Economic and trade cooperation has remained a highlight in Vietnam - Singapore relations, especially during the past decade of their strategic partnership (2013-2024). Both sides are now members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), contributing to economic growth in each country and the region.
Big investors
Experts note that the Vietnam-Singapore relations have grown strongly since the two countries established the strategic partnership in 2013. Notably, Singapore is the largest ASEAN investor in Vietnam and ranks second among 147 countries and territories investing in the country, with 3,915 valid projects worth over 83 billion USD. Singaporean investors have poured capital into 18 out of the 21 economic sectors in Vietnam, with focus on processing, manufacturing, real estate, and production and distribution of electricity and gas.
One of the success symbols in the bilateral relations is the Vietnam - Singapore Industrial Parks (VSIP) model. To date, there are 18 VSIPs in 13 provinces and cities, attracting over 18.7 billion USD in investment and creating jobs for more than 300,000 workers.
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The Hoa Sen Group and Singapore’s SP Group sign a strategic partnership to promote sustainable development of clean energy across Hoa Sen’s factories. |
Meanwhile, Vietnam has run 180 investment projects in Singapore, with a total registered capital of over 668 million USD, focusing on science – technology, and information – communications.
Vietnam and Singapore are influential ASEAN members at multilateral forums and on the international arena. The two countries have closely cooperated in regional and international organizations and multilateral forums such as the UN, ASEAN, the Asia – Pacific Economic Cooperation (APEC), the Asia-Europe Meeting (ASEM), the World Trade Organization (WTO), and in regional and global issues of common concern.
According to experts, strong political and diplomatic ties, geographical proximity, cultural similarities in Southeast Asia, and shared membership in FTAs are favorable factors for cooperation between the two nations. Additionally, many Singaporean business delegations, supported by the Vietnam Trade Office in Singapore, visit Vietnam annually to explore the market, seek investment opportunities and partners, and strengthen industrial, trade, and service ties. This reflects the high demand for cooperation between businesses from both sides.
Cao Xuan Thang, Vietnamese Trade Counselor in Singapore, said Singapore is home to numerous multinational companies and serves as a large regional and global hub for information, trade, finance, and logistics. It is also a key international air transit hub and a vital gateway for Asia, particularly Southeast Asia, including Vietnam.
Notably, the Vietnam-Singapore comprehensive economic partnership agreement, signed in December 2020, has opened up many opportunities for trade cooperation.
In January this year, Vietnam became Singapore’s 9th largest trading partner, with two-way trade hitting over 3.39 billion SGD (over 2.54 billion USD), up 16.83% year-on-year. This helps position Vietnam as Singapore’s 15th largest import market.
At a meeting with Singaporean Ambassador to Vietnam Jaya Ratnam, Deputy Minister of Industry and Trade Nguyen Hoang Long emphasized that Singapore is a particularly important partner for Vietnam, and one of Vietnam’s leading economic, trade, and investment partners in the region and the world.
Beyond trade and industry, developing digital economy, and green, clean and sustainable economy is promising areas for stronger cooperation between Vietnamese and Singaporean businesses, he said, expressing his hope that Singapore will continue to support Vietnam in these areas.
To achieve their target of cutting emissions to net zero by 2050, both countries must effectively implement their Green-Digital Economic Partnership imitated in 2023, he noted.
Further strengthening cooperation
To promote market access for Vietnamese pork, chicken, and poultry eggs in Singapore, Vietnamese Ambassador to Singapore Tran Phuoc Anh stated during a meeting with representatives of the Singapore Food Agency (SFA) that Vietnam is ready to cooperate with and support Singapore in ensuring food security.
Vietnam also hopes that the SFA and relevant authorities will expedite the evaluation of Vietnamese enterprises and farms, paving the way for Vietnam’s official export of chicken and poultry eggs to Singapore, the diplomat said.
Damian Chan, CEO of SFA, said heat-processed chicken products from Vietnam could soon be considered for official export to Singapore. He hoped that poultry eggs and other meat products of Vietnam will meet requirements in the future.
The Hoa Sen Group and Singapore’s SP Group recently signed a strategic partnership to promote sustainable development of clean energy across Hoa Sen’s factories nationwide. Accordingly, the SP Group will serve as the consultant for the Hoa Sen Group’s transition to clean energy, providing expertise in power grid infrastructure investment, cooling systems, energy-saving solutions, and other projects for the Vietnamese enterprise’s facilities.
Vu Van Thanh, General Director of the Hoa Sen Group, said that this partnership reflects the company’s strong commitment to sustainable development by promoting green production and emission reduction solutions to meet green standards.
To achieve successful and sustainable exports to Singapore, Thang advised Vietnamese businesses to thoroughly research the market and stay updated on import trends to build effective export strategies.
According Thang, Singapore is becoming more cautious in its trade policies, seeking to avoid over-reliance on any single export or import market. This presents an opportunity for Vietnamese enterprises to deepen their presence in Singapore, contributing to Vietnam’s export growth.
Source: VNA