SBG Fostering Business, Educational and Charitable Activities in Vietnam

Singapore Business Group HCMC (SBG HCMC) is a non-profit organization established on 9 August 1992. Its mission is to actively foster relations with business communities whilst promoting social, cultural, recreational, educational and charitable activities. Vietnam Business Forum has an interview with Mr Benjamin Yap, President of SBG HCMC about its charity projects and Singaporean businesses’ issues of concern when doing business in Vietnam.

Could you please quote some positive results of SBG HCMC since its establishment in Vietnam?

Since our inception in 1992, we have actively taken part in dialogue sessions with the Government. We are also an active member of the Vietnam Business Forum. Over the years, we have also been involved in charitable works for the less fortunate in and around Ho Chi Minh City. For example, this year, we will be giving out over 250 scholarships to needy students. At the same time, we also give gifts to old-age homes and/or orphanages during Tet.

SBG has been involved in educational activities through its educational fund since 2001. Could you reveal some specific scholarship programmes of SBG in 2009?

Yes, our scholarships to needy and deserving Vietnamese students started in 2001. To date, we have sponsored more than 1,550 students. Our main objective is to help students who do well in their studies but, without the scholarships, would have been compelled to leave school in order to help support their families. The scholarships will support the students from grade 10 to 12 and from 1^st year university to final year university. However, we do not select students based on the course they wish to pursue but rather based on their merit and means.

Our members who are in the education and training field are actively involved in improving the skills and knowledge of Vietnamese students. They are in constant contact with the relevant authorities and will continue to be intimately involved in improving the skills and knowledge of Vietnamese students.

Is low cost labor still an advantage of Vietnam compared to 10 years ago?

As for the low cost labor in Vietnam, inflation over the past few years has given rise to higher cost of living in big cities like Hanoi and HCM City. Consequently, salaries have also risen significantly and this has eroded the low cost labor advantage for Vietnam. The minimum wage 10 years ago and today has increased significantly. Nevertheless, if you compare Vietnamese wages with other ASEAN countries, Vietnam still has an advantage.

How do you evaluate the ongoing effort of Vietnamese Government to actively cut down on bureaucratic, administrative procedures that are causing obstacles for business activities?

I believe that this is an ongoing process. Even for a country like Singapore which prides itself on the ease of doing business and its transparency, there is a constant need to improve and the Singapore Government continues to look into this. I believe that Vietnam has come a long way since it opened its doors to foreign investors and that great strides have already been made resulting in Vietnam’s WTO membership. The fact that Vietnam has embraced the efforts of Project 30 is a testament to the commitment of the Vietnamese Government to actively cutting down on bureaucracy and is to be applauded. More has to be done, of course, but we are moving in the right direction.

What are the issues of most concern by Singapore investors in Vietnam?

Ambiguity of the laws, inconsistency in the way different local authorities apply the law corruption, inadequate infrastructure, lack of highly skilled workforce and lack of good English language skills are some of the issues of concern for Singapore investors. For taxation, this is also a concern as it is significantly higher than that in Singapore. This will increase the cost of doing business in Vietnam for Singaporeans and is considered by small to medium enterprises as one of the barriers to doing business in Vietnam.

Posted by VBN on Nov 17 2009. Filed under Int'l Cooperation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry