S'pore's gateway to Indochina
HANOI - Riding the wave for greater Asean integration following the recently concluded Asean summit, Prime Minister Lee Hsien Loong will arrive in Vietnam today as part of his on-going series of introductory visits to key Asean capitals.
Vietnamese Prime Minister Phan Van Khai will host PM Lee and his delegation — including Mrs Lee Hsien Loong, Minister for Foreign Affairs George Yeo, Minister for Trade and Industry Lim Hng Kiang and senior officials — to an official dinner tonight. The last time leaders from the two countries met was in Singapore in March, when Mr Phan and then-PM Goh Chok Tong witnessed the signing of a joint declaration for a "comprehensive cooperation framework in the 21st century".
Singapore's relations with Vietnam have strengthened considerably since Vietnam joined Asean in 1997. Singapore remained Vietnam's top investor last year with a total investment of US$3.9 billion ($6.4 billion). Vietnam is one of the top three recipients of technical assistance under the Singapore Cooperation Programme (SCP). The Vietnam-Singapore Industrial Park (VSIP) and the Vietnam-Singapore Technical Training Centre in Binh Duong province, near Ho Chi Minh City, are examples of increasing economic connectivity between the two countries.
One Singapore food and beverage company, Food Empire Holdings, will see the opening of its Vietnam coffee factory within the VSIP early next year. Said Mr Tan Wang Cheow, chairman and managing director of mainboard-listed Food Empire which invested about US$1 million in the factory plot: "We have been marketing our instant beverage products, such as MacCoffee, in Vietnam for about a decade now and we are one of the top imported coffee brands."
The main reason for setting up the wholly--owned manufacturing operation, is "to cater to the growing demand" for its products in Vietnam and to serve "as a gateway" for export to the neighbouring Indochinese countries. Vietnam is the world's second-largest producer and exporter of coffee beans.
"Foreign players like Food Empire introduced instant coffee only about 10 years ago. So, the market is still growing," said Mr Tan. Common challenges faced in emerging markets such as Vietnam include "ascertaining and understanding the laws and legal systems", he said. But, he added: "Thanks to the good bilateral relations between the Singapore and Vietnam governments and the infrastructure support at the VSIP, it is relatively easier for business dealings in Vietnam." .The most important thing to bear in mind when doing business in Vietnam?
"We need to adapt ourselves to the local market and culture. All product information, advertising and promotions, packaging and the like, should be localised," said Mr Tan. "For example, our usual MacCoffee packaging comes in bags of 25 or 50 sachets. But some local players offer consumers a variety of packaging options, such as reusable plastic containers. We have to respond likewise to stay in touch with market trends," he added.
By Tor Ching - Today (.sg) - December 6, 2004
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