The United Overseas Bank (UOB) and Vietnam's Foreign Investment Agency (FIA) have signed a Memorandum of Understanding (MOU) aimed at increasing foreign direct investment (FDI) and trade between the country and Southeast Asia.

Under the MOU, the two sides will host trade delegations, provide business referrals and organise key industry events for companies interested in expanding into Vietnam.

The MOU signing was witnessed by Lim Hng Kiang, Singapore's Minister of Trade and Industry, and Bui Quang Vinh, Vietnam's Minister of Planning and Investment. The MOU marks the first such collaboration between FIA and a bank.

FIA is the designated agency under Vietnam's Ministry of Planning and Investment that supports FDI into the country and Vietnamese companies venturing overseas.

With the signing of the MOU, the FIA will assist UOB customers that are seeking to expand into key investment destinations in Vietnam such as the main cities of HCM City and Hanoi, as well as the fast-developing cities of Da Nang, Phu Quoc, Can Tho, and Hai Phong.

Thng Tien Tat, Executive Director of UOB Vietnam, said the country has become a top investment destination for Asian enterprises looking to expand deeper into the country to cater to its increasingly affluent population.

The UOB Asian Enterprise Survey conducted in February and March 2014 among 1,024 Asian enterprises to understand how they view challenges and opportunities in the region, has shown that one in four Asian enterprises plan to expand into Vietnam this year, making the country one of the top investment destinations in the region.

"Vietnam's growing urban population is creating business opportunities for Asian enterprises, especially those in the manufacturing, agriculture, tourism and oil and gas sectors," he said.

VNA