panning a land area of 500 hectares with full infrastructure facilities and conducive operating environment. VSIP is an excellent investment location for companies that target Viet Nam’s domestic market as well as export market.VSIP is an integrated industrial park in Binh Duong province, strategically located 17km north of Ho Chi Minh City, Vietnam’s main commercial center. This location choice provides investors in VSIP a winning combination of developed infrastructure and competitive cost structure.
Visit this website to get more information about VSIP.
http://www.vsip.com.vn/?id=why_loc
Reflection Questions
1. Why do you think the Vietnam Government invited Singapore to develop this park?
2. Suggests reasons why foreign investors would want to invest in this park.
3. Do you forsee any problems that foreign investors will encounter?
Post your answer in the comment box.
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24 comments:
Q3.
Vietnam Singapore Industrial Park (VSIP) is definitely an excellent investment location for companies as it is in a strategic location and also have a full infrastructure facilities and conducive operating environment.
But there are still problems that investors will encounter.In this globalising world,potential investors will definitely use the Internet and the Industrial Park's website to get more information about it.The problem is that the Chinese language used by the website is Traditional Chinese character and not the simplified Chinese character.This will discourage the China investor as the current Chinese character used by China is the Simplified one and China investor may not understand the Traditional character.This will thus cause the industrial park to lose out as China have a huge market and population.My point is also supported where there is only two China companies in the Industrial Park which is a relative low number compared to other Asian companies.
Name: Chaiyakorn Srisakvarakul
Class: 4 Adventurous
Q1. Why do you think the Vietnam Government invited Singapore to develop this park?
Reasons
1. Famed for being Leading professional developer(Elites) and maximum efficiency, success guaranteed.
2. Singapore is politically, economically stable and transparent, trust guaranteed.
3. Singapore comapany are 100%
globalised with connections, investers, client and consumer worldwide. Foreign Investors attracted guaranteed and hence development is guaranteed.
Let me explain:
1. Famed for being Leading professional developer(Elites) and maximum efficiency, success guaranteed.
Singapore offers one of the most finacial success in the world whenever they are invited to develop a region for countries.
This is seen in the SuZhou Industrial Park. Reported by the Chinese government that JiangSu, where SuZhou Industrial Park is located in, is now "one of the countries wealthiest province".
Although it accounts for only 3% and 4% of Suzhou's land and population respectively, CS-SIP makes up 20% of Suzhou's foreign direct investment and total import/export, and 15% of Suzhou's GDP and financial revenue. Today, CS-SIP is home to more than 50 of the Fortune 500 companies and the average investment of US$31 million per project is the highest in China. This is indeed a commercial success Singapore Chinese Industrial Park holding up only 3% to 4% of SuZhou land but make up 20% of Suzhou's foreign direct investment and total import/export, and 15% of Suzhou's GDP and financial revenue, proving that Singapore is effective in their role of development and hence guaranteed success, earning the confidence of Vietnamese Government.
2. Singapore is politically, economically stable, trust guaranteed.
Certainly, this is a clear reason why Vietnamese Government had chosen Singapore. Singapore dealt gravely with corruption, hence there would hardly be any stagger of development due to corruption.
Singapore is also politically stable and progress driven. This means that the government will most probably not be facing any major change or even if there will be change, it will not disrupt growth on the Industrial Park. As according to Times Online Analysis, Singapore is the 33rd most politically Stable Country in the world. It is also an economically stable being 17th most wealthiest country in the world, certainly a great feat for such small country.
These three factors made Singapore a great choice in being trust guaranteed, that it would be highly unlikely for Singapore to face any major disruption or problems which might arise due to financial, political or corruption crisis in Singapore.
3. Singapore comapany are 100%
globalised with connections, investers, client and consumer worldwide. Foreign Investors attracted guaranteed and hence development is guaranteed.
The fact that Singapore is a trading hub, centre of many Multi-National Companies' Headquaters, meant that by having Singapore invest in Vietnam, every Singapore's connection and associates will be linked to the country Vietnam, inevitably. This would mean that the vicinity around Vietnam Industrial Park will be worth investing to be developed in order to suit the needs of these 'VIPs'. These areas including Healthcare, Securities, Tourism and Acommodations - Basically everything! Primarily, Singapore is fame in being a global trade hub and in bringing Singapore in, Vietnam will get a share of the financial success. Vietnam provide Singapore with the land while Singapore provide Vietnam with growth. These two things are what the 2 countries really need and the exchange is definitely worthwhile benefitting each other.
