Top Reasons Singapore Companies Are Expanding to Vietnam with MRA Grant Support

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Introduction

Vietnam has emerged as one of Southeast Asia’s most dynamic and promising economies. With its rapidly growing middle class, digital-savvy population, and strong demand for modern goods and services, it’s no surprise that Singapore companies are turning their attention to Vietnam as a key international growth market.

While the opportunities are vast, venturing into any new market involves risk, cost, and complexity. To help mitigate these concerns, Enterprise Singapore offers the Market Readiness Assistance (MRA) Grant, which supports SMEs in their efforts to expand overseas. Through co-funding of up to 50% of eligible expenses (capped at S$100,000 per year), the MRA Grant enables companies to enter new markets like Vietnam more confidently and effectively.

In this article, we explore why Vietnam is increasingly popular among Singapore businesses, the specific advantages it offers, and how the MRA Grant plays a critical role in enabling market entry success.

Vietnam: A High-Growth, High-Potential Market

1. One of Southeast Asia’s Fastest-Growing Economies

Vietnam’s GDP has been growing steadily over the past decade, consistently ranking among the top in ASEAN. With a youthful population of nearly 100 million and rising domestic consumption, the country’s economic outlook remains strong. Key growth drivers include manufacturing, digital services, infrastructure, and urban development.

For Singapore SMEs, Vietnam offers an expanding market with a growing demand for modern solutions, lifestyle products, education, healthcare, technology, and more.

2. Favorable Demographics

Vietnam has a median age of around 30 and a rapidly urbanising population. Younger consumers are increasingly brand-conscious, digitally connected, and open to new international products and experiences. This makes the market highly attractive for companies in sectors like fashion, e-commerce, fintech, F&B, and consumer electronics.

3. Strong Government Support for Foreign Investment

Vietnam actively promotes foreign direct investment (FDI) and has signed numerous free trade agreements, including the CPTPP, RCEP, and ASEAN Free Trade Area. These agreements create a more open, competitive, and transparent business environment for foreign investors.

The government also supports the development of industrial parks and smart cities, providing further opportunities for technology and B2B service providers from Singapore.

4. Strategic Location for ASEAN Expansion

With its long coastline, strategic location in mainland Southeast Asia, and connectivity via road, air, and sea, Vietnam is an ideal base for companies looking to grow regionally. Major cities like Ho Chi Minh City, Hanoi, and Da Nang offer different entry points for various industries and business models.

Why Singapore Companies Are Choosing Vietnam

Singaporean companies are expanding into Vietnam for a mix of strategic and operational reasons:

1. Cost-Effective Market Entry

Compared to mature markets like Japan or Australia, Vietnam offers relatively lower startup and operational costs. This allows SMEs to test new business models or products in a less capital-intensive environment.

2. Complementary Market Needs

Singapore’s strengths in education, healthcare, logistics, fintech, sustainability, and design align well with Vietnam’s current development needs. This opens the door for SMEs to provide value-added services and products that address real market gaps.

3. Ease of Relationship Building

Vietnamese businesses are increasingly open to collaboration with Singaporean companies due to Singapore’s reputation for reliability, governance, and innovation. This creates fertile ground for joint ventures, distributor partnerships, and B2B solutions.

4. Singapore–Vietnam Bilateral Ties

Singapore is one of Vietnam’s top investors and trade partners. Government-to-government initiatives like the Vietnam–Singapore Industrial Parks (VSIPs) further strengthen cooperation and provide entry points for new SMEs looking to integrate into Vietnam’s economic ecosystem.

How the MRA Grant Makes Vietnam Expansion Easier

Expanding into a new market can be financially and operationally demanding. This is where the MRA Grant plays a transformative role.

The grant covers up to 50% of eligible third-party costs for three key internationalisation areas:

1. Overseas Market Promotion

Marketing your brand is essential to gain traction in a new market. The MRA Grant helps fund:

  • Digital advertising (e.g., Facebook, TikTok, Google Ads targeting Vietnamese consumers)
  • Participation in trade shows or exhibitions in Ho Chi Minh City or Hanoi
  • Public relations campaigns in local media

Example: A Singapore fashion retailer launching in Vietnam may run a localised digital campaign to attract brand visibility—subsidised under the grant.

