Ho Chi Minh City, 3 December 2024 – The Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) and UOB Vietnam today signed a Memorandum of Understanding (MOU), solidifying their commitment to fostering business cooperation and facilitating foreign direct investment (FDI) into Ho Chi Minh City and Southern Vietnam.
From left to right: Mr Sam Cheong, Head of Group FDI Advisory & Network Partnership, UOB; Mr Pang Te Cheng, Singapore Consul General; Mr Victor Ngo, CEO of UOB Vietnam; Mr Tran Phu Lu, Director of ITPC; Mr Phan Van Mai, Chairman of Ho Chi Minh City People’s Committee; Mr Tran Phuoc Anh, Director of Ho Chi Minh City Department of Foreign Affairs
The MOU strengthens the strategic collaboration between ITPC and UOB Vietnam to attract high-quality FDI, particularly in key sectors such as high technology, green growth, sustainable development, infrastructure, digital transformation, and health care. It also seeks to support Vietnamese enterprises integrating into global supply chains and expanding internationally.
Vietnam continues to be a leading destination for FDI in Southeast Asia. Despite global economic instability, the country has seen robust FDI growth, with actual inflows reaching a record US$23.2 billion in 2023, surpassing the previous record of US$22.4 billion in 2022. As of October 2024, realised FDI had risen by 8.8% year-on-year to US$19.6 billion, marking the highest level in the past five years.
Ho Chi Minh City remains a key driver of this growth, accounting for 7.7% of total registered FDI investment capital and leading the country in the number of new projects (accounting for 41.9%) during the first 10 months of 2024.
Under the MOU, UOB Vietnam's Foreign Direct Investment Advisory Unit (FDI Advisory Unit) will work closely with ITPC to attract and facilitate high-quality investments into Ho Chi Minh City and the South region of Vietnam. The partnership will involve the two organisations co-hosting investment promotion activities, such as forums, seminars, and events, aimed at providing investment insights into high-potential sectors, updating government-supported framework, and fostering direct dialogue between investors and government agencies to address challenges and expedite the resolution of obstacles.
UOB Vietnam will also support Vietnamese companies in integrating into the supply chains of FDI companies that are UOB’s clients and partners. Additionally, the Bank will assist Vietnamese businesses in expanding into Singapore and other ASEAN markets.
For both inbound and outbound FDI, Vietnamese and foreign companies can benefit from UOB's comprehensive suite of tailored financial solutions. They can also leverage the Bank's extensive regional network to connect with government agencies, trade associations, and professional service providers across ASEAN.
Mr Victor Ngo, CEO of UOB Vietnam, said: "Vietnam stands out as one of the most attractive destinations for foreign direct investment, with Ho Chi Minh City at its core as a dynamic economic powerhouse. The UOB Business Outlook 2024 shows that nearly 90% of Vietnamese companies are eager to expand internationally, particularly within the ASEAN region. With our extensive ASEAN network and deep expertise in facilitating cross-border investments, UOB is uniquely positioned to help global and regional companies seize growth opportunities in Vietnam while empowering Vietnamese businesses to expand their presence overseas."
In 2011, the Bank set up a dedicated one-stop FDI Advisory, to support businesses navigating the region. Over the past decade, more than 4,500 companies have tapped UOB’s FDI advisory services to expand overseas, especially into Asean. In Vietnam, UOB’s FDI Advisory Unit has supported about 300 companies to expand into the country over the past 5 years. These companies have pledged to invest about S$7.3 billion and create about 50,000 jobs in Vietnam.
Further demonstrating its long-term commitment to Vietnam, UOB Vietnam has significantly expanded its scale and capabilities in recent years. The bank increased its charter capital from VND5 trillion to VND8 trillion last year, making it the foreign bank with the largest charter capital in Vietnam. With the UOB Group’s acquisition of the consumer banking business in four ASEAN markets, including Vietnam, UOB Vietnam has also expanded its retail banking business and be able to offer a wider range of financial solutions to support both foreign and domestic businesses and retail customers.