In conclusion, Singapore was chosen by Vietnam due to its high gauranteed degree of success. In turn, Singapore would regionalise. These 3 factors are of equally importance and attractive for Singapore being chosen by Vietnam. "Dawn does not wake a man twice", Vietnam Seeing Singapore's condition being right, grabbed the opportunity. And so did Singapore.
Adam Smith said that to have growth in economy, all party must worth together to achieve a common interest with each of the interest in each party met, in this scenario, it seemed true.
Dear Mr Teo
Great observation about the website. Maybe you shoudl email to teh VSIP and share with them your observation
Dear Win,
Good research work done. Another question to think about. Are all Singapore firms ready to work in this globalised world? HOw many of them display the traits that you have described? Any examples?
Mama fess
Name: Vanessa (23)
Class: 4 Adventurous
Q2.
As Chong Junn (Mr Teo) had said, VSIP is an excellent investment location as it is strategically positioned and have a full infrastructure facilities and conducive operating environment.
Apart from that, there are still a number of reasons that could attract foreign investors to invest in this park.
First of all, I noticed that most (although not all) of the foreign investors who invest in the park are from developed countries. This is much probably due to lower cost of production in Vietnam compared to their own countries. This lower cost of production could be due to lower tax implied on these industries, and also due to the cheaper but skilled labour available in Vietnam.
Secondly, investors that invest in the park have two choices of what to do with their products. They can easily export it back to their own country or other countries because of the easy access to airports and seaports, or aim the products at local market in Vietnam. They can even do both, whichever way that will enable them to reap the most profit.
Another reason is the guaranteed governmental support given by Vietnam and Singapore governments to VSIP, ensuring that investment procedures in the park will not be made complicated. Looking back at the list of investors, I notice two Indonesian factories listed there. As labour in Indonesia is relatively cheaper than in Vietnam, I do not think that lower cost of production is the reason for this. What occurred to my mind is the long-winded, non-transparent process of setting up factories in Indonesia, which often makes even Indonesians get fed up, never mind foreign investors. That is why I regard simplification of these processes is an attraction factor of foreign investors to the park.
VSIP is also "committed to protect the environment against pollution in the Park", introducing itself as environmentally-friendly. Even if the foreign investors do not really care about the environment themselves, the brand's name will be better in the market if it is produced without polluting the environment.
With relatively low cost of production, easy access to ports, opportunity to approach the local market, simplified set-up process of factories and its profile of being environmentally-friendly, I think VSIP has good enough attration factors for foreign investors to come and invest in the park.
Name:Shabnam
Class: 4 Adventurous
Q1. Why do you think the Vietnam Government invited Singapore to develop this park?
There are many reasons why the Vietnam Government invited Singapore to develop the park. But here are some of them which I believe made the Vietnam Government totally convinced.
Singapore has one of the highest GDP per capita, of $48,000 while the US has GDP per capita of $46,000 and Hong Kong with $42,000.
Singapore also has low tax rates for both corporations and individuals. Thus, it can attract foreign investments and encourage entrepreneurship and business development.
Singapore has a corporate income tax of 18% for both foreign and local investments while China has a tax rate of 25%.
Singapore also has good recruiting staff that attracts many investors. We have a talented workforce that is ranked among the world's best for productivity, work attitude and technical skills. They also speak English proficiently, which is very vital as it is a language recognised globally. Furthermore, there are scholarship programmes that ensures skills are constantly growing and improving in a fast changing ang globalising world.
Singapore also has many connections and links with other business partners across the globe. This would definitely attract investors to invest and develop business and sign agreements with Singapore.
An example of Singapore's effort to stay connected with the rest of the world is Singapore's telecommunication line, SingTel. It is the first in Asia to offer global maritime satellite broadband services. It operates and invests in more than 20 countries around the world.
Singapore also offers an extensive network of Free Trade Agreements, Avoidance of Double Taxation Agreements and Investment Guarantee Agreements. Singapore has comprehensive air, sea and IT infrastructures to provide seamless flow of goods and services to markets around the world.
An example is PSA. It is one of the world's busiest container port with a choice of 200 shipping lines with links to some 600 ports in 123 countries.