2. Overseas Business Development

To succeed in Vietnam, companies often need on-ground support to build networks and understand local market dynamics. The MRA Grant supports:

  • Hiring in-market consultants or sales agents
  • Engaging local business development firms for partner or distributor search
  • Conducting market feasibility studies or surveys

Example: A software provider may use the grant to engage a Vietnamese tech consultant to identify enterprise clients and refine the go-to-market strategy.

3. Overseas Market Setup

Getting legally established in Vietnam involves paperwork and regulatory guidance. The grant helps with:

  • Legal and accounting advisory services for company registration
  • Tax compliance consultation
  • Intellectual property (IP) registration

Example: A Singapore F&B brand opening a franchise in Ho Chi Minh City can use the grant to cover incorporation costs and legal agreements.

Real-World Use Cases

Many Singapore SMEs have successfully tapped the MRA Grant to expand into Vietnam. Here are a few hypothetical examples:

  • Tech Startup: Participated in a fintech trade fair in Hanoi, hired a consultant to explore licensing and connected with three potential partners.
  • Retail Brand: Localised product packaging into Vietnamese, launched a digital campaign, and signed a distribution deal with a local chain.
  • Education Provider: Conducted a market study, engaged a franchise consultant, and secured an agreement with a Vietnamese education company.

These examples show the flexibility and impact of the MRA Grant in enabling SMEs to enter the Vietnam market with lower financial risk.

Eligibility Criteria

To qualify for the MRA Grant, your company must meet the following conditions:

  1. Be registered and operating in Singapore
  2. Have at least 30% local shareholding
  3. Group annual turnover not exceeding S$100 million, or group employment size not exceeding 200 employees
  4. No significant existing presence in Vietnam at the point of application

Eligible projects must be new initiatives and not duplications of ongoing operations.

What the Application Process Looks Like

Here is a quick overview of how to apply for the MRA Grant for Vietnam expansion:

Step 1: Prepare Your Project Plan

Define your business objectives in Vietnam and identify relevant service providers (e.g., consultants, legal firms, ad agencies). Get quotations and define deliverables.

Step 2: Apply via Business Grants Portal

Use your CorpPass to log in and fill out the grant application. Attach your project plan, quotations, and financials.

Step 3: Wait for Enterprise Singapore’s Approval

Enterprise Singapore typically reviews applications within 4–8 weeks. You may be asked for clarifications during the process.

Step 4: Receive Letter of Offer

Once approved, you’ll receive a Letter of Offer (LOF). Activities may only begin after the date on the LOF.

Step 5: Execute the Project

Carry out your expansion as planned—track all deliverables and expenses.

Step 6: Submit Claims

After project completion, submit proof of payments, vendor deliverables, and a post-project report.

Best Practices for Success in Vietnam

  1. Localise Strategically
    Translate materials accurately and tailor your offerings to fit Vietnamese consumer preferences and pricing sensitivity.
  2. Engage Local Experts
    Use Vietnamese consultants or agencies who understand regulatory frameworks and cultural nuances.
  3. Build Relationships
    Business in Vietnam is relationship-driven. Attend networking events, and follow up consistently.
  4. Start Small, Scale Fast
    Use the MRA Grant to test the market with a focused campaign or pilot, and build from there.

Conclusion

Vietnam is a rising star in Asia’s economic landscape—and Singapore SMEs are well-positioned to succeed in this market. With its strong demand, favourable demographics, and deepening ties with Singapore, Vietnam offers both immediate and long-term growth opportunities.

However, international expansion is a major undertaking, and the MRA Grant offers timely and practical support to de-risk the process. From promotional campaigns and in-market consulting to regulatory setup, the grant empowers companies to make smarter, faster, and more cost-effective moves into Vietnam.

If you’re a Singapore SME ready to explore new horizons, Vietnam might just be your next big opportunity—and the MRA Grant is the launchpad to help you get there.

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