Singapore, Vietnam can deepen ties in innovation, energy connectivity, sustainability: Tan See Leng

[HANOI] Innovation, energy connectivity and sustainability are three areas in which Singapore and Vietnam can work together to seize opportunities of the next decade and further deepen bilateral cooperation, said Second Minister for Trade and Industry Tan See Leng in Vietnam on Friday (Jul 7).

He made this point in a speech at the opening of the Singapore Regional Business Forum (SRBF), the flagship event of the Singapore Business Federation, which is being held overseas for the first time since its inception in 2015.

The minister told an audience of more than 500 business executives and government officials at the Melia Hanoi hotel that, when it comes to innovation, Singapore and Vietnam are among the top three startup ecosystems in South-east Asia today. “With our common goal of driving further economic growth through technology and innovation, there is scope to tap each other’s innovation ecosystems for partners, funding and talent.”

On energy connectivity, the minister noted that both countries share a common vision towards achieving net-zero emissions by 2050. Last October, the two governments inked an agreement on energy cooperation to explore closer collaboration in areas such as renewable energy development, cross-border electricity trading, liquefied natural gas and electricity markets, as well as low-carbon and energy-efficiency solutions.

Turning to his point about sustainability, Dr Tan said that carbon markets can play a critical role in supporting countries to decarbonise, particularly in the harder-to-abate sectors. A deal signed by Singapore and Vietnam to collaborate on carbon credits puts the two countries in “excellent positions” to capture the opportunities generated by carbon markets.

“We look forward to jointly implementing carbon credit generating projects in the coming years. Our projects can help spur a more vibrant carbon market in the region,” he said.

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Dr Tan, who arrived in Hanoi on Wednesday for a three-day official visit, said he had discussions with Vietnam’s Planning and Investment Minister Nguyen Chi Dung to expand the scope of the Singapore-Vietnam connectivity ministerial meeting, to cover the “emerging topics” of innovation and the green and digital economies.

“As we seek out new opportunities in these emerging fields, we will continue to deepen our multi-faceted connectivity in trade and investment, finance, transport, tourism and education.”

Dr Tan said the SRBF was taking place at a time when the global economic outlook remained uncertain and under pressure from challenges ranging from supply-chain disruptions and inflation to climate change. “Globalisation, as we have known, is also changing, with an increasing trend towards protectionism. Businesses are also adapting and innovating in the face of new business needs, to not only be digitalised, but also sustainable.” 

This year’s SRBF is being held in conjunction with the 50th anniversary of diplomatic relations between Singapore and Vietnam, and the 10th anniversary of their strategic partnership.

Vietnamese Prime Minister Pham Minh Chinh made an official visit to Singapore in February. In an interview with Singapore media on Friday, Dr Tan shared that Prime Minister Lee Hsien Loong will visit Vietnam in August.

Bilateral trade reached S$31.3 billion in 2022, a 16.4 per cent increase from the previous year. Vietnam was also Singapore’s 11th-largest trading partner last year. On the investment front, Singapore was Vietnam’s second-largest foreign investor, with a cumulative investment of US$70.8 billion as at end-2022. 

Beyond these figures, Dr Tan said Singapore companies have steadily expanded their investments in Vietnam, across the provinces and in diversified sectors. Many have found committed partners in Vietnam and are happy to continue to play a useful role in Vietnam’s economy, he said.

He lauded the achievements of the Vietnam-Singapore Industrial Park (VSIP), a joint venture between Singapore’s Sembcorp Industries and Vietnam’s Becamex. Since the first park was set up in 1996, there are now 14 VSIPs across 10 provinces in Vietnam. Collectively, they have attracted US$18.4 billion in investment capital and created around 300,000 jobs.

Another example Dr Tan cited was a partnership between Singapore’s YCH Group and Vietnam’s T&T Group, to develop a smart logistics connectivity infrastructure project in Vinh Phuc province.

The Vietnam Superport, as it is called, will have a cargo capacity of 850,000 TEUs (20-foot equivalent units); it aims to transform cargo handling by air, sea, rail and road, and uplift the manufacturing supply chain in northern Vietnam.

At the forum, a total of 12 memoranda of understanding (MOUs) were signed between various public and private-sector organisations from Singapore and Vietnam, including trade associations and business chambers, higher education institutions and financial institutions.

Among the deals was one between PSA International’s subsidiary PSA Vietnam and Saigon Newport Corporation to promote and enhance supply-chain connectivity within Vietnam and South-east Asia.

Another agreement saw Singapore bank UOB elevate its existing MOU with the Foreign Investment Agency of Vietnam’s Ministry of Planning and Investment, with a focus on areas such as new energy, semiconductors and green growth.

Separately, SBF and UOB also launched a joint corporate social responsibility initiative to nurture young talents in the fields of finance, technology and innovation. The two organisations will provide sponsorships for 1,000 students to equip them with skills and hands-on experience in business.