Singapore has a broadband network that reaches 99% of the population within Singapore. Free Trade Agreements have been signed with many countries such as Japan, USA, Australia, New Zealand, China, India, Panama and other European Free Trade Associations.
Singapore also scores very high in international and regional rankings. They range from political risk to workforce producivity and from quality of life to the prospects for making profits.
Here are some in which Singapore was consistently ranked as one of the tops.
In 2005, Singapore was ranked most attractive investment place in Asia, while Singapore came 4th globally, with US at the 11th place and Slovak Republic topping the list.
Singapore was the world's second most "network ready" country with US topping the list.
in 2006, Singapore was the most competitive place for business among nine industrialised countries. Singapore got second in place in the world for Investment Potential globally and topped the list in Asia. Singapore is the world's most globalised nations with US coming in 3rd.
With all the titles and recognition Singapore achieved and including the booming industries, Vietnam is bound to invite Singapore to develop the park.
Name: Toh yong qing(39)
Class: 4 Adventurous
Q2)
In my opinion, the reasons why foreign investors would want to invest in Singapore is mainly because of the image of Singapore projected to foreigners. The capability of the Singaporean government to ''do the impossible’’ and the low labour costs of Vietnam.
For many years, the development of Singapore, a tiny dot on the map, with no resources or anything, and yet, the ability to transform from a third world to first world country has amazed many countries. This feat has projected to other countries the capabilities of the Singapore government. Many people look upon Singapore as an amazing country. And for this reason, having any investment in Singapore is as good as saying ‘’guaranteed profits’’. Hence, many foreign investors are vying to invest in the Singapore-Vietnam industrial park. Besides that, Singapore is also known for its transparency. As such, investors are not afraid that their money will be used for ‘’other’’ things. Thirdly, the friendly image of Singapore has also helped attract foreign investors for the Singapore-Vietnam industrial park. For many years, Singapore has been actively involved in helping neighbouring countries in terms of economy and education. This has projected the friendly image of Singapore and this is very important because investors would feel more at ease if their partners are friendly and rather, not those strict and biased type.
When Singapore first gained independence, many countries looked down on Singapore. They were quite firm in their stand that this small little country will not survive. However, Singapore did it. We proved to the world that this small little country has become one of the top countries with GDP being one of the top in the world. Besides that, who would have expected a country with four different races, to bond so well to the extent that the title ‘’multi-racial’’ country would be given to Singapore. All these impossibilities were overcome. This has also reflected the intelligence of the Singapore government. With this, Singapore was able to attract foreign investors for the Singapore-Vietnam industrial park because one of the most important elements in investment is to ensure that the investor have great sights and intelligence.
Finally, the low labour costs of Vietnam have also encouraged people to invest in the industrial park. This would ensure that maximum profits would be given to the investors. This is unlike of many other cities whereby labour costs are high. Although many may argue that china have a lower labour cost than Vietnam, this may not be true as china becomes more developed. According to the Taipei times, the wages of Vietnam is almost 30% cheaper than china. Now, non-Asian countries like the United States and United Kingdom are also starting to invest more in Vietnam.
In this globalising world, costs are of the top importance with efficiency being the next for any investor who wants to invest in any projects. In terms of efficiency, china is comparable to Vietnam. However, in terms of cost efficiency, Vietnam is far ahead of china. The confidence in guaranteed success has also contributed to the attraction of investors for the Singapore-Vietnam industrial park.
Name: Srisakvarakul Chaiyakorn
Class: 4 Adventurous
Q3. Do you forsee any problems that foreign investors will encounter?
Problems:
1. Recent problems surface of Vietnam worker strike due to the low wages Singapore employers offer(Strait Times April 14 article)
2. Corruptions, official taking opportunities to earn some extra cash home due to low wages offer
3. Investing in Vietnam require high start up cost. Many money must be spent on worker trainings and development infrastructures Its land acquisition procedure and Insurance of investment licenses are also lengthy and could be frustrating.
Let me explain:
1. Recent problems surface of Vietnam worker strike due to the low wages Singapore employers offer(Strait Times April 14 article)
An extract from Strait Times Newspaper on April 14:
IN HANOI - SOME 300 workers walked out of a Singapore-managed factory in central Vietnam last week as wildcat strikes continued to spread in the country. They claimed their current wage of US$54 (S$73) a month at the CCI electronics plant was not enough to survive on amid surging inflation.
