(BOOSTING TIES: President S R Nathan calling on the leader of Vietnam's ruling Communist Party, General Secretary Nong Duc Manh, in Hanoi yesterday.
Feb 27, 2008 Straits Time
Keppel Land to build landmark tower; Changi Airports seals airport upgrading deal in Hue
By Roger Mitton
HANOI - ON THE second day of his state visit to Vietnam, President SR Nathan attended events highlighting Singapore's growing business presence here. Infrastructure development has been a cornerstone of many Singapore investments and Mr Nathan officiated yesterday at the launch ceremonies for two major projects.
After paying a courtesy call on Vietnam's Prime Minister Nguyen Tan Dung, Mr Nathan officiated at the unveiling of a new Ho Chi Minh City development to be built by Keppel Land, which is among the largest property investors in Vietnam. Keppel Land's Saigon Centre is a spectacular retail and financial complex designed to become a world-class architectural landmark reflecting the strong ties between Singapore and Vietnam.
Mr Anthony Vacchione, managing partner of the New York-based architectural firm that designed the three-tower structure, explained its key features to President Nathan and Vietnam's Deputy Prime Minister Hoang Trung Hai. Drawing inspiration from Vietnam's terraced rice fields and bamboo forests, its tallest tower will have 88 storeys and rise to 386m, making it among the tallest in the world.
Said Mr Vacchione: 'Kuala Lumpur has the Petronas twin towers, Sydney its Opera House, and now Ho Chi Minh City will have Saigon Centre, a future symbol of Vietnam and its progress.'
It would also feature state-of-the-art green technology in building design.
During the meeting between the two leaders yesterday, Vietnam's Prime Minister invited Singapore hospitals to consider setting up operations in his country. Later, President Nathan met the leader of Vietnam's ruling Communist Party, General Secretary Nong Duc Manh, and witnessed the signing of an agreement between Changi Airports International (CAI) and Vietnam's Middle Airports Authority to upgrade the airport in the central city of Hue.
It is the first time a foreign investor is working exclusively with Vietnam's tightly controlled aviation authority. Said Mr Chow Kok Fong, chief executive officer of CAI: 'The airport is a critical component of Hue's tourism infrastructure and will generate the economic momentum which Hue deserves.' Hue, capital of Vietnam between 1744 and 1945, is a Unesco World Heritage site and one of the country's premier tourist destinations.
It is best known for its historic monuments such as the elaborate tombs of former emperors and the 17th-century Citadel, home to the Imperial Palace and Vietnam's answer to Beijing's Forbidden City.
Said Mr Chow: 'With the right infrastructure and promotion of the tourism attractions here, there is no reason why the passenger volume in this airport should not treble within five years.'
Tourist numbers to and from Singapore have already shot up. Last year, more than 120,000 people from Singapore visited Vietnam, an increase of 14 per cent over the previous year, while 200,000 Vietnamese travelled to Singapore.
Tourist numbers to and from Singapore have already shot up. Last year, more than 120,000 people from Singapore visited Vietnam, an increase of 14 per cent over the previous year, while 200,000 Vietnamese travelled to Singapore.
Mr Lee Yi Shyan, Minister of State for Trade and Industry, who is accompanying President Nathan, noted that Vietnam's growing tourism industry is an area of potential for Singapore enterprises. 'Our hotels are already coming in here, and they are introducing new dining concepts and leisure services,' said Mr Lee.
He revealed that next month Singapore will initiate a series of urban planning courses for a total of 120 participants in Singapore over the next two years. President Nathan was also accompanied by Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports, yesterday.
rogermitton@hotmail.com
Feb 26, 2008 from the Staits Time.
Changi Airports signs MOU to develop Vietnam's int'l airport
CHANGI Airports International (CAI) signed a Memorandum of Understanding (MOU) on Tuesday with the Middle Airports Authority of Vietnam (MAA) to invest, develop and operate Phu Bai International Airport in the city of Hue.
This marks the first time a foreign investor will be working exclusively with Vietnam's aviation authority. The MOU was inked by Mr Chow Kok Fong, Chief Executive Officer of CAI, and Mr Hoang Thanh, Director-General, Vietnam Middle Airports Authority.
Phu Bai International Airport is located in the City of Hue, which was the capital of Vietnam between 1744 and 1945.
The airport currently handles more than 500,000 passengers per annum and was designated Vietnam's fourth international airport in August 2007.
