfiguration aimed at hedging geopolitical risk while securing long-term competitiveness. Singaporean investors remain committed to Vietnam, but are building resilience and agility into their investment strategies [6].
Key trends also include a rising interest in environmentally, socially, and governance-compliant industrial parks and zones. Flexible commercial structuring and planning strategies are being used to anticipate and mitigate policy shifts. Deal teams may request specific representations, warranties, and indemnities tied to origin declarations, and customs audits [7].
In conclusion, Singaporean businesses in Vietnam are leveraging innovations such as AI, big data, 3D virtual exhibitions, and 5G technology to enhance trade efficiency, market access, and operational capabilities. By jointly advancing sustainable and digital economic development with Vietnamese partners, they aim to navigate the uncertainties caused by US tariff policies and mitigate risks in supply chains by enhancing connectivity, resilience, and operational agility.
In the pursuit of bolstering connectivity and supply chain resilience, Singaporean businesses are integrating technology such as AI and big data into digital platforms like the Vietnam–Singapore B2B e-commerce platform, promoting greener and smarter transactions. Additionally, Singaporean firms are adopting advanced technologies, like 5G, particularly in sectors like maritime operations, to enhance operational efficiency and logistics amid trade tensions.