Due to recent shortages of staple food, oil and many other products, the maintainance of their industries in Vietnam will be more economically demanding. As shown in the recent events, there are high possibilities that investors might pull out. Furthermore, future investors are now discouraged to start their industries in Vietnam due to the current economical crisis. Hence, this inflation problems which made investment in Vietnam to be more demanding could potentially be a problems to these investors in Vietnam.
2. Corruptions, official taking opportunities to earn some extra cash home due to low wages offer
Though Vietnam government are striving hard to bring progress to the country, on the other hand, there are still some shadowy selfish official amidst. Corruption had always been a problem for Vietnam. In 2002, Transparency International, a global counter-corruption watchdog, ranks Vietnam as the second most corrupt country in South-East Asia (after Indonesia), based on a survey of international businessmen. In 2007, from the World Audit Corruption ranking, out of 179 countries, Vietnam scored a ranking of 89, a position considered far too high.
With corruptions through its non-transparent regulations and official management, some investors will be hit by unjust amount of tax on them or reduction of foreign incentives offer by the government, of which some would goes into the pocket of officials themselves. These heavy taxation would post an enormous headache for investors. To get things done, its is common that facilitaion payment or bribe on the official are required. The Vietnamese Government's 2005 Report of the Survey on Corruption in Vietnam reveals that 77% of companies consider corruption to be the most significant socioeconomic problem in Vietnam and that 8% of companies estimate informal payments to officials to amount to 1-10% of total expenditures, certainly a massive sum to pay. Also, its also known that investors often goes for countries which are less corrupt, on this, though Vietnam's government are trying to curb this problems by learning from Singapore, if they do not solve this problem, it will certainly be one big stone that slows down Vietnam growth progress by discouraging investors to invest at the country.
3. Investing in Vietnam require high start up cost. Many money must be spent on worker trainings and development infrastructures Its land acquisition procedure and Insurance of investment licenses are also lengthy and could be frustrating.
The fact that Vietnam is still underdeveloped is undeniable. Though Vietnam worker labour cost are considered low, many training for these fresh new factory workers are still required. These training would drain a formidable amount of precious money and time from the investors, not to mention, the massive expenditure the indutry owner had to pay to rebuild and upgrade Vietnam poor infrastructures to be functional.
Also, setting up business in Vietnam require extreme patients from each investors. With a minimum of 60 days wait, not to mention of any possible problems that might arise from this procedures. The 60 days wait does not include the acquisition of land acquisition procedure and Insurance of investment licenses process which are long, troublesome and frustrating to investors. Moreover, these procedure requires large payment to settle. Hence, I believed that the high start up cost of industry in Vietnam and the lengthy procedure that drain money and time from investor will definitely be a problem to investor in starting up an industry in Vietnam.
Q2
Basically, people invest to make more money,these investors normally come from the developed countries as they have the capital to invest.
The VSIP project is a good investment for foreign investors as first, it is strategically located at north of ho chi minh city, which is vietnam's main commercial center, and also its good infrastructure. 40km (45 mins) from Hanoi International Airport (Noi Bai International Airpor 120km (90 mins) from the Port of Hai Phong. Easy access to National Highways 1A and Provincial Highway 295 .Having a good location is one essential factor that attracts foreign investors to invest in vietnam. It enables goods to be exported and imported efficiently, efficiency increases, income and bussiness also rises, thus they will make money from their investments which is the ultimate aim. Imagine building an industrial park in an isolated place, where it is far away from airport, city area, and roads are small. Goods will not be transported efficiently and communications is poor. This particular industrial park is not globalised enough. Thus, who would still consider to invest if they knew that the park would make a loss.
Secondly, as vietnam is a new rising economic and developing into adeveloped country, moreover, it has big land. Thus labour costs is cheaper and the tax is lower, the amount of money to be invested is also lesser. Hence, this is what that attracts foreign investors. If i were an investor, with such good location, and low cost, i don't mind taking a chance to invest in that particular estate. Besides, it has a higher chance of success than failure due to its rising economic state. If it is a success, both parties will stand to gain; investors make money , country will have a good reputaion and the people's income would increases, then slowly these people would start to invest again in other aspects. Continuous investments will results the country as a growth pole
Lastly, if investors missed this golden opportunity, if the industrial park is a success, the next round of investments would be more costly than the first one as vietnam continues to improve. Why not grab the opportunity.