On the deal, Mr Chow Kok Fong said: 'The airport is a critical component of Hue's tourism infrastructure and will generate the kind of economic momentum which Hue deserves.' 'We want to share with our counterparts here our experience in developing and operating Changi over the past quarter of a century, in particular, our airport management processes and route development expertise in raising the number of international flights,' he added.
Mr Chow said CAI hopes to work closely with the Civil Aviation Administration of Vietnam (CAAV) to finalise the detailed agreement as soon as possible. 'With the right infrastructure and promotion of the tourism attractions here, there is no reason why the passenger volume in this airport should not treble within 5 years,' he said.
Reflection Questions:
Answer any one of the following questions.
1. How will be people of Vietnam benefit from Singapore investment in Vietnam?
2.How will Singapore benefit from her investment in Vietnam?
Post your answer in the comments box.
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7 comments:
Name: Tania Setiawati (20)
Class: 4Adventurous
Q2.
Singapore's investment in Phu Bai International Airport in Hue, a city in Vietnam, for example, is a form of globalisation. It aims to develop the airport to a good international standard in order to attract more tourists and so that Singapore's standard and quality might also be known to the world.
By investing in Vietnam, the bilateral ties of the two parties might as well be strengthened. Being on good terms with neighboring countries is the reason why a country is able to develop and survive because trades and agreements can only be achieved when a country interacts well with other countries. This will then open up the way to bigger and more challenging projects for Singapore to invest in. As natural resources are scarce in Singapore, with a good relationship with Vietnam, being one of the centres of rice cultivation, Singapore could initiatively import rice from there, for example.
Besides that, the upgraded airport later could boost tourism and bring economic benefit for the region, largely ASEAN. This, indirectly, builds the trust and confidence of Singapore in managing developments in this particular sector, i.e. in aviation, leading to more profits for Singapore in the long run.
Name:Chen QingLin(2)
Class:4A
Q1: How will Vietnam benefit from Singapore's investment in Vietnam?
Singapore's investment in Phu Bai International Airport in the city of Hue will further accelerated Vietnam's economic growth. For example, Vietnam can benefit from the help with lessons about airport development and operation in Singapore. Good businesses and commercial results will be created for the airport in Vietnam. Singapore's investment in Phu Bai Airport also ensures that it will developed to good international standards, therefore attracting international flights and tourists to Hue, increasing economic growth in Vietnam. Future development of the tourism industry in Vietnam will generate jobs for the citizens, increase incomes and therefore contribute to economic growth. However, many jobs in services will be generated due to the expanding tourism industry. This provides opportunities for labour force to shift away from the unproductive agricultural sector towards services. The agricultural sector in Vietnam employs over 55% of the employed population but only contributes 20% of GDP. As increasing number of people move from agriculture to services, this will result in higher incomes, reduced poverty and increased consumer's spending, therefore the vietnamese will have a better standard of living due to economic growth.
Singapore's investment in Phu Bai Airport will also strengthen the bilateral ties of both countries.
Name: Tommy Gunawan
Class: 4A
An airport is a key component in increasing tourism in a country. And with Vietnam developing rapidly, it is not surprising for it to turn to Changi Airports International to help develop Hue's Phu Bai Airport to accomodate Vietnam's growing economy.
Singapore Changi Airport has won over 280 awards from 1987 to 2007, and it's investment in Vietnam will definitely boost Vietnam's tourism industry. Singapore, being a prime tourist hub, can teach a thing or two to help Vietnam grow more and more prosperous. This will help Vietnam in growing economically stronger and further develop Vietnam into a more globalised country.
This development in Phu Bai airport will also attract foreign tourists and investors. With the increase in tourism, more jobs will become available, and the increase in foreign investors will help Vietnam develop stronger, making it more and more globalised.
Vietnam has been growing steadily for the past decade, and perhaps with Singapore's help, it may be able to grab the world's attention. They will not only see Vietnam as a growing, globalised country, but also see Singapore as a helpful country. This will help both country in their development, and their efforts in globalisation.
Name: Toh yong qing
Class: 4 Adventurous
Q1)
The investment of Singapore in Vietnam has certainly helped Vietnam in his process of development. Investments in Vietnam such property projects and the industrial park have played a major role in Vietnam’s economic growth, standard of living as well as their quality of life. I shall elaborate on these three key factors:
Firstly, the investment of Singapore in Vietnam has improved their economy. The Joint Steering Committee (JSC) formed by the Singapore Economic Development Board (EDB) and the Vietnam Ministry of Planning and Investment - Foreign Investment Agency (MPI-FIA) and comprising eight other Vietnamese ministries and the State Bank of Vietnam to facilitate fast-track approval and implementation of projects between both countries, has resulted in 20 projects between the two countries worth $646 million in all.
