Opening Remarks by President Tony Tan Keng Yam at Lunch with Singaporean and Vietnamese Businessmen in Ho Chi Minh City

Good afternoon, ladies and gentlemen

        Thank you for taking time from your busy schedule to join me for lunch today.

        Vietnam and Singapore’s economic ties are longstanding and strong. In the mid 1990s, Singapore collaborated with Vietnam to establish the Vietnam-Singapore Industrial Park, or VSIP for short. This has proven to be very successful, and there are now four VSIPs in Vietnam, and plans are underway to develop a fifth VSIP in Quang Ngai province.

        Singapore’s economic presence in Vietnam has also broadened to a good number of sectors such as real estate and hospitality, banking and finance, ports and logistics and the food and beverage industries. Given the proximity of our two countries and our close association as ASEAN members, I am confident that our economic links will continue to grow.

        The global economic slowdown is an issue of concern for all of us. The recent pickup in economic activity in the US and resilience in parts of emerging Asia are being offset by the ongoing weakness in the Eurozone. In the near-term, we can expect some moderation in global growth and trade before a recovery takes hold.

        Against this subdued global backdrop, economic growth in Singapore is likely to remain restrained in 2012 with economic growth projected to be in the range of 1 to 3%.

        In the case of Vietnam, which is undergoing economic transition after many years of rapid growth, the global economy in 2012 will present business challenges as well as opportunities. In this regard, I am pleased to have this opportunity to meet up with leading Vietnamese enterprises and Singapore companies based in here in Vietnam to hear your views on Vietnam’s economic landscape.

        Thank you.