In conclusion, i am sure people with good foresight can predict the future state of this industrial park and come to a wise decision. Given by the reasons, i am sure this VSIP is a good opportunity for interested investors :)
Q3.
I believe that there are always problems that we encountered in everything we venture, especially investing in a country.This is what potential investors would have to face each time they decide to pump in money in a business.
First of all, the basic principle of a successful firm lies largely on the workers as well.The "attitude" of local workers is very important in ensuring development of a company.As Vietnam is relatively new in this field and being inexperienced, the Vietnamese are going to have a hard time adjusting to the way their employers' expect them to do something.The workers may somewhat does not have the key driving force to work for the benefits of the company.Their mindsets to work are just solely to earn money.While in Singapore, everything is different.The high competitive level in Singapore cause everyone to strive to do their best in order t get promoted, otherwise they may be demoted or retrenched in some cases.They not only want to earn money, but also work for the well-being and interest of the firm.That is what happen in my country, Indonesia, where many workers do not feel the need to treasure their jobs and instead, they go rioting in order to have a rise in salary. I am afraid this one of the inevitable encounter that potential investors may face. However, I believe that this problem can be solved, but it takes time to change as an individual's character and attitude is beyond one's control.
Secondly, there would be communication error between foreign workers and local workers.As most local workers do not speak and write in English, it is hard for them to comprehend each other.An idea being put across may be misinterpreted and hence, a company will g haywire at the instant.That is why there is a need to educate the workers to communicate which incur yet another expenses.Moreover, the way the local workers want things to be done may be completely different from what foreign workers expect.This may cause confusion and conflict might arise.Therefore, it is not easy to build a strong foundation of teamwork and trust.
Name: Amelia Sam (02)
Class: 4 Endeavour
Q2
VSIP is located near Vietnam's main commercial center. This is one of the pulling factors because factories that are manufacturing huge products will be able to save on transportation fees. It also provides a large market as Ho Chi Minh City has a population exceeding 7 million. Investors will know that there will be enough consumers.
Also there are attractive factors like the lower cost in hiring workers. Because Ho Chi Minh City has a large population it means that it will have large pools of workers. This in turn helps investors not to feel the pinch when giving salaries and to be able to maximize profits.
Lastly, there will be many different types of industries there. Since land is cheap, it might be easy to purchase some to invest. Moreover the different factories but in the same industry might compliment each other. This will save on transporting goods and to provide a hub for the industry.
Name: Ng Lin Jie
Class:3Formidable
1. Why do you think the Vietnam Government invited Singapore to develop this park? I think the Vietnam goverment invited Singapore because Singapore are free from corruption and are brought up in a way that the will not ceat,so Vietnam think of use as cheats-free and then invited us over.Singaporeans had the other end,money.Singaroreans also want to make money there as it is a new market
Name: Chua Lin Ying
Class: 4 Justice
Q1.
“Over the years, many reputable international financial institutions have come to Singapore to set up operations. In 2001, financial services accounted for 11% of Singapore’s Gross Domestic Product (GDP).
In 2002, the “World Economic Forum Global Competitiveness Report” ranked Singapore among the most sophisticated financial markets in the world. Singapore was also declared the world’s second-freest economy in the Economic Freedom of the world’s 2002 Annual Report.”
And therefore, Vietnam wants to make use of Singapore’s good reputation to gain popularity and recognition, and of cause to achieve its targets of 8.5-8.7 percent GDP growth for 2008.
With such successful economic development, people (investors and tourists) would be more convinced to visit VSIP because they trust Singapore. Singapore itself is also developing on our 2 integrated resorts (IR), one at Marina Bay and the other at Sentosa. Besides the 2 IRs, Singapore also has the world’s largest observation wheel, called the Singapore Flyer (officially on 15th May 2008).
Furthermore, Vietnam might think that Singapore is just a stepping-stone on its way to being developed, just like Singapore. By cooperating with Singapore, tourists would be less worried. Tourists will get to know more about Vietnam. Eventually, people from all over the world will learn to accept and trust Vietnam.
Besides, Singapore has always been a peaceful and stable country. Unlike the other nations, Singaporeans do not go on riots and are in good relationships with other countries. In addition, almost all Singaporeans are able to speak English, which would be a great advantage for them in the development.