These projects bring in foreign companies as well. In the process, foreign products are made available to the local Vietnamese, providing them with a wider range of choices of products which increases their standard of living.
When there is economic growth in the country, the government can make use of the revenue for education, transportation and medical care. All these contribute to the development of Vietnam. Moreover, education in particular, is exactly what the Vietnamese need. With education, the Vietnamese needn’t be cooped up in the primary or secondary industries in the future. They will be able to join the tertiary and tourism industries in the future and get hold of a job with better prospects. Besides that, the bilateral relation between Singapore and Vietnam has allowed English teachers from Singapore to teach English in Vietnam. This would benefit the Vietnamese because the knowledge of English will help them in their future endeavours. Also, when public transports are made available to the Vietnamese, I believe that the environmental impact in Vietnam would be lessened. As Vietnam becomes more globalised, a key factor would be transportation. This would be, in particular, most obvious in Vietnam’s tremendous increase in motor vehicles. There are currently 600,430 automobiles and 10,410,000 motorbikes by June, 2003. The huge amounts of greenhouse gases emitted by these vehicles contribute to global warming and hence, having public transport, would, to a certain extent, help in alleviating the problems caused by the amount of vehicles.
Environmental health, as well as happiness of the people because of the decreased poverty rates in Vietnam increases the quality of life in Vietnam.
The investment of changi airport in Vietnam’s airport has helped the Vietnamese to be able to spend more money on quality products and has also created a need for human resources. This will help in attracting tourists and hence improve the economy of Vietnam and in the process, also help in increasing the standard of living as well as quality of life in Vietnam.
Vietnam was once a LDC caught up in the poverty cycle. However, the cumulative effect of movements of both people and resources to increase wealth and catalyse greater economic developments in a region has enabled Vietnam to develop. This process is also known as the cumulative causation.
One very good example of cumulative causation in Vietnam is the investment of Singapore companies such as Far East Organization to build houses in Vietnam.
The introduction and expansion of building projects and introduction of industrial parks creates a demand for labour and to a certain extent, talents from Vietnam. In the process, the Vietnamese workers are taught new skills which will enable them to be able to secure a job in this field in the future. This also increases the purchasing power of the Vietnamese because with employment, the population becomes richer. As the quality of the workforce improves, the Vietnamese are able to get better paying jobs. With better paying jobs, demand for more goods and services also increases. This leads to the setting up of retail and food outlets, and entertainment, education and healthcare services. As the paying prospects increases, it increases the local population as more people migrate to the country to take up the job. This again generates income for the country because foreigners working in the country would require a house, food and daily necessities, which allows the government to collect more taxes. With a larger budget, the government can now expand public services. This sets in place new construction activities. Over time, the area becomes a growth pole. Invention, innovation and the revamping of industries could lead to greater growth which includes the introduction of other industries or the expansion of existing industries. Linked industries are attracted to this area. At the same time, backward linkages to firms are in place supplying raw materials or component parts (e.g. Cement, bricks) and forward linkages to firms further processing the product or using it as a component part. (E.g. The industrial parks with companies here to process the components before sending it to other countries.)
All these factors contribute to the growth and development of vietnam as well as the vietnamese.
Name: Khong Jia Yi (7)
Class: 4A
Q1)
The main benefit of Singapore's investment in Vietnam would be that Vietnam people would have more job prospects, enabling in the growth of their own country. When more people are working, the GDP of their country would also increase,and not only that, working Vietnamese would have a higher purchasing power and would be able to afford better medical benefits and better education for the young.
This received better education would gradually help the young population of Vietnam to find even better job opportunities in other countries, and cause urbanisation to their country.The standard of living would also be raised.
With Singapore helping the development of Vietnam's airport, more tourists would be attracted to Vietnam, and this would in turn cause more jobs to be created in the Tourism industry of Vietnam. Such would bring about the development of Vietnam, and prove to benefit the people in terms of not only economic reasons, but can also increase their quality of life when they have access to better facilities (eg. medical).
The bilateral ties of both Singapore and Vietnam would be greatly strengthened, and both would largely benefit from it.
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