Why does Singapore attract many businesses to register for business?
The policies and regulations of the Singaporean Government have created a favorable environment for businesses to develop strongly.
This reality can bring many ideas for Vietnam to improve the investment environment, eliminate unnecessary business conditions; strive to have Vietnam's investment environment in the Top 3 of ASEAN within 2-3 years.
Talking to Lao Dong, Mr. Tran Viet Quan - founder of Tanca.io, a human resource management platform, pointed out factors that help Singapore attract many technology enterprises in many countries around the world to register for business.
Firstly, with an outstanding tax incentive system for startups, Singapore has built a particularly attractive tax structure for startups, especially in the technology sector. According to Mr. Quan, the first 3-year tax exemption policy for revenue under SGD 100,000 and many research and development deductions creates a significant financial advantage in the most important period of survival of the enterprise. This is a key factor helping companies optimize financial resources to invest in products and markets.
Second is the development investment ecosystem. Through analysis of capital mobilization data in the region, Mr. Quan found that Singapore-based startups have a 30% higher success rate in capital mobilization than companies in the same industry in Vietnam. The main reason is that Singapore has a strong network of investors, from large venture capital funds such as Sequoia, Temasek to government support programs such as Startup SG Equity.
Third is business valuation and brand value. According to the research of Mr. Quan and his colleagues, technology enterprises based in Singapore are often valued 1.5-2 times higher than equivalent enterprises in Vietnam. This not only reflects a favorable business environment but also demonstrates a higher level of trust from international partners and customers when working with Singapore-branded enterprises.
Challenges in attracting talent
Mr. Robin Tan, a Singaporean, Director of cam Resources Company, specializing in mold components, pointed out some difficulties when registering for business in Vietnam.
He said: "The biggest obstacle when I registered to do business in Vietnam was the language and legal barriers. As a foreigner, I need to submit many documents and need a fee for a law firm in Vietnam to support me legally.
The cost for this item is quite high and the implementation time is quite long. In addition, the procedure for registering documents for import and export is also relatively complicated for small and medium-sized enterprises.
Meanwhile, according to Mr. Quan, having a strategy to attract global talent is also a big challenge for Vietnamese technology enterprises. For Singapore, they have flexible Tech Pass and Employment Pass visa policies, providing effective solutions to attract international experts, especially high-level technical talents and managers with global experience.
"Through consulting many technology enterprises, I see that the continuous change in legal policies in Vietnam is one of the highest risk factors for innovative enterprises. Especially with breakthrough technologies such as blockchain and artificial intelligence, the legal framework in Singapore provides the necessary clarity and stability for businesses to be able to take long-term investment risks without having to worry about sudden changes in regulations.
From an expert's perspective, I think this trend will continue to increase in the next 5 years, especially for businesses with ambitions to expand international markets. While Singapore provides a solid foundation to reach out to the world, Vietnamese enterprises can still maintain research and production activities in their hometown, creating an effective bilateral development model," Mr. Quan shared.