To Vietnam, Singapore is the most ideal partner to work with. Without Singapore, Vietnam might never achieve their goals. Hence, the Vietnam Government invited Singapore to develop VSIP.
Name: Soh Cher Yee
Class: 4F
question 2
I think that people from other country want to invest in this park because of the winning combination of developed infrastructure and competitive cost structure.It is located 17km north of Ho Chi Minh City, Vietnam’s main commercial center.They wanted to invest in this park because On January 28, 2007; VSIP was awarded by the Saigon Times Top 40 Award for 2006 in the four localities HCM city, Ba Ria-Vung Tau, Binh Duong and Dong Nai on the basic of business performance and great contribution to the community. Until now, VSIP has attracted 246 projects in VSIP I and 87 projects in VSIP II from 22 countries. The total investment capital exceeds US$ 1.6 billion; of which 190 Tenants in VSIP I and 5 Tenants in VSIP II are in operations. There have been more than 42,000 workers.To demonstrates the success VSIP and the booming of Vietnam’s growth economic. VSIP is ready to provide global companies with integrated solutions to meet their manufacturing needs and business satisfaction. Therefore, VSIP II is to extend around 1000ha nearby VSIP II in Binh Duong Province and our industrial park in northern Vietnam 700ha is located in Bac Ninh Province about 18km from Hanoi (500Ha of Industrial Park and 200Ha of Commercial & Township)As an economic and cooperative project between Vietnam and Singapore government VSIP is further differentiated from others in Vietnam, which was specially promoted and set up by the two leaders of both countries. So it enjoys a strong support from the Central Government and from its provincial Committee at the best.
name:Chia Bi Luan (3)
class:3F
Q1. Why do you think the Vietnam Government invited Singapore to develop this park?
I think that the reason why the Vietnam Government invited singapore to develop this park is because they feel that singapore has lots of talented people/business men,and we also have a greater knowledge for languages regarding different countries.
This is useful for work/the communication for both parties.Futhermore,singapore has a vast partnerships and links across the world,and this would definitely sttract countries to sign business contracts with singapore.
I think that this points of singapore would definitely be very helpful for the futher partnerships and thats why the vietnam government will definitely invite singapore to develop the park.
Carlene Yeo
4 Endeavour
2. Suggests reasons why foreign investors would want to invest in this park.
A few reasons why foreign investors would want to invest in this park:
1)Low labour cost
2)Strategic location
1)Low labour cost would be the main attraction of foreign investors. Labour is abundant in Vietnam due to its urbanising population. The cost of labour is cut down and hence saving a sum of money, which means that the product the company produces would have a competitive edge over others. The cost price is lowered and hence selling price of the product would also be reduced.
2)Its strategic location would also be one contributing factor to why foreign investors would invest in the park. It is close to Ho Chi Min city but not in the city which means that the rental of land would be low as it is not in the city itself. VSIP is also near Ho Chi Minh City’s Tan Son Nhat International Airport and major seaports. This cuts down on transportation fees and is easily accessible to civilisation, highways, housing estates, education institutes and many more. When transportation fees are cut down, the money can be put to better uses. The sum of money may not be alot but it accumulates as time passes.
Name:Lim Yi Kai
Class:3Formidable
Q1. Why do you think the Vietnam Government invited Singapore to develop this park?
I think taht Singapore have many good points to made Vietnam convinced to choose Singapore to develop the park.
Firstly,Singapore are politically and economically stabled.Singapore also have a talented workforce.Singapore also has many links with other business partners across the world. This would definitely attract investors to invest and develop business.
Name: Zheng Lijing
Class: 4 Adventurous
Q2
While most of the reasons are stated, I have two supporting reasons here on why foreign investors are attracted to invest in this park.
Spending an astronomical sum of money on worker trainings could probably be the main reason to hold back investors. However, this worry is no longer a problem because VSIP and the local province government have set up a Vietnam-Singapore Technical School (VSTS) which train students in a wide range of technical skills. Students graduated from VSTS undoubtly possess essential skills required to work in VSIP. This not only reduces cost to employ professionals to train unskilled workers, but also saves time as investors need not search for suitable workers since there are readily graduates from VSTS.
Secondly, other than having a strategic location and a easy excess to airport, investors will gain another advantage within the next five years in cutting down expenses when export their products. According to TODAY newspaper April 15 08, Vietnam's Pacific Airlines will be
transformed into 'a low-cost carrier and will adopt the Jetstar brand and operate as part of
Qantas’ budget carrier brand. The fights will expand into markets namely Sinapore, Malaysia, Thailand and Cambodia. This denotes a higher profit and more convenient exporting medium for the investors.
With improvement done on training workers and air transportation and hence reducing the principle spent on investment( of course also the previous reasons mentioned), I believe investors have ample reasons to invest in this park.
Name:Ng Wei Ming
Class: 4 Diligent
Q2.
To me the main reason why investors would want to invest in VSIP is because of it full infrastructure facilities and conducive operating environment. Thus making it a better choice of location to invest in to other places. Singapore is also an economic stable country, thus making the invesment more trustworthy.Also, due to the lower cost of hiring workers, that means more workers could be hired, making manufacturing faster, thus leading to more revenue.Therefore more investors would like to invest in VSIP due to its advantages.
Name: Goh Xin Yi Janice(5)
Class: 4Adventurous
Q2. Suggests reasons why foreign investors would want to invest in this park.
Vietnam Singapore Industrial Park(VSIP) is not only a location choice that is easy reach to cities, Ho Chi Minh City’s Tan Son Nhat International Airport and major seaports but also a winning combination of developed infrastructure and competitive cost structure. Vietnam is also easily reached through the budget airlines that are provided nowadays which make Vietnam emerged as a reliable destination.
Foreign investors would want to invest in VSIP this industry because they hailed VSIP as a showcase for Vietnam's developing site in terms of investment environment, technical infrastructure and supporting services. Moreover, investors wanted to invest in places that would cost them lesser but to gain a rather good profit in the end. VSIP provides cheap labour cost and quick completion of administrative procedures which thus, provides an ideal place for foregin investors to invest in.
Over the years, the VSIP had already gained investors' confidence to invest in Vietnam through the developing process such as the blooming earned profits since 2002, completed infrastructure and the businesses of investiors that are operating profitably in the market. On the other hand, VSIP had been expanding widely through the years. This have already give foreign investors a guarantee to have their businesses prosperous despite facing intense competition due to globalisation.
In conclusion, due to fast developing of Singapore society, where Singapore grow from a little red dot to an attractive city today, I think it is a rather good opportunity to attract investors from all over the world to invest in Vietnam Singapore Industrial Park through the success in changing Singapore from a country with no resources, nothing of its own, to a developing country with advance technologies and globalisation and lending a helping hand to Vietnam for its progress of developing from a third world. Therefore, with the confidence both countries collaborate to give the investors, I am sure that the investors have sufficient reasons to invest in this industry regardless of globalisation happening in the world or the competition in the investment market.
Suggests reasons why foreign investors would want to invest in this park.
1) The park is new.
2) For Singaporeans to invest in this park, their minds can be at ease as this park is very closely related to singapore. It is in a way a safe investment as well.
3)Building costs is low as the country is not so fully developed.
Name:Koh Jin Tong
Class:4F
1. Why do you think the Vietnam Government invited Singapore to develop this park?
I think there are two reasons. One is that it will give Vietnamese more jobs. Two is that as Singapore has a good global standing, Vietnam will get easier connections with the world through Singapore.
As when Singapore move into the area, they will start up the jobs and will require employees with low pay. There for they will most likely go for the locals as they are cheaper than Singaporeans. This will increase Vietnam's employment rate, boosting their economy making it more stable. It will also attract more people from other countries, to start their business here. As they world would have seen that Singapore is doing very well and will soon follow. This will even quicker globalise Vietnam allowing them to kill two birds with one stone. Increasing the economy and attracting more business.
The other reason is that as Singapore has a good global standing, Vietnam will get easier connections with the world through Singapore. As Singapore is known to many well developed countries, Singapore will have more connections with them. It will also increase Singapores profit margin. As Singapore will than be the middleman like in he production of oil, where Singapore refines the oil to its useable state. This good global standing allows Vietnam to increase its fame to more developed countries. As to me i think well developed countries look down on less developed ones.
So i think this are two of the reasons why the Vietnam Government invited Singapore to develop the park. As it boost the economy and jobs, as well as increasing Vietnams global standings